Repealed or not in force · As amended up to 2026-08
III. Provided always, and be it enacted, that this Act and every matter and thing herein contained, shall be deemed and construed to give validity to such contracts and agreements only, and to protect only such Loans, Advances, and Exchanges, as shall be made bona fide and without notice that the Agent making such contracts or agreements as aforesaid has not authority to make the same, or is acting malá fide in respect thereof against the Owner of such Goods and Merchandize; and nothing herein contained shall be construed to extend to or protect any Lien or Pledge for or in respect of any antecedent debt, owing from any Agent to any person with or to whom such Lien or Pledge shall be given, nor to authorize any Agent intrusted as aforesaid in deviating from any express orders or authority received from the Owner; but that, for the purpose and to the intent of protecting all such boná fide Loans, Advances and Exchanges as aforesaid (though made with notice of such Agent not being the Owner but without any notice of the Agents acting without authority) and to no further, or other intent or purpose, such contract or agreement as aforesaid shall be binding on the Owner and all other persons interested in such Goods.
Source: India Code