Wednesday, December 26, 2012

How stoppage to transit is affected?

According to section 52 of The Sale of Goods Act, 1930
  • The unpaid seller may exercise his right of stoppage in transit either by taking actual possession of the goods, or by giving notice of his claim to the carrier or other bailee in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal.  In the latter case the notice, to be effectual, shall be given at such time and in such circumstances that the principal, by the exercise of reasonable diligence, may communicate it to his servant or agent in time to prevent a deliver to the buyer.
  • When notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall redeliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by the seller


The section may be illustrated by the following examples :  
  • A railway company is in possession of goods as carriers when the sellers give notice of stoppage in transit. A sum of money is owing by the buyers to the railway company.  The railway company is not entitled to set up in priority to the sellers’ right of stoppage in transit a general lien exercisable by the company against the buyers as owners of the goods.
  • An unpaid seller stops goods sent by sea at a port short of their destination.  He is liable for the fright, not only to the part where the goods were actually landed, but also to the port of their ultimate destination. Booth & Co.  vs. Cargo Fleet Iron Co. Ltd. 1916

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