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Report No. 168

2.28. Section 23.-

Section 23 sets out the obligation of the owner to supply copies and information. The 1989 (Amendment) Bill not only proposes to amend sub-section (1) in certain particulars but also seeks to insert sub-section (1A) after sub-section (1). A consequential amendment is also suggested in sub-section (3). As proposed to be amended by the 1989 Bill, sub-sections (1) and (1A) of section 23 read as follows:-

"Section 23. Obligation of owner to supply copies and information.-(1) It shall be the duty of the owner to supply, free of cost, a true copy of the hire-purchase agreement and a true copy of the declaration referred to in clause (c) of sub-section (1) of section 3, signed by the owner-

(a) to the hirer without undue delay after execution of the agreement; and

(b) where there is a contract of guarantee to the surety on payment made at any time before the final payment has been made under the agreement.

(1A) It shall be the duty of the owner, at any time before the final payment has been made under the hire-purchase agreement, to supply to the hirer additional copies of the hire-purchase agreement and the declaration referred to in clause (c) of sub-section (1) of section 3 within fourteen days after the owner receives the request in writing from the hirer in this behalf and the hirer tenders to the owner the prescribed fees for expenses."

2.28.1. The objections of the Federation relating to sub-section (1) of section 23 are merely phraseological in nature. In short, the Federation wants the expression 'surety' to be substituted by the expression 'guarantor' which has already been rejected in earlier part of this report. However, in view of the Law Commission's recommendation to insert sub-section (4) in section 3, sub-section (1) of section 23 becomes superfluous and may be deleted. So far as sub-section (1A) proposed to be added by the Amendment Bill is concerned, two objections were raised by the Federation:

(i) to omit the words "and the declaration referred to in clause (c) of sub-section (1) of section 23"; and

(ii) substitution of the words "and the hirer tenders to the owner the prescribed fee for expenses" with the words "along with the prescribed fee towards expenses".

We are unable to see any substance in these objections. Once a declaration has been executed as required by section 3 and also because it accompanies the hire-purchase agreement, its inclusion in sub-section.(1A) is totally justified. Similarly, the substitution of the words asked for by the Federation has no particular significance. Accordingly, it is recommended that sub-section (1A) as proposed to be introduced by the 1989 (Amendment) Bill be incorporated in section 23 but in view of the deletion of sub-section (1), the proposed sub-section (1A) has to numbered as sub-section (1) in section 23.

2.28.2. With respect to sub-sections (2), (3) and (4), the objections of the Federation are merely phraseological in nature and need not be dealt with individually. The Federation, inter alia, wants that the words "sum of one rupee" in sub-section (2) should be substituted by the words "sum of rupees two hundred". We do not see any basis for this exaggerated amount.

However, the sum of rupee one in sub-section being too low, the words "sum of one rupee: occurring in sub-section (2) should be substituted by the words "sum of ten rupees". With this minor change in sub-section (2), the aforesaid sub-sections, as proposed to be amended by the Amendment Bill, will remain unaltered. However, the amendment proposed by clause (c) of section 14 of the Amendment Bill will not be required because the proposed sub-section (1A) is sought to be numbered as sub-section (1).



The Hire-Purchase Act, 1972 Back




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