Chapter IX - Of Bailment
Section 171
Section 171: General lien for specified businesses
Specified businesses have a default general lien, while other persons need an express contract for that general retention right.
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Need advice on Section 171?
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
Bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, 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.
Rule and business relevance
The listed categories are bankers, factors, wharfingers, attorneys of a High Court and policy-brokers. They may retain bailed goods as security for a general account balance unless contracted otherwise.
Limits and related provisions
Do not apply the listed-category default to every service provider. Verify the capacity, goods, account and contrary terms; retention is not automatically a sale right.
Hypothetical business example
Hypothetical example: A business outside the listed categories claims it can keep bailed goods for a general account balance. It must establish an express contractual basis rather than rely on the listed default.
Practical decision flow
Identify whether the holder falls within a listed category.
Read any express or contrary contractual lien provision.
Connect the goods and claimed general balance to the lawful retention right.
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 whether the holder falls within a listed category.
- Read any express or contrary contractual lien provision.
- Connect the goods and claimed general balance to the lawful retention right.
Avoid
- Do not apply the listed-category default to every service provider. Verify the capacity, goods, account and contrary terms; retention is not automatically a sale right.
Glossary
- General lien
- Retention as security for a general balance of account.
- Express contract
- A specifically agreed basis required here for persons outside the listed categories.
Frequently asked questions
Does every bailee have this general lien?
No. The provision distinguishes listed categories and other persons.
Can the default be excluded?
Yes. The listed-category rule is subject to a contract to the contrary.
Is a particular lien different?
Yes. Section 170 addresses remuneration for services concerning the particular goods.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026