Under the Sale of Goods Act, 1930, the seller has the right of stoppage of goods in transit when

Under section 50 of the Sale of Goods Act, an unpaid seller who has parted with possession of the goods may stop them in transit when the "Buyer becomes insolvent". Mere non-payment of the price, or a dishonoured cheque, makes the seller an unpaid seller under section 45 but does not by itself give the right of stoppage in transit.