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Report No. 168

2.2. Views regarding dropping of Hire-Purchase Act and introduction of Consumer Credit Act on the Pattern of the British and Australian enactments, examined.-

The hire-purchase transactions in the United Kingdom were not regulated by law until 1938. In that year, the Hire-Purchase Act, 1938 was enacted which defined the hire-purchase agreement as an agreement for the bailment of goods under which the bailee might buy the goods or under which the property in the goods might pass to the bailee. This Act, however, did not take in the conditional sale agreements.

This was done by the Hire-Purchase Act, 1964 which defined the conditional sale agreements as agreements for the sale of goods under which the purchase price or part of its was payable by instalments and the property in the goods was to remain in the seller until such conditions as to the payments or instalments or otherwise, as might be specified in the agreement, were fulfilled.

2.2.1. The 1938 Act was amended and enlarged by the Hire-Purchase Act, 1954 and again by the Hire-Purchase Act, 1964. The 1964 Act had a specific part, i.e. Part III which protected the bona fide purchasers of motor vehicles covered by an hire-purchase agreement/conditional sale agreement.

2.2.2. In the year 1965, the British Parliament enacted Hire-Purchase Act, 1965, repealing the Acts of 1938, 1954 and 1964 (except Part III of the 1964 Act). This Act purported to be a consolidating Act on the subject of agreements in the United Kingdom. Section 1 defined the expressions "hire-purchase agreement", "credit sale agreement" and "conditional sale agreement" in the following words:

""Hire-purchase agreement" means an agreement for the bailment of goods under which the bailee may buy the goods, or under which the property in the will or may pass to the bailee;

"Credit sale agreement" means an agreement for the sale of goods under which the purchase price is payable by five or more instalments, not being a conditional sale agreement;

"Conditional sale agreement" means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled."

2.2.3. The 1965 Act applied to hire-purchase agreements/conditional sale agreements whereunder the hire-purchase price or total purchase price, as the case may be, did not exceed 2000 pounds. Of course, the said limit could be raised by the Government in the manner prescribed by section 3. Section 4 excluded from its ambit agreements entered into by or on behalf of a corporate body as the hirer or buyer of the goods. Section 5 provided that an agreement of hire-purchase/credit sale agreement/conditional sale agreement shall not be enforceable unless the agreement was signed by the hirer/buyer and the requirements of sections 6, 7, 8 and 9 were complied with.

Section 6 required that before entering into an agreement, the buyer must have been informed of the cast) price of the goods which meant the price at which the concerned goods might be purchased for cash. Section 7 provided the form and contents of the agreements. Section 8 provided for supply of copy of agreement to the hirer. Section 9 provided for supply of copies of agreement to hirer or buyer within a particular period where the agreement was signed at a place other than the 'appropriate trade premises'.

Section 10 clothed the court with the power to dispense with the requirements of sections 6, 7, 8 and 9 where it was satisfied that failure to comply with any of the said requirements had not prejudiced the hirer/buyer. Section 11 conferred upon the hirer/buyer a right to cancel and section 12 provided the mode in which the notice of cancellation was to be served. Section 13 provided for the situation following the cancellation of agreement including redelivery and interim care of the concerned goods. Sections 14 and 15 dealt with certain other aspects of cancellation of the agreement by the hirer.

2.2.4. Sections 16 to 20 dealt with representations, conditions and warranties. Section 16 provided that any representation by a person, other than the owner/ seller with respect to the goods, whether orally or in writing, shall be deemed to be a representation made by him as the agent of the owner/seller. Section 17 set out the implied conditions and warranties. It provided that every agreement shall be deemed to imply a stipulation on the part of the owner/seller that he had the right to sell the goods, that the hirer/buyer shall have and enjoy a quiet possession of the goods and further that the goods were free from any charge or encumbrance in favour of any third party.

This was of course subject to the rider that where any such defect was made known to the hirer/purchaser specifically in writing, section 18 permitted the parties to exclude the warranties mentioned under section 17 by express stipulation. Section 19 set out the further implied conditions where the goods were sold in bulk with reference to a sample or where they were sold by description. Section 20 contained certain special provisions with respect to the conditional sale agreements.

2.2.5. Sections 21 to 24 dealt with duties of the owner/seller to supply information and to furnish other relevant documents to the hirer/buyer. Section 21 provided, inter alia, that the agreement shall specifically provide the amount paid by the hirer/buyer, the amount remaining unpaid under the agreement, the date on which each instalment became due and the amount of such instalment etc. Failure to comply with the above requirements made the agreement unenforceable so long as the failure continued. Sections 22 and 23 dealt with the contract of guarantee accompanying an agreement and the documents to be supplied to the guarantor.

Section 24 cast an obligation upon the hirer/buyer to give information about the whereabouts of the hired goods, if so requested by the owner/seller and also allow the same to be inspected. Section 25 provided that in case of default in payment of instalments in accordance with the agreement, the right of termination shall not be exercised by the owner/seller unless he served a notice in that behalf upon the hirer/buyer.

Section 26 contained certain supplementary provisions concerning notices of default contemplated by section 25. Section 27 conferred upon the hirer/buyer the right to terminate the agreement any time before the final payment was made under the agreement and the consequences flowing therefrom. Section 28 dealt with the liabilities of the hirer/buyer in cases where he terminated the agreement.

2.2.6. Section 29 declared that certain stipulations specified therein shall not form part of an agreement and, if provided, shall be void.

2.2.7. Section 30 dealt with death of a hirer/buyer where an agreement provided for its termination on the happening of such event or any other specified event. In the absence of such a stipulation, the right of the hirer/buyer was made heritable. Sections 31 and 32 made certain supplemental provisions which need not be referred to herein.

2.2.8. Part III defined "protected goods" and restrictions on the right of an owner to recover possession thereof in certain situations. Section 41 provided that where the owner initiated an action for recovery of goods under section 35, he shall not take any steps to enforce payment of any sums due under the agreement or under the contract of guarantee relating to the said agreement. Section 42 conferred upon the court power to make appropriate orders in cases of non-compliance with orders for specific delivery of goods. Section 45 applied the provisions of sections 35 to 44 to conditional sale agreements as well. Sections 40 to 50 contained certain supplementary provisions which need not be dealt with herein.

2.2.9. Section 51 dealt with appropriation of payments by the hirer/buyer having two or more agreements with the same owner/seller. Section 52 stated that refusal to surrender goods shall not be treated as conversion where the right to recover possession of the goods by the owner/seller was subject to any restriction and that restriction was subsisting. Sections 57 to 62 contained certain supplementary provisions. It may be reiterated that while repealing the 1964 Act under the 1965 Act, Part III of the 1964 Act was not repealed.

2.2.10. In 1974, the British Parliament enacted the Consumer Credit Act, 1974. This Act was made to give effect to a number of recommendations made by the Crowther Committee on Consumer Credit (1971). The Act establishes a comprehensive code of regulation for the supply to individuals (including sole traders and partners) of credit not exceeding 5000 pounds throughout the U.K. It provides for licencing of those who carry on the business of granting consumer credit and ancillary credit businesses. It covers transactions which were not previously regulated by any enactment.

It applies to bankers, financial houses, building societies, local authorities, life insurance offices, money lenders, pawn brokers, cheque and voucher traders, issuers of credit cards, mail order companies, retailers, service industries, mortgage companies and other businesses providing financial accommodation. It also affects mortgage, finance and insurance brokers, solicitors, estate agents, debt collectors, factors, companies engaged in block discounting, debt counsellors, debt adjusters, credit insurers and credit reference bureaux.

This Act not merely applies to hire-purchase transactions, but also to lease transactions. Certain provisions of the Act namely those which dealt with extortionate credit bargains, however, apply to all credit agreements where the debtor is an individual regardless of the amount of the credit advances. It repeals Hire-Purchase Act, 1904 (except Part III) and the Hire-Purchase Act, 1905.

As a matter of fact, Schedule IV to this Act substitutes entire Part III of the Hire-Purchase Act, 1964, which deals with title to motor vehicles on hire-purchase or conditional sale. It seeks to protect the rights of a bona fide purchaser of motor vehicle from a person who has obtained it under a hire-purchase or conditional sale agreement but who disposes it of before the property in the vehicle vests in him. It also contains certain other supplemental provisions.

2.2.11. "The draftsman of the Act has found it impossible to set up a system of wide ranging control without devising new concepts and consequently has introduced in Part II of the Act an entirely new and sometimes complex terminology. However, despite its length (containing 193 sections) the Act is merely a blueprint for the system of regulation and licencing which it establishes. It will be supplemented by a mass of regulations, orders and other subordinate legislation. This subordinate legislation will inevitably be far more voluminous and complex than the Act itself"1.

1. See "General Note" to the Act in the Current Law Status Annatated, 1965 Sweet and Maxwell, London, p. 39

2.2.12. The Consumer Credit Act, 1974 contains as many as 193 sections divided into 12 parts in addition to five Schedules, which too are quite elaborate. Part I (sections 1 to 7) sets out the duties of the Director-General of Fair Trading. His main duty is to administer the licencing system set up by the Act and to exercise the adjudicating functions conferred upon him by the Act with respect to issue, renewal, variation, suspension and revocation of licences. He is vested with the power of general superintendence over the working and enforcement of the Act and regulations made thereunder.

The Secretary of the State is empowered by section 2 to confer additional powers upon the director. The adjudicating functions of the director are subject to the supervision of council on tribunals created under the Tribunals and Inquiries Act, 1971. Sections 4 to 7 obligate the director to arrange for dissemination of such information and advice as it may appear to him expedient to give to the public and to submit annual reports. They also provide the form in which applications are to be made to him. Section 7 provides a penalty for furnishing false information In any application made under the Act.

2.2.13. Before referring to the other provisions of the Act, it would be appropriate to mention that section 189 defines various expressions occurring in the Act. It inter alia, defines the expressions 'conditional sale agreement', 'consumer credit agreement', 'consumer hire agreement', 'credit sale agreement', 'debtor-creditor-supplier agreement', 'hire-purchase agreement', 'debtor', 'hirer', 'owner', 'creditor', 'protected goods', 'regulated agreements', 'restricted-use credit agreement', 'surety', 'supplier' and 'total price'.

2.2.14. Part II deals with credit agreements, hire agreements and linked transactions section 8 defines the expressions personal credit agreement and consumer credit, agreement. A personal credit agreement is a mere credit arrangement without limit on the amount, while a consumer credit agreement is a personal credit agreement stipulating a credit not exceeding 5000 pounds. A consumer credit agreement is called 'regulated agreement' within the meaning of the Act provided it does not fall under any of the exemptions provided by section 16. Section 9 defines the expression "credit" while section in says that a credit agreement can be a 'running account credit facility' or a 'fixed sum credit facility'.

Section 11 defines the expressions 'restricted-use credit agreement' and 'un-restricted use credit agreement'. A restricted-use credit agreement is a regulated consumer credit agreement to finance a transaction between the debtor and the creditor whether forming part of that agreement or not, or to finance a transaction between a debtor and a person other than the creditor.

An un-restricted-use credit agreement is a regulated consumer credit agreement not falling within the ambit of restricted-use credit agreement. Section 12 specifies what a 'debtor-creditor-supplier agreement' means, while section 13 defines 'debtor-creditor agreement'. Section 14 specifies what 'credit-token agreements' mean whereas section 15 defines 'consumer hire agreements'.

A consumer-hire agreement, according to section 15 "is an agreement made by a person with an individual ("the hirer") for the bailment or (in Scotland) the hiring of goods to the hirer being an agreement which-(a) is not a hire-purchase agreement, (b) is capable of subsisting for more than three months, and (c) does not require the hirer to make payment exceeding 5000 pounds.- in other words lease agreements not amounting to hire-purchase agreements. A consumer hire agreement is also a regulated agreement if it is not exempted under section 16.

It may be stated at this stage itself that the expression "hire-purchase agreement" (as defined in section 189) means "an agreement other than a conditional sale agreement under which-(a) goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed of hired and (b) the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs-

(i) the exercise of an option to purchase by that person;

(ii) the doing of any other specified act by any party to the agreement;

(iii) the happening of any other specified event."

2.2.15. Section 16 provides for exemptions. According to this section, the Act does not regulate a consumer credit agreement where a creditor is a local authority or a building society or a body specified by the Secretary of State being an insurance company, a friendly society, an organisation of employers or of workers, a charity, a land improvement company or a body corporate named or specifically referred to in any public or general Act.

The section further specifies the types of agreements which are exempted thereunder. Section 17 defines 'small agreements' as agreements for credit not exceeding 30 pounds and section 18 defines 'multiple agreements'. Section 19 defines linked transactions, while section 20 contemplates the Secretary of State making regulations for determining the true cost to the debtor of the credit provided or to be provided under a consumer credit agreement.

2.2.16. Part III deals with licencing of credit and hire businesses. Section 21 indicates that a licensee is required to carry on the consumer credit business or consumer hire business. (As already stated, a consumer credit business is concerned with only provision of credit while consumer hire agreement is a leasing agreement as defined in section 15). Section 22 says that licences under section 21 could be standard licences or, as the case may be, group licences.

Sections 23 to 28 deal with matters to be provided in the licence, qualifications of a licensee, the conduct of business of the licensee and the manner in which the applications for licence are to be dealt with. Sections 29 to 42 deal with length, variation, suspension and revocation of licences. They also provide for situations in which a licensee dies or becomes bankrupt. Appeals are provided against the orders of a director, counselling, suspending or otherwise curtailing the licence.

2.2.17. Part IV containing sections 43 to 54 deal with advertisements or advertising business as it may be called. The Part applies to such advertisements as are published indicating that the advertiser is willing to provide credit or to enter into an agreement for the bailment or hiring of goods. Section 44 deals with the form and content of advertisements. It provides that the Secretary of State shall make regulations as to the form and content of such advertisements.

Sections 45, 46 and 47 prohibit advertisements which are false or misleading or otherwise infringe the Act or regulations made thereunder. Section 48 prohibits the canvassing or soliciting of the regulated agreements at any place other than the trade premises. Section 49 contains a similar prohibition with respect to debtor-creditor agreements. Section 50 punishes circulation of such material to minors section 53 obliges a person carrying on consumer credit business consumer hire business to display the prescribed information in the prescribed manner.

2.2.18. Part V containing sections 55 to 74 deals with entering into of credit or hire agreements and their cancellation. Section 55 obliges the creditor to furnish all relevant information to the debtor/hirer while section 56 brings into net even the antecedent negotiations. Section 57 provides for the withdrawal of a party from the prospective agreement, i.e., before the agreement is concluded. Section 59 declares that an agreement to enter into a prospective regulated agreement is void against the debtor/hirer. Section 60 provides for the form and content of 'regulated agreements' which expression is defined in section 189 in the following terms:

"'regulated agreement' means a consumer credit agreement or consumer hire agreement, other than an exempt agreement, and 'regulated' and 'unregulated' shall be construed accordingly". This section contemplate the secretary of State making regulations in this behalf with a view to ensuring that the debtor/hirer is made aware of all the relevant information concerning the agreement. Section 61 provides for signing of the agreement by both the hirer/debtor as well as the creditor/owner.

It says that the document should contain all the terms of the agreement other then the implied terms. A document which is not executed in accordance with section 61 is declared as "not properly executed". Section 63 places an obligation upon the owner/creditor to supply a copy of the agreement to the debtor/hirer. Section 64 provides that in the case of cancellable agreement, a notice in the prescribed form setting out the conditions in which the cancellation can be effected must be enclosed to the agreement.

Section 65 declares that an improperly executed agreement is unenforceable against the debtor/hirer. Section 67 deals with and specifies what cancellable agreement is. Section 69 deals with notice of cancellation and section 70 provides for the consequences and situations pursuant to cancellation of a regulated agreement. Sections 71, 72 and 73 also deal with the same subject-matter. Section 74 excludes certain agreements (non-commercial agreements, overdrawal agreements etc. from the ambit of Part V).

2.2.19. Part VI containing sections 75 to 86 provides for matters arising out of currency of credit or hire agreements. Section 75 declares that if a debtor under a debtor-creditor-supplier agreement [section 12(b) or 12(c)] has, in relation to a transaction financed under an agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, the said claim shall extend equally against the creditor who is made jointly and severally liable along with the supplier to the debtor.

Section 76 says that no action for any breach or any other type of action shall be taken against the debtor/hirer by the creditor/owner unless a prior notice of seven days is given in that behalf. Section 77 sets out the duties of a creditor under a regulated agreement for a fixed-sum credit while section 78 deals with the duty of the creditor to give information under a running account credit agreement.

Section 79 places an obligation upon the owner under a regulated consumer hire agreement to furnish all information asked for by the debtor with respect to the agreement and the matters concerning it. Failure to furnish such information disentitles the owner from enforcing the agreement. Section 81 deals with payments made by the debtor/hirer who is having two or more regulated agreements with the same owner/creditor.

It entitles the debtor/ hirer to direct the appropriation of the sums paid by him and also provides for the situation where/no such direction is made. Section 82 provides for variation of the agreements by the creditor/owner by giving notice to the debtor/hirer of the consequences of such variation. Sections 83, 84 and 85 contain certain further safeguards for the debtor in case of credit agreements. Section 86 provides for the situations where the debtor/hirer dies.

2.2.20. Part VII containing sections 87 to 104 deals with default and termination of agreements. Section 87 declares that before the owner takes any action for any default or breach by the debtor/hirer under a regulated agreement, he shall give a prior notice. Section 88 prescribes the contents of such a notice and section 89 says that before the prescribed period, if the debtor takes action to repair the default or the breach, the owner/creditor shall not be entitled to take the proposed action.

2.2.21. Section 90 speaks of "protected hire-purchase agreements" and "protected conditional sale agreements". It imposes restrictions upon the owner's right to recover the goods under such an agreement (regulated agreement) in certain situations. Section 91 declares that if goods are recovered by the creditor in contravention of the provisions of section 90, the agreement shall come to an end and the debtor shall be released from all liabilities thereunder.

Sub-section (1) thereof says that "except under an order of the court, the creditor or owner shall not be entitled to enter any premises to take possession of goods subject to a regulated hire-purchase agreement, regulated conditional sale agreement or regulated consumer hire agreement". Section 93 prohibits the owner from increasing the interest in the case of default by the hirer. Section 94 confers a power upon the debtor to complete the payments ahead of time and section 95 provides for the rebate he is entitled to in such a situation.

Section 97 casts an obligation upon the creditor to furnish all information as may be called for by the debtor concerning the agreement. Section 99 confers upon the debtor a right to terminate the hire-purchase or conditional sale agreement by giving the prescribed notice (except in a case where the title to the land has passed to the debtor under the conditional sale agreement), and section 100 provides for the liabilities of the hirer in case of such termination. Sub-section (1) of section 100 reads thus:

"Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination." The other sub-section provides for matters ancillary to termination of the agreement. Section 101 similarly confers upon the hirer the power to terminate the hire agreement.

2.2.22. Part VIII containing sections 105 to 126 deals with form and content of securities, pledges, negotiable instruments and land mortgages. Section 105 declares that any security provided in relation to a regulated agreement shall be in writing and shall be in a form and contain contents as may be specified in the regulations. Section 107 casts an obligation upon the creditor under a regulated agreement for a fixed sum credit, in relation to which security is, provided, to furnish all information as may be called for by the debtor concerning such agreement and security.

A similar obligation is placed upon the creditor for furnishing information to the surety under a 'running account credit agreement' by section 108. To the same effect is section 109 which casts a similar obligation upon the owner to furnish information to a surety under consumer hire agreement. Duty is also placed upon the creditor/owner to furnish all relevant information to the debtor/hirer in respect of the security executed in relation to his agreement. Section 111 says that where a default notice is issued by the owner, a copy of it shall also be served upon .the surety, where the surety is liable to be proceeded against by virtue of the security executed by him.

2.2.23. Sections 114 to 122 deal with pledges which include a pawning agreement. Section 123 prohibits the creditor/owner from taking a negotiable instrument other than a bank note or a cheque in discharge of any sum payable by the debtor/hirer under a regulated agreement or by a surety in relation to such agreement. It also prohibits the creditor/owner from taking a negotiable instrument as security for the discharge of any sum payable as mentioned therein. Section 124 provides for the consequences of breach of the prohibition contained in section 123. Section 125 deals with 'holders in due course'.

2.2.24. Part IX deals with judicial control over the agreements governed by the Act. The said part confers extensive powers upon the courts to modify and extend the terms of the agreement in appropriate situations. If an agreement is found to be an extortionate credit bargain, it is open to the court to modify the same and reopen it and redetermine the liabilities of the debtor thereunder.

2.2.25. Part X containing sections 145 to 160 deals with ancillary credit business, its licensing, the contents of agreements executed in that behalf and other matters connected therewith. Part XI, provides for enforcement authorities, their powers and other matters. Section 173 prohibits incorporation of any stipulation in the regulated agreements contrary to the provisions of the Act or the regulations made thereunder. Part XII contain certains supplemental provisions. It includes section 189 which contains several expressions occurring in the Act.

2.2.26. It would thus be evident that the Consumer Credit Act, 1974 deals mainly with credit transactions (money lending and loan transactions) and hire agreements (leasing agreements). It is true that it also deals with hire-purchase and conditional sale agreements but the main emphasis is upon credit and hire agreements. As against this, the Hire-Purchase Act, 1965 dealt exclusively with hire-purchase agreements (in its broadest sense). The Indian Act (Hire-Purchase Act, 1972) was drafted keeping in view the provisions of the said 1965 Act of U.K. Further, 1989 Bill has also been drafted keeping in view the objections raised by the Financiers' organisations.

In this view of the matter, it would not be right to suggest (as has been suggested by some respondents1) that the 1972 Act has become outdated now and that the Indian Parliament should enact a Consumer Credit Act on the lines of the U.K. Act. These gentlemen evidently do not take into account the fact that "money-lending" is exclusively a State subject under our Constitution (Schedule VII, List II, Entry 30) and hence Parliament cannot make a law on that subject.

So far as leasing transactions are concerned, a separate enactment can be thought of on that subject but we, do not see why for that reason, the Hire-purchase Act, which was enacted as far back as 1972 should not be enforced now at least, with all appropriate modifications suggested in 1989 Amendment Bill and this Report. Indeed, there is a pressing demand from the consumers' organisations for enforcing the Act to protect their rights.

1. Suggestion By Vinod Kumar Kothari and Sunil Kanoria whose views have been echoed by the federation of all India Hire-Purchaser Financiers.

2.2.27. We may now pass on to the major and extensive objections, suggestions and amendments suggested by the Federation of Hire-Purchase Financiers.

2.3. The Federation of All-India Hire-Purchase Financiers having its registered office at Secunderabad (hereinafter referred to as the "Federation") has submitted two sets of objections/suggestions. With its letter dated 13th July, 1998, the Federation has enclosed the representations made by it with respect to the Hire-Purchase Act and the Amendment Bill to the then Prime Minister, Law Minister, Finance Minister, Minister for Surface Transport, Law Secretary and the present Prime Minister, the Home Minister and some others.

In particular, Annexure IX to its letter sets out in extenso, in a tabular form, various amendments, changes and modifications suggested by the Federation and the reasons in support of each such suggestion, modification and objection. In a subsequent communication dated 28th August, 1998, the Federation brought to our notice that the aforesaid Annexure IX enclosed to their letter/ representation dated 13th July, 1998 was an uncorrected one and was sent to the Law Commission by mistake. It stated that it was enclosing the revised and correct copy of the said Annexure.

2.3.1. It would be clear from a perusal of the two Annexure (hereinafter referred to as the first set of objections and the revised set of objections), that the objections and suggestions urged by the Federation pertain not only to the 1989 Amendment Bill but also to the original Act as passed by Parliament in 1972 and the suggestions, changes and additions proposed by the Law Commission in their questionnaire.

2.4. The questionnaire issued by the Law Commission was confined to the 1989 Amendment Bill and the modifications and changes suggested by the Law Commission. It was made clear therein that no objections/suggestions were being invited with respect to the original enactment for the reason that the draft of the original enactment was prepared by the Law Commission under the Chairmanship of late Shri Justice T.L. Venkatarama Aiyer after extensive consultations.

Even so, after receipt of the said objections of the Federation, the Commission has decided that with a view to removing any grievance that all its objections were not considered, the Law Commission will consider all objections including those relating to the original enactment. Accordingly, it has examined and dealt with each and every suggestion/objection made by the Federation both in the first set of objections and the revised set of objections. This has been done in the interest of fairness and also because the original consultation took place about 26 years ago.

2.5. We have, accordingly, considered all the objections received with respect to original enactment, 1989 Amendment Bill and the suggestions of the Law Commission contained in the questionnaire, as would be evident from a perusal of Part II.

2.6. As the Law Commission had made it clear in the questionnaire, it is accepting and adopting all the amendments suggested in the 1989 Amendment Bill subject, of course, to the changes and modifications suggested by it which were set out in full in the questionnaire. The discussion in Part II may be viewed keeping this background in mind.



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