Right of Stoppage in Transit
Introduction
Unpaid seller which defined as any person who is in the position of a seller, the one to whom the bill of lading has been indorsed, or the one who is directly responsible for the price but has yet been paid or tendered according to Section 45 of the Sale of Goods Act 1957. This unpaid seller has certain right over the goods that is being transacted until the other party fully pay him/her.
And the right of the unpaid seller is clearly defined within Section 46(1) of the Sale of Goods Act 1957 which states that
“Subject to this Act of any law for the time being in force, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has by implication of law – a. A lien on the goods for the price while he is in possession of them; b. In case of an insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them; c. A right of resale as limited by this act. “
Distinction of Lien and Stoppage at Transit
Some people might confuse on the difference between lien and stoppage at transit, thus we have to create a clear distinction as to avoid any confusion.
The main points of distinction between these two rights of an unpaid seller are basically: a. The seller’s lien attaches when the buyer is in default, whether he be solventor insolvent. The right of stoppage in transit arises only when the buyer is insolvent. b. Lien is available only when the goods are in actual possession of the seller while right of stoppage is available when the seller has parted with possession and the goods are in the custody of an independent carrier. c. The right of lien comes to an end once the seller hands over the possession of the goods to the carrier for the purpose of transmission to the buyer. On the other hand, the right of stoppage in transit commences after the seller has delivered the goods to a carrier for the purposes of transmission to the buyer and
Unpaid seller which defined as any person who is in the position of a seller, the one to whom the bill of lading has been indorsed, or the one who is directly responsible for the price but has yet been paid or tendered according to Section 45 of the Sale of Goods Act 1957. This unpaid seller has certain right over the goods that is being transacted until the other party fully pay him/her.
And the right of the unpaid seller is clearly defined within Section 46(1) of the Sale of Goods Act 1957 which states that
“Subject to this Act of any law for the time being in force, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has by implication of law – a. A lien on the goods for the price while he is in possession of them; b. In case of an insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them; c. A right of resale as limited by this act. “
Distinction of Lien and Stoppage at Transit
Some people might confuse on the difference between lien and stoppage at transit, thus we have to create a clear distinction as to avoid any confusion.
The main points of distinction between these two rights of an unpaid seller are basically: a. The seller’s lien attaches when the buyer is in default, whether he be solventor insolvent. The right of stoppage in transit arises only when the buyer is insolvent. b. Lien is available only when the goods are in actual possession of the seller while right of stoppage is available when the seller has parted with possession and the goods are in the custody of an independent carrier. c. The right of lien comes to an end once the seller hands over the possession of the goods to the carrier for the purpose of transmission to the buyer. On the other hand, the right of stoppage in transit commences after the seller has delivered the goods to a carrier for the purposes of transmission to the buyer and