yee ure uc UIE TK OF the party in fault as regards any Loss which might not have occurred but for sueh fault, Provided also that nothing in this section shall affect the duties or liabilities of either seller or buyer as bailee of the goods of the other party. UNIT - 4; UNPAID SELLER Right of Lien ‘The right of tien is the right to retain possession of the goods, This right can be exercised only when the possession of goods is with the seller, ‘The unpaid seller of goods can retain his possession of goods untit payment of the price in Following cases [Section 47 (0) Where the goods are not sold on credit b) Where the goods have been sold on credit, but the term of creat has expired ) Where the buyer becomes insolvent. > The unpaid seller can retain the goods only for the payment of the price of the ‘goods: He cannot retain the goods for any other charges, e4., maintenance, ‘charges for storage of goods during the exercise of lien etc > Part delivery (Section 48): Where an unpaid seller has made part delivery of the ‘goods, he may exercise his right of Lien on the remainder > The right of tien is indivisible in nature, > Termination of in Section #8 0) by deter of goods tothe cate ber B)_Byestoppet ie wher th slr by condi makes pres ble thot he has waved hight fn By waiver ofthe len 3) Bypoymet of pricey the bier > The une snr ofthe gods Roving en heron bent ass in by reason onlythat he has obtained a decree (order from court) for the price of the ‘goods. awLK. SHAH HAPTER 2 THESALEOF 60005 4c, y, ‘such rate as it thinks fit on the amount of the price to the buyer in a suit by him ‘As per the section 5S of the Sale of Goods Act, 1930 an unpaid seller has a rght!# institute a suit for price against the buyer personally. The said Section lays down he (9) Where under a contract of sale the property in the goods has passed to bus ‘and the buyer wrongfully neglects or refuses to pay for the goods, the seller 2h sue him for the price of the goods [Section $5 (1. {il Where under a contract of sale the price is payable on a certain day irespett® of delivery and the buyer wrongfully neglects or refuses to pay such price. seller may sue him for the price. It makes no difference even ifthe propertyintt® ‘goods has not passed and the goods have not been appropriated to the conto {Section 55(2Hher (Caimi sor coon ssa Tis problem i based on above provions. Hence, Sura wil succeed against Sohan | 5 ecovery OF the remain for recovery "amount. Apart from tis Sura s also entitled to:~ (1), terest onthe remeining amoung (2) Interest during the pend Bendency ofthe suit = {3}. Costs ofthe proceedings 44. Uan is the right of person to retain possession ofthe goods belonging to another until claim of the person in possession ssatisied. The unpaid seller has also right of en over the goods forthe price ofthe goods sod Section 471) ofthe Sales of Goods Act, 1930 provides thot the unpaid seller who isin the possession ofthe goods is entitled to exercze right often in the following cases:= ~ 1. Where the goods have been sold without any stipulation as to credit 2, Where the goods have been sold on cet but the term of credit has expired 3, Where the buyer has become insolvent eventhough the period of credit has not yet expired, Inthe alven case, & hos agreed to sel certaln goods to Bon @ cred of 10 days. The = period of 10 days has expired. B has either pal the price of goods nor taken the possession of the goods. That means the goods are st physically in the possession oF A, the seller In the meantime B, the buyer has become insolvent. In this case, A — Is entitled to exercise the right of lien on the goods because the buyer has become ingolvent and the term of credit has expired without any payment of pice bythe buyer. ‘The right of Lien and stoppage in transit are meant to protect the seller. These wil = not be affected even when the buyer has made a transection of his own goods which were with the seller under Lien. But under two exceptional cases these rights ofthe saller are affected:- 1. When the buyer has made the transaction with the consent ofthe seller = 2. When the buyer has made the transaction on the basis of documents of tte < such as bil of lading rallway receipt or a delivery order etc. In the given case, J has sold the machine to K and K gave a cheque for the ‘payment, But the cheque was dishonoured that means J, the seller an unpaid e seller. So he is entitled to exercise the right of lien, but according to section '53(2) his right of lien is defeated because he has given the document of tile ‘to the buyer and the buyer has made « transaction of sale on the basis ofthis document, SoR who has purchased the machine from K can demand the delivery 7 of the machine. 7 4 Te ight oF stoppage of goods in transit means the right f stopping the goods after the seller hos parte with the goods. Thereafter the seller regains the possession of the goods 7og Er a HH Feng ge can be ween OY Oe ‘the purpose of taking” moreno Sees ; mace Fee ee the yeti an de oe se the Do come insolvent. thorites cannot cara oh Ses of ond el 1238, te aay euthorles comet ep | rhe gnar otras Aho as ood the god on itn he open e buer Tat mcr oy eure ave gn the ose, | ote aoe : ‘an end when the buyer oF his Crt gosh rT wnt come an en when he BO Hee | toterthe posesin tn gros | Right of Uen section 47 to 6) 2 Theright of en is he ight to retan possession ofthe goods. | a raeconb curiae when he poseson of gods wht te | > The unpaiselier of goods cn retain his posession of goods untit payment the price in ellowing caseiSection 47 ©) Where the goods ae not std on ered. ‘wert goods have been sold once, but the term of ret hase! 1) Where the baer becomes insolvent The unpaid salle can retain the goods ery forthe payment ofthe pie o 990d, he may erie is ght of Ueno > Toeright of en's incvsble innate > Termination of en (ection 4 ly eter goad to eco! buyer Byte ie heey ‘that he has waived his right of “n By waiver oF the tien "en By payment of pie bythe The unpaid seller of the goods ‘Ne 29865 having oe hereon, does ot ase se Wut mates tie partis bee Hearing of Aster wit 1 Thewn as ine ® Abu o same he eight of fate 2 Thesete Hem & fem ta 900a Te wer et 9>pq ethan tee se——— ‘CHAPTER 2- THE SALE OF GOODS ACT, 1930 reason onlythat he has obtained a decree (order from court) for the price of the ‘goods. > Distinction between Right of Lien and Right of Stoppage in transit. Ta a 1. The essence of aright of lien is} 1. ‘The essence of stoppage in transit is| to retain possession to regain possession 2. Seller should be in possession], _ In stoppage in transit, ‘of goods under lien (seller should have parted with] the possession Ail) possession should be with carrier, & (i) buyer has not| ‘acquired the possession. 3. Right of lien can be exercised] 3. Right of stoppage in transit can be| feven when the buyer is not| exercised only when buyer becomes insolvent, Insolvent 4. Right of tien precedes right of| 4. Right of stoppage in transit begins stoppage in transit when the right of tien ends 8. Meaning of Unpaid Seller: {A seller will be called ‘unpaid’ ifthe following conditions are fulfilled: (4). The whole or part of the price has not been paid or tendered and that the seller has immediate right of action for the price. (2), A bill of exchange or other negotiable instrument has been received but the same has been dishonoured, The right of stoppage in transit is exercised only when the following conditions ore fulfilled: (6) The selter must be unpaid. (0) He must have parted with the possession of goods. (a) The goods are in transit. (4) The buyer has become insolvent. 9. Right of stoppage of goods in transit: The problem is based on section 50 of the Sale of Goods Act, 1930 dealing with the right of stoppage of the goods in transit avatable to.an unpaid seller, The section states that the right is exercisable by the seller only ifthe following conditions are fulfited (The seller must be unpaid (id He must have parted with the possession of goods Ai) The goods must be in transit (iv) The buyer must have become insolvent Gun)19, (CHAPTER 2- THE SALE OF GOODS ACT, 1930, ‘Applying the provisions to the given case, Ram being still unpaid, can stop the 109 bales of cloth sent by railway as these goods are still in transit. By virtue of provisions of Section 64 of the Sale of Goods Act, 1930, in case of auction sale, the sole is complete when the auctioneer announces its completion by the fall of the hammer or in some other customary manner. In the instent case, Megha gives the highest bid in the auction for the sale of antic wall clock arranged by Rachit. While announcing the completion of sale by fall of hammer on the table, hammer brakes and damages the clock. On the basis of above provisions, it can be concluded that the sale by auction cannot bbe completed until hammer comes in its normal position after falling on table. Hence, in the given problem, sole is not completed. Megha will not be Liable for loss and can ‘void the contract.