https://www.taxtmi.com/caselaws?id=336916 A bank cannot invoke general lien under Section 171 of the Indian Contract Act, 1872 to retain surplus sale proceeds realised under the SARFAESI Act after satisfying the secured debt, where the surplus arose from sale of a guarantor's mortgaged property and the bank sought to adjust it against a separate account. The surplus is not goods bailed to the banker for a general balance of account, so Section 171 does not authorise appropriation towards another liability. The amount, once realised in excess of the secured debt, must be returned to the person entitled to it unless lawfully attached or otherwise validly appropriated, and refund with interest was upheld. en-us Wed, 07 Dec 2016 00:00:00 +0530 Sat, 31 Dec 2016 13:45:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=336916 A bank cannot invoke general lien under Section 171 of the Indian Contract Act, 1872 to retain surplus sale proceeds realised under the SARFAESI Act after satisfying the secured debt, where the surplus arose from sale of a guarantor's mortgaged property and the bank sought to adjust it against a separate account. The surplus is not goods bailed to the banker for a general balance of account, so Section 171 does not authorise appropriation towards another liability. The amount, once realised in excess of the secured debt, must be returned to the person entitled to it unless lawfully attached or otherwise validly appropriated, and refund with interest was upheld. Case-Laws Indian Laws Wed, 07 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=336916