The correct answer is Section 47 of the Sale of Goods Act.
Section 47 of the Sale of Goods Act deals with the right of stoppage in transit. This right allows the seller to stop goods in transit and retain them until the buyer has
paid for them. The right of stoppage in transit is available to the seller if the buyer has become insolvent or if the buyer has repudiated the contract.Section 47 of the Sale of Goods Act is as follows:
“(1) Where the seller of goods has parted with the possession of them but the property in them has not passed to the buyer, and the buyer becomes insolvent, or the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may stop the goods in transit, and retain them until payment or tender of the price.
(2) Where the seller has a lien on the goods or a right of retention under Section 38, he may exercise such lien or right of retention notwithstanding that the property in the goods has passed to the buyer.”
Section 47 of the Sale of Goods Act is an important provision that protects the interests of sellers. It allows sellers to recover goods that have been sold but not paid for, even if the buyer has become insolvent.