Report No. 168
28. Hirer's refusal to surrender goods not to be conversion in certain cases.-
If during the subsistence of any restriction to which the enforcement by an owner of in right to recover possession of goods from a hirer is subject by virtue of this Act, the hirer refuses to give up possession of the goods to owner, the hirer shall not, by reason only of such refusal, be liable to the owner for conversion of the goods.
(1) The owner may require any goods comprised in a hire-purchase agreement to be insured, and at all times during the period of the agreement kept insured, in the names of the owner and the hirer against any risk that the hirer thinks fit at the expense of the hirer.
(2) Where in respect of the insurance of goods comprised in a hire-purchase agreement, the insurer allows a no-claim rebate or a rebate of a similar nature, the hirer under the agreement is entitled to the benefit of the rebate, and any person who knowingly pays or allows any such rebate to the owner under the agreement shall not be relieved of his obligation towards the hirer.
(3) Nothing in this section shall limit or restrict the right of the owner to provide insurance without charge to the hirer.
28B. Application of law relating to illegal contracts.-
If an agreement has been entered into in contravention of any of the provisions of this Act or an act which contravenes any of the provisions of this Act, is committed in the course of the performance of an agreement, it shall not make the agreement illegal and the agreement shall be and shall continue to be binding and enforceable except with respect to the provisions inconsistent with the Act.