Powers of the court to deal with payments arising on determination of hire-purchase agreements

(1) Where a hire-purchase agreement validly provides for the payment by the hirer on or after the termination of the agreement or the bailment of such sum as, when added to the sums paid and the sums due in respect of the hire-purchase price before the determination, is equal to a fixed amount, and a claim is made in such sum in an action to which section 15 of this Act applies, then, (a) if the court makes an order for the specific delivery of a part of the goods to the owner and the transfer to the hirer of the owner’s title to the remainder of the goods, the claim shall be disallowed; (b) if the court postpones the operation of an order for the specific delivery of the goods to the owner, it shall not entertain the claim unless and until the postponement is revoked, and shall then deal with the claim as if the agreement had just been determined. (2) Where the hirer or a guarantor has paid or has been ordered to pay any such sum as aforesaid, and the owner subsequently seeks to recover the goods in an action to which section 15 of this Act applies, the court may treat the said sum as a sum paid or payable, as the case may be, in respect of the hire-purchase price. 20 Successive hire- purchase