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DISPOSAL OF UNCOLLECTED GOODS ACT 1967 - SECT 7
Bailee’s rights to sell goods suspended upon dispute arising as to charges etc.
7 Bailee’s rights to sell goods suspended upon dispute arising as to charges
etc.
(1) Where, at any time before the giving to the bailor of the notice of the
bailee’s intention to sell the goods or before the giving to the bailor of
the notice of the bailee’s intention to apply to the court under part 3 for
an order authorising the bailee to sell the goods, a dispute arises between
the bailor and the bailee by reason of the bailor’s refusal to pay the sum
which the bailee claims to be due to the bailee by way of the bailee’s
charges in relation to the goods, or to take delivery thereof or give
directions as to their delivery, on the ground that the charges are excessive
or that the bailor is not satisfied that the inspection, custody, storage,
repair or other treatment of the goods has been properly carried out, the
bailee’s right to sell the goods shall be suspended until the dispute is
determined.
(2) Without prejudice to any other mode of determining a dispute,
it shall be treated for the purposes of this Act as having been determined if
the bailee, at any time after the dispute has arisen, gives to the bailor a
notice (a
"notice to treat the dispute as determined" )— (a) stating that unless,
within the period of 1 month beginning with the date of the giving of the
notice, the bailor objects thereto, the dispute will be treated for the
purposes of this Act as having been determined; and
(b) in other respects
complying with the requirements relating to such a notice of section 6 (2) ;
and within the said period of 1 month the bailor does not notify the bailee
that the bailor objects to the notice.
(2A) Where the dispute is so treated
as having been determined, the date on which it shall be so treated as having
been determined shall be the date of the giving of the notice.
(3) If the
bailor so notifies the bailee that the bailor objects to the
notice to treat the dispute as determined, a Magistrates Court held in the
district in which are situated the premises where the goods were accepted by
the bailee may, on the application of the bailor or bailee— (a) make an
order specifying the amount which the court deems reasonable in respect of the
bailee’s charges, and upon the making of such an order— (i) the dispute
shall be treated for the purposes of this Act as having been determined on the
date of the order; and
(ii) the amount specified in the order shall for all
purposes be the amount of the bailor’s liability to the bailee for the
bailee’s charges; and
(iii) where the bailor has paid to the bailee an
amount in respect of the bailee’s charges that is in excess of the amount so
specified—the bailor shall be entitled to recover that excess as a debt in
any court of competent jurisdiction; or
(b) refuse to make such an order.
(4) The jurisdiction conferred on a Magistrates Court by subsection (3) shall
not be exercised except by a Magistrates Court constituted by a stipendiary
magistrate sitting alone.
(5) Where a dispute in relation to any goods is
determined (whether by virtue of subsection (2) or (3) or otherwise) section 6
(1) shall have effect in relation to those goods as if paragraph (b) were
omitted and as if for the reference in paragraph (d) to the date of the giving
of the notice that the goods are ready for re-delivery there were substituted
a reference to the date on which the dispute is determined.
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