Chapter X - Agency
Section 221
Section 221: Agent’s lien on received property
An agent ordinarily may retain the principal’s received property for amounts due in respect of it, unless contracted otherwise.
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Need advice on Section 221?
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
In the absence of any contract to the contrary, an agent is entitled to retain goods, papers and other property, whether movable or immovable of the principal received by him, until the amount due to himself for commission, disbursements and services in respect of the same has been paid or accounted for to him.
Rule and business relevance
The property may include goods, papers and movable or immovable property received by the agent. The amounts concern commission, disbursements and services in respect of the same.
Limits and related provisions
This is not an unlimited lien over any property for any claim or an automatic power to sell. Check receipt, connection of the debt and contrary terms.
Hypothetical business example
Hypothetical example: An agent holding the principal’s transaction papers examines a lien for due services concerning that property, subject to the agreement and applicable law.
Practical decision flow
Identify the principal’s property received by the agent.
Connect the due commission, disbursements or services to it.
Check contrary terms and whether amounts have been paid or accounted for.
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 principal’s property received by the agent.
- Connect the due commission, disbursements or services to it.
- Check contrary terms and whether amounts have been paid or accounted for.
Avoid
- This is not an unlimited lien over any property for any claim or an automatic power to sell. Check receipt, connection of the debt and contrary terms.
Glossary
- Agent’s lien
- The stated right of retention over received principal property.
- Disbursement
- An outlay relevant to the agency property or business.
Frequently asked questions
Can the contract change this default?
Yes. The rule applies in the absence of a contrary contract.
Is a sale power expressly granted here?
The provision states retention, not a general sale power.
Must the amounts relate to the property?
The section describes amounts in respect of the same.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026