(1) If the owner of
the goods hired pursuant to clause (a) of sub-section (4) of Section
636 forfeits the goods, the hirer shall be entitled to refund the
amount paid in relation to the hire-purchase price up to the day of
forfeiture and the amount equal to the price of the goods on the day
of forfeiture from the owner.
Explanation: For the purposes of this Section, the term
'price of the goods on the day of forfeiture' means a sum that
366
remains after making deduction of the following amount or expense
from the proceeds of sale of the forfeited goods:
(1) Reasonable expenses incurred in course of the
forfeiture of the goods,
(2) Reasonable expenses incurred in the storage and
repair and maintenance of the goods until the sale
of the goods,
(3) Reasonable expenses incurred in the sale or
otherwise transfer of the goods,
(4) The amount paid for the taxes, charges, fees or
dues, if any, outstanding and payable by the hirer
for the goods according to the laws in force,
(2) The amount referred to in sub-section (1) shall be paid
to the hirer within thirty days after the date of forfeiture of the
goods, and while making payment thereafter, an interest at the rate
of ten percent per year shall also be paid.