R D Saxena v. Balram Prasad Sharma (2000) 7 SCC 264
 
   r-d-saxena-v-balram-prasad-sharma
    Quick Summary
Question: Can an advocate keep a client’s case files until fees are paid?
Answer: No. Case files are not “goods” under Section 171, ICA because they are not saleable. Withholding client records to force payment is misconduct. The advocate must return the files and use proper legal steps to claim fees.
Issues
- Does an advocate have a lien for fees over litigation papers given by the client?
Rules
Section 171, ICA
Lien applies to saleable goods. The bailee should be able to dispose of them for money. Case files are not saleable goods.
Ethics Principle
Client trust comes first. Withholding case papers breaches confidence and can amount to professional misconduct.
Facts (Timeline)
 
      Role: Appellant, a lawyer at Bhopal, served as legal advisor and counsel for MP State Co-operative Bank Ltd.
17 Jul 1993: Bank terminated retainership; asked for return of its documents.
Post-termination: Advocate raised a bill of ₹97,100 and kept the files claiming lien till dues were paid.
Need for files: Bank urgently needed case papers for other matters; it disputed the dues.
3 Feb 1994: Bank filed professional misconduct complaint before State Bar Council.
Transfer: Under Section 36B, Advocates Act, matter went to Bar Council of India for decision.
BCI Finding: Appellant held guilty of misconduct.
Supreme Court Appeal: Main defence—lien over files for unpaid fees under Section 171, ICA.
Arguments
Appellant (Advocate)
- Claimed a general lien on files for unpaid fees (s.171 ICA).
- Argued English law allowed solicitors to retain documents until fees are cleared.
- Sought setting aside of BCI decision for not considering the lien defence.
Respondent (Bank)
- After engagement ended, files must be returned to client.
- Case files are not goods; s.171 does not apply.
- Keeping files harms client’s pending litigation; breaches professional duties.
Judgment (Held)
 
      No lien on litigation files. Section 171 covers only saleable goods. Case papers are not marketable; they cannot be sold or converted into money.
Relying on English solicitor’s lien is not decisive in India. Withholding client files to press for fees is against professional ethics and amounts to misconduct (s.35, Advocates Act). The proper path is to sue or use lawful recovery methods, not to retain client records.
Ratio (Reasoning)
- “Goods” under s.171 ICA read with Sale of Goods Act must be saleable; case papers are not.
- Client confidence overrides any claim to hold documents.
- Ethics first: Use lawful fee recovery; do not obstruct client litigation.
Why It Matters
This case protects client access to justice. It clarifies that advocates cannot use case files as leverage for fees. Ethics and procedure guide fee disputes, not possession of client records.
Key Takeaways
- No lien on litigation papers under s.171 ICA.
- Goods = saleable; files are not saleable goods.
- Keeping files for fees = misconduct.
- Recover fees through legal remedies, not by withholding files.
Mnemonic + 3-Step Hook
Mnemonic: “FILES ≠ GOODS”
- Files
- In
- Law
- Ethics
- Supreme Court → not saleable goods.
3-Step Hook
- Ask: Are they saleable goods?
- Answer: No—case papers serve only the client.
- Act: Return files; recover fees lawfully.
IRAC Outline
| Issue | Rule | Application | Conclusion | 
|---|---|---|---|
| Can an advocate retain client case files for unpaid fees? | ICA s.171 (lien over goods), ethics & Advocates Act s.35. | Files are not saleable; lien under s.171 does not apply. Withholding harms client and breaches confidence. | No lien on files; retention = misconduct; use legal remedies for fees. | 
Glossary
- General Lien
- Right to keep property until a debt is paid. Under s.171, it covers saleable goods only.
- Professional Misconduct
- Conduct that breaches duties of an advocate; actionable under Advocates Act s.35.
- Saleable Goods
- Things that can be sold in the market; a key part of s.171 ICA.
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