Section 170 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 170 gives a bailee who has done skilled or labour-based work on the goods a right to keep them until he is paid for that work. This is called a particular lien, because it covers the remuneration for the service rendered on those goods. If you run a workshop, repair service or processing unit and want your terms to reflect this right, our service agreement drafting can help.
Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed, he has, in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect of them. The right is tied to service involving labour or skill, rendered in accordance with the purpose of the bailment, on those goods. It does not apply if there is a contract to the contrary.
The text
Section 170 reads: "Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed, he has, in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect of them."
Bailee and bailment are defined in section 148.
Limb by limb
| Limb | Plain meaning |
|---|---|
| "in accordance with the purpose of the bailment" | The service must be what the bailment was for |
| "rendered any service involving the exercise of labour or skill" | Work done by labour or skill: repair, polishing, tailoring |
| "in respect of the goods bailed" | The work was on those goods |
| "in the absence of a contract to the contrary" | A contract can exclude the right |
| "a right to retain such goods" | The right is to hold the goods |
| "until he receives due remuneration for the services he has rendered in respect of them" | Until paid for the work done on them |
The lien is called particular because it secures the remuneration for the services on those goods. A broader right to retain for a general balance of account is dealt with in section 171; see section 171.
The Act's illustrations
- Illustration (a). A delivers a rough diamond to B, a jeweller, to be cut and polished, which is accordingly done. B is entitled to retain the stone till he is paid for the services he has rendered.
- Illustration (b). A gives cloth to B, a tailor, to make into a coat. B promises A to deliver the coat as soon as it is finished, and to give a three months' credit for the price. B is not entitled to retain the coat until he is paid.
The difference lies in the terms: in (a) nothing in the bailment gave credit, and the jeweller may retain the stone. In (b) the tailor promised to deliver on completion and to give three months' credit, which cannot sit with a right to hold the coat until payment. The Act's outcome is that B is not entitled to retain it.
A modern example of our own
Amrita sends her laptop to Bharat Computers for a motherboard repair. The repair is done in accordance with the purpose of the bailment, and it involved skill. Amrita does not pay the bill. Under section 170, and in the absence of a contract to the contrary, Bharat Computers may retain the laptop until it receives due remuneration for the repair.
Contrast: Chandan hands a suit fabric to a tailor, Devika, and they agree she will deliver the finished suit on completion and Chandan will pay after 60 days. Following the Act's illustration (b), that credit term is inconsistent with holding on to the suit until payment, so the right of retention would not arise.
Limits of the right on the text
- The service must be rendered; a bailee who has not yet done the work is not covered.
- The right is for "due remuneration for the services he has rendered in respect of them", that is, for the work on those goods. The text does not extend it to other debts the bailor owes.
- The text speaks of a right to retain. It does not mention a right to sell. For the pawnee's right to sell, see section 176, which concerns pledge, not this section.
What can the parties change?
The section itself says "in the absence of a contract to the contrary". The parties can exclude the lien, for example by agreeing credit terms as in illustration (b), or by an express clause. Equally, nothing in the text prevents the parties from writing their own terms about retention for other sums; but section 171 tells us that outside the listed persons no right to retain for a general balance exists without an express contract.
What the section does not say
- It does not say how much notice, if any, the bailee must give before retaining.
- It does not define "due remuneration", for example whether an agreed price or a reasonable charge.
- It does not say what the bailee may do if the bailor never pays.
Practical points
- Repairers and processors: state in your terms whether goods may be held until payment, and avoid credit terms if you want to rely on retention.
- Customers: if you pay on credit, understand that this may mean the repairer cannot hold the goods.
- Write down the work done and the price, so "due remuneration" is clear.
- Keep goods safe while you retain them: the bailee's duty of care in section 151 continues.
Need help drafting terms for repairs and processing?
If you do skilled work on customers' goods, your terms should say when goods are released and what happens if payment is delayed. Our service agreement team can prepare terms that reflect section 170 and your payment practice. Bring a sample job order and your usual credit terms.
Key takeaways
- A bailee who has rendered labour or skill on the goods, in line with the purpose of the bailment, may retain them until paid for those services (s.170).
- The right applies in the absence of a contract to the contrary.
- The Act's illustrations: a jeweller who cut and polished a diamond may retain it; a tailor who promised credit may not retain the coat.
- Section 171 deals with the broader general lien.
Read next
- Section 171: general lien of bankers, factors, wharfingers, attorneys and policy-brokers
- Section 172: pledge, pawnor and pawnee defined
- Bailment and Pledge: sections 148–181 overview
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.