Hire purchase act 1972. THE HIRE PURCHASE ACT, 1972 2019-01-05

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THE HIRE PURCHASE ACT, 1972

hire purchase act 1972

The Central Government may, by notification in the Official Gazette, and after consultation with the Reserve Bank of India, specify the rate per centum per annum, being a rate which shall not be less than ten per centum per annum, at which statutory charges may be calculated under sub-section 2 and different rates may be so specified in respect of hire-purchase agreements relating to different classes or sub-classes of goods. Where the Central Government is satisfied that having regard to a the short supply of any goods or class of goods, or b the use or intended use of any goods or class of goods and the persons by whom such goods or class of goods are used or intended to be used, or c the restrictions imposed upon the trade or commerce in any goods or class of goods, or d any other circumstances in relation to any goods or class of goods, 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 any of them shall not apply or shall apply with such modifications as may be specified in the notification, to hire-purchase agreements relating to such goods or class of goods. Power to exempt from provisions of , , , and in certain cases. The appeT1ant--since the commencement of their business had entered into several hire-purchase agreements with persons desirous of purchasing motor cles. 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. Power to exempt from provisions of sections, 6,9,10,12 and 17 in certain cases - Where the Central Government is satisfied that having regard to the short supply of any goods or class of goods, or the use of intended use of any goods or class of goods and the person by whom such goods or class of goods are used or are intended to be used, or the restrictions imposed upon 17 the trade or commerce in any goods or class of goods, or any other circumstances in relation to any goods or class of goods.

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HIRE

hire purchase act 1972

The balangemmhige purchase charges are Rs. » 1 Every hire-purchase agreement shall be- a in writing, and b signed by all the parties thereto, 1- V F 35:' 2. Two or more agreements when treated as a single hire-purchase agreement - 3 Where by virtue of two or more agreements in writing, none of which by itself constitutes a hire-purchase agreement, there is a bailment of goods and the bailee has an option to purchase the goods and the requirements of section 3 and section 4 are satisfied in relation to such agreements, the agreements shall be treated for the purposes of this Act as a single hire- purchase agreement made at the time when the last of the agreements was made. Rights of hirer in case of seizure of goods by owner. 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 a 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 the owner, the hirer shall not, by reason only of such refusal, be liable to the owner for conversion of goods.

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Hire purchase agreement

hire purchase act 1972

Warranties and conditions to be implied in hire-purchase agreements. But a hire~purrhase agreement is a more complex transaction. In between great many socio-economic changes, particu1ar1y during the iast coupie of years, have taken piace. Any provision in any agreement, whereby the right conferred on a hirer by this section to terminate the hire-purchase agreement by him under this section, shall be void. Three-fourths or such higher proportion not exceeding nine-tenths as the Central Government may, by notification in the Official Gazette, specify, where the hire-purchase price is not less than fifteen thousand rupees.

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THE HIRE PURCHASE ACT, 1972

hire purchase act 1972

By an agreement to sale is jus in personance and is caused by a sale a jus in rem which is also transferred. Features of Hire Purchase 3. For the sake of convenience, the Commission has a1so annexed The Hire-Purchase Amendment B111, 1999 Annexure-A to the report which incorporates the Hire--Purchase Amendment B111, 1989 and our modifications therein as we11 as in the Principal Act. This approach fits comfortably with the intention of Parliament in enacting the limited statutory exceptions to the proprietary principle of nemo dat non quod habet. One of the rants to determine the question whether a particuiar agreement is a contract of mere hiring tem flu or whether it is a contract of purchase on a sy of deferrer payments of the purchase price is uh-:t'r-er there is any binding obiigation on the hirer to purchase the goods.

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Legal Provisions of Hire Purchase System (Contents and Terms)

hire purchase act 1972

Thus it becomes impossible to calculate and find out the amount of cash price and interest included in each installment. The Bill seeks to implement the recommendations made by the Law Commission subject to a few modifications. We would prefer the technique of comparison of the present values of net outflows after-tax from the two options. Thus, hire purchase price is more than retail price. Where on a request being made by a hirer in this behalf the owner fails or refuses to give his consent to an assignment under sub-section 1 the hirer may apply to the court for an order declaring that the consent of the owner to the assignment has been unreasonably withheld, and where such an order is made the consent shall be deemed to be unreasonably withheld.

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Hire Purchase Act,1972(Repealed)

hire purchase act 1972

A hirer who is liable to make payments in respect of two or more hire-purchase agreements to the same owner shall, notwithstanding any agreement to die contrary, be entitled, on making any payment in respect of the agreements which is lot sufficient to discharge the total amount then due under all the agreements to appropriate the sum to paid by him in or towards the satisfaction of the sum due under any one of the agreements, or in or towards the satisfaction of the sums due under any two or more of the agreements in such proportions as he thinks fit, and, if he fails to make any such appropriation as aforesaid, the sum so paid shall, by virtue of this, section, stand appropriated towards the satisfaction of the sums due under the respective hire-purchase agreements in the order in which the agreements were entered into. A hirer who is liable to make payments in respect of two or more hire-purchase agreements to the same owner shall, notwith~ , standing any agreement to the contrary, be entitled, on making any payment in respect 'of the agreement which is not sufficient to dis- charge the total amount then due under all the agreements to appro- priate the sum so paid by him in or towards the satisfaction of the sum due under any one of the agreements, or in or towards the satis- faction of the sums due under any two or more of the agreements in such proportions as he thinks fit, and, if he fails to make any such appropriation as aforesaid, the sum so paid shall. Yours faithfuiiy, I EncT: As stated ,M7Wf:;f R. Where the Central Government is satisfied that having regard to - a the short supply of any goods or class of goods, or b the use or intended use of any goods or class of goods and the persons by whom such goods or class of goods are use or intended to be used, or c the restrictions imposed upon the trade or commerce in any goods or class of goods, or d any other circumstances in relation to any goods or class of goods, 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 any of them shall not apply or shall apply with such modifications as may be specified in the notification, to hire -purchase agreements relating to such goods or class of goods. If, during the subsistence of any restriction to which the enforcement by an owner of a 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 the owner, the hirer shall not, by reason only of such refusal, be liable to the owner for conversion of the goods.

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The Hire Purchase Act,1972

hire purchase act 1972

R: The rate I: The time, expressed in years and fractions of years, that elapses between the date of the agreement and the date on which the hire purchase installment corresponding to the cash price installment is payable under the agreement. G hire--purchase agreement thus creates a bailment but a is a bailment plus an option to purchase. Warranties and conditions to be implied in hire-purchase agreements 7. 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. Tie need for a separate Hire-Purchase Taw to regulate hire-purchase transactions, is undeniabie. Warranties and Conditions, Limitation on Hire-Purchase Charges and Passing of the Hirer 6. 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 any of them shall not apply or shall apply with such modi­fications as may be specified in the notification, to hire-purchase agreements relating to such goods or class of goods.

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Hire Purchase Act, 1972

hire purchase act 1972

The Committee, therefore, recommends that Government may consider referring the whoie issue of hire--purthase to the Law Commission for an in-depth examination, keeping in View the above observations and thereafter bring in a fresh comprehensive legisiation on the subject before Parliament, as expeditiousiy as possibie. The installments in hire purchase include interest as well as repayments of principal. The distinguishing feature or a typicai hire-purchase agreement therefore is that the property does not pass when the agreement is made but only passes when the option is Finaiiy exercised after compiying with aii the terms of the agreement. Obligation of the hirer to give information as to whereabouts of goods - 1 Where by virtue of a hire-purchase agreement a hirer is under a duty to keep in his possession or control the goods to which the agreement relates, the hirer shall, on receipt of a request in writing from the owner, inform the owner where the goods are at the time of a request in writing from the owner, inform the owner where the goods are at the time when the information is given or, if it is sent by post, at the time of posting. Two or more agreements when treated as a single hire-purchase agreement. 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. Hirer: It means the person who obtains or has obtained possession of goods from an owner under a Hire Purchase Agreement.

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Hire Purchase Act,1972(Repealed)

hire purchase act 1972

Hire Purchase Act, 1972 7. Rights of owner to terminate hire-purchase agreement for default in payment of hire or unauthorised act or breach of express conditions - 1 Where a hirer makes more than one default in the payment of hire as provided in the hire-purchase agreement then, subject to the provisions of section 21 and after giving the hirer notice in writing of not less than - one week, in a case where the hire is payable at weekly or lesser intervals, and two weeks, in any other case, the owner shall be entitled to terminate the agreement by giving the hirer notice of termination in writing. Obligation of owner to supply copies and information. Right to hirer to terminate agreement at any time - 1 The hirer may, at any time before the final payment under the hirer- purchase agreement falls due, and after giving the owner not less than fourteen days, notice in writing of his intentions so to do and re-delivering or tendering the goods to the owner, terminate the hire-purchase agreement by payment or tender to the owner of the amounts which have accrued due 8 towards the hire-purchase price and not been paid by him, including the sum, if any, which he is liable to pay under sub-section 2. The Commission aiso appended a Bi11 to its report on the Hire--Purchase. The Government of' India introduced the Hire~Purchase Amendment Bi11, 1989 in pursuance of the observations made by the Pariiamentary Standing Committee. Chapter V - Rights and Obligations of the Owner 18.

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