Lien

jyotirmaya behera (Querist) 07 August 2012 This query is : Resolved
One person takes a loan from a bank and he has a saving account in said bank. If that person cant repay the loan amount, can the bank collect that said amount through lien process from said person’s saving account?
Is there have any latest judgment over lien?

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ajay sethi (Expert) 07 August 2012
he must have signed terms and condions for loan . the loan agreement must be containing a clause "I hereby grant and confirm the existence of the right of lien and set-off with the Bank, which it may use anytime to utilise any money belonging to me and deposited with the bank, towards any outstanding dues".

read your loan agreement carefully .

ajay sethi (Expert) 07 August 2012
This right is available as per Indian Contract Act. A lien is the right to retain all securities of the customer in respect of the general balance due from him (Section 171 of Indian Contract Act).