unpaid seller

ketan (article) (44 Points)

01 May 2011  

 

Please my fellow mates i need urgent help on this
 
Mr. J sells and consigns certain goods to Mr. S for cash and sends the Railway
Receipt to him.  Mr. S becomes insolvent and while the goods are in transit, he
assigns the Railway Receipt to Mr. N who does not know that Mr. S is insolvent.
Mr. J being an unpaid seller wants to exercise his rights.
 Advise:
 
(a) whether Mr. J can exercise the right of stoppage of goods in transit ?
 
(b) would your answer be different if Mr. N was aware of Mr. J’s insolvency
before the assignment of the Railway Receipt in favour of Mr. N ?