Negotiable Instruments: Exhaustive Coverage by Adv Roma Bhagat. Register Now!
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sanjay verma (sales manager)     30 June 2012

Lien in saving bank a/c

if a bank marked lien in a saving bank a/c .can the bank with-hold provident fund transfered in the same a/c ?


 6 Replies


Lien for what?Do you have a loan in the same bank or do you hold a credit o the bank.If you ar defaulter of the loan and credit cards the bank can put a lien on your account.Whatever money is credited in the said account will automatically be debited to the lien amount.


The first line should be read as "do you hold a credit card" typing error.

Kumar Doab (FIN)     30 June 2012

The banks maintain that bank can mark lien in case of unpaid debt. Banks have been including a clause to this effect in a/c opening forms, CC application forms, MITC etc. Bank can exercise lien to the tune of amount of debt. You may carefully go thru the a/c opening form.


You may go thru the attachments. There may be other relevant and useful judgments. Valuable advice of learned experts/members is sought.

---banks cannot exercise lien over the personal account

(v) Lien
Banks have a right to exercise lien under section 171 of the Indian Contract Act against the dues from
constituents/customers. However, the banks cannot exercise lien over the personal account of a customer on the ground
that money was due to the bank in another account where he acts in a different capacity, if there is no agreement to that

Attached File : 832894149 bank lien does not extends to fixed deposits.doc, 832894149 banker, 832894149 banks cannot exercise lien over the personal account.pdf downloaded: 766 times
1 Like


Agreeing to the views of MR.Kumar, banks have a right to put a lien only on savings accounts and not on any other accounts of the defaulting customer.

Section 171 in The Indian Contract Act, 1872
171. General line of bankers, factors, wharfingers, attorneys and policybrokers.- Bankers, factors, wharfingers, attorneys of a High Court and policy- brokers may, in the absence of a contract to the contrary,
1. See the Indian Evidence Act, 1872 (1 of 1872 ), s. 117.

retain as a security for a general balance of account, any goods bailed to them; but no other persons have a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect. 1[ Bailments of Pledges .

Outstanding liability on loans and credit cards can be put as lien on the savings account.

Kumar Doab (FIN)     07 July 2012

@ Mr. Sainath Devala,

More citations, copies of judgements,elaborations are required establishing Bank can not mark lien on FD. Kindly provide the details.

Kevin singh (Director)     18 March 2014

Can bank lien joint saving account? If one person is defaulter?

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