1. Lien is a right to retain that which is in possession of a person and belongs to another until his demands are satisfied. According to the Contract Act 1872 Section 170” a lien is the right of a creditor in possession of goods, securities or any other assets belonging to the debtor to retain them until the debt is repaid.”
The owner of the property, who grants the lien, is referred to as the lienor and the person who has the
benefit of the lien is referred to as the lienee.
There are two types of lien
1) particular lien is a right of the creditor to retain the goods of the debtor in respect of a particular debt and this debt must have arisen out of service rendered or money expended on the goods
2) General lien is a right of the creditor to retain in possession of the goods and securities till the dues are paid. In case of general lien the creditor has no right to sell or liquidate the property without filing suit against the debtor.