Where a mercantile agent is, with the consent of the owner, in
possession of goods or the document of title to goods, any pledge made by him, when acting in the
ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorised by
the owner of the goods to make the same; provided that the pawnee acts in good faith and has not at the
time of the pledge notice that the pawnor has not authority to pledge.
Explanation.—In this section, the expressions “mercantile agent” and “documents of title” shall have
the meanings assigned to them in the Indian Sale of Goods Act, 1930 (3 of 1930).