Section 237 The Indian Contract Act, 1872
Section 237 – Indian Contract Act, 1872
Title: Lien on goods bailed for reward
Bare Act Language:
Section 237.
A person who is lawfully in possession of goods, not being a mere voluntary bailee, has a right to retain possession of such goods until the charges for the carriage, or storage, or other lawful charges, incurred in respect of the goods, are paid.
🔍 Explanation:
This section gives a right of lien to a person who has possession of goods for reward (e.g., carrier, warehouseman).
The person can hold on to the goods until the person entitled pays the lawful charges incurred.
It does not apply to a voluntary bailee (someone holding goods without payment).
✅ Key Points:
The lien is a possessory lien, meaning it depends on the person lawfully possessing the goods.
The lien lasts until the charges are paid.
It protects people like carriers, warehousemen, bailees for reward.
🧑⚖️ Example:
A sends goods to B via a transporter C.
C transports and stores the goods but B does not pay the transportation or storage charges.
C has the right to retain possession of the goods until payment is made.
RELATED Blog
0 comments