Another important feature of the relationship between the banker and the customer is that a banker may in the absence of a contract to the contrary, retain as a security for the general balance of account any goods or securities bailed to him. There are two types of Lien Rights :
This is a right available to one person to retain the goods or articles of other for not performing obligation attached to that property. In this type of lien a person can retain particular property which some obligation is attached. Particular lien is available only against those goods or articles on which some skill or labor have been expended.
Examples: Tailor, watch repairer, Gold smith etc. can enjoy particular lien.
Section 171 of Indian Contract Act says that Bankers, Warfingers , attorneys of High Court and Policy Brokers can exercise right of general lien over the articles or securities deposited with them.
Example: If two securities are given to banker but a loan is taken against one of them he ( banker ) may retain both the securities until his claim is satisfied.
Case law: Wilkivision Vs. London and Country Bank.