Sections 43 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 43 and 44 close Chapter IV on the buyer's side. Section 43 says that a buyer who rightly refuses goods is not bound to return them, it is enough that he intimates his refusal. Section 44 says what a buyer owes when the seller is ready and willing to deliver and the buyer does not take delivery within a reasonable time. This article follows the text of the Act consulted (latest amendment shown: Act 28 of 1993); amendments after that should be checked in the official text.
Under section 43, unless otherwise agreed, a buyer who refuses goods having the right to do so is not bound to return them; it is sufficient if he intimates to the seller that he refuses to accept them. Under section 44, a buyer who does not take delivery within a reasonable time after the seller's request is liable to the seller for any loss occasioned by his neglect or refusal and for a reasonable charge for the care and custody of the goods. The proviso saves the seller's rights where the refusal amounts to repudiation of the contract.
Section 43: the buyer need not send rejected goods back
"Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is sufficient if he intimates to the seller that he refuses to accept them."
The conditions are:
- the opening words "Unless otherwise agreed", so the contract can provide for return;
- goods have been delivered to the buyer;
- he refuses to accept them; and
- he has "the right so to do".
The words "having the right so to do" matter. Section 43 does not itself create a right of rejection; it assumes one exists, for example under section 37 (wrong quantity or mixed goods), or because the buyer has not been deemed to accept under sections 41 and 42. See our articles on delivery of wrong quantity and on examination and acceptance.
What the buyer must do is "intimate" refusal to the seller. The Act does not say in what form, or by when; the text is silent. A written intimation is the sensible way to leave a record, and a short, dated reply or notice is often what a seller later receives or answers.
Example (our own, not from the Act): Dutta Pharma receives 2,000 bottles of a chemical from Pillai Chemicals which do not match the agreed specification. Dutta Pharma has the right to refuse. Under section 43, unless the contract says otherwise, it need not ship the bottles back; it is enough that it tells Pillai Chemicals in writing that it refuses to accept them.
The section also leaves unanswered who is to look after the rejected goods meanwhile. Section 44 deals with a related case, the buyer who neglects or refuses to take delivery.
Section 44: liability for neglecting or refusing delivery
"When the seller is ready and willing to deliver the goods and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge for the care and custody of the goods."
Take the conditions one by one:
- the seller is "ready and willing to deliver";
- he "requests the buyer to take delivery"; and
- the buyer does not take delivery "within a reasonable time after such request".
Then two heads of liability follow:
- "any loss occasioned by his neglect or refusal to take delivery"; and
- "a reasonable charge for the care and custody of the goods".
The section sets no figure for either. Reasonable time is a question of fact under section 63; see our article on reasonable time. The Act does not state how the loss is measured. For general compensation rules under the contract law, our site has articles on section 73 of the Indian Contract Act, 1872; that is a different Act, and section 3 of this Act applies the unrepealed Contract Act provisions except where inconsistent with it.
The proviso. "Provided that nothing in this section shall affect the rights of the seller where the neglect or refusal of the buyer to take delivery amounts to a repudiation of the contract." So where the buyer's neglect or refusal is a repudiation, section 44 does not cut down the seller's other rights. The section does not say when neglect or refusal amounts to repudiation; that depends on the facts.
Example (our own): Krishna Paints has 400 drums ready for Reddy Builders and asks it in writing to collect them. Reddy Builders does not collect within a reasonable time. Under section 44, Reddy Builders is liable for any loss occasioned by its neglect or refusal and for a reasonable charge for the care and custody of the drums. If its conduct amounts to repudiation, the proviso preserves the seller's other rights.
Sections 43 and 44 compared
| Point | Section 43 | Section 44 |
|---|---|---|
| Who acts | Buyer who has refused goods | Buyer who has not taken delivery |
| Starting point | Goods delivered and buyer has the right to refuse | Seller ready and willing; he requests the buyer to take delivery |
| What the buyer must do | Intimate refusal | Take delivery within a reasonable time |
| Consequence in the section | Not bound to return the goods | Liable for loss and a reasonable charge for care and custody |
| Can the contract vary it? | "Unless otherwise agreed" | Proviso saves seller's rights on repudiation |
Practical points
- Buyers: intimate rejection in writing, with reasons. Section 43 only requires intimation, and a dated letter proves it.
- Buyers: do not leave a delivery request unanswered. Section 44 turns on a request and the lapse of a reasonable time. Reply, even if only to say you reject the goods.
- Sellers: make the request in writing. The liability begins after "such request", so the date and words of your request matter.
- Sellers: keep a record of care and custody. The head of liability is a reasonable charge; records of storage and handling are the support for it.
- Contracts: provide for return and for storage. Because section 43 begins "Unless otherwise agreed", a contract can require rejected goods to be returned or collected, and can fix who stores goods that are not taken.
Need help replying to a notice about refused or rejected goods?
If a seller has called on you to take delivery or a buyer has rejected your consignment, the first written answer shapes the dispute. We can prepare a measured reply to the legal notice that sets out what was delivered, what was requested and the date of each step.
Key takeaways
- Section 43: unless otherwise agreed, a buyer who rightly refuses goods need not return them; he need only intimate refusal to the seller.
- Section 44: a buyer who does not take delivery within a reasonable time after the seller's request is liable for loss and a reasonable charge for care and custody.
- The proviso saves the seller's rights where the refusal amounts to repudiation.
- The Act gives no form, period or formula; reasonable time is a question of fact.
Read next
- Sections 41-42 of the Sale of Goods Act, 1930: examination and acceptance
- Section 45 of the Sale of Goods Act, 1930: the unpaid seller defined
- Section 56-57 of the Sale of Goods Act, 1930: damages for non-acceptance and non-delivery
- Section 38-39 of the Indian Contract Act, 1872: tender of performance and refusal to perform wholly
Disclaimer: Based on the consolidated text of the Sale of Goods Act, 1930 consulted on 2 October 2026, whose latest amendment shown is Act 28 of 1993. It explains the words of the statute only; later amendments and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.