Report No. 168

2.20. Section 15.-

No objections are raised with respect to section 15 which has also remained untouched by the Amendment Bill.

2.21. Section 16.-

Section 16 speaks of the obligation of the hirer to give information as to whereabouts of the goods. The Federation has suggested that the words "where the goods are at the time when the information is given or if it is sent by post, at the time of posting" appearing at the end of sub-section (1) should be substituted by the words "the time, date and place to enable the owner to inspect the goods within a period of 14 days from the date of the receipt of information from the hirer".

In the revised set of objections, yet another obligation is sought:, to be cast upon the hirer viz., to produce the goods for inspection by the owner. In our opinion the first mentioned suggestion is reasonable and is accordingly accepted but not the second-mentioned one (put forward in the revised set of objections).

2.21.1. The next suggestion of the Federation with respect to section 16 relates to sub-section (2) thereof. The Federation suggests that the words "he shall be punishable with fine which may extend to Rs. 200" appearing at the end of sub-section (2) should be substituted by the words "the owner may take action in accordance with the provisions of clause (b) of sub-section (2) of section 18". The Law Commission is, however, not in favour of this suggestion. The rights of the owner are amply protected by sub-section (2) of section 18 and it is unnecessary to add yet another right of termination by way of sub-section (2) of section 16. Accordingly, section 16 will read as follows:-

"16. Obligation of hirer to give information as to whereabouts of goods.-(1) Where by virtue of a hire-purchase agreement, a hirer is under a duty to keep in his possession or control the goods to which the agreement relates, the hirer shall, on receipt of a request in writing from the owner, inform the owner the time, date and place at which the goods can be inspected within a period of fourteen days from the date of the receipt of the request by the hirer.

(2) If the hirer fails without reasonable cause to give the said information within fourteen days of the receipt of the notice, he shall be punishable with fine which may extend to two hundred rupees."