Akash of Jaipur sold100smart TV set @50,000/- per set to Barun of Delhi. He delivered the TV sets to Chirag , a transport carrier for transmission…

CA Foundation · Business Laws · MTP · January 2025
Akash of Jaipur sold100smart TV set @50,000/- per set to Barun of Delhi. He delivered the TV sets to Chirag , a transport carrier for transmission to Barun. Barun further sold these100TV sets to Sarthak @60,000/- per set. On reaching the goods at the destination, Barun demanded the delivery but Chirag, wrongfully, refused to deliver the goods to Barun. That is why; he failed to deliver TV sets to Sarthak and suffered a huge loss on account of non-delivery. Akash came to know about this. He directed Chirag to stop the delivery to Barun and re- deliver the goods to him at Jaipur. Answer the following questions under the provisions of the Sale of Goods Act, 1930: (A) Whether Akash has the right to stop the goods in transit? (B) Whether Barun can claim loss suffered due to non -delivery from Akash?

Suggested Answer and Working Notes:

According to Section 51 of the Sale of Goods Act,1930, when the carrier wrongfully refuses to deliver the goods to buyer, the right of stoppage in transit is lost and transit comes to an end. On the other hand, according to section 57 of the Sale of Goods Act,1930, where buyer suffers losses due to non -delivery, he can sue seller for damages on account of non -delivery. In the instant case, the transit came to an end when Chirag wrongfully refused to deliver the goods to Barun, and he suffered a huge loss due to non - delivery. Hence, Akash cannot exercise the right of stoppage of goods in transit as the transit has already come to an end. Barun can claim loss suffered due to non -delivery from Akash.

Topics: The Sale of Goods Act, 1930, The Sale of Goods Act, 1930, The Sale of Goods Act, 1930

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