Section 30
Effect Of Purchase Of Collateral
(1) Where a buyer buys collateral by giving value for the collateral without having knowledge of the existence of a security interest and before the security interest is matured, the security interest attached to the collateral that
such buyer has bought shall not affect such buyer.
Provided that the buyer has to acquire the right in the collateral of tangible property without having knowledge of such security interest and before it is matured.
(2) Without prejudice to the generality of sub-section (1), the following provisions shall govern the following matters:
(a) In the case of a buyer in the ordinary course of business buys goods, a security interest in such goods shall not affect the buyer even if the security interest in such goods is matured and even if the buyer knows of the existence of such interest;
(b) Where a person, who buys consumer goods, buys such goods without having knowledge of the security interest and before a notice is filed that covers the consumer goods, a security interest in such consumer goods shall not affect that person irrespective of whether the security interest in such consumer goods is matured or not;
(c) Where a person who buys a serial numbered vehicle buys that vehicle without having knowledge of a security interest in that vehicle or a filed notice does not mention a description of serial number of such vehicle or mentions such description incorrectly, a security interest in such serial numbered vehicle shall not affect that person;
(d) In the case of a person who buys farm products:
(1) A security interest in the farm products which are bought for use as consumer goods shall not affect such purchase;
(2) in the case of farm products which are not bought for use as consumer goods, where the buyer takes delivery of such farm products without having knowledge of a security interest in such products and before such right is matured, the security interest shall not affect such purchase.