Rights of unpaid seller against the goods – sale of goods act


On request from the seller, the carrier shall return the goods for the seller and shall not send the goods to the buyer, even though the buyer could have received a title document on the goods. The carrier shall not return them. The buyer shall not send them for sales.

In this way, after they were sent to the courier for distribution to the customer, the unpaid seller can retake control over the items.

Under the provisions of Article 54(1), the practice of that right doesn’t really mean that the agreement is terminated or the property is reversed in a vendor’s products.

This basically means that perhaps the vendor has a carrier before the items from the carrier have been received.

Right to retain them until another consumer offsets them. If the buyer fails to do anything at all, payment may also be made by the unpaid seller. The seller should be an unpaid seller, as specified in section 45, for the cause of fulfilment of the following circumstances,

  • Within the meaning of paragraph 2(8) the buyer may, i.e., be insolvent to an individual who, whether or not he or she has committed an act of insolvency, has no debt or cannot compensate the buyer as a due party.
  • Papers shall be in transit. The goods are delivered to the carrier for delivery to the purchaser from the time they are shipped. It is however, necessary for the carrier, as carrier, to have the goods. The transporter may deliver the goods in different abilities: the transporter could be the buyer’s agent. In cases where the carrier is acquired as the purchaser’s representative, there is no question of exercising the right of a shutdown in transit as the seller cannot enforce any protection in relation to the products until the purchaser or his agent has been granted ownership; The carrier may be the seller’s representative. The seller is regarded as constructive possession of the goods if the seller’s agent is the carrier and may exert the right to the seller.

The carrier may not be bonding either the purchaser’s agent or the seller’s agent with regard to them but the goods may be kept as carrier.

If the goods are in that potential, the seller can exercise the right to stop the transit.

Period of transit – The right to stop while in transit can be enforced. The duration of the transit must also be identified i.e. whenever the transit begins and when the transit ends. Section 51 lays out the same rules.

The goods are deemed in transit from time to time pursuant to paragraph (1).

For the objective of transmission to the purchaser, it is shipped to the carrier or another bailee. The transit shall continue until such a carrier or other bailee delivers to the purchaser or to his agent, on that account.

This ensures that the transit proceeds as much as the carriers have the goods.

The goods are regarded as in transit under section51(1), as being from the time when they are delivered for forwarding to the carrier or other bailee to the buyer, until procurement of the goods on that name by that or other bailee is received by the buyer or his agent.

Under Article 51(2), the transit shall be removed if the purchaser or his agent receives transfer in that name before the goods arrive at the specified destination.   If the seller has declared a certain location to which the goods must be sent, the buyer is open to coordinate mostly with distributor and to deliver the goods until they arrive at the specific destination and thereby ultimately lead to the seller’s right to stop to transit.

If the transporter or other bailee recognises the buyer: in accordance with section 51(3), if the carrier or other bailee recognises to the buyer or his agent that the goods have been kept in its name and the goods continue to be held in the hands of the buyer or his representatives as bailee because after goods have been delivered, transit will be concluded. It is vital that the carrier decides to retain the goods for the picker, however if he says he will forward these goods to the consumer or its freight agant, that isn’t enough. The delivery of goods to the buyer will not be sufficient, which will bring an end to the right of the seller to prevent the payment. In compliance with Article 51(7) where another carrier has made part of the supply of the goods to the seller can also exercise the right to prevent the transit of the rest of the products from the purchaser or its agent.

If products have been sent, partially , with one route as well as the buyer delivers them on one route, then the seller may exercise the right to stop the goods from heading on some other route, except when the buyer has received a partial delivery of the goods in situations that signify a contract by the seller to exempt its customer from the right to exercise his obligation. In several other words means that when revoked, the right to stop in transit comes to an end. The unpaid seller may by having ownership of the goods, or by notifying the carrier or other bailey in whose possession the goods are, exercise his rights to stop in transit. Therefore the seller intends to oppose the shipment.

To be effective in the communication of the principal, it shall be provided in such a way that by the exercise of due diligence, the principal can communicate this information to his servant or agent promptly to prevent delivery to the buyer. After the carrier has providing opportunity announcement, it is obliged that the goods are not delivered to the buyer but returned to the seller without which it could be responsible for conversion. Effect of sales or undertaking Sometimes, even if the buyer has not acquired their property or paid them, the buyer can dispose of products bought by the buyer. In this case, the normal question arises whether an unpaid seller is eligible to exercise his right, with regard to such goods, to be bound or stopped in transit.

Two main Exceptions are: • where the seller accepts the sale and other provisions that the purchaser may also have produced. Unless the seller himself gives consent to a sale or other action by the purchaser, the law of estoppel shall apply with him and he must be forbidden from denying the purchaser the right to dispose of the goods and should be further excluded from the practice of his right of bond or stoppage in transit and against purchaser or the pledgee.

  • Section 53(1) points out the second exception to the legislation. When the purchaser is legally granted customs possession of the written up for both the goods and the buyer transfers the title document to another person and in good conscience and for consideration, the transferor acknowledges the title document, the unpaid seller’s rights would be enforced. However, when such a change is rendered by either a promise or other promise of interest, the unpaid seller may in compliance with the customer’s rights, exercise his bond or stop transit rights. In case, the unpaid seller may force the pledgee to sell its securities in a somewhat manner as to reclaim, further than practicable, the amount in the other goods or security of the purchaser throughout the possession of the pledgee.

Author: Sampark Sampad,
National Law University, Odisha 2nd year/ Student

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