Right of Lien is Lost (a) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods. eg. ‘X’ of Delhi sold some goods to ‘Y’ of Bombay and took the railway receipt in the name of ‘Y’ and sent the railway receipt to ‘Y’. In this case, ‘X’ has not reserved the right of disposal of goods.
(or) (b) When the buyer or his agent lawfully obtains possession of them. In other words, buyer took delivery from booking office (or) (c) When the seller waives his right of lien (b). Right of Stoppage in Transit Where the seller has delivered the goods to a carrier or other bailee for the purpose of transmission to the buyer, but the buyer has not acquired them, then the seller can stop the goods and regain the possession. In other words, goods must be neither with the seller nor with the buyer but should be in the hands of a carrier.
Further, the buyer must have become an insolvent. 12th Commerce Unit - - . . AM