CA Success Path- Foundation: post #4080 — TG.ME

As per the provision of the Sale of Goods Act, 1930, the right of stoppage of goods in transit means the right of stopping the goods after the seller has parted with the goods. After that, the seller regains possession of the goods. This can be exercised by an unpaid seller when he has lost his right of lien over the goods because the goods are delivered to a carrier to take the goods to the buyer. This right is available to the unpaid seller only when the buyer has become insolvent. The conditions necessary for exercising this right are: 1) The buyer has not paid a total price to the seller. 2) The seller has delivered the goods to a carrier, thereby losing his right of lien. 3) The buyer has become insolvent. 4) The goods have not reached the buyer; they are in the course of transit. Conclusion: In the present case, the railway authorities cannot stop goods because the goods are not in transit. A, who has loaded the goods on his truck, is the agent of the buyer. That means railway authorities have given possession of the goods to the buyer. The transit comes to an end when the buyer or his agent takes possession of the goods.