Section 38: Goods on hire purchase

38. Goods on hire purchase (1) Where— (a) a bankrupt purchased goods under a hire purchase agreement before adjudication; and (b) a creditor— (i) took possession of the goods within 21 days before adjudication, and after adjudication still possesses them; or (ii) takes possession of the goods after adjudication, the creditor shall not sell or dispose of the goods or part with possession of them (except for storage or repair), until 28 days after the date of adjudication, unless the Official Receiver consents in writing to the creditor selling or disposing or parting with possession of the goods before the expiry of that period. (2) The Official Receiver may, notwithstanding any provision of the hire purchase agreement— (a) within a period of 28 days from the date of adjudication, introduce a buyer for the goods and the bankrupt’s indebtedness to the creditor shall be reduced to the extent of the amount paid by the buyer to the creditor for the goods; or (b) at any time before the creditor sells or agrees to sell the goods following the expiry of that period, settle the bankrupt’s obligations as debtor and retain the goods as part of the bankrupt’s estate. (3) Where— (a) a creditor has taken possession of goods purchased under a hire purchase agreement, whether before or after the adjudication of the debtor; and (b) the Official Receiver has not taken any action under subsection (2), the creditor may prove in the bankruptcy for the amount that the creditor was entitled to recover from the bankrupt as debtor. (4) Where— (a) a bankrupt purchased goods under a hire purchase agreement before adjudication; and [Issue 3] I14 – 30 Revised Laws of Mauritius (b) at the time of adjudication the creditor— (i) has not taken possession of the goods; or (ii) has taken possession of them and has not sold or disposed of or parted with possession of them, the creditor may assign the goods to the Official Receiver, and, if he does so, may prove in the bankruptcy for the net balance due to the creditor under the agreement.