A, after selling goods to B, remains in possession of them as seller, and later re-sells and DELIVERS them to C, who buys them in good faith without notice of the earlier sale. Under Section 30(1) of the Sale of Goods Act, 1930:

Section 30(1) is an exception to the general rule that a person cannot give a better title than he has (nemo dat quod non habet). Where a seller, having sold goods, continues in possession and separately sells and delivers them to a second buyer who acts in GOOD FAITH and without notice, the second buyer obtains a GOOD TITLE. The section protects the bona fide purchaser relying on the seller's ostensible possession. This 'seller in possession after sale' rule is a classic nemo-dat exception. Section 30(2) similarly protects buyers from a buyer in possession.