A banker's lien is subject to a contract to the contrary.

( 1 ) THIS execution case raises the question of banker s lien.

( 2 ) THE decree-holder obtained a decree on 2-11-1979 for Rs. 1,04,441. 35 with future interest at 9 per cent per annum and costs against the judgment-debtors, Jullundur Body Builders. In the course of execution the judgment-debtors said that they will pay the decretal amount in instalments. They were accordingly required to furnish a bank guarantee in the sum of Rs. 90,000. The judgment-debtors approached the Syndicate Bank the Bank with whom they had an overdraft account. They deposited two fixed deposit receipts with a covering letter with the bank and requested it to issue a guarantee in favour of the Registrar of this court. The particulars of the FDR are as under :

(1) FDR dated 9-5-80 for Rs. 25,000. 00 to mature on 1-7-85. (2) FDR dated 17-9-80 for Rs. 65,000. 00 t0 mature on 17-12-83. The deposit receipts were duly discharged in favour of the bank. On 17-9-1980 the bank executed a deed of guarantee for Rs. 90,000. 00 in favour of the Registrar.

( 3 ) ON the application of the decree-holder this court attached an amount of Rs. 35,000 in the hands of the bank out of the amount of the aforesaid deposit receipts. The order of attachment was made by R. N. Aggarwal J. on 21-11-80. The bank as a garnishee has now raised objection to the attachment. The ground of objection is that the bank has a lien on the deposit receipts and that the amount docs not belong to the judgment-debtors and cannot therefore be attached. It is the validity of this defence which is in question.

( 4 ) "the judgment-debtors are customers of the bank. They have an overdraft account. The bank has allowed them overdraft facility upto Rs. one lac. It is not a clear overdraft. The judgment-debtors have admittedly given securities like hypothecation of stocks and machinery in this account. On 21-11-80 when the attachment order was issued there was a debit balance of Rs. 1,17,365, in this account. The bank now claims that they have a lien on the amount of Rs. 90,000 of the deposit receipts and that they will exercise their right of set-off when the receipts mature against the balance of account. Reliance is placed by the bank on the covering letter which the judgment-debtors wrote On 17th September, 1980 when they requested the bank to issue a guarantee in favour of the Registrar. The letter reads :

"the Manager, Syndicate Bank, Dev Nagar s Br. , New Delhi. Dear Sir, Our Fixed Deposit Account No. 38991417493 covered by your Receipt/certificate No. 389914/7493 for Rs. 65,000 due on 17th Dec. 1983. We enclose herewith our fixed Deposit Recipt Certificate No. 38991417493 dated 17. 9. 1980 for Rs. 65,000 due on 17. 12. 1983 duly discharged by me as security for the loan over draft account of Shri/smt. M/s. Jullundur Body Builders for Rs. 90,000. The Bank is at liberty to adjust from the proceeds of other receipts/ certificates sued in renewal thereof at any time without any reference re/us, to the dues under the said loan/od account. I/we agre the above deposit and renewals shall remain with the Bank as any amount on any account is due to the Bank from us of the said Sri[smt. M/s. Jullundur Body Builders singly or jointly with others. Yours faithfully, Manager Partner. "the other letter for the deposit receipt Rs. 25,000 is inidentical terms. The bank relies on the last paragraph of the letter which entitles the bank to retain the receipt "so long as any amount on any account is due to the bank: from us" (the judgment-debtors ). The decree-holder on the other hand relies on the fixed deposit receipt where on the reverse the following words appear.

"lien to BG 11/80. "this means that deposit receipts are being held against the guarantee furnished by the bank. This is clear from the first paragraph of the letter which says that the receipt of Rs. 65,000 is held "as security" for "rs -. 90,000". The two receipts of Rs. 65,000 and Rs. 25,000 are therefore securities which tile judgment-deb