Sale of Goods Act, 1930
51. Duration of transit
(1) Goods are deemed to be in course of transit from the time
when they are delivered to a carrier or other bailee for the purpose of transmission
to the buyer, until the buyer or his agent in that behalf takes delivery of
them from such carrier or other bailee.
(2) If the buyer or his agent in that behalf obtains delivery of
the goods before their arrival at the appointed destination, the transit is at
an end.
(3) If, after the arrival of the goods at the appointed
destination, the carrier or other bailee acknowledges to the buyer or his agent
that he holds the goods on his behalf and continues in possession of them as
bailee for the buyer or his agent, the transit is at an end and it is
immaterial that a further destination for the goods may have been indicated by
the buyer.
(4) If the goods are rejected by the buyer and the carrier or
other bailee continues in possession of them, the transit is not deemed to be
at an end, even if the seller has refused to receive them back.
(5) When goods are delivered to a ship chartered by the buyer,
it is a question depending on the circumstances of the particular case, whether
they are in the possession of the master as a carrier or as agent of the buyer.
(6) Where the carrier or other bailee wrongfully refuses to
deliver the goods to the buyer or his agent in that behalf, the transit is
deemed to be at an end.
(7) Where part delivery of the goods has been made to the buyer
or his agent in that behalf, the remainder of the goods may be stopped in
transit, unless such part delivery has been given in such circumstances as to
show an agreement to give up possession of the whole of the goods.