Judgment

WANCHOO, J.:

These two appeals on certificates granted by the Madras High Court raise common questions and will be dealt with together. The appellant is a financing company consisting of a number of partners. Its main business is to advance money to persons who purchase motor vehicles but are themselves not in a position to find ready money to pay the price. The course of business followed by the appellant is to enter into hire-purchase agreements with those who want to purchase motor vehicles. It is necessary to refer to the terms of hire-purchase agreements which are on a set pattern in order to understand the points raised in these appeals.

2. Any person desirous of acquiring a motor vehicle makes the selection of the make and type and fixes the price therefor with the motor dealer. Such person then approaches the appellant for financial assistance on a hire-purchase basis. Sometimes an initial payment is made to the motor dealer which is taken into account at the time of the hire-purchase agreement while at others the payment is made in a number of instalments to the appellant. In either case the appellant pays the price or the balance thereof to the dealer and thereafter