Definition
The right of a creditor to retain possession of a debtor's property until a debt is paid. A banker's lien (under Section 171 of the Indian Contract Act) is a general lien — it allows a bank to retain securities deposited with it for any dues owed by the customer, not just dues linked to the specific deposit. Distinguished from a pledge (specific) and mortgage (registered security on immovable property).
Related Terms
Pledge
The delivery of movable goods (shares, FDRs, gold, commodities) by a borrower (pledgor) to a lender …
Mortgage
A transfer of interest in immovable property as security for the repayment of money. The Transfer of…
Security Interest
A right, title, or interest of any kind upon property created in favour of a secured creditor as a s…
Need Expert Advice on Lien?
For specific advice on how Lien applies to your debt recovery matter, consult Advocate Subodh Bajpai — LLM, MBA (XLRI Jamshedpur). 25+ years of exclusive banking and debt recovery practice across DRT, SARFAESI, IBC, and NI Act.
Defined by Advocate Subodh Bajpai, Senior Partner, Unified Chambers and Associates