Banker's Lien with respect to Money - Contracts II - Subhra Tripathy - 2013-63.docx - RESEARCH PAPER BANKER\u2019S LIEN WITH RESPECT TO MONEY Subject

Banker's Lien with respect to Money - Contracts II - Subhra Tripathy - 2013-63.docx

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RESEARCH PAPER BANKER’S LIEN WITH RESPECT TO MONEY Subject: Contracts II Submitted to: Prof. Rajesh Kapoor Submitted by: Subhra Tripathy II Year, III Semester Roll No. 2013-63 NALSAR University of Law, Hyderabad
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TABLE OF CONTENTS Table of Cases ............................................................................................................................ ii Chapter – I Abstract .................................................................................................................. iii Chapter – II Introduction ............................................................................................................ 1 Chapter – III Analysis ................................................................................................................ 2 Money – Can it be a Subject Matter of Bailment? ................................................................. 2 Does Deposit of Money in the Bank amount to Bailment or Not? ........................................ 2 The Right of Lien contrasted with the Right of Set-Off ........................................................ 3 Chapter – IV Conclusion ............................................................................................................ 6 Bibliography .............................................................................................................................. iv Books .................................................................................................................................... iv Articles .................................................................................................................................. iv i
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TABLE OF CASES X Brandao v. Barnett .............................................................................................................. 1, 3 C.R. Narasimha Setty v. Canara Bank ....................................................................................... 3 Devendrakumar v. Gulabsingh ............................................................................................... 3, 5 Halesowen Presswork & Assemblies Ltd. v. Westminster Bank ................................................. 5 Indian Bank Rasipuram v. Sri Annapoorna Finance Rasipuram ............................................... 4 Mercantile Bank of India Ltd. v. Rochaldas Gidumal & Co. ................................................. 3, 4 Misa v. Currie ......................................................................................................................... 1, 4 Punjab National Bank Ltd. v. Arura Mal Durga Das ............................................................. 3, 4 Radha Raman Choudhary v. Chota Nagpur Banking Assn. Ltd. ............................................... 2 SBI v. M.P. Iron and Steel Works (P) Ltd. .................................................................................. 3 Syndicate Bank v. Vijay Kumar .................................................................................................. 1 Tilendra Nath Mahanta v. United Bank of India ........................................................................ 3 ii
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CHAPTER – I ABSTRACT The right of ‘lien’ is a possessory right that allows a bailee to retain the goods bailed to him until his lawful charges are paid. The precursor to the right of lien is a bailment of the goods over which the right of lien may be exercised. Liens are of two kinds, namely: Particular Lien and General Lien. The right of ‘general lien’ is incorporated in The Indian Contract Act, 1872 and it entitles the bailee to detain any goods bailed to him for any charges due to him with respect to those goods or any other goods. General lien is a right available only to certain bailees, inter alia, Bankers. This project delves into Banker’s lien with respect to monies deposited with the Banker. The questions that have been analyzed include whether money can be the subject matter of bailment, whether deposit of money to a Banker amounts to bailment and whether Banker’s lien extends to such deposit of money. iii
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CHAPTER – II INTRODUCTION Lien is in its primary sense is a right in one man to retain that which is in his possession belonging to another until certain demands of the person in possession are satisfied. In this primary sense it is given by law and not by contract. 1 The right of ‘general lien’ is a privilege which is conferred by Section 171 of The Indian Contract Act, 1872 2 on certain kinds of bailees including, among others, Bankers. In the case Brandao v. Barnett , 3 it was established that Bankers have a general lien on all securities deposited with them as bankers by a customer unless there is a contract, whether express or implied by circumstances, which is inconsistent with such lien. This was further approved in the case Misa v. Currie which held that a Banker has lien upon the all bills, cheques, and money entrusted or paid to him and all securities or negotiable instruments deposited with him in the capacity of a Banker, for the purpose of his general balance.
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  • Spring '20
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  • Debt, Cheque, Fractional-reserve banking, Deposit account

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