Report No. 168
12. Assignment and transmission of hirer's right or interest under hire-purchase agreement.-
(1) The hirer may assign his right, title and interest under the hire-purchase agreement with the consent of the owner, or if his consent is unreasonably withheld, without his consent.
(2)(a) Every request for according consent for such assignment shall be in writing and the owner shall reply to the same in writing within one week of the receipt of such request.
(b) If the owner withholds his consent to the assignment by the hirer of his right, title and interest under the Hire-Purchase Agreement on the ground that his demand for an amount or consideration of which there is no mention in the Hire-Purchase Agreement, is not satisfied or agreed to, the consent shall be deemed to be unreasonably withheld.
(3) Where on a request being made by a hirer in this behalf the owner fails or refuses to give his consent to an assignment under sub-section (1) the hirer may apply to the Court for an order declaring that the consent of the owner to the assignment has been unreasonably withheld, and where such an order is made the consent shall be deemed to be unreasonably withheld.
Explanation.-In this sub-section, "Court" means a court which would have jurisdiction to entertain a suit for the relief claimed in the application.
(4) As a condition of granting such consent, the owner may stipulate that all defaults under the hire-purchase agreement shall be made good and may require the hirer and the assignee to execute and deliver to the owner an assignment agreement, in a form approved by the owner, whereby, without affecting the continuing personal liability of the hirer in such respects, the assignee agrees with the owner to be personally liable to pay the instalments of hire remaining unpaid and to perform and observe all other stipulations and conditions of the hire-purchase agreement during the residue of the term thereof and whereby the assignee indemnifies, the hirer in respect of such liabilities.
(5) The right, title and interest of a hirer under a hire-purchase agreement shall be capable of passing by operation of law to the legal representative of the hirer but nothing in this sub-section shall relieve the legal representative from compliance with the provisions of the hire-purchase agreement.
Explanation.-In this sub-section, the expression "legal representative" has the same meaning as in clause (ii) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908).
(6) The provisions of this section shall apply notwithstanding anything to the contrary contained in the hire-purchase agreement.