26 February, 2016

Distinguish between Pledge and Right to Lien

Pledge and Right to Lien can be distinguished as follows:-

Right to Lien
1.      Pledge is a kind of bailment and security.
2.  In a pledge, pawnee acquires a special interest in the property pledged.

3.  Pledge is a delivery of goods to the creditor as security for his debt.
1.      Right to lien is not so.

2.      Right to lien gives only right to detain subject matter of the lien until payment and a lien is not transferable to a third person.
3.    Lien is a right of a creditor to retain the goods until his debt (or dues) is paid or satisfied.

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