Section 53 in The Jammu and Kashmir Sale of Goods Act, 1996 (1939 A.D.)
53. Effect of sub-sale or pledge by buyer.
(1)Subject to the provisions of this Act, the unpaid seller's right of lien or stoppage in transit is not affected by any sale or other disposition of the goods which the buyer may have made, unless the seller has assented thereto:Provided that, where a document of title to goods has been issued or lawfully transferred to any person as buyer or owner of the goods, all that person transfers the document to a person who takes the document in good faith and for consideration, then, if such last mentioned transfer was by way of sale, the unpaid seller's right of lien or stoppage in transit is defeated, and, if such last mentioned transfer was by way of pledge or other disposition for value, the unpaid seller's right of lie or stoppage in transit can only be exercised subject to the rights of the transferee.(2)Where the transfer is by way of pledge, the unpaid seller may require the pledgee to have the amount secured by the pledge satisfied in the first instance as far as possible, out of any other goods or securities of the buyer in the hands of the pledgee and available against the buyer.
