VFS FINANCIAL SERVICES LTD V JF PLANT TYRES LTD

[2013] EWHC 346 (QB), Queen's Bench Division, London Mercnatile Court, HH Judge Mackie QC

Hire purchase agreement - Nemo dat quod non habet - Truck rented by claimant to third party - Third party owing monies to defendant by novation of agreement with third party first renting - Hire Purchase Act 1964, sections 27 and 29 - Sale of Goods Act 1979

A Volvo truck was rented by the claimant on hire purchase terms to the company SPH and then by novation to the related company DAL. The claimant terminated the agreement and sought to repossess the vehicle. D had by then parted with possession of the vehicle to the defendant which had taken it in settlement of debts owed by S and D. The defendant claimed the protection of its innocence and section 27 of the Hire Purchase Act, but the claimant sought summary judgment on the basis that the transaction by which the defendant came into possession of the vehicle was not a "disposition" in terms of section 29 of the HPA.