Bank Lien

Querist : Anonymous (Querist) 03 July 2011 This query is : Resolved
G is a customer of HDFC bank and has been issued credit card 7 years back. She has never defaulted and has been an excellent customer for the bank.Bank has defaulted on service and in stead of regretting its lapses in writing has started bossing over G. being dignified female at a senior position G complained in writing to bank and escalated to nodal officer and then to MD.She has not been given satisfactory resolution and bank has not apologized in writing.
G has written to the bank has blocked the payments of CC.Bank started the harassment by agents including recovery and g filed a police complaint.
All this has continued and G has stood firm on her stand that bank shall have to accept its faults and apologize in writing. The principle amount of help up payment of Rs.17000/ has swollen to become Rs.45000/ with interest and penalties.
Bank has created a lien on FD of principle amount of Rs.50000/- of G, with a maturity amount of Rs.55000/ and bank Manager has claimed bank enjoys general lien vide" Banker's Lien and right to set off"

Question is without a specific approval/consent from customer can bank enjoy " Banker's Lien and right to set off"?
and
Is the action of bank legally correct in this case while the bank is resolving the grievance of customer?
and
Vide which law of the land " Banker's Lien and right to set off" is applicable on all customers.
and
is it legally applicable on all customers without any specific approval/consent from customer ?

Kindly give your valuable opinion and if possible some citations.
Should G contest the decision of bank or not?
Kindly guide.

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