LIEN
Lien is the privilege of a leaser possessing products or securities having a place with a borrower to hold them until an obligation due from the recent is paid. Lien contrasts from different types of charges in regard that it doesn't emerge out of an inferred or express understanding. The privilege of lien emerges in law bankrupt dealings between the gatherings.
Lien provides for a man just a privilege to hold the ownership of merchandise and not the ability to deal unless such a privilege is explicitly presented by statute (e.g. to unpaid vendor or Pawnee) or by custom or utilization.
Lien provides for a man just a privilege to hold the ownership of merchandise and not the ability to deal unless such a privilege is explicitly presented by statute (e.g. to unpaid vendor or Pawnee) or by custom or utilization.
(a) creditor's possession of goods/securities in the ordinary course of business.
(b) the debtor has a lawful debt due to discharge to the creditor.
(c) there must not be any contract to the contrary.
Kinds / Types of Lien :
There are two kinds of lien.
(a) Particular lien and
(b) General lien.
Particular lien
A Particular lien emerges, Where products can be held by the loan boss in admiration of a Particular obligation just. For instance, a tailor has a specific lien for his charges on the shirt made for his client.
General lien
Under Section 171 of the agreement Act, 1872, investors, variables (trade specialists), wharfingers, lawyers of High court and strategy intermediaries can, without an agreement despite what might be expected, activity lien and hold security for a general equalization of record any products safeguarded to them. So broad lien gives a privilege to hold merchandise and securities in admiration of a specific obligation as well as in appreciation of the general money owed by proprietor of the products and securities.
Banker's lien
As a general rule, the right of lien does not give the leaser any energy to deal the relative products/securities held. The position, be that as it may, is by all accounts diverse on account of investors. Tradition and legitimate choices have further broadened the suggestions and extent of this privilege. In Brenda VS, Barrette (1846) 12C1 and Fin 787 expressed that investors have a general lien on all securities saved with them as brokers by a client, unless there be an express contract, or circumstances that demonstrate an inferred contract, conflicting with lien. A brokers lien is more than a general lien; it is an inferred promise. Hence, the investor can practice every one of the privileges of a pledge if there should be an occurrence of a broker's lien. In the occasion of default by a client, he may continue to deal the merchandise/securities held however in the wake of giving a sensible notification.
Negative lien
The investor here and there requests that a borrower execute a letter pronouncing that his benefits are free from encumbrance at the time the development is made. The borrower additionally embrace that the benefits expressed in the said letter should not be hampered or discarded without the bank's authorization in composing insofar as the development proceeds. This endeavour is known as a negative lien.The broker can't specifically understand his obligations from such resources. Be that as it may, because of the above burdens, investors premium are to sure degree secured.
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