AIR 1996 ALLAHABAD 165 ::1996 ALL. L. J. 493 ::1995 (2) All CJ 863 ::1998 (91) Com Cas 569 ::1996 (4) LandLR 417 ::1997 (1) BankLJ 356

Allahabad High Court

Hon'ble Judge(s): R. B. Mehrotra , J

Contract Act (9 of 1872) , S.171, S.174— Banker's lien - Pledge- Is form of bailment of goods - Banker is entitled to retain goods banked for satisfaction of any other debt or promise - Particularly when goods were pledged for general and not specific purpose - Bank further not estopped from claiming lien in view of redemption of goods on payment of amount due. Evidence Act (1 of 1872) , S.115— Pledge is only a form of bailment and all pledges are bailment. The banker's lien contemplated by S. 171 as such is specific provision relating to banker's lien and has an overriding effect on general provisions of Sec. 174 which provide for relationship of pawnee and pawner in respect of pledged goods. The banker's lien will carry over to such pledges and bank can retain pledged goods, if the debtor had not cleared his amount in connection with another loan. AIR 1993 Bombay 87, AIR 1994 Kant 1 and AIR 1992 Cal 193, Disting.(Para 16 18 20) Further even if the Manager of the Bank itself sent notice to the bailer to redeem the ornaments by payment of the amount due and the amount having been paid by the bailor, the bank is not estopped from claiming any lien over the pledged ornaments.(Para 27) .....