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REPOSSESSION BY OWNER



7. REPOSSESSION BY OWNER
When and How
An owner shall not exercise any power of taking possession of goods comprised in a hire-purchase agreement arising out of any breach of the agreement relating to the payment of instalments unless there had been two successive defaults of payments or a default in respect of the last payment and he has served on the hirer a notice, in writing, in the form set out in the Fourth Schedule and the period fixed by the notice has expired, which shall not be less than twenty-one days after the service of the notice.- Section 16(1)

PANG BROTHERS MOTORS SDN BHD v LEE AIK SENG [1975] 1 MLJ 179  
A car was taken by the respondent on hire purchase with the appellant. The respondent failed to pay the instalments due and the appellant issued a notice under section 16(1). The issue was whether the notice was in fact served?
Held: section 16 clearly that the period before which the seizure can take place shall be not less than twenty one days after the service of the notice. However, the date specified in the notice was two days short of the statutory minimum and the notice was therefore bad in law even if served and its effect was therefore null and void.

Where a hirer is deceased, an owner shall not exercise any power of taking possession of goods comprised in a hire-purchase agreement arising out of any breach of the agreement relating to the payment of instalments unless there has been four successive defaults of payments - Section 16 (1A).

After Repossession
Within twenty-one days after the owner has taken possession of goods that were comprised in a hire-purchase agreement he shall serve on the hirer and every guarantor of the hirer a notice, in writing, in the form set out in the Fifth Schedule -- Section 16(3)

Where the owner takes possession of goods he shall deliver to the hirer personally a document acknowledging receipt of the goods - Section 16(4)

8. INSURANCE
An owner shall cause to be insured in the name of the hirer—
 (a) motor vehicles comprised in a hire-purchase agreement, for the first year only; and
 (b) all other goods comprised in a hire-purchase agreement, for the duration of time that the goods remain under hirepurchase, against any risks that he thinks fit.- S.26(1)
Where the goods comprised in a hire-purchase agreement is a motor vehicle, it shall be the duty of the hirer to cause the said vehicle to be insured in respect of the second and all subsequent years that the motor vehicle remains under hire-purchase.-S.26(2)

9. FRAUDULENT SALE OF GOODS BY HIRER
Every person who, by the disposal or sale of any goods comprised in a hire-purchase agreement, or by the removal of the goods, or by any other means, defrauds or attempts to defraud the owner shall be guilty of an offence under this Act and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both.- S.38
REPOSSESSION BY OWNER REPOSSESSION BY OWNER Reviewed by Kamaruddin Mahmood on 10:40:00 PTG Rating: 5

1 ulasan:

  1. Thanks for your note! quite useful! do you have exam questions w answers on this chapter?

    BalasPadam

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