AB sold500bags of wheat to CD. Each bag contains50Kilograms of wheat. AB sent450bags by road transport and CD himself took remaining50bags. Before…

Right of stoppage in transit (Section 50 of the Sale of Goods Act,1930): Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transit, that is to say, he may resume possession of the goods as long as they are in the course of transit, and may retain them until paid or tendered price of the goods. When the unpaid seller has parted with the goods to a carrier and the buyer has become insolvent, he can exercise this right of asking the carrier to return the goods back, or not to deliver the goods to the buyer. In the instant case, CD, the buyer becomes insolvent and450bags are in transit. AB, the seller, can stop the goods in transit by giving a notice of it to CD. The official receiver, on CD’s insolvency cannot claim the bags.