Sale of Goods Act, 1930 · Chapter III: Effects of the Contract · Transfer of property as between seller and buyer
Section 23: Sale of unascertained goods and appropriation
(1) Where 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 appropriated 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 the goods thereupon passes to the buyer. Such assent may be express or implied, and may by given either before or after the appropriation is made.
Delivery to carrier.—(2) Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) 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.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 23
- Mis Arihant Udhyog v. State of Rajasthan & Ors.
- M/S. Escorts Jcb Ltd. v. Commissioner of Central Excise, Delhi-Ii
- Agricultural Market Committee v. Shalimar Chemical Works Ltd.
- United Breweries Ltd. v. State of Andhra Pradesh
- Juggilal Kamlapat v. Pratapmal Rameshwar
- Kelvinator of India Ltd v. The State of Haryana
- Mahabir Commercial Co. Ltd v. C.I.T. West Bengal, Calcutta
- Bengal Timber Trading Co. Ltd. v. Commissioner of Sales Tax, Madhya Pradesh
- M/S New India Sugar Mills Ltd. v. Commissioner of Sales Tax, Bihar
- Tata Iron and Steel Co., Limited, Bombay v. S. R. Sarkar and Others.
- Commissioner of Sales-Tax, Eastern Division, Nagpur v. Husen Ali Adamji and Co.