Account lien
Querist :
Anonymous
(Querist) 25 May 2021
This query is : Resolved
Hi, My bankers has been lien my saving account, do to non payment of my loan, my question is, after my saving. / current account lien... will my Demat account can also lien by bank... as my Demat account is with local brokers like motilal Oswal
SHIRISH PAWAR, 7738990900
(Expert) 25 May 2021
Hello,
As per my opinion, if the same bank maintains the Demat account then the bank will have a lien over your account.
T. Kalaiselvan, Advocate
(Expert) 25 May 2021
A lien means putting a lock. So, the lien amount is the amount which the bank has put a hold on. That amount is frozen, and you can't withdraw those funds or use them until the lien is removed. The bank may put a lien on a specific amount in an account, or on the entire account.
The Contract Act, 1872, gives banks the right to lien the borrower's savings against any debt taken from the bank. The right to lien empowers banks to keep the assets of the borrower till the time the debt is settled.
