AIR 1992 SUPREME COURT 1066 ::1992 AIR SCW 945 ::1992 (2) Arbi LR 1 ::(1992) 1 LS 20 ::(1992) 2 RRR 19 ::(1992) BankJ 641 ::1992 (2) SCC 330 ::1992 (1) UJ (SC) 494 ::1992 UJ(SC) 1 494 ::(1992) 2 ArbiLR 1 ::1992 (2) Civ LJ 558 ::1992 (2) All CJ 810 ::(1992) 1 BankCLR 547 ::1992 (1) BankCas 324 ::(1992) 2 APLJ 15 ::(1992) 74 ComCas 597 ::1992 (2) SCJ 59 ::(1992) 1 BankLJ 1 ::(1992) 2 JT 136 (SC) ::1992 (2) JT 136

Supreme Court Of India

(From : AIR 1981 Delhi 126)

Hon'ble Judge(s): J. S. Verma, K. Jayachandra Reddy , JJ

(A) Contract Act (9 of 1872) , S.171— Banker's lien - General lien or particular lien - Insurance of bank guarantee on Court's direction on basis of deposit of duly discharged fixed deposit receipts - Recital in letters executed along with that deposits and renewals shall remain with bank so long as any amount is due to bank - General lien is created in favour of bank - Bank guarantee discharged by Court - Attachment of FDRs - Permissible only to extent or balance remaining after adjustment of its dues by bank. AIR 1981 Delhi 126, Reversed. Civil P.C. (5 of 1908) , O.21 R.96(a)— Where the covering letters executed by a customer having overdraft facilities, while obtaining bank guarantee in favour of High Court as per direction of Court on security of two fixed deposit receipts after duly discharging them, contained the recital that the customer agreed that the deposits and re-newals shall remain with the bank so long as any amount on any account is due to the Bank from the customer, the recital in the letter clearly went to show that a general lien is created in favour of the Bank in respect of the FDRs. The Bank had a right to set off in respect of the FDRs if there was a liability of the judgment-debtor due to the bank. As such, when the bank guarantee was discharged by order in appeal, the general lien created did not come to an end merely ....