Differences between Particular Lien and

General Lien
Business Law

Differences between Particular Lien and General Lien

1. Availability

A particular lien is available only against a property (goods) in respect of which the skill and
labour have been exercised, while a general lien is available against any property of another
and in the possession of the person trying to exercise the lien in respect of general balance of
account.

2. When can the lien be exercised

A particular lien can be exercised when the labour or skill has been applied on the goods so
as to improve their value and in accordance with the purpose of the bailment. and the terms of
the contract. Thus, a bailee in respect of feeding an animal cannot detain the animal for non-
payment of feeding expenses by the bailor, but a veterinary surgeon who has performed a
surgery or otherwise treated the animal, is entitled to lien.

A general lien, on the other hand, can be exercised no matter whether any labour or skill has
been expended in respect of the goods.

3. Who can exercise

As a general rule, particular lien can be exercised by a bailee only, whereas a right of general
lien is expressly given to factors, bankers, wharfingers, policy-brokers and high court
attorneys under the condition that there is no agreement to the contrary.

4. Right to sale of goods

Under a particular lien, the bailee can hold the goods but ordinarily has no right to sell the
goods to realize his dues. A right to sell may, however, be conferred on him by a special
agreement. Whereas under general lien, goods cannot be sold for the recovery of dues, their
possession can be retained merely until the payment of the dues.
A lien is a right of one person to retain property or goods which are in his possession,
belonging to another person until the promise or the liability is discharged. This lien may be
particular or general.

Particular Lien :

A particular lien is available only against the particular property in respect of which the
bailee has expended labour and skill. A bailee is entitled to a particular lien only (Sec. 179).

Example:

A gives two cars - An Ambassador and a Fiat, for repairs to B. B repaired only the
Ambassador car. A took delivery of the Ambassador car without making the payment of the
repair charges. B cannot retain the Fiat car for the repair charges due in respect of the
Ambassador car.

It should be noted that lien is possessory in nature. Hence if possession is lost, the lien is also
lost,

Conditions for Exercise of Lien :

In order to exercise lien, the following conditions are essential:

1. Right of lien can be exercised only when the bailee has expended his labour and skill on
the goods bailed. Therefore, mere custody of goods does not give a right of lien.

Examples:

(1) A parks his car in B's garage for safe custody. A does not pay the rent. B cannot retain the
car. [Hatton v. Car maintenance Co. Ltd.]

(2) A repairs B's car. B does not pay the repair charges. B can retain the car until payment is
made.

2. Right of lien can be exercised only when the work has been completed in time. If the work
has not been completed in time, the lien cannot be exercised.

3. Right of lien can be exercised only if the payment is due. In case the payment is to be
made, n on delivery, but at a future date, then the lien cannot be exercised.

Examples:

A agrees to repair B's T.V. and accepts payment after 2 weeks. On repairing the T.V., B
cannot exercise his right of lien.

General Lien :

A general lien is a right of one person to retain any property or goods which are in his
possession belonging to another person until the promise or liability is discharged. It is a right
to retain the property belonging to another for a general balance of account. General lien is
available to bankers, factors, wharfingers, attorneys of High Court and policy brokers.

Example:

A has two accounts in a bank. In savings bank account, he has a credit balance of Rs. 500. In
current account, he has an overdraft of Rs. 1,000. Bank can exercise right of lien on the
savings account for the amount due on the current account. It should be noted that right of
lien will not apply to properties deposited for safe custody or for a specific purpose.

(http://www.preservearticles.com)

A lien (/ˈliːn/ or /ˈliːən/)[Note 1] is a form of security interest granted over an item of property to
secure the payment of a debt or performance of some other obligation. The owner of the
property, who grants the lien, is referred to as the lienee[3] and the person who has the benefit
of the lien is referred to as the lienor[4] or lien holder.

The etymological root is Anglo-French lien, loyen "bond", "restraint", from Latin ligamen,
from ligare "to bind".

In the United States, the term lien generally refers to a wide range of encumbrances and
would include other forms of mortgage or charge. In the USA, a lien characteristically refers
to non-possessory security interests (see generally: Security interest—categories).

In other common-law countries, the term lien refers to a very specific type of security
interest, being a passive right to retain (but not sell) property until the debt or other obligation
is discharged. In contrast to the usage of the term in the USA, in other countries it refers to a
purely possessory form of security interest; indeed, when possession of the property is lost,
the lien is released.[5] However, common-law countries also recognize a slightly anomalous
form of security interest called an "equitable lien" which arises in certain rare instances.

Despite their differences in terminology and application, there are a number of similarities
between liens in the USA and elsewhere in the common-law world.

(wikipedia)

Definition of PARTICULAR LIEN. : a lien upon specific property as security for the payment of a debt
or the satisfaction of some other obligation arising out of a transaction or agreement involving that
property —called also specific lien — compare common-law lien, general lien.

(www.merriam-webster.com/dictionary/particular%20lien)

Definition. Tax lien or judgment lien that attaches to all personal and real property of a person or
firm (the lienee). It covers not only the goods or property that gives rise to the debt, but all the
goods or property of the lienee. In the US, a general lien applies only to personal property.

(www.merriam-webster.com/dictionary/particular%20lien)

A particular lien is available only against the particular property in respect of which the
bailee has expended labor and skill. A bailee is entitled to a particular lien only.
Example: A gives two cars – An Ambassador and a Fiat, for repairs to B. B repaired only the
Ambassador car.

A took delivery of the Ambassador car without making the payment of the repair charges. B
cannot retain the Fiat car for the repair charges due in respect of the Ambassador car.

It should be noted that lien is possessory in nature; hence if possession is lost, the lien is also
lost.

Conditions for Exercise of particular Lien

1. Right of lien can be exercised only when the bailee has expended his labor and skill
on the goods bailed. Therefore, mere custody of goods does not give a right of lien.
2. Right of lion can be exercised only when the work has been completed in lime. If the
work has not been completed in lime, the lien cannot be exercised.
3. Right of lien can be exercised only if the payment is due. In case the payment is to be
made on delivery, but at a future date, then the lien cannot be exercised.

General Lien
A general lien is a right of one person to retain any property or goods which are in his
possession belonging to another person until the promise or liability is discharged.
It is a right to retain the property belonging to another for a general balance of account.
General lien is available to bankers, factors, attorneys of High Court and policy brokers.

Example:

A has two accounts in a bank. In savings bank account, he has a credit balance of $500.

In current account, lie has an overdraft of $1,000. Bank can exercise right of lien on the
savings account for the amount due on the current account.

It should be noted that right of lien will not apply to properties deposited for safe custody or
for a specific purpose.

1. This right can be exercised against any property belonging to the other party in
possession of the person exercising the right.
2. This right can be exercised for a general balance of account i.e., for any amount due.
3. This right is available only to bankers, factors wharfingers, attorneys of High Courts
and policy brokers.

A lender of last resort is an institution which is willing to offer loans as a last resort. Such
institution is usually a country’s central bank.

A central bank offers extension of credit to financial institutions experiencing financial

The main task in front of the lender of last resort is to preserve the stability of the banking
and financial system by protecting individuals’ deposited funds and preventing panic-ridden
withdrawing from banks with temporary limited liquidity.

For more than century and a half, central banks have been trying to avoid great depressions
by acting as lenders of last resort in times of financial crisis.

At first,

This act provides liquidity at a penalty rate. Subsequently through open market operations, it
lowers interest rates on safe assets. And finally, this process involves direct market support.

Commercial banks usually resort to lender’s help only in times of crisis because such actions
indicate financial difficulties.

Loans may be granted not only to commercial banks but also to any other eligible financial
institution, even private companies, which is considered highly risky.

There are wide-spread arguments against. Such extension of credit can, in fact, conceal the
true financial state of an institution, and prolong its failure. Eventually, the body fails to cure
the current financial crises and instead creates new ones.

Related

(https://iedunote.com/how-general-lien-particular-lien-works)
Particular Lien

1. This right is available to bailee in respect of those goods only on which he has expended
skill or labour.

2. This right can be exercised only to recover charges for skill or labour employed or
expenses incurred on those goods.

3. This right is available to bailee, finder of goods, inn-keepers, hoteliers, etc.

General Lien

1. This right can be exercised against any property belonging to the other party in possession
of the person exercising the right.

2. This right can be exercised for a general balance of account i.e., for any amount due.

3. This right is available only to bankers, factors wharfingers, attorneys of High Courts and
policy brokers.

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