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Return to participants of payments under schemes for goods in certain cases.
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4.—(1) A payment to which this section applies by a participant in a scheme to a promoter of or another participant in the scheme or any other person acting in accordance with the scheme (in this section referred to as “a recipient”) shall be returned by the recipient to the participant if the participant returns to the recipient the goods or article in respect of which the payment was made.
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(2) (a) Where a participant returns goods or an article under this section to a recipient and the value of the goods or the article decreased while in the possession or under the control of the participant and such decrease was occasioned by the neglect of the participant, an amount equal to the amount of the decrease aforesaid may be deducted by the recipient from the payment falling to be returned by him under this section.
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(b) A deduction shall not be made under this subsection unless, after lodgment of the amount of the payment concerned in the District Court, that Court, upon application to it in that behalf by the recipient concerned, by order authorises the deduction.
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(c) An application under paragraph (b) of this subsection shall be made within 21 days of the receipt by the recipient concerned of a notice in writing stating the intention of the participant concerned to return to the recipient the goods or article concerned.
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(d) An order of the District Court in proceedings under this subsection shall make such provision as that Court thinks proper in relation to the payment to the parties concerned of the amount lodged in that Court under paragraph (b) of this subsection in the proceedings.
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(3) In this section “payment to which this section applies” means a payment by a participant in a scheme to a recipient, being—
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(a) the payment of the price of—
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(i) goods supplied or to be supplied to the participant under the scheme for sale by him, or
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(ii) any article supplied or to be supplied to the participant for the purpose of providing the services to which the scheme relates, or
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(b) any payment by way of security for such goods or articles as aforesaid supplied or to be supplied as aforesaid to the participant.
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(4) An agreement between a promoter or participant in a scheme or a person acting on behalf of a promoter or a participant in a scheme and another person shall, in so far as it provides for the payment of money by that other person to the promoter or the person acting on his behalf or to the participant or the person acting on his behalf in consideration of the provision under the scheme by the promoter or the participant to that other person of goods or services, be null and void; and an action shall not lie in any court for the recovery of the money by the promoter or by the person acting on his behalf or by the participant or the person acting on his behalf from that other person.
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