Section 18
Hirer’s rights and immunities when goods repossessed
(a)
the hirer may within twenty-one days after the service on him of the notice referred to in subsection 16(3) by giving to the owner a notice in writing signed by the hirer or his agent—
(i)
require the owner to re-deliver to or to the order of the hirer (subject to the compliance by the hirer with the provisions of section 19) the goods that have been repossessed; or
(ii)
require the owner to sell the goods to any person introduced by the hirer who is prepared to buy the goods for cash at a price not less than the estimated value of the goods set out in the first mentioned notice;
(b)
the hirer may recover from the owner—
(i)
where in the hire-purchase agreement the terms charges are at a fixed rate, if the value of the goods at the time of the owner so taking possession of the goods—
(A)
is less than the net amount payable but the total of that value and the amount paid or
Hire-Purchase 37
provided, whether by cash or other consideration, by or on behalf of the hirer under the agreement exceeds the net amount payable, the difference between that total and the net amount payable; or
(B)
is equal to or greater than the net amount payable, the total of that value and the amount paid or provided, whether by cash or other consideration, by or on behalf of the hirer under the agreement, less the net amount payable; or
(ii)
where in the hire-purchase agreement the terms charges are at a variable rate and the value of the goods at the time of the owner so taking possession of the goods is equal to or greater than the balance outstanding under the hire-purchase agreement, the difference between the value of the goods and the balance outstanding under the hire-purchase agreement.
(2)
Where the owner takes possession of any goods comprised in a hire-purchase agreement, the owner is not entitled to recover—
(a)
where in the hire-purchase agreement the terms charges are at a fixed rate, any sum (whether under a judgment or order or otherwise) exceeding the net amount payable in respect of the goods obtained by adding—
(i)
the value of the goods at the time of the owner so taking possession of the goods; and
(ii)
the amount paid or provided, whether by cash or other consideration, by or on behalf of the hirer under the agreement; or
(b)
where in the hire-purchase agreement the terms charges are at a variable rate, any sum (whether under a judgment
38 Laws of Malaysia ACT 212
or order or otherwise) which exceeds the balance outstanding under the hire-purchase agreement.
(3)
For the purposes of this section—
(a)
the net amount payable is the total amount payable less the statutory rebates for terms charges and insurance as at the time of the owner taking possession of the goods;
(aa) the balance outstanding under the hire-purchase agreement is the outstanding amount financed and terms charges accrued and calculated up to the time of the owner so taking possession of the goods less the statutory rebate or insurance; and
(b)
the value of any goods at the time of the owner taking possession thereof is—
(i)
the best price that could be reasonably obtained by the owner; or
(ii)
if the hirer has introduced a person who has bought the goods for cash, the amount paid by that person, less—
(iii)
the reasonable costs incurred by the owner of and incidental to his taking possession of the goods;
(iv)
any amount properly expended by the owner on the storage, repair, or maintenance of the goods;
and
(v)
(whether or not the goods have subsequently been sold or disposed of by the owner) the reasonable expenses of selling or otherwise disposing of the goods.
(4)
Where an owner takes possession of any goods comprised in a hire-purchase agreement and intends to sell them—
Hire-Purchase 39
(a)
by public auction, he shall be required to serve or cause to be served on the hirer a copy of the notice of such public auction not less than fourteen days from the date the said auction is to be held; or
(b)
otherwise than by public auction, he shall be required to give the hirer an option to purchase the goods at the price at which he intended to sell them if that price is less than the owner’s estimate of the value of the goods repossessed as stated in the notice referred to in subsection 16(3), and if he fails to comply with such requirement he shall be guilty of an offence under this Act.
(5)
No amount is recoverable by the hirer under this section except where the owner has failed to serve on the hirer notice as required by subsection 16(3) unless—
(a)
the hirer, within twenty-one days after the owner has served a notice as required by subsection 16(3), gives to the owner notice in writing—
(i)
setting out the amount claimed under the provisions of this section and the amount that is claimed by the hirer to be the value of the goods at the time of the owner taking possession thereof;
and
(ii)
signed by the hirer or his advocate and solicitor or agent; and
(b)
proceedings for the recovery of the amount so claimed under the provisions of this section are commenced not later than three months after the giving by the hirer to the owner of the notice referred to in paragraph (a).
(6)
If, before the proceedings referred to in subsection (5) are commenced by the hirer, the owner serves an offer in writing on the hirer to pay any amount in satisfaction of the claim by the hirer under
40 Laws of Malaysia ACT 212
this section, the owner, in the proceedings, is entitled to pay into court the amount so offered and, upon so doing, is entitled to the same rights as he would have had if that amount had been tendered to the hirer before the proceedings were commenced:
Provided that no such right shall be available to the owner in any proceedings by the hirer to recover the amount so offered or any lesser amount if the hirer, before commencing the proceedings, notifies the owner in writing of the acceptance by the hirer of the amount so offered.