Report No. 168
F. No. 6(3)(39)/96-L.C.(LS)
Member-Secretary & Secretary To The Govt. of India
Government of India
Chief of the Organisation, National Housing Bank,
Hindustan Times , 6th & 9th Floor,
18, K.G. Marg, New Delhi.
Subject: Questionnaire on Law of Hire-Purchase.
Sir / Madam,
During the past few decades, there has been a mushroom growth of hire-purchase transactions in India which prompted the Law Commission to undertake a study on the subject. The Commission made an in-depth study on the subject and submitted its 20th Report on "The Law of Hire-Purchase" in May, 1961. The Indian Parliament enacted the Hire-Purchase Act, 1972 following the recommendations of the Law Commission.
Because of pointing out certain anomalies in the Act by the Chairman of the Joint Committee of Parliament, and by a number of companies involved in business of financing, the Act was not brought into force as pointed out in the appended papers. The report dated April 24, 1987 of the Committee on Petitions, Rajya Sabha recommended for implementing the Act expeditiously. In due course, the Ministry of Law & Justice prepared a comprehensive Amendment Bill for the amendment of the Hire-Purchase Act, 1972 which was introduced in the Rajya Sabha on 5th May, 1989.
The Parliamentary Standing Committee has vide its 21st report dated August 7, 1995 recommended that Government may consider referring the issue of hire-purchase to the Law Commission for an in-depth examination, keeping in view the observations of the Committee. Accordingly, the subject of hire-purchase was referred by the Government of India to the Law Commission for an in-depth examination.
2. The Law Commission has drawn up a questionnaire on the aforesaid subject and is interested to have the views of all interested persons/bodies on the subject. A copy of the questionnaire alongwith a copy of the Hire-Purchase Act, 1972 and the Hire-Purchase (Amendment) Bill, 1989, is enclosed for your ready reference.
3. The Commission would, request you to convey your views on the Questionnaire so as to reach the Commission at the earliest and in any case not later than 15th June, 1998. The Commission would also be grateful, if copies of this questionnaire are made and distributed to the concerned with a request to directly transmit their views to the Law Commission.