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Report No. 168

17. Rights of hirer in case of seizure of goods by owner.-

(1) Where the owner seizes under clause (c) pf section 19 the goods let under a hire-purchase agreement, the hirer may recover from the owner the amount, if any, by which the hire-purchase price together with such incidental charges and expenses as may be payable under the terms of the agreement falls short of the agreement of the following amounts, namely:

(i) the amounts paid in respect of the hire-purchase price up to the date of seizure;

(ii) the value of the goods.

(2) For the purposes of this section, the value of any goods in a case where the goods are required by any law for the time being in force to be registered in the owner's name, on the date of such registration and in any other case on the date of seizure is the best price that can be reasonably obtained for the goods by the owner on that date less the aggregate of the following amounts, namely:

(i) the reasonable expenses incurred by the owner for noising the goods;

(ii) any amount reasonably expended by the owner on the storage, repairs or maintenance of the goods;

(iii) whether or not the goods have subsequently been sold or otherwise disposed of by the owner the reasonable expenses of selling or otherwise disposing of the goods; and

(iv) the amount spent by the owner for payment of arrears of taxes and other dues which are payable in relation to the goods under any law for the time being in force and which the hirer was liable to pay.

(3) If the owner fails to pay the amount due from him under the provisions of this section or any portion of such amount to the hirer within a period of thirty days from the date of notice for payment of the said amount is served on him by the hirer, the owner shall be liable to pay interest on such amount at the rate of twelve per cent per annum from the date of expiry of the said period of thirty days.

(4) Where the owner has sold the goods seized by him the onus of proving that the price obtained by him for the goods was the best price that could be reasonably obtained by him on the date of seizure shall be upon him.

(5) Where the owner seizes the goods under clause (c) of section 19, the goods let under a hire-purchase agreement and if, within fourteen days of the date of such seizure, the hirer

(i) pays or tenders to the owner the hire in arrears up to the date of payment or tender, together with such incidental charges and expenses as may be payable under the terms of the agreement;

(ii) remedies any breach of agreement or (where he is unable to remedy the breach by reason or the fact that the owner has seized the goods) pays or tenders to the owner the costs and expenses reasonably and actually incurred by the owner in doing any act, matter or thing necessary to remedy the breach;

(iii) pays or tenders to the owner the reasonable costs and expenses of the owner of and incidental to his seizure of the goods and of his returning them to or to the order of the hirer, the owner shall return the goods to the hirer, except in a case where the goods are disposed of by way or sale or by way of hire-purchase as the case may be before the hirer makes the payment or remedies the breach as contemplated by this sub-section, and on such return the goods shall be recovered and held by the hirer pursuant to the terms of the hire-purchase agreement as it the agreement had not been terminated and the owner had not taken possession of the goods.



The Hire-Purchase Act, 1972 Back




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