Section 170 Indian Contract Act 1872 - Bailee's Particular Lien

Section 170 of the Indian Contract Act, 1872 gives a bailee a limited right to retain particular goods when the bailee has used labour or skill on those goods in accordance with the purpose of the bailment and the agreed remuneration remains unpaid.

What is a bailee's particular lien?

A bailment generally involves delivery of goods by one person to another for a purpose, on the understanding that the goods will be returned or otherwise dealt with according to the bailor's directions after that purpose is accomplished. The person receiving the goods is the bailee. A particular lien under Section 170 is the bailee's right, subject to the statutory conditions, to retain the very goods on which labour or skill has been exercised until remuneration for that service is paid.

Text and effect of Section 170

Where a bailee, consistently with the purpose of the bailment, renders a service involving labour or skill in respect of the bailed goods, Section 170 permits retention of those goods until the remuneration due for that service is received, unless the parties have contracted otherwise.

The lien is therefore possessory and particular: it relates to the specific goods in respect of which the qualifying service was rendered. It is not, by itself, a general security over unrelated goods or balances.

Conditions for exercising the lien

There must be a bailment of goods.
The bailee must render a service involving labour or skill in respect of those goods.
The service must be in accordance with the purpose of the bailment.
Remuneration for that service must be due.
The parties must not have made a contract inconsistent with the right of retention.
The bailee must retain possession of the goods for the possessory lien to operate.

Statutory illustrations

Diamond given to a jeweller

If a rough diamond is delivered to a jeweller for cutting and polishing and that work is completed, the illustration to Section 170 recognizes the jeweller's right to retain the diamond until payment for the service.

Cloth given to a tailor on credit terms

If cloth is given to a tailor to make a coat, but the tailor has agreed to deliver the finished coat immediately and allow three months' credit for the price, the contractual arrangement is inconsistent with immediate retention for payment. The statutory illustration therefore denies the lien in that situation.

Particular lien under Section 170 and general lien under Section 171

Section 170 concerns remuneration connected with labour or skill exercised on the particular goods retained. Section 171, by contrast, deals with the general lien available to specified classes such as bankers, factors, wharfingers, attorneys of a High Court and policy-brokers, subject to the terms of that provision.

Practical meaning

Section 170 protects a bailee who has added labour or skill to goods but has not been paid for that work. At the same time, the words concerning a contract to the contrary make the parties' agreed delivery and credit terms important. Whether the lien exists in a particular dispute therefore depends on the bailment, the nature of the service, possession, payment terms and the parties' contract.

Official law source: For the authoritative text and current consolidated Act, refer to The Indian Contract Act, 1872 on India Code.