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ABSTRACT

SECTION -54 OF SALE OF GOODS ACT

The 1930 Indian Sale of Goods Act is a Mercantile Law that came into being on July 1, 1930. During
the British Raj, borrowing strongly from the Sale of Goods Act 1893 Provisions for the establishment of
agreements where the seller transfers or agrees to pass title (ownership) to the buyer for consideration
According to this act, goods sold from the seller to the buyer must be purchased at a certain cost and at a
particular period of time. The act was amended on September 23, 1963 and changed to the 1930 Sale of
Goods Act.

Seller is an individual selling the products or who agreed to sell the products. Unpaid means that
payment is not produced or transaction made without payment. Definition of an unpaid seller has been
paid yet either by cash or other negotiable instruments.

An unpaid seller has two kinds of rights they are :

1. Rights of unpaid seller against the goods.

2. Rights of unpaid seller against the buyer personally.

Under this act the rights of the unpaid seller against the goods are as follows:

1. a possessory lien (particular, not general);

2. a right of stoppage in transitu; and
3. a right of resale.

RIGHT OF RE SALE:

An unpaid seller is considered the owner of the goods until he is not paid by the buyer. So he has a right
to sell his goods subject to a few conditions. The right of resale is very significant right of an unpaid
seller. In the absence of this right, the unpaid seller’s other right against the goods, namely, ‘lien’ and
‘stoppage in transit,’ is just pointless because these rights only enable the unpaid seller to retain the
goods until paid by the buyer. What can a buyer do if he remains unpaid or the goods sold to the seller
are partially left him or the buyer promises but fails to fulfills the conditions imposed by the seller
Section 54 of sale of goods act especially gives some rights to sellers especially when the goods are
perishable in nature. These are the following rights
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(a) Where the goods are of a perishable nature; or

(b) Where such a right is expressly reserved in the contract in case the buyer should make a default

I would like to make a case study on the following cases related to section 54 of sale of goods act:

 Kalka Prasad Ram Charan v. Harish Chandra 1

 Mysore Sugar Co. Ltd Bangalore v. Manohar Metal Industries2

 P.S.N.S Ambalavana Chettiar & Co. v. Express Newspapers Ltd.3

 Gulabchand Rawatmal Vs. Sarangpur Cotton Manufacturing Co. Ltd.4

 Ram Saran Das Raja Ram And Anr. vs Lala Ram Chander5

1
AIR 1957 All 25
2
AIR 1982 Kant 283
3
AIR 1968 SC 741
4
AIR 1959 Bom 158
5
AIR 1968 Delhi 233