Multiple choice

Lien is the right to ____ the _____ until repayment of the loan as per provisions of _____ of Indian Contract Act.

  1. retain the possession of, goods, securities and bank deposits, Sec 170

  2. retain the possession of, goods and securities, Sec 170

  3. sell, goods and securities, Sec 171

  4. retain the possession of, goods and immovable properties, Sec 170
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B Correct answer
Explanation

In case of a particular lien (Section 170 of Indian Contract Act), the creditor gets the right to retain possession only of goods or securities for which the dues have arisen and not for other dues. For example, a watch-repairer can withhold the delivery of watch until his charges of repairing the watch are paid to him.

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