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 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.