Unpaid seller’s lien

3 necessary rights of unpaid merchants against the products

The unpaid merchant, in additionally to his rights against the products as mentioned on top, has the subsequent 3 rights

of action against the customer personally:

1. Right of lien.

2. Right of stoppage of products in transit

3. Right of merchandising

Rights of Unpaid Seller:

• Section forty-seven within the Sale of products Act, 1930

47. Seller’s lien. —

﴾1﴿ Subject to the provisions of this Act, the unpaid merchant of products the United Nations agency is in possession of them is

entitled to retain possession of them till payment or tender of the worth within the following cases, namely: —

﴾a﴿ where the products are sold‐out with no stipulation on credit;

﴾b﴿ where the products are sold‐out on credit, however, the term of credit has expired;

﴾c﴿ where the customer becomes insolvent.

﴾2﴿ The merchant might exercise his right of lien however that he's in possession of the products as agent or agent for the

customer.

• Section forty-eight within the Sale of products Act, 1930

48. half delivery. —

Where an associate unpaid merchant has created half delivery of the products, he might exercise his right of lien on the rest,

unless such half delivery has been created below such circumstances on show associate agreement to waive the lien.

Further, section ﴾2﴿ states that the associate unpaid merchant, United Nations agency incorporates a lien, doesn't lose his lien

by reason solely that he has obtained a decree for the price of the products.

• Section forty-nine within the Sale of products Act, 1930

49. Termination of lien. —

﴾1﴿ The unpaid merchant of products loses his lien thereon—

﴾a﴿ once he delivers the products to a carrier or alternative agent for the aim of transmission to the customer while not

reserving the correct disposal of the goods;

﴾b﴿ once the customer or his agent lawfully obtains possession of the goods;

﴾c﴿ by relinquishment thence.

﴾2﴿ The unpaid merchant of products, having a lien on that, doesn't lose his lien by reason solely that he has obtained a

decree for the worth of the products.

When a lien is lost?

As already discovered, a lien depends on the physical possession of products. Once the possession is lost, the lien is additionally

lost. Section forty-nine consequently provides that the unpaid merchant of products loses his lien on that within the

following cases:

﴾a﴿ once he delivers the products to a carrier or alternative agent for the aim of transmission to the customer while not

reserving the correct disposal of the goods; or

﴾b﴿ once the customer or his agent lawfully obtains possession of the goods; or

﴾c﴿ once the vendor expressly or impliedly waives his right of lien. associate inexplicit relinquishment takes place once the vendor grants a contemporary term of credit or permits the customer to just accept a bill of exchange collectable at a future date or assents to a sub‐sale that the customer might have created.

It may be noted that the right of lien if once lost, won't revive if the customer redelivers the products to the vendor for any explicit purpose.

Thus, wherever an icebox when being sold out was delivered to the customer and since it absolutely was not functioning properly, the customer delivered back constantly to the vendor for repairs; it absolutely was a control that the vendor couldn't exercise his lien over the icebox ﴾Eduljee vs. John Bros.﴿.

References

• https://indiankanoon.org/doc/1226730/
• https://indiankanoon.org/doc/65167/#:~:text=Section%2048%20in%20The%20Sale%20of%20Goods%20Act%2C%201930&text=48.,* https://indiankanoon.org/doc/397694/
• Sales of products Act, 1930