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Rayat College Of Law

Ropar Campus

Poject of ADR

Topic : Setting Aside of Awards

Submitted to:- Submitted by:-




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I would like to express my special thanks of gratitude to my teacher Ajitabh Mishra as

well as our officiating principal Dr Monika Sharma who gave me the golden opportunity

to do this wonderful project on the topic Rights of Unpaid Seller ,which also helped me in

doing a lot of Research and i came to know about so many new things I am really

thankful to them.

Secondly i would also like to thank my parents and friend and seniors who helped me a

lot in finalizing this project within the limited time frame.

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Table Of Contents

Table of Cases ___________________________ ____ _ _4

Bibliography and Webliography___________________________________________________5

Introduction ____ _ 6


Rights of an Unpaid Seller Against the Goods Sold _ ____ 8

Right of Lien _ __ 9 - 10

Termination of Lien _________________________________________________________10 - 11

Part delivery ________ ___ 11

An unpaid seller loses his right of lien ______ 12

Right of Stoppage in Transit ______ 13

Duration of transit _____14 - 15

How stoppage in transit is effected ___ 15 - 16

Difference between Right of Lien and Stopage in Transit ___ _16 - 17

Right of Resale ______ 17 - 18

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Sale not generally rescinded by lien or stoppage in transit ____ 18 - 21

Rights of Unpaid Seller Against the Buyer Personally ___ 21 – 23

Table of Cases

 Eduljee v. Café John Bros AIR 1943 Nag. 249

 Bethell v. Clark 19 QBD 553 at pg. 561
 Schotsmans v. Lancs and Yorks Railway 1864 S187
 Litt v. Cowley (1816) 2 Marsh 457
 RV Ward Ltd. V. Bignall (1967)2 All E.R. 449
 Mysore Sugar Co. Ltd Bangalore v. Manohar Metal Industries AIR 1982 Kant
 Knight v. Wiffen (1870) 5 QB 660
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 SALE FO GOODS ACT by Dr. R.K. Bangia


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Arbitration may be defined as a “ mechanism for the resolution of disputes which take
place usually pursuant to an agreement between two or more parties, under which
parties agree to be bound by the decision to be given by the arbitrator according to the
law or , if so agreed, other considerations, after a fair hearing such a decision being

Settlement of a dispute (whether of fact, law, or procedure) between parties to a

contract by a neutral third party (the arbitrator) without resorting to court action.
Arbitration is usually voluntary but sometimes it is required by law. If both sides agree
to be bound by the arbitrator's decision (the 'award') it becomes a binding arbitration.
The exact procedure to be followed (if not included in the contract under dispute) is
governed usually by a country's arbitration laws, or by the arbitration rules prescribed
by the International Chamber Of Commerce (ICC).

According to Byrne’s law dictionary the term “arbitration” includes practically every
question, which might be determined by a civil action, referred to arbitration. Thus
under the English law, arbitration means the settlement of disputes by the decisions
one or more persons called arbitrators. As Russel rightly pointed out, “ the essence of
awardarbitration is that some dispute is referred by the parties for settlement to a
tribunal of their own choice instead of to a court”.
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A method of alternative dispute resolution in which the disputing parties agree to

abide by the decision of an arbitrator(s).

The submission of a dispute to an impartial third person or persons. The arbitrator or

arbitrators are selected directly by the parties or are chosen in accordance with the
terms of a contract in which the parties have agreed to use a court-ordered arbitrator or
an arbitrator from the American Arbitration Association. If there is no contract,
usually each party chooses an arbitrator and the two arbitrators select a third. When
parties submit to arbitration, they agree to be bound by and comply with the
arbitrators' decision. The arbitrators' decision is given after an informal proceeding
where each side presents evidence and witnesses.

Some arbitration proceedings are mandatory (enforced by statute), such as many labor
disputes. Other arbitration proceedings are selected in advance and written into
contracts. In fact, many couples who sign cohabitation agreements or divorce
agreements include a clause agreeing to go to arbitration if any dispute should arise,
thereby avoiding the delay, expense, bitterness and formality of litigation. Other
arbitration proceedings are chosen by the disputing parties after the conflict arises, but
are also to avoid the delay, expense, bitterness and formality of courts.

Definition of an unpaid seller1:-

“Arbitration” means any arbitration whether or not administered by permanent arbitral
institution the word “Arbitration” as defined in the present act connotes the same
meaning as contained in article 2(a) of the model law of UNCITRAL.

section 45 of Sales of Goods Act, 1930
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