Life Case

April 2007

The procedure of repossession is section 16 which stated that the right on repossession by the owner.Regarding this section,it is stated that an owner has the right to repossess hire purchase item when there is default by the hirer.For example,there is non-payment of instalments.However,there are restrictions as to this right.In Section 16 (1)(a),hirer is a deceased and default in four successive payment.Based on Section 16,hirer has defaulted in two successive payments and hirer has defaulted in final payment.Therefore,owner shall serve first notice to the hirer as provided under fourth schedule.The period fixed for the notice is 21 days.Within that period,the owner (bank) has to wait for 21 days for the hirer either to return the goods or to make payment.On the expiration of 21 days,the owner shall serve second notice under fifth schedule.Then,the owner may repossess the goods.The owner also must personally deliver to the hirer a document a acknowledging receipts of goods.The document must contain a description of the goods,the date,time and place at which the owner took possession of it.

As required by Section 16 A,it is not liable to pay the cost of repossession,cost incidental to repossession,and cost of storage.Moreover,in Section 17,it stated that the owner cannot sell or dispose the goods without prior consent from the hirer.Owner must comply with the above provision.If not guilty,however,the owner may dispense the above provision if he has reasonable ground to believe that the goods would be removed or concealed by the hirer.At the expiration of the 21 days notice,he can sell it without the hirer's consent.

Next in Section 18,the hirer after submission of second notice (within 21 days),may give a notice in writing to hirer which is Section 18(1)(a)(i) stated that the owner require to re-deliver the goods that have been repossessed (refer to Section 19 of HPA).Section 18(1)(a)(i) it require the owner to sell the goods to any person introduced by the hirer who is prepared to buy the goods for cash.In Section 19 it stated that the hirer can regain possession of the goods if within 21 days after giving notice to the owner such as the hirer pays to the owner any amount due by the hirer under the hire-purchase agreement or remedies any breach of contract or pay the owner costs and expenses incurred by the owner in doing any matter necessary to remedy the breach.

Provided in Section 18 (4),it was stated that to ensure fair value after the expiration of 21 days,the owner may sell the goods by public auction.The owner must inform the hirer with notice not less than 21 days before the date of the auction.Second,otherwise than public auction.The owner give the hirer the option to purchase the goods at the price at which he intended to sell them.All of this agreements depends if the owner fail to comply.He shall be guilty of an offence.