Section 9: Restriction on recovery of goods otherwise than by action.

(1) Where goods have been let under a hire-purchase agreement and the relevant proportion of the hire-purchase price has been paid (whether in pursuance of a judgment or otherwise) or tendered by or on behalf of the hirer or any guarantor, the owner shall not enforce any right to recover possession of the goods from the hirer otherwise than by action and except as provided by subsection (5) of this section.
[1970 No. 23.]
(2) If an owner recovers possession of goods in contravention of subsection (1) of this section, the hire-purchase agreement, if not previously determined, shall determine and-
(a) the hirer shall be released from all liability under the agreement and shall be entitled to recover from the owner in an action for money had and received all sums paid by the hirer under the agreement or under any security given by him in respect of the agreement; and
(b) any guarantor shall be entitled to recover from the owner in an action for money had and received all sums paid by him under the contract of guarantee or under any security given by him in respect of that contract.
(3) The provisions of subsections (1) and (2) of this section shall not apply in any case in which the hirer has determined the agreement or the bailment by virtue of any right vested in him.
(4) In this section and elsewhere in this Act, "the relevant proportion", where the reference is to the relevant proportion of the hire-purchase price of any goods or to the relevant proportion of a part (however described) of that price, means-
(a) in the case of goods other than motor vehicles, one-half; and
(b) in the case of motor vehicles, three-fifths.
(5) In the application of the provisions of this section to motor-vehicles, where three or more instalments of the hire-purchase price of a motor-vehicle under the agreement are due and unpaid, the owner may remove the motor vehicle to any premises under his control for the purpose of protecting it from damage or depreciation and retain it there pending the determination of any action, and the owner shall be liable to the hirer for any damage or loss which may be caused by the removal.
[1970 No. 23.]