Chapter IX - Of Bailment
Section 170
Section 170: Bailee’s particular lien
A bailee who applies labour or skill to the goods for the bailment purpose may ordinarily retain those goods for the due remuneration.
On this page
Need advice on Section 170?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed, he has, in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect of them.
Illustrations
(a) A delivers a rough diamond to B, a jeweller, to be cut and polished, which is accordingly done. B is entitled to retain the stone till he is paid for the services he has rendered.
(b) A gives, cloth to B, a tailor, to make into a coat. B promises A to deliver the coat as soon as it is finished, and to give a three months’ credit for the price. B is not entitled to retain the coat until he is paid.
Rule and business relevance
This is a particular lien relating to services on those goods, subject to a contrary contract. The credit-term illustration shows how agreed delivery obligations can defeat retention.
Limits and related provisions
Do not treat it as a general right to hold any customer property for all unpaid invoices or as an automatic power of sale.
Hypothetical business example
Hypothetical example: A repairer completes authorised skilled work on a machine and considers retaining that machine for the due repair charge, after checking any agreed credit terms.
Practical decision flow
Identify the labour or skill applied consistently with the bailment purpose.
Calculate remuneration due for those goods.
Check contrary terms before retaining them.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the labour or skill applied consistently with the bailment purpose.
- Calculate remuneration due for those goods.
- Check contrary terms before retaining them.
Avoid
- Do not treat it as a general right to hold any customer property for all unpaid invoices or as an automatic power of sale.
Glossary
- Particular lien
- Retention of the serviced goods for remuneration relating to them.
- Due remuneration
- Payment due for the qualifying services.
Frequently asked questions
Does it cover all unrelated debts?
No. The section concerns remuneration for services in respect of those goods.
Can agreed credit terms matter?
Yes. The tailor illustration shows a contrary delivery-and-credit agreement preventing retention.
Does retention itself authorise sale?
This provision states a retention right, not a general sale power.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026