Report No. 168
6. Amendment of section 9.-
For sub-sections (1) and (2), the following sub-sections shall be substituted, namely:-
"9. Right of hirer to purchase at any time with rebate.-(1) The hirer may, at any time during the continuance of the hire-purchase agreement and after giving the owner not less than fourteen days' notice in writing of his intention so to do, complete the purchase of the goods by paying or tendering to the owner the hire-purchase price or the balance thereof together with such incidental charges and expenses as may be payable under the terms of the agreement, as reduced by the rebate calculated in the manner provided in sub-section (2).
(2) The rebate for the purposes of sub-section (1) shall be an amount calculated at the rate of 18% (or at such lesser rate of interest as may have been provided in the Agreement) on the amount outstanding on the date on which the hirer seeks to complete the purchase of goods.
Illustration.-For the purpose of this illustration, the figures as mentioned in the illustration to sub-section (2) of section 7 are adopted. The hirer seeks to exercise the option to purchase the goods as contemplated by this section at the end of three years i.e., after 30 months. Twenty-four months are still remaining. In such a case, the hirer will be entitled to a rebate of Rs. 6,840 worked out in the following manner:
In this illustration (as contained in section 7), the monthly instalment is Rs. 1583.33p. i.e., Rs. 95,000 divided by 60. The hirer has paid 36 instalments, which means he has paid Rs. 56,999.88p., i.e. Rs. 57,000 and the balance payable is Rs. 38,000. But, since he has opted to purchase at the end of 36 months, he is entitled to a rebate of Rs. 6,840, which means that he has to pay Rs. 31,160 for purchasing the goods."