Hire-Purchase Agreement for Transport Vehicles

Hire-Purchase Agreement for Transport Vehicles

This indenture made this 18th day of September 2000 between ELH Ltd., a company registered under the Companies Act 1956 and having its registered office at ……………………………………… hereinafter called the OWNER (which term shall unless excluded by or repugnant to the subject or context be deemed to include its successors) of the first part, and Transport Co. Ltd., a company incorporated under the Companies Act 1956 and having its registered office at ……………………………………… being the OWNER of a fleet of vehicles carrying on Transport business hereinafter called the HIRER (which term shall unless excluded by or repugnant to the subject or context be deemed to include its successors) of the second part; and Mr. XY of ……………………………………… hereinafter called the guarantor (which expression shall unless repugnant to the context be deemed to include his heirs, executors, administrators and legal representatives) of the third part.

Whereas the HIRER is the OWNER of a fleet of Transport vehicles and whereas the HIRER with a view to facilitate its transportation business has applied for hire purchase of a Jeep described in the Schedule hereunder and the guarantor has requested the OWNER to supply the same to the HIRER on a hire purchase agreement being these presents and on the terms and conditions herein contained.

And whereas the OWNER at the request of the HIRER and the guarantor has agreed to supply on hire purchase the Jeep described in the Schedule hereunder written on the terms herein contained.

Now this indenture witnesseth and it is hereby agreed and declared by and between the parties to these presents as follows:

1. The OWNER of the Jeep with fittings, tools and accessories spare parts more particularly described in the Schedule hereto which are of the value of Rs. 2,55,000 (Rupees two lakhs fifty five thousand only) and hereinafter collectively called the vehicle agree to let and the HIRER agrees to hire the vehicle from the date of taking delivery, subject to the terms and conditions herein contained.

2. The HIRER has paid as earnest money to the OWNER on the 5th day of September 1999 the sum of Rs. 51,000 (Rupees fiftyone thousand only) which sum shall on the signing of this agreement become the absolute property of the OWNER.

3. The balance of the value of the Jeep mentioned in clause 1 hereof after deducting the amount already paid as indicated in clause 2 above (hereinafter called the principal amount) shall be paid by the HIRER in five equal annual instalments, the first of such instalments to be paid on the first anniversary of the date of delivery of the vehicle and the subsequent instalments on the like day in each subsequent year. Provided however the OWNER may at its absolute discretion extend the due date for payment of any instalment but such extension shall not in any event exceed 3 months and such extension shall be subject to such terms and conditions as the OWNER may determine including payment of additional interest for the period of extension.

4. Besides the instalment mentioned in clause 3 above, the HIRER shall also pay commencing from the date of delivery of the vehicle interest at the rate of 15% per annum on the balance sum of Rs. 2,04,000 payable yearly, the first of such payment to be made on the First Anniversary of the date of taking delivery and the subsequent payments on the like day of each and every year. If the HIRER shall pay to the OWNER interest on the principal amount (after deducting the earnest money) or so much thereof that may remain outstanding from time to time regularly on or before the date on which interest is made payable under these presents and perform and observe all the covenants and conditions herein contained, and on the part of the HIRER to be observed and performed and the balance of the said amount shall not have been called in by the OWNER then in that case the OWNER shall at the time of receipt of interest on the principal amount for the time being due and owing at the rate of 15% per annum grant to the HIRER a rebate of 0.5 per cent per annum for the year in which interest is regularly and punctually paid as aforesaid on the said amount or the balance thereof. In the event of nonpayment of any yearly amount on any of the respective due dates the HIRER shall pay additional interest on the amount which is in default at the rate of 1% per month or part thereof but without prejudice to the right of the OWNER to enforce all other rights and powers under this agreement or under law.

5. If  the HIRER shall duly perform and observe all the terms and condition contained in this Agreement and on his part to be performed and observed and shall in the manner aforesaid pay the principal amount to the OWNER by yearly instalments as aforesaid and shall also pay to the OWNER interest as herein mentioned and all other sums of money which may become payable to it by the HIRER under this Agreement the hiring shall come to an end and the vehicle shall at the option of the HIRER become his property and the OWNER will assign and make over all its right, title and interest in the vehicle to the HIRER, but until such payments as aforesaid have been made the vehicle shall remain the absolute property of the OWNER.

6. If the OWNER shall grant to the HIRER any time or indulgence the same shall not affect or prejudice any of the rights or powers of the OWNER hereunder.

7. The guarantor in consideration of the OWNER agreeing to let the vehicle to the HIRER, hereby guarantees the due performance and observance by the HIRER of the terms and conditions of this Agreement and agrees to pay on demand any money due or which may become payable under this Agreement (and not paid by the HIRER) either by way of debt or damages, costs or expenses and further agrees that any time granted to the HIRER or any indulgence given in respect of the terms and conditions herein either in the shape of releasing or regiving the vehicle after seizure to the HIRER or in any other manner, shall not prejudice the OWNER’s rights nor relieve the guarantor from his Guarantee and that it shall not be necessary upon the HIRER being granted any such concession or indulgence as aforesaid for the OWNER to give any notice to the guarantor in respect thereof. The guarantor further agrees that the OWNER’s rights on the vehicle or right to seize the same shall not be destroyed by reason of any judgment, decree or order obtained against the HIRER or himself or both.

8. The HIRER agrees with the OWNER as follows:

(a)        To keep the vehicle in thorough working order and good condition and to make no alteration thereon or addition thereto without the written consent of the OWNER first had and obtained. The cost of body-building or extended chasis made with such permission of the OWNER shall be done by the HIRER at his own cost after taking delivery of the same. And it is agreed that in the event of this Agreement being terminated by the OWNER such additions or alterations as aforesaid shall be deemed to be the absolute property of the OWNER provided always that the HIRER shall not have or be deemed to have any authority to pledge the credit of the OWNER for repairs, alterations and additions.

(b)        To indemnify the OWNER against loss by reason of damage to or destruction or loss of the vehicle from any causes whatsoever or by reason of claims by third parties in respect of the same.

(c)        To keep the OWNER notified with his address and the address of the premises where the vehicle is kept and any change of the same as soon as made.

(d)        To allow the OWNER’s representatives free access at all reasonable time to inspect the vehicle or to take possession of the same as hereinafter mentioned.

(e)        To have the vehicle registered in the joint names of the OWNER and the HIRER in the State of West Bengal and not to sell, mortgage, pledge hypothecate hire or otherwise deal with the vehicle, not to part with possession of vehicle, not to remove it out of the State of West Bengal without the express written permission of the OWNER previously obtained also not to use the vehicle for any purpose other than that declared in the original application. The HIRER shall not use or allow it to be used for carrying any prohibited goods or smuggled goods.

(f)         To pay all fees and taxes, payable in respect of the vehicle as and when the same becomes due.

(g)        To keep the vehicle properly insured covering all sorts of risks under a comprehensive Policy of Insurance with an Insurance Company as would be approved by the OWNER in writing in the joint names of the OWNER and HIRER and in case of any accident to the vehicle the HIRER shall make his own arrangements for getting the vehicle repaired and shall duly claim the charges from the Insurer. In any case, the OWNER should not be made liable for payment of any damage/ compensation due to any accident committed by the vehicle to any third party.

(h)        To pay all expenses, premia for Insurance etc. in case the OWNER insures the vehicle in default of so doing by the HIRER.

(i)         To return to the OWNER the permit, the Registration Certificate and all other certificates granted by Registering or any Controlling Authority in respect of the vehicle in the event of termination of the hire.

(j)         To declare to the Registering Authority that the vehicle is subject to this Agreement and to have necessary endorsement to the effect made by the said Authority, but this in no way will affect or prejudice the OWNER’s rights under this Agreement.

9. The HIRER agrees to pay to the OWNER all sums due for taxes, fees, repairs and to suppliers which may be due from HIRER to the OWNER in respect of the vehicle but the provisions shall not in any way affect or prejudice the right of the OWNER as provided herein to recover possession of the vehicle and to determine this agreement on default of payment of any of the hire payments. It is further agreed that the payment of hire monies and other sums due under this Agreement is not subject to suspension or delay by reason of the vehicle requiring or undergoing repairs or being suspended by any traffic authority or by reason of delay in registration of the vehicle or its non-registration, or by reason of delay or non-receipt of the permit by the HIRER or of the pendency of an insurance claim or by any cause or reason whatsoever.

10. The HIRER acknowledges that he holds the vehicles as a bailee of the OWNER and shall not have any proprietary right or interest as purchaser therein until he shall have paid the whole amount due under this agreement or under any term thereof and exercised his option of purchase as herein provided.

11. The OWNER may terminate, with or without notice, the contract of hiring and forthwith retake and recover the possession of the vehicle:

:

(a)        If any annual hire amount or part thereof or any interest thereon or part thereof is in arrear and left unpaid for a period of seven days after the date fixed for its payment for any reason whatsoever and particularly notwithstanding any claim which the HIRER may have in respect of insurance.

(b)        If the HIRER fails to keep the vehicle insured as herein provided.

(c)        If the HIRER commits or suffers any other breach to the conditions and obligations herein stipulated to be observed and performed by him or does anything or suffers any act to be done which in the opinion of the OWNER may prejudice its title to the vehicle.

(d)        If the HIRER omits to inform the OWNER within 48 hours of any accident which causes either damage to the vehicle, bodily injury to any third party or damage to any other vehicle or property.

(e)        If the HIRER goes into liquidation or is wound up, allows the vehicle to be seized in distress or execution or under any other process of law.

Any such termination shall be without prejudice to the claims the OWNER may have in respect of any terms or conditions of this Agreement and it is further agreed that if the hiring is terminated by the OWNER or by the HIRER in the manner herein provided all hire (and damages for the breach of this Agreement) upto the date of such termination shall be paid by the HIRER to the OWNER and no payment, credit or allowance, in respect of payment previously made shall be made or allowed to the HIRER. All costs of taking possession of the vehicle shall be paid by the HIRER to the OWNER.

12. The OWNER shall have the right to dispose of the vehicle after re-possession in any manner it thinks fit by private sale or re-hire without any notice to the HIRER and at any price that the OWNER may think fit. If on such sale the net amount realised is less than the balance of principal amount and interest due from the HIRER, the HIRER shall pay the short fall.

13. This agreement shall be treated as revised in case the vehicle after re-possession by the OWNER for any breach committed in respect of this agreement by the HIRER, is returned to the HIRER at his request in writing.

14. If the vehicle supplied by the OWNER is insured by the OWNER then the HIRER will, if he is not in default with his payment be granted such benefits as the OWNER may derive from the insurance in respect of claims. Such insurance shall not absolve the HIRER from his liability under condition 11(b) hereof provided always that in the event of the vehicle being destroyed or being so extensively damaged as to be in the opinion of the Insurance Company a total loss, then and in that case the amount recoverable under the Insurance Policy shall be applied in the first place in paying all monies due by way of arrears of hire and thereafter if the same received by the OWNER under such policy shall exceed the balance of the amount due after deducting all sums previously paid by the HIRER for the hire including the amount paid under clause 2 of the Agreement then such excess shall be paid by the OWNER to the HIRER.

15. The HIRER shall pay on demand all expenses incurred by the OWNER in collecting or attempting to take possession of the vehicle from the HIRER or any other person using or possessing the same.

16. The grant of any time, or indulgence to the HIRER as provided in this agreement or otherwise including the acceptance of any payments after the due dates thereof shall not operate to affect or prejudice the OWNER’s rights against the HIRER or the guarantor under this Agreement.

17. The HIRER has examined or caused to be examined the vehicle and satisfied himself thoroughly about the same. The delivery receipt passed by him regarding the vehicle has been accepted by him as duly fitted, equipped and according to contract. No claim on part of the HIRER shall be admissible and no warranty on the part of the OWNER as to quality or state of vehicle or the model of the vehicle or the accessories or spare parts supplied thereto or as to their fitness for any purpose shall be deemed to have been made or implied.

18. The HIRER and the guarantor hereby declare that the statements made by them in the application with respect to their means, property and other assets are absolutely true and correct and that it is by these statements that they have induced the OWNER to enter into this Agreement.

Schedule

One      Mahindra CJ 4A /4 WD Jeep

Universal fitted with petrol engine with

six Ply tyres and standard equipments.

In witness whereof the parties herein have executed these presents on the day, month and year first above-written.

Signed,  sealed  and  delivered  by

Mr. ………………………. a director of

The  Transport Co. Ltd. pursuant

to   Board   Resolution  dated  5th

September 2000 in the presence of:                                             Signature

1.  ………………………………

2.  ………………………………

Signed and delivered by Mr. XY the

said guarantor in the presence of:                                             Signature

1.  ………………………………

2.  ………………………………

Signed,  sealed  and  delivered  by

Mr.  ……..…………….……………..  a

Director of  ELH Ltd. pursuant  to

the  Board  Resolution  dated  6th

September 1999 in the presence of:                                             Signature

1.  ………………………………

2.  ………………………………

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