Word 'Lien' - Indian Laws - General

Meaning of word Lien The word lien originally means binding from the Latin ligamen. Its lexical meaning is right to retain . The word lien is now variously described and used under different context such as contractual lien , equitable lien , specific lien , general lien , partners lien , etc. etc. In Halsbury s Laws of England, Fourth Edition, Volume 28 at page 221, para 502 it is stated : In its primary or legal sense lien means a right at common law in one man to retain that which is rightfully and continuously in his possession belonging to another until the present and accrued claims are satisfied. In Stroud s Judicial Dictionary, 5th Edition, Volume 3 at page 1465 the following passage is found: LIEN. (1) A lien-(without effecting a transference of the property in a thing)-is the right to retain possession of a thing until a claim be satisfied; and it is either particular or general . So, as regards Scotland, lien is defined as including the right of retention (Sale of Goods Act 1893 (c. 71), Section 62), or it shall mean and include right of retention (Factors (Scotland) Act 1890 (c. 40), Section 1); see hereon Great Eastern Railway v. Lords Trustees (1909) A.C. 109 In words and Phrases, Permanent Edition Vol. 25 the definition of word lien when used to explain the equitable lien, is given thus : A lien from a legal standpoint, embodies the idea of a deed or bond, and necessarily implies that there is something in existence to which it attaches. At page 393 of the same Volume it is stated : The word lien has a well-known signification. In law it signifies an obligation, tie, or claim annexed to or attaching upon any property, without satisfying which such property cannot be demanded by its owner, vide Storm v. Waddell, N.Y.,2 Sandf. Ch. 494, 507, 508. Again at page 399 of the same Volume it is stated : Lien is a term of very large and comprehensive signification, but which never imports more than security, vide Mobile Building Loan Ass n v. Robretson, 65 Ala. 382, 383. In Black s Law Dictionary, 6th Edition, at page 922 the following passage is found: The word lien is a generic term and, standing alone, includes liens acquired by contract or by operation of law. Shelat, J. in Paresh Chandra v. Controller of Stores AIR1971SC359 while interpreting Clause 14 of Rule 2003 of the Railway Fundamental Rules which defines lien has observed : Rule 2003 of the Railway Fundamental Rules defines in Clauses 3 and 14 the terms cadre and lien . Lien , as defined in Clause 14 means the title of a railway employee to hold substantively a permanent post to which he has been permanently appointed. According to this definition, therefore, the appellant and respondents 4 to 8 were entitled to, with effect from August 15, 1947 (when all of them were made permanent), a lien on the respective posts to which, as from that day, they were confirmed and made permanent. Triveni Shankar Saxena v. State of U.P. Ors.,- [ 1991 (12) TMI 285 - SUPREME COURT ] In K.S. Saradambal v. Jagannatham K Brothers, [ 1971 (10) TMI 48 - HIGH COURT OF MADRAS ] , held: It would be sufficient only to refer to the following observation in Halsbury s Laws of England, third edition, volume 24, at page 143: A legal lien differs from a mortgage and a pledge in being an un-assignable personal right which subsists only so long as possession of the goods subsists. A mortgage is an assignable right in the property charged and does not depend on possession. A pawn or pledge gives a special assignable interest in the property to the pawnee. A lien is, however, included in the definition of mortgage in the Law of Property Act, 1925. There an equitable mortgage is created by deposit of title deeds, the mortgagee has a legal lien on the deeds deposited. This leads us to the question as to what right is available to the applicant-company, as the holder of lien. That again takes us to the question as to what is meant by lien . The word lien is defined in the Law Lexicon by Ramanatha Iyer as: A lien may be defined to be a charge on property for the payment of a debt or duty, and for which it may be sold in discharge of the lien A lien, in a limited and technical sense, signifies the right by which a person in possession of personal property holds and retains it against the owner in satisfaction of a demand due to the party retaining it; but in its more extensive meaning and common acceptation it is understood and used to denote a legal claim or charge on property, either real or personal, as security for the payment of some debt or obligation; it is not strictly a right in or right to the thing itself but more properly constitutes a charge or security thereon. The word lien is defined in Stroud s Judicial Dictionary, third edition, at page 1644, as: A lien- (without effecting a transference of the property in a thing) - is the right to retain possession of a thing until a claim be satisfied; and it is either particular or general .