Section 637: Rights of hirer in case of forfeiture of goods

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 a refund of 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 remains after making deduction of the following amount or expense from the proceeds of sale of the forfeited goods:

(1) Reasonable expenses incurred in the course of the forfeiture of the goods,

(2) Reasonable expenses incurred in the storage, 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.