Section 52 of The Sale of Goods Act, 1930
- (1)The unpaid sellermay 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 delivery to the buyer.
- (2)When notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by the seller.
Summary
- A seller who has not been paid can stop goods in transit by either taking physical possession or giving notice to the carrier.
- If notice is given to the person in charge of the transport company, it must be delivered early enough so they can tell their staff not to deliver the goods.
- Once a carrier receives a notice of stoppage, they must return the goods to the seller or follow the seller's directions for where to take them.
- The seller is responsible for paying all costs related to returning or redirecting the goods after they are stopped.
Practical examples
FAQ
1. How does a seller physically stop goods under Section 52 of the Sale of Goods Act?
Under Section 52 of the Sale of Goods Act, 1930, the seller can exercise this right by taking actual possession of the goods while they are being transported.
2. To whom should the notice of stoppage be given under Section 52 of the Sale of Goods Act?
According to Section 52 of the Sale of Goods Act, 1930, the notice can be given to the person who actually has the goods or to their principal, such as the owner of the shipping company.
3. Who pays for the redelivery of goods stopped under Section 52 of the Sale of Goods Act?
Under Section 52 of the Sale of Goods Act, 1930, the seller must bear all expenses of redelivering the goods to themselves or their chosen location.
4. What must a carrier do after receiving a stoppage notice under Section 52 of the Sale of Goods Act?
Under Section 52 of the Sale of Goods Act, 1930, the carrier must redeliver the goods to the seller or follow the seller's specific directions for redelivery.
Test yourself
Q1.Under Section 52 of the Sale of Goods Act, 1930, what is required for a notice to a principal to be effective?
Q2.Under Section 52 of the Sale of Goods Act, 1930, who is responsible for the expenses of redelivery after a stoppage?
Q3.How many primary ways can a seller effect a stoppage under Section 52 of the Sale of Goods Act, 1930?
Q4.Under Section 52 of the Sale of Goods Act, 1930, what must the carrier do with the goods once a valid notice is received?