- Subject to the provisions of this Act, the unpaid seller’s right of lien or stoppage in transit is not affected by any sale or other disposition of the goods which the buyer may have made, unless the seller has assented thereto: Provided that where a document of title to goods has been lawfully transferred to any person as buyer or owner of the goods, and that person transfers the document to a person who takes the document in good faith and for consideration, then, if such last-mentioned transfer was by way of sale, the unpaid seller’s right of lien or stoppage in transit is defeated, and if such last-mentioned transfer was by way of pledge or other disposition for value, the unpaid seller’s right of lien or stoppage in transit can only be exercised subject to the rights of the transferee.
- Nothing in this section shall apply to cases to which section 178 of the Indian Contract Act, 1872 (9 of 1872), applies.
Chapter V — Rights of Unpaid Seller against the Goods
Section 53
Effect of sub-sale or pledge by buyer
Printed from Law on Tips • Sale of Goods Act, 1930