There are many types of liens and lien creditors. Privileges can be established by financial institutions, governments and small businesses. Below are some of the most common privileges. Justice Pennycuick argued in In Re Southern Livestock Producers Ltd that it is sufficiently clear that he will not have a privilege unless the bailee determines the scope of the improvement, he even has an example saying that it will be quite illogical for a kennel keeper to have a privilege to move a dog. but not for boarding. He explained that it would be impossible for him to introduce a complex change in an established principle. The existence of a lien is very important because it protects the rights of lenders if the fees are not paid. Secured loans, because it is implicit, are less risky for the lender because they can lead to lower interest rates for borrowers. For example, if a person buys a private vehicle, it is important for them to check all the privileges in it against that vehicle.

In addition, if there is a debt that is an unpaid debt to that particular vehicle, the buyer would run the risk of it being taken over by the lender. There have been several landmark court decisions with different interpretations of bail privilege, both with respect to special privilege and general privilege under the respective provisions of the Indian Contracts Act. This chapter deals with the subtitle of Special Privilege. The scope of the privilege should be discussed. This requires a 1990 decision in which the Allahabad Supreme Court interpreted the term “work or jurisdiction” referred to in section 170 of the Act.[13] The court has established that it understands that the work or jurisdiction must be: the unpaid seller may exercise this right by retaining the buyer`s goods or by refusing to deliver the buyer`s goods until the amount due to the buyer is paid to the seller. In the event of a transfer of ownership, the Seller may always refuse payment to the Buyer until the amount due has been paid by the Buyer. This is a question of presumption as to the extent to which equitable privileges extend outside the unpaid seller`s privilege. In a number of cases involving active decisions, equitable privileges have been invoked, but not yet with respect to movable property. [17] Australian courts have been the most sensitive to equitable privileges with respect to personal property (see Hewett v Court (1983) 57 ALJR 211, but a review of cases still leaves a lack of clarity on the principles on which equitable privilege is placed. A mechanic`s lien may be tied to real estate if the owner does not pay a contractor for the services rendered.

If the debtor never pays, the contractor could go to court and seek a judgment against the non-paying party, where the goods or assets can be auctioned off to pay the secured creditor. Many service providers have the option to deposit a lien to secure payment, including construction companies and dry cleaners. There is also a relevant case in which the bank provided some financial support to the sugar factory, which violated the promise of all its stock and was stored in seven godowns of this factory owner as collateral. The stock was confiscated for consideration. In the present case, the Court held that the Sugar Commissioner could not prevail over the rights reserved to the Bank. The bank obtained the rights to godown and was later sold at public auction. A lien is a claim or statutory right in assets that are typically used as collateral to repay a debt. A lien could be established by a creditor or a court decision. A privilege is used to secure an underlying obligation, such as. B the repayment of a loan.

If the underlying obligation is not fulfilled, the creditor may be able to seize the asset that is the subject of the lien. There are many types of privileges that are used to secure assets. Privilege is the right to retain ownership of someone else`s property until the other person meets the requirements of the person in possession. The claim can be any – to fulfill an obligation or to pay a sum of money due. In the event that the principal or buyer does not pay the amount to the agent or a seafarer, the agent may claim the amount by selling the security, and this right arose due to the privilege. . . .