(1) If the hirer
defaults to pay more than one installment of the hire-purchase price
to be paid to the owner of goods according to the hire-purchase
contract, the owner of goods shall be entitled to terminate the hirepurchase
contract at any time, by giving an advance notice as
follows to the hirer:
(a) If the installment is to be paid within or less than
an interval of one week, a period of one week.
(b) In the cases other than that referred to in clause
(a), a period of fifteen days.
(2) Notwithstanding anything contained in sub-section (1),
if the hirer makes payment of the installment and the interest, if
any, to be accrued thereon according to the hire-purchase contract
before the expiry of the period for giving an advance notice
pursuant to the said sub-section, the hire-purchase contract cannot
be terminated.
(3) If the hirer fails to perform the hire-purchase contract
or the terms and conditions referred to in Section 629 or 635, the
concerned owner of goods may terminate the hire-purchase
contract, by giving a notice of at least fifteen days.
(4) In the event of termination of the contract pursuant to
sub-section (1) or (3), the owner of goods may exercise the
following rights in relation to the hired goods:
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(a) To take back the goods wherever and in whatever
situation they may be, and if the goods cannot be
so taken back, to forfeit them,
(b) To determine the amount of rent that he or she can
recover out of the amount paid in lieu of such
goods, and inform the hirer to take back of the
exceeding amount,
(c) To forfeit the amount, if any, taken as a deposit
from the hirer at the time of hiring the goods,
(d) To enter the house where the goods are located
with the assistance of police in the course of
seizing the hired goods,
(e) To recover compensation from the amount paid or
make a claim for the loss or damage caused from
the failure to return the hired goods in time or
failure to perform the contract or the terms and
conditions referred to in Section 629 or 635.
(5) Notwithstanding anything contained elsewhere in this
Section, if the hirer, surety or investor has already paid at least the
basic price of the hired goods, the owner of the goods shall not
entitled to terminate the hire-purchase contract under this Section.
Explanation: For the purposes of this Section, the term
'basic price' means three-fourths of the amount if the hire-price
amounts to up to fifty thousand rupees and at least half the price if
the hire-purchase price is more than that amount.
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(6) If the owner of goods terminates the hire-purchase
contract in contravention of sub-section (5), the hirer or surety shall
be in discharge of all liabilities to be fulfilled according to the hirepurchase
contract and shall be entitled to refund the entire amount
paid for the goods hired by him or her.
Provided that the hirer shall return the hired goods to the
concerned owner of goods.
(7) Notwithstanding anything contained in sub-section (5),
a restriction to terminate the hire-purchase contract shall not be
deemed to bar in any manner the right to make a claim for the hirepurchase
price to be received from the hirer according to the
contract.
(8) Notwithstanding anything contained elsewhere in this
Section, the owner of goods may terminate the hire-purchase
contract entered into with the person who does not give information
referred to in Section 635 and, if any loss or damage is caused to
such goods, make claim for the same as well.