Hire purchase act 1972. The Hire Purchase Act,1972 2019-01-18

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HIRE

hire purchase act 1972

An owner of goods who purports absoiuteiy to convey or acknowiedges to have conveyed goods and subsequent1y purports to hire them under a hire-purchase agreement is not estopped from proving that the reai bargain was a loan of the security of the goods. Discharge of price otherwise than by payment of money. But Lord Nicholls and Lord Millett dissented. L Where a hirer elects, in accordance with the provisions of subsection 4 , to treat the hire-purchase agreement as void, the agreement shall be void, and the amount paid or provided whether by cash, cheque or other consideration, by or on behalf of the hirer in relation to the agreement shall be recoverable by the hirer as a debt due to him by the owner. Subject to the conditions specified in clauses a and b of sub-section 2 of section 10, to forfeit the initial deposit, if so provided in the agreements.

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Hire Purchase Act, 1972: Bare Act

hire purchase act 1972

Where a hirer elects, in accordance with the provision of sub-section 4 , to treat the hire -purchase agreement as void, the agreement shall be void and the amount paid or provided whether by cash, cheque or other consideration by or on behalf of the hirer in relation to the agreement shall be recoverable by the hirer as a debt due to him by the owner. In of the principal Act, in sub--section 1. »It is a transaction of hire at the inception with an option to purchase. The provision of this section shall apply notwithstanding anything to the contrary contained in the hire-purchase agreement. The rebate for the purposes of sub-section 1 shall be equal to two-thirds of an amount which bears to the hire-purchase charges the same proportion as the balance of the hire-purchase price not yet due bears to the hire-purchase price.

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Hire Purchase Act, 1972: Bare Act

hire purchase act 1972

Definitions - In this Act, unless the context otherwise requires. Method of Computing Installment under Hire Purchase : Under Hire Purchase, interest is usually charged on a flat rate for the period of hire. The Official Receiver or the liquidator, as the case may be, may, with the permission of the Insolvency Court or which the winding up proceedings are pending, assign the rights of the hirer under the agreement, to any other person, and the assignee shall have the rights and be subject to all the obligations of the hirer under the agreement. Relief against termination for non-payment of hire - Where the owner, after he has terminated the hire-purchase agreement in accordance with the provisions of sub-section 1 of section 18, institutes a suit or makes an application against the hirer for the recovery of the goods, and at the hearing of the suit or application, the hirer pays or tenders to the owner the hire in arrears, together with such interest thereon as may be payable under the terms of the agreement and the costs of the suit or application incurred by the owner and complies with such other conditions, if any, as the court may think fit to impose, the court may, in lieu of making a decree or order for specific delivery, pass an order relieving the hirer against 14 the termination, and thereupon the hirer shall continue in possession of the goods as if the agreement has not been terminated. One of the novei methods of achieving this object was perhaps hire purchase and credit saie.

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HIRE

hire purchase act 1972

Where the owner, after he has terminated the hire-purchase agreement in accordance with the provisions of sub-section 1 of section 18, institutes a suit or makes an application against the hirer for the recovery of the goods, and at the hearing of the suit or application, the hirer pays or tenders to the owner the hire in arrears, together with such interest thereon as may be payable under the terms of the agreement and the costs of the suit or application incurred by the owner and complies with such other conditions, if any, as the court may think fit to impose, the court may, in lieu of making a decree or order for specific delivery, pass an order relieving the hirer against the termination ; and thereupon the hirer shall continue in possession of the goods as if the agreement had not been terminated. The Government of' India introduced the Hire~Purchase Amendment Bi11, 1989 in pursuance of the observations made by the Pariiamentary Standing Committee. The High Court therefore was in error in ho1ding that transactions of hire--purchase of the kind with which we are dea1ing having regard to their main intent and purpose might be treated as sales at the time the agreement is entered into; in a11 hire purchase agreements of the type with which we are dea1ing saie only takes piace when the option is exercised after a11 the terms of the agreements are Fu1Fi11ed and it is at that time that the tax is exigib1e. If the hirer fails without reasonable cause to give said information within fourteen days of the receipt of the notice, he shall be punishable with fine which may extend to two hundred rupees. The goods are still the property of the seller, and he can dispose of them as he likes, but if there has been a sale and a seller breaks his engagement to deliver the goods, the buyer has not only a personal remedy against the seller but also the usual proprietary remedies in respect of the goods themselves. Power to exempt from provisions of , , , and in certain cases.

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Hire

hire purchase act 1972

Have you any suggestions, objections or comments to offer to the proposed recommendations? Even the pubiic undertakings are buiiding houses and selling these on hire--purchase basis. Restriction on owner's right to recover possession of goods other- wise than through court. This Act shall not apply in relation to any hire-purchase agreement made before the commencement of this Act. The appeT1ant--since the commencement of their business had entered into several hire-purchase agreements with persons desirous of purchasing motor cles. It is our common experience that a seller, who sells his goods on cash or on hire purchase system, quotes both the prices side by side. Usually, the hiree charges interest on flat rate. S-R-- 228 E dated- 13.


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The Hire Purchase Act,1972

hire purchase act 1972

. It is necessary or expedient in the public interest so to do, the Central Government may, by notification in the Official Gazette direct that clause b of sub-section 2 of Section 6, Section 9, Section 10, Section 12, and Section 17 or of them shall not apply or shall apply shall apply with such modifications as may be specified in the notification, to hire-purchase agreements relating to such goods or class of goods. Hire - Purchase agreements to be in writing and signed by parties thereto - 1 Every hire-purchase agreement shall be- ta in writing, and b signed by all the parties thereto 2 2 A hire-purchase agreement shall be void if in respect thereof any of the requirements specified in sub-section 1 has not been complied with 3 Where there is a contract of guarantee, the hire-purchase agreement shall be signed by the surety also, and if the hire-purchase agreement is not so signed, the hire-purchase agreement shall be voidable at the option of the owner. Provided that when such goods are seized by the owner, the retention of hire and recovery of the arrears of hire due shall be subject to the provisions of section 17. » 1 Every hire-purchase agreement shall be- a in writing, and b signed by all the parties thereto, 1- V F 35:' 2. A similar objection ha been put Forward by another gentlemanz, whose letter has been forwarded to us by the Federation of All India Hire Purciase Financers. At present not all firms are that financially sound.

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HIRE

hire purchase act 1972

This requires allocation of installment money between interest revenue and cash price principal or capital. Two or more agreements when treated as a single hire-purchase agreement 6. Rights of hirer in case of seizure of goods by owner. Except as otherwise provided in this section, no payment or other consideration shall be required by an owner for his consent to an assignment under sub-section 1 , and where an owner re­quires any such payment or other consideration for his consent, that consent shall be deemed to be unreasonably withheld. Kindly or e-mail us at if you are facing any Legal Issue and want to have Legal Consultations with the empanelled Lawyers at Hello Counsel.

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Hire Purchase Act 1972

hire purchase act 1972

I The Report dated April 24, 1987 of the Committee on Petitions, Rajya Sabha relating to the question of bringing. Obligation of hirer in respect of use of goods - If the hirer makes any use of the goods to which the hire-purchase agreement relates which is not according to the conditions of the agreement, the hirer shall be liable to make compensation to the owner for any damage arising to the goods from or during such use. Where a hirer elects, in accordance with the provision of sub-section 4 , to treat the hire —purchase agreement as void, the agreement shall be void and the amount paid or provided whether by cash, cheque or other consideration by or on behalf of the hirer in relation to the agreement shall be recoverable by the hirer as a debt due to him by the owner. Subject to the provisions of section 17 and section 20 and subject to any contract the contrary, to enter the premises of the hirer and seize the goods. It is necessary or expedient in the public interest so to do. Contents of hire purchase agreement.

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Legal Provisions of Hire Purchase System (Contents and Terms)

hire purchase act 1972

Where there is failure without reasonable cause to carry out the duties imposed by sub-section 1 , or sub-section 2 , then , while the default continues,- The owner shall not be entitled to enforce the agreement against the hirer or to enforce any contract of guarantee relating to the agreement, or to enforce any right to recover the goods from the hirer, and no security given by the hirer in respect of money payable under the agreement or given by a surety in respect of money payable under such a contract of 15 guarantee as aforesaid shall be enforceable against the hirer or the surety by the holder thereof. And, if the default continues for a period of two months, the owner shall be punishable with fine which may extend to two hundred rupees. K' However in metropoiitan cities, there is vast increase in commerciai transactions through the system of 'hire--purchase'. Cash retail price is arrived at by the hire-vendor by adding profit to the cost price of goods. In this sub-section, Court means a Court which would have jurisdiction to entertain a suit for the relief claimed in the application.

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