The
plaintiff in this case is the seller and the defendants are the G.I.P. Railway
Co. The plaintiff sold the goods and transported them to the buyer through the
defendant Railway Company. Meanwhile, the seller learnt from reliable sources
that the buyer became insolvent/bankrupt. He sent a notice of stoppage in
transit telegraphically to the defendant. The defendant received the telegram
(to stop delivery to the buyer) from the plaintiff, when the goods were being
leaded in the buyer’s cart. The defendant did not stop/cancel the delivery.
The Court through Lord Esher held that the
defendant Railway Co. is not liable on the ground that when once the goods are
delivered to the buyer, the bailment is lost and the goods are not deemed to be
in transit. Hence, the notice of stoppage in transit in ineffective/
inoperative. The defendant Railway Co. has no right to cancel the delivery.
Therefore, the plaintiff’s action was not maintainable.
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