sec.7Bailee’s rights to sell goods suspended upon dispute arising as to charges etc.

sec.7 Bailee’s rights to sell goods suspended upon dispute arising as to charges etc.

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. 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 )— 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 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. 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. 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— 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— the dispute shall be treated for the purposes of this Act as having been determined on the date of the order; and 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 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 refuse to make such an order. 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. 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. (sec.7-ssec.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. (sec.7-ssec.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 )— 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 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. (sec.7-ssec.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. (sec.7-ssec.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— 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— the dispute shall be treated for the purposes of this Act as having been determined on the date of the order; and 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 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 refuse to make such an order. (sec.7-ssec.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. (sec.7-ssec.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.