Unpaid Seller's Right of Lien under the Sale of Goods Act

Introduction
According to the Sale of Goods Act, an unpaid seller of goods has certain rights to protect their interests. One such right is the right of lien, which allows the seller to retain possession of the goods until payment has been made in full. This right is available to the unpaid seller in specific circumstances and is subject to certain limitations.

Exercise of Right of Lien
The unpaid seller can exercise their right of lien over the goods when the following conditions are met:

1. Goods in Possession: The seller must be in possession of the goods either as the owner or as an agent of the owner.

2. Unpaid Price: The seller must be unpaid or partially unpaid for the goods.

3. Contractual Right: The right of lien must be expressly provided for in the contract of sale or implied by law.

Right of Lien and Passing of Property
The right of lien can be exercised by the unpaid seller even if the property in the goods has passed to the buyer. This means that the seller can retain possession of the goods as security until payment is made, regardless of whether the buyer has become the owner of the goods.

Termination of Right of Lien
The right of lien is terminated under the following circumstances:

1. Loss of Possession: If the seller voluntarily delivers the goods to the buyer or any other person authorized by the buyer, the right of lien is terminated.

2. Waiver: If the seller expressly or impliedly waives their right of lien, it is terminated.

3. Sale on Credit: If the seller agrees to sell the goods on credit, the right of lien is suspended until the credit period expires.

4. Part Delivery: If the seller delivers a part of the goods to the buyer under a contract for the sale of specific goods, the right of lien is limited to the remaining goods only.

Right of Lien and Decree for Price
The unpaid seller can exercise their right of lien even after obtaining a decree for the price of goods from the court. This means that even if the seller has obtained a court order for the payment of the price, they can still retain possession of the goods until the payment is made. However, once the payment is received, the right of lien is extinguished.

In conclusion, an unpaid seller of goods can exercise their right of lien over the goods when they are in possession of the goods and the price remains unpaid. This right can be exercised even if the property in the goods has passed to the buyer. However, the right of lien can be terminated in certain circumstances, and it can also be exercised even after obtaining a decree for the price of goods from the court.