LIEN AND PLEDGE
M. PIRAVI PERUMAL
(Querist) 30 June 2009
This query is : Resolved
WHAT IS THE DIFFERENCE BETWEEN LIEN AND PLEDGE.
Y V Vishweshwar Rao
(Expert) 01 July 2009
Lien and General Lien can be exercised when the assets of the debtor are in the hands of Creditor or came to the custody of Credotor in a usual business course - the creditor can excercise len and adjust his due amount
A Pleadge is an asset pleged as security by the debtor with the creditor for the due repayment of the Due amout, it is a security for the due amount and accordinlgy it can be enforced by the Creditor
The lien and its excercise is not specific but the Pledge is specific and it will be in the custody of the Creditor . Gold/ valuable aricles -pledge and sale for recovery of due amounts
mahendra rai jain
(Expert) 01 July 2009
PLEDGE----------- is an actual delivery of the movable property to the lender as a security for a loan. The ownership, however, remains with the borrowers. The difference is that in case of mortgage, the possession of property remains in the hand of borrower. In case of pledge the lender is entitled to the exclusive possession of the property till the debit is repaid.
A LIEN--------------is a right to retain property till the debt is repaid. It is a legal claim on the securities which come in to the banker's hands in the ordinary course of business.The lien arises by implication of law from certain situations. While the mortgage and pledge arises from a special agreement between a borrower and lender
