Transfer of Ownership under Sale of Goods Act – Meaning and Rules

 Q. What do you mean by “Transfer of ownership”. Give the rules relating to transfer of ownership under Sale of Goods Act. 

Ans. Meaning of Transfer of ownership: Transfer to ownership implies the transfer of all rights to the property in goods from seller to the buyer by virtue of which the buyer can use the goods as he desires, and this right of buyer cannot be restricted. 

For example, Ram gives his watch to Shyam on ‘approval or return’ basis, and allows him to keep it for ten days, and buys it if he likes it, otherwise return the watch. Here Ram has only given the possession of the watch to Shyam; he has not transferred his ownership. If, after ten days, Shyam wants to buy the watch and pays its price to Ram, the ownership will be transferred and Shyam will become the owner.

Transfer of ownership from the seller to the buyer is important in a contract of sale for the following reasons:

(i) Risk follows ownership: The fundamental principle of law is that risk and ownership are co-existent— one follows the other even if there is no transfer of possession. If the goods are damaged or destroyed by any reason, the loss is the owner’s even if he is not in possession of goods at that time. The transfer of ownership in a sale deal is vital because it defines the rights and obligations of the seller and the buyer. Risk follows ownership whether or not a transfer possession of goods has taken place. In case of a delay in the delivery of goods because of a default on the part of the buyer or the seller, the goods are at the risk of the defaulter. 

(ii) Action against third parties: If the goods are destroyed or damaged by any action of a third party only the owner of goods can initiate any proceedings against the third party.

(iii) Insolvency of the seller or the buyer: In case of insolvency of the seller or the buyer, it becomes important to know if the official receiver can take over the goods. This depends on who becomes involvement and who is the owner of the goods — the seller or the buyer. 

Rules: The transfer of ownership from the seller to the buyer can be discussed under the following headings: 

(a) Time when the property changes hands: Normally, it is agreed between parties when transfer will take place, but, in the absence of such agreement, the act stipulates when the transfer of ownership will deemed to be affected in a sale contract.  As per the provisions of the act, the transfer of ownership depends on the type of goods sold, and each type has different rules governning such transfer. The types of goods are:

(i) Ascertained or specific goods

(ii) Unascertained or generic goods

(iii) Goods sent on approval or sale or return

(i) Passing of property in ascertained goods: Ascertained or specific goods refers to such goods that have been identified or specified by the parties at the time of making the contract, and the seller does not have to make any modification or addition to the goods. In this case, both parties, i.e., the seller and the buyer, know specifically what the goods are and what is the quantity for which the transfer of ownership is to take place. For example, A says to B that he wants to buy the blue jar that is displayed in the show window of B’s shop. In this case, both parties have clearly identified the ‘goods’ that is to be sold. Ascertain goods are available with the seller at the time of the contract.

According to Section 19, if the contract of sale is about a ascertained or specific goods,  and the parties to contract have agreed to the terms of the sale, in the absence of contract to the contrary, the transfer of ownership will be affected according to the following rules:

– When the goods are in a deliverable state: Goods are deemed to be in deliverable state when the buyer agrees to accept the delivery of goods and the goods are in a condition that they can be delivered. According to Section 20 of the Sale of Goods Act, when the contract is about the sale of a ascertained goods which are in a ‘deliverable state’, the ownership of goods is transferred to the buyer when the contract is made, if the contract is unconditional.  Whether the payment of goods or the delivery thereof,  or both, are postponed to a later date does not affect the transfer of ownership. For example, A offers to buy B’s horse for ₹2,000, and B accepts the offer, but the horse dies before it is delivered from B to A. The loss in this case will be A’s, and he will have to pay price to B because the ownership of the horse was legally transferred to B when the contact was made. 

– When specific goods need to be put in a deliverable condition: According to Section 21, when the contract of sale is for such ascertained goods, which are not in a deliverable state, and the seller is required to do something to bring the goods into a deliverable state, the transfer of ownership is not affected till such time as the necessary work has been done on the goods, and the buyer has been informed about it. For example, A buys a gold ring from B which will be delivered to A only after it has been polished. The ownership of the ring will only be deemed to be transferred to A when it is been polished and B has informed A that the ring is in a deliverable state. 

– When the seller has to do something for ascertaining the price: According to section 22, where the sale contract is about such ascertained goods which are in a deliverable state but the seller needs to assertain their price – by measurement, weightage or doing any other act on the goods – the ownership cannot be transferred till such time that the seller has ascertained the price of goods and communicate the same to the buyer. If anything remains to be donn with the goods, the ownership of, and the risk of damage to, the goods remains the seller’s. For example, A makes a contract to sell 200 books to B. The books are stored in racks and A has to select the titles and separate them before they can be delivered. If there is a fire and the books are destroyed, the loss of the loss will be A’s because the ownership of the books has not yet been transferred. 

(ii) Passing of property in unascertained goods: According to Section 18, if the contract is for the sale of unascertained goods, the transfer of ownership is not affected till the goods have been ascertained. Unascertain goods refer to such goods that have not been identified when the contract is made; only a description of the goods has been given in the contract. For example, A contacts to buy a sheet of glass of a particular size and thickness from B’s godown. The ownership of the sheet is not transferable to A until he selects or identifies the sheet that he wants to buy. The ownership of an unascertained goods cannot be transferred till such time that the goods are ascertained. The rules governning the transfer of ownership of unascertained goods are as follows:

– Goods must be ascertained: According to Section 18, when a contract is made for the sale of unascertained goods, the ownership is not transferable to the buyer till such time that they are ascertained. Ascertained here implies that, if the goods have not been manufactured, they need to be manufactured; and if they have not been procured, they need to be procured. 

– Goods must be appropriated: By appropriation is meant the separation of goods to be sold from other goods. When there is a contract for the sale of unascertained or future goods by description, and goods of that description and in a deliverable state are unconditionally appropriate to the contract either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in goods thereupon passes to the buyer.” Such assent may be expressed or implied and may be given either before or after the appropriation is made. 

– Goods must be delivered to the carrier:  Where the seller delivers the goods to the buyer or to a carrier or other bailee for the purpose of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract. 

(iii) Passing of property in case of goods sent on approval, or on sale or return: According to Section 24, when the goods are delivered to the buyer for his approval on sale or return basis, or, on some other normal condition in practice, the transfer of ownership to the buyer can be affected as under:

– When the buyer expressly communicates to the seller his acceptance of goods or does something to indicate his acceptance, the transfer of ownership is completed.

– When the buyer does not indicate his acceptance of goods to the seller but retains the goods without communicating his dispproval to the seller or, if a time limit has been fixed for approval, at the expiry of the time, or within a reasonable time if no limit has been fixed, the ownership is deemed to be transferred to the buyer. What is reasonable time, depends upon the circumstances of the case. 

Example: Ram delivers his car to Shayam on 1 January on the condition that, if he likes the car, he should communicate his approval to Ram by 10 January or return the car. If shayam does not communicate his approval even after that date, and does not return the car, his approval is implied and Ram is entitled to receive the payment for the car. 

(b) Reservation of the right of disposal: The Latin for ‘the right of disposal’ is jus disponendi. When the goods sold to a buyer who is far away and the goods id despatched to the buyer by public transport, in order to ensure that he receives the payment for the good, the seller reserves the right of disposal. 

Normally, if the goods are delivered to the carrier and the Bill of Lading or the Railway Receipt is taken in the name of the seller or agent, it is presumed that the seller has reserved the right of disposal, and any damage to the goods in transit is borne by the seller. Section 25(1) lays down that, when a contract of sale is made for specific goods and the goods are delivered after the contract is made, under the terms of the contract of delivery, the seller is entitled to reserve the right of disposal till such time as such terms are met. In such case, even if the seller has dispatched the goods to the buyer, he retains the right of ownership of goods till the conditions of the contract are satisfied. When the goods are delivered to shipping company or the railways, the seller sends the Bill of Lading or the Railway Receipt along with other documents to the buyer through his agent or bank with instructions that these be delivered to the buyer only when he has made the payment for the goods. In this way, the seller reserves the right of disposal of goods.

Who is an Unpaid Seller and rights of unpaid seller.

 Q. Who is unpaid seller? Explain the rights of an unpaid seller. 

Ans. Who is an Unpaid Seller? A person who has sold goods to another person but has not been paid for the goods or has been paid partially is called an unpaid seller. According to Section 45 of sale of good act, an unpaid seller is one:

(1) Who has not been the price of the goods he has supplied, or has been partially paid for the goods.

(2) Who has been given a negotiable instrument like a bill of exchange that has been dishonored.

Rights of an unpaid seller: The unpaid seller has the following rights:

(1) Rights against the goods: According to Section 46, when the buyer has not paid the full or partial price of the goods supplied to him, then the seller who has transferred the ownership of goods to the buyer has the following rights with regard to the goods:

(a) Right of lien: According to Section 47, if the seller of goods has not been paid, and the ownership of goods has been transferred to the buyer but the goods are in possession of the seller, the seller has the right to retain the goods till he receives the price of the goods from the buyer. The seller has this right under the following circumstances:

(i) When the goods have not been sold on credit.

(ii) When the payment has not been made on the promised date, if the goods were sold on credit and credit period is expired. 

(iii) When the buyer has become insolvent.

Even if the seller has the possession of goods as an agent or bailee of the buyer, he still has the right of lien of the goods. When an unpaid seller has made partial delivery of goods, he can exercise his right of lien on the goods not delivered unless the part of delivery was made in circumstances to show an intention to waive the lien. 

Termination of lien: According to Section 49, the lien of an unpaid seller terminates in the following circumstances. 

(i) When the seller delivers the goods to a carrier or any other bailee, right of lien terminates.

(ii) When the buyer or his agent lawfully obtains the possession of goods.

(iii) When the seller has waived the lien on the goods. 

(b) Right of stoppage of goods in transit: According to Section 50, when the seller has delivered the goods to a carrier for transmission to the buyer and the goods are in transit, if he receives information that the buyer has become insolvent, the seller has the right to stop the goods in transit and retain their possession till such time as he is not paid the price of goods. The seller has the right of stoppage of goods in the following circumstances:

(i) When the price of goods has totally or partially not been paid.

(ii) When the buyer has become insolvent before paying for the goods.

(iii) When the goods are in transit.

Duration of transit: According to Section 51, when the seller has delivered the goods to the carrier or bailee for transmission to the buyer, until the goods are received by the buyer or his agent is the duration of transit. Even if the goods have reached the destination, the seller’s right of lien does not terminate till the buyer or his agent has taken the possession of goods. The rules as to determine when goods are deemed to be in transit are:

(i) Delivery of goods to the carrier or bailee: The goods are deemed to be in transit when they have been delivered by the seller to the carrier or bailee for transmission to the buyer, and the duration of the period in transit is till the buyer or his agent takes possession of the goods.

(ii) The buyer taking delivery before destination: If the buyer or his agents takes the delivery of goods before the good reaches the destination, the duration of the transist, lawfully ended.

(iii) Holding the goods by the carrier on behalf of the buyer: If, after the goods have reached the destination, the carrier is holding the goods on behalf of the buyer, the duration of transit is deemed to have ended.

(iv) When the goods are rejected by the buyer: If the buyer rejects the goods and the possession of goods remains with the career or bailee, the duration of transit is deemed to have ended.

(v) When the goods are delivered to a ship chartered (hired) by the buyer: When the goods are delivered on board a ship chartered by the buyer,  it depends upon the circumstance of the case whether the ship’s owner (i.e. the shipping company) accepts the goods in the capacity of the carrier or an agent of the buyer. If the shipping company accepts the goods as an agent of the buyer, the duration of transit terminates.

(vi) When the carrier or bailee refuses to deliver the goods: When the carrier or bailee, with malafide (दुर्भावना, जानबूझ के) intention, refuses to deliver the goods to the buyer or his agent, the duration of transit is deemed to end.

(vii) When partial delivery has been made to the buyer: In case a part of goods has been delivered to the buyer or his agent, and the rest of goods are in transit, and if the partial delivery is made with the intention that it is not deemed to be total delivery, the seller has the right to stop the remaining goods in transit. 

How Stoppage of Goods in Transit is Affected?

According to Section 52, the stoppage of goods in transit is affected by:

(i) taking actual possession of goods.

(ii) giving notice of the seller’s claim to the carrier or any other person having the control of goods. 

(c) Right of Re-sale: 

(i) Besides the right of lien and stoppage of goods in transit, an unpaid seller has the right to re-sell the goods, if the goods are perishable.

 

(ii) When the unpaid seller has acquired the possession of goods by lien or stoppage of goods in transit, and has given notice to the buyer of his interaction to re-sell the goods, and if the buyer does not pay for the goods, the unpaid seller can re-sell the goods. The seller is also entitled to claim from the buyer any loss that he may suffer in re-selling the goods. If the unpaid seller makes a profit by reselling the goods, the defaulting buyer has no claim on such profit, because the law does not permit a defaulter to profit by his default. 

(iii) In case of a default on the part of the buyer, when the seller has secured the right to re-sell in a clear and certain procedure, he can proceed with the resale of goods. 

When an unpaid seller plans to re-sell the goods, he is obliged by law to give one last opportunity to the buyer by informing him of his intention to do so, so that the buyer can assure himself, if he desires, that the goods are sold at a reasonable price. If the unpaid seller does not inform the buyer of his intention to re-sell the goods and is put to a loss in the re-sale, he cannot later claim such loss from the defaulting buyer or keep with himself any profit that may result from the re-sale. 

(2) Rights Against the Buyer: An unpaid seller has the following rights against the buyer:

(a) Suit for price:  According to Section 55, if the ownership of goods has been transferred to the buyer and he refuses to make the payment for the goods, the seller has the right to file a suit against the buyer.

According to Section 55(2), if, according to the terms of the contract of sale, the payment for the goods is to be made by a certain time or date by the buyer and such payment has not been made, the seller has the right to sue the buyer even if the ownership of goods has been transferred to the latter.

(b) Suit for damages: According to Section 56, [if the buyer] refuses to accept the goods or defaults in making the payment for them with a malafide intention, or [refuses to accept the goods or to pay for the same, the seller has the right to file a suit against the buyer for damages.]

(c) Repudiation of contract before due date: According to Section 60, [if the buyer repudiates the contract before the due date] for the delivery of goods [and the seller does not accept the repudiation and waits for the due date] to make the delivery, [he reserves the right to sue the buyer for repudiating the contract.]

(d) Suit for interest: The unpaid seller, according to Section 61, has the right to be paid interest by the buyer for any delay in making the payment. Such interest is affective on the amount of payment for the period of delay after the due date. 

Or

Such interest is charge after due date of payment and if there is agreement interest will be charge from due date.

Features and procedure of obtaining information under right to information act, 2005.

Q. Explain the features and procedure of obtaining information under right to information act, 2005. [KUK 2017-18]

Ans. FEATURES OF RIGHT TO INFORMATION ACT, 

https://english9192.blogspot.com/2025/05/salient-features-of-right-to-Information-act-2005.html

PROCEDURE OF OBTAINING INFORMATION UNDER RIGHT TO INFORMATION ACT, 2005: The procedure of obtaining information under Right to Information Act is as under: 

1. Request of obtaining information: A person, who desires to obtain any information under this act, shall make a request in writing or through electronic means in English or Hindi or in the official language of the area in which the application is being made, accompanying such fee as may be prescribed to the Public Information Officer (PIO) or Assistant Public Information Officer (APIO) as the case may be. Public Information Officer is an officer designated by the Public Authority in all administrative offices or units under it and Assistant Public Information Officer is an officer designated by the Public Authority at each sub-divisional or block levels. The duties of these officers are to receive the applications from the information seekers and provide them necessary information. If there is any prescribed format of seeking information, then the information-seeker must use that form. If there is no prescribed format of application for seeking information, the application can be made on plain paper. The application should have details of the information required as well as the name and complete postal address of the applicant.

Where request for obtaining information cannot be made by the applicant in writing, the concerned information officer shall render all reasonable assistance to the person making the request orally to reduce the same in writing.

An applicant making request for information shall not be required to give any reason for requesting the information or any other personal details except those that may be necessary for contacting him.

2. Depositing fees for obtaining information: For obtaining any information, the applicant is required to deposit a certain fees as prescribed by Central and State Governments. Different states have different fees for seeking information. The application fees for Central Government Departments is ₹ 10. The applicant may also be required to pay further fee towards the cost of providing information, the details of which shall be intimated (familiar) to the applicant by the public information officer. For obtaining information from Central Departments, the applicant is required to pay ₹ 2 for every page. The amount of fees differs from state to state. Similarly, for the inspection of documents a certain fees has been prescribed. Both at Centre and State levels, no fee for inspection of records, if such an inspection is made for one hour only. However, for every subsequent hour after one hour or a fraction thereof, the fee is ₹ 5. This position (fee structure) is applicable to Central Government Departments. State Governments have different fee rules. The fee is deposited in the name of concerned Public Information Officer/Assistant Public Information Officer. The modes of paying fees are Cash, Demand Draft, Banker’s Cheque, Indian Postal Order or Treasury Challan. Different State Governments have framed different rules for depositing application fee for seeking information.

There is no fee (Application fee or other additional fee) for citizens below poverty line.

3. Disposal of Request

Following are the provisions of Right to Information Act regarding Disposal of Request for obtaining information:

(i) In general cases, normally the request for information shall be disposed by the concerned information officer within 30 days of receipt of request.

(ii) where the information sought for concerns with the life or liberty of a person, the same shall be provided within 48 hours of the receipt of the request.

(iii) where the information sought (relates) to third party, the same shall be provided within 40 days of the receipt of request.

(iv) If the information sought relates to allegations of human rights violations against the listed intelligence and security organisations, the same shall be provided within 45 days of the receipt of request.

(v) If the concerned information officer does not provide information within the specified period, it shall be taken as a deemed refusal against which the applicant seeking information can file his first appeal to the next senior rank information officer.

(vi) Where a request has been rejected, the concerned Public Information Officer shall communicate to the person making request:

(a) The reason for such rejection,

(b) The period within which an appeal against such rejection and to whom may be preferred, and 

(c) The particulars of the appellate authority.

4. Appeals: The applicant can file appeal if there is delay in disposal of request or the information has been denied or the information given is found to be incorrect. Appeal can be filed at two levels – one within the organisation to the senior officer to the Public Information Officer known as First Appellate Authority. The second appeal may be filed with the Central or State information commission, as the case may be. The Central and State Governments have framed rules laying down the procedure for filing appeals. The appeals in respect of Union Territories can be filed before the Central Information Commission.

First Appeal:

Any person who does not receive a decision or request for information within the stipulated (specified) time or is aggrieved by a decision of the Public Information Officer may file first appeal of the Right to Information Act. First appeal can be filed within 30 days from the receipt of decision of Public Information Officer, and if no decision is given within 60 days from the date of making a request for information. No fee is charged for filling first appeal, though some states have prescribed a certain fee.

No format has been prescribed for filing first appeal. So, the first appeal can be filed on a plain paper. A copy of the original application which was sent to Public Information Officer for desired information along with reply letter of the Public Information Officer (if any) must be attached to the appeal application. First appeal has to be disposed of within 30 days from the date of its receipt. This period is extendable by 15 days if necessary. So if you do not obtain desired information even after making first appeal, you can file second appeal to the next level Appellate officer (Authority).

Second Appeal:

Second appeal is the last resort (help) for obtaining information under Right to Information Act. Second appeal can be filed with the information commission. A second appeal against the decisions of the State Government Departments can be filed with State Information Commission whereas appeal against Central Government Departments can be filed with the Central Information Commission. Though no fees has been prescribed for filing appeals before the Central Information Commission, some states have fixed fees for filing appeals with their State Commission. In case the applicant is still aggrieved by the decision of the First Appellate Authority, then he can file one more appeal (second appeal) with the commission. The second appeal shall lie within 90 days from the date on which decision should have been made or was actually received. However, the Central or State information commission may admit the appeal after the expiry of period of 90 days if it is satisfied that the appellant was prevented by sufficient cause from filling the appeal in time.

No format has been prescribed for filing second appeal too. So, the second appeal can also be filed on a plain paper. Though there is no time limit for the disposal of appeal by the commission but Central or State Commission gives its decision within 90 days of filing the appeal. The decision of Central or State Commission gives its decision within 90 days of filing the appeal. The decision of Central or State Commission shall be binding but an appeal can be filed in the High Court and Supreme Court against the decision of the Commission.

features and procedure of obtaining information under right to information act, 2005.

salient features of Right to Information Act, 2005

 Q. Discuss the salient features of Right to Information Act, 2005. 

Ans. The salient features of Right to Information Act, 2005 are as under:

1. This Act may be called Right to Information Act, 2005.

2. This Act defines ‘Appropriate Government’ which may be termed as Public Authority.

3. The Public Authority is established, constituted, owned, controlled or substantially financed by funds provided directly or indirectly by the Central Government or the Union Territory or State Government.

4. This Act is applicable to all public authorities such as all central and state government ministries, departments, organisations, undertakings, autonomous bodies, municipalities, Panchayat, etc. enacted by law and also covers the Union Territories, Election Commission, Auditor General, Public Service Commission and the judiciary and the legislature are covered under its purview. Interal and Foreign private institutions situated (working) within the country have been kept out of its purview. 

5. The Act requires the public authority and its officers to maintain and keep ready its records and machinery so as to facilitate the right to Information.

6. The Act provides that if the Information sought for relates to another office or another public Information officer, then the Public Information Officer receiving the application for Information can transfer the application to the Public Information Officer of the concerned office. 

7. In general cases, normally the request for information shall be disposed by the concerned Information officer within 30 days of the receipt of request. Where the information sought relates (pertains) to third party, the same shall be provided within 40 days of the receipt of request. But if the information sought for concerns the life or liberty of a person, the same shall be provided within 48 hours of the receipt of request. 

8. The fee for seeking information shall be reasonable. There shall be no fee for citizens below poverty line.

9. The Act provides for Constitution of a Central Information Commission at the highest level and State Information Commission at state level. There shall be Chief Information Commissioner and Information Commissioner in both the Commissions. 

10. The Act provides for two-level forum for making appeal, i.e. appeal shall be filed at two levels.

– One within the organisation to the senior officer to the Public Information officer known as First Appellate Authority.

– The second appeal shall be filed with the Central or State Information Commission, as the case may be. 

11. The Act provides that if the concerned Public Information Officer does not furnish the required information within specified period or refuses to provide information, the applicant making request for information shall file an appeal within 30 days of the date of such refusal. An appeal shall be disposed of within a 30 days of the receipt of the appeal or within such extended period not exceeding a total of 45 days from the date of filling.

12. The provisions of this Act are of overriding nature and these provisions cannot be made ineffective by proceedings of the lower courts. 

13. The Central and State Information Commissions shall, after the end of each year, prepare a report on the implementation of this Act during that year and forward a copy to the appropriate Government which shall be laid down before each House of Parliament or State Legislature as the case may be. 

14. The Central Government, by using power vested (मिली हुई है) under this Act, shall check out programmes to advance the understanding of the public and develop (promote) the information machinery. 

15. If any Public Information Officer neither furnishes the information nor refuses to furnish the information within specified time, he shall be penalised with ₹ 250 per day for the delay period subject to the total amount of such penalty not exceeding ₹ 25,000.

16. The amount of fee deposited by the applicant for seeking information shall have to be returned, if information is not furnished within specified period.

17. If any person, with one reason or the other, is unable to give written application for seeking information, he can tell it orally to the concerned Public Information Officer and it will be taken as his oral request for seeking information. In such cases, the concerned Public Information Officer shall render all reasonable assistance to the person making the request orally to reduce the same in writing.

The salient features of Right to Information Act, 2005