Section 38 in Punjab State Aid to Industries Act, 1935
38. Conditions of supply of machinery on hire-purchase system.
- Until the hiring is terminated in the manner hereinafter provided, the following provisions shall apply, namely :-(a)The hirer shall pay punctually and without demand the instalments of rent and amount of interest specified in the order referred to in section 37.(b)The hirer shall retain the machinery in his own possession in good and serviceable order and condition and shall not, without the previous written consent of the Director, make any addition thereto or alteration therein, nor remove the machinery or any part thereof from the premises specified in the application for the supply thereof.(c)The machinery shall remain the sole and absolute [property of the [Government] [Substituted for the words 'Property of the Local Government' by the Government of India (Adaptation of Indian Laws) Order, 1937.]] and any transfer thereof or assignment of any right, title or interest therein or the creation of any mortgage encumbrance or any other charge thereon by the hirer shall be void as against the [State] [Substituted for the word 'Provincial' by the Adaptation of Laws Order, 1950.] Government unless it has been made with the previous written consent of the Director.(d)The machinery shall not be liable to distraint, attachment or sale by any process under any law for the time being in force, otherwise than under this Act.(e)The machinery shall bear a metal plate in the prescribed form, and any person who wilfully removes or defaces such plate shall be liable to a fine not exceeding five hundred rupees. It shall be presumed until the contrary is proved that machinery bearing such metal plate is the [property of the [Government] [Substituted for the words 'Property of the Local Government' by the Government of India (Adaptation of Indian Laws) Order, 1937.]] hired out under this Chapter.(f)The hirer shall permit the Director or any person authorised by the Director in this behalf to inspect the machinery at all reasonable times, and the Director or such other person shall have all such powers of entry as may be necessary for the purpose of making an inspection.(g)In addition to the foregoing conditions the hirer shall be bound by such other conditions consistent therewith as may be prescribed by rules made under this Act, or may be imposed by the Director in any particular case.
