Section 638
Status Of Hired Goods In Case Of Hirer Becoming Bankrupt
(1) If
the court holds, during the currency of a hire-purchase contract, that
the hirer has become a bankrupt or is likely to be a bankrupt
according to the laws in force, and as a consequence thereof, the
liquidator or any other equally competent person taking control of
the property of such a person shall exercise and fulfill the same
rights and obligations as the successor has with regard to the goods
under the hire-purchase contract.
(2) If the hirer becomes bankrupt and the bankruptcy
proceedings are under consideration in any court, the liquidator or
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the person exercising the right equal to that of the liquidator
pursuant to sub-section (1) may, having obtained permission of
such a court, transfer the goods under the hire-purchase contract to
another person in any manner, and if such goods are transferred in
such a manner, the transferee of the goods shall exercise and fulfill
the rights and obligations under the hire-purchase contract as if the
transferee were the hirer.