The right of stoppage in transit under Section 46 of the Sale of Goods Act, 1930 is available to an…

Under Sections 46(1)(b) and 50 of the Sale of Goods Act, 1930, the right of stoppage in transit is available if the seller is an unpaid seller under Section 45, the buyer becomes insolvent, and the seller has parted with possession of the goods while the goods are still in the course of transit. Where the seller still retains possession of the goods, the appropriate remedy is the unpaid seller’s lien (or right to withhold delivery) rather than stoppage in transit; and if the seller has parted with possession but the buyer remains solvent, the right to stop the goods in transit cannot be exercised.