Buyer's Liabiliy ceases when?

C.A Alok Mukherjee (Querist) 22 April 2011 This query is : Resolved
Let us take a simple case

A company found the material sent by the interstate supplier not as per specification and quality standard hence the material is rejected. Now since the material is brought into their state by using the road permit is it there liability to ensure that the rejected material should cross the checkpost of their state it may happen that on rejection the material was handed over to his authrised agent /transporter by the buyer in that case will it be an obligation on the part of the buyer that material is actually pass out the border whatif if this material is sold in that state by the agent to other party? Since material is brought into a state by the buyer using their road permit what precaution buyer should take when there is a jenuine rejection due to poor quality of material.

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Guest (Expert) 22 April 2011
Either the material should have been inspected before its acceptance or if accepted earlier than inspection, the same should be handed over to the authorised company official, not up to the checkpost of the state.

So, your liability as buyer does not end until the delivery of the material is safely and physically handed over to the company, or on intimation the company lifts its material.

Rejection on the part of the buyer of course cannot be denied, if due intimation has been sent to the compan.

C.A Alok Mukherjee (Querist) 22 April 2011
So, i understand it is not buyer's look out to check whether the material is actually taken out of the state border but buyer's to see that it has been handed over to the seller or his agent. Now if subsequently, if that material is sold out then the buyer is no way liable right, but can this not someway affecting the interstate practice when the material is brought into one state by one dealer's road permit but actually being used by the other. any suggestion

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