One of my friend in a psu bank has been chargesheeted for misappropriation of funds and presently Disciplinary action is going on.
He also had a Savings Account as well as some FDs in another bank.
The employer bank has put a lien on all his accounts as well as written letter to the other bank to put lien on his account.
The other banks (without any court order / Garnishee order) , based on letter from the employer bank set lien on his savings account as well as fixed Deposit.
As per my limited knowledge of banking law, the bankers' right to lien does not apply in case of matter pertaining to any other bank, unless there is a specific order from court or any other authority like income tax attachment order / sale tax / excise etc. But In this case there is no such order.
Therefore the action putting lien by another bank (based on letter from employer bank) may not be legally tenable.
Experts please confirm or deny this. Please also enlighten the relevant section of the particular banking law which would apply here.