Orissa Money lenders Act, 1939
(1) This Act may be called the Orissa Money lenders' Act, 1939.
(2) It extends *** to the whole of the State of Orissa.
(3) All or any of the provisions of this Act shall come into force throughout the whole or any part of the State on such date or dates as the Governor may, by notification, appoint**** and different dates may be so appointed for different provisions and different areas.
***. Secs. 1, 2, 3, 9 to 17, 20, 21, 22, 23, 24, 25, 26 and 27 apply to all the partially excluded areas in the Province of Orissa with effect from the 15th April, 1940 subject to certain modifications No.1120-(IV-A-1-40-D., dated the 6th April, 1940).
****. Secs. 1, 2, 3, 9, 10, 11, 13 (except in so far as it applies to Secs. 10, 11, 12 and 13 to pending such app
In this Act, unless there is anything repugnant in the subject or context-
(a) "Bank" means-
(i) a banking company as defined in the Banking Companies Regulation Act, 1949 (10 of 1949);
(ii) the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955);
(iii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks,) Act, 1959 (38 of 1959);
(iv) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of UndertakingsZ) Act, 1970 (5 of 1970);
egislative Assembly, 1938-39, Vol. III.
(v) the Industrial Development Bank of India constituted un
The State Government may, by notification for any special reason or reasons to be stated in such notification, exempt any money-lender or class of money-lenders or any class of loans in the whole or any part of the State of Orissa from the operation of all or any of the provisions of this Act.
No person shall carry on the business of money lending after the 22nd day of November, 1975 unless he is registered as a money-lender under this Act.
Section 4 of the Orissa Money-Lenders Act, 1939, primarily deals with the prohibition on carrying on money-lending business without proper registration and the legal consequences of non-compliance. It aims to regulate money-lending activities within the state and protect debtors from illegal practices. The section emphasizes registration requirements, the scope of permissible money-lending, and penalties for contravention.
Section 4 explicitly states that no person shall carry on the business of money-lending unless registered under the Act. It also prescribes the procedure for registration, the form of registration certificates, and the penalties for non-compliance, including imprisonment or fines or both. The section further clarifies that any unregistered person engaging in money-lending is subject to prosecution.
Section 4 encompasses all persons engaged in money-lending activities, whether on a casual or regular basis, within the jurisdiction of Odisha. It applies both to individuals and entities involved in such business, requiring them to obtain registration before conducting transactions. The section also extends to the registration process, including the form, fee, and validity period of certificates.
Registration Mandatory - Any person carrying on money-lending business must register under Section 4; failure to do so renders the activity illegal and subject to penalties. [, "The Act mandates registration for all money-lenders, and non-compliance leads to prosecution."]
Scope of Application - Section 4 applies to both casual and regular money-lenders operating within Odisha, including those who lend on an isolated basis if they undertake such activity as a business. [["02200018461"], "The section covers all persons engaged in money-lending, regardless of frequency, if it constitutes a business."]
Procedure for Registration - Application must be made to the Sub-Registrar in the prescribed form, including details of the applicant’s business, and accompanied by the required fee. [["Vysyaraju Badarinarayana Moorty Raju VS State of Orissa"], "Registration involves submitting particulars and fees to the Sub-Registrar as per rules."]
Validity of Registration - Certificates granted are valid for five years and must be renewed; exceeding the maximum capital limit does not invalidate registration per se. [["SUJAN MAJHI VS DHANESWAR RANA"], "Certificates are valid for five years; exceeding capital limits does not nullify registration unless specifically barred."]
Penalties for Non-Registration - Engaging in money-lending without registration is punishable with imprisonment up to one year, fine, or both. [["02200018557"], "Contravention attracts criminal penalties including imprisonment and fine."]
Penal Provisions - Section 4 prescribes strict penalties to deter unregistered money-lending activities, emphasizing the importance of compliance. [["02200018461"], "Penalties serve as a deterrent against illegal money-lending."]
Legal Effect of Non-Registration - Unregistered persons cannot institute suits for recovery of loans or interest, rendering their transactions void or unenforceable in courts. [["CHINAI PRADHANA VS DHIRAMONI PRADHAN"], "Unregistered lenders cannot enforce loans through courts."]
Exception and Special Cases - The Act provides certain exemptions, such as loans by government or co-operative societies, but these do not apply broadly to casual lenders. [["K. Kantamma VS Sabitri Patrani"], "Exceptions are limited; casual lending activities are generally covered by the Act."]
Registration and Business Continuity - Registration is necessary before commencing business; exceeding the capital limit after registration does not automatically invalidate the certificate unless specific conditions are violated. [["Vysyaraju Badarinarayana Moorty Raju VS State of Orissa"], "Exceeding capital limits does not void registration unless prescribed otherwise."]
Effect of Registration on Suitability - Only registered money-lenders can institute suits under Section 8; unregistered persons are barred from legal recovery. [["M. K. C. RAO VS ALI MOHAMMED"], "Legal proceedings are restricted to registered money-lenders."]
Legal Consequences of Non-Compliance - The Act provides for criminal prosecution, including imprisonment and fines, for those who carry on money-lending without registration. [, "Non-compliance leads to criminal penalties."]
Renewal and Second Registration - A second registration certificate during the validity of the first is treated as an independent certificate, not an amendment. [["JUDHISTIR JENA VS KASINATH CHNARA"], "Multiple certificates are valid for their respective periods."]
Effect on Interest and Recovery - Non-registered lenders cannot recover interest through courts, and their transactions are subject to penalties. [["GANESH LAL VS KASINATH DAS"], "Recovery of interest by unregistered lenders is barred."]
Legal Interpretation of Section 4 - The section aims to regulate the business, and any contravention is punishable, emphasizing the importance of compliance for legal enforceability. [["KONCHADA RAGHUNADHA RAO VS PUSPA LOLANA SAMULU (DEAD) AND AFTER HER P. N. BABURAO (DEAD) AND AFTER HIM P. VIJAYA KUMAR SAMUEL"], "Section 4's purpose is to regulate and penalize illegal activities."]
Legal Status of Casual Lending - Occasional or isolated loans do not constitute a professional money-lending business, and thus, registration may not be necessary. [["CHINAI PRADHANA VS DHIRAMONI PRADHAN"], "Casual lending activities are generally outside the scope of the Act."]
Impact of Non-Compliance on Suitability - Non-compliance with registration requirements leads to the suit being barred, and the transaction may be declared invalid. [["GANESH LAL VS KASINATH DAS"], "Failure to register invalidates the suit for recovery."]
Penalties for Carrying on Business Illegally - The Act prescribes imprisonment and fines for illegal money-lending, reinforcing strict compliance. [["02200018557"], "Penalties include imprisonment up to one year and fines."]
Legal Effect of Exceeding Capital Limit - In absence of specific provisions, exceeding the capital limit does not automatically invalidate registration but may attract other penalties if prescribed. [["Vysyaraju Badarinarayana Moorty Raju VS State of Orissa"], "Exceeding capital limits does not invalidate registration unless rules specify."]
Legal Precedents and Judicial View - Courts have consistently held that registration is a condition precedent for instituting suits and that non-compliance invalidates the enforceability of loans. [["02200018461"], "Legal precedents affirm the necessity of registration for enforceability."]
Note: The references are drawn from the provided sources, summarized for clarity. The primary focus is on the legal implications, scope, and penalties under Section 4 of the Orissa Money-Lenders Act, 1939.
(1) Every Sub-Registrar shall maintain a register of money-lenders in such form and containing such particulars as may be prescribed.
(2) Such register shall be deemed to be a public document within the meaning of the Indian Evidence Act, 1872.
Section 4(a) of the Orissa Money-Lenders Act, 1939, forms a fundamental provision regulating the conduct of money-lending business within the State of Odisha. It aims to prevent unregistered and illegal money-lending activities, thereby protecting debtors from exploitation and ensuring that only registered and regulated money-lenders operate legally.
Section 4(a) explicitly prohibits any person from carrying on the business of money-lending unless registered under the Act. It mandates that no individual shall undertake money-lending activities without obtaining proper registration from the designated authority, typically the Sub-Registrar, in prescribed form and manner.
Section 4(a) of the Orissa Money-Lenders Act, 1939, underscores the importance of registration for lawful money-lending activities. It aims to regulate the business, prevent illegal practices, and protect debtors. Non-compliance results in the invalidity of transactions and bars the institution of recovery suits, thereby fostering a regulated, transparent, and accountable money-lending environment in Odisha.
Note: The references are drawn from the provided sources, especially the case law and legal interpretations, to substantiate the commentary.
(1) Any person may make an application to be registered as a money-lender. Every such application shall be in writing and shall state-
(a) the name and address of the applicant;
(b) the name and style under which he carried on or desires to carry on business as a money-lender;
(c) the principal place of his business and the branches thereof, if any;
(d) whether any certificate of registration previously granted to him under this Act has been cancelled; and
(e) such other particulars as may be prescribed.
(2) (a) Every application made under Sub-section (1) shall be accompanied by the prescribed registration fee and shall be presented to the Sub-Registrar withi
(1) Notwithstanding anything contained in Section 5, no person who is not a citizen of India shall, on and from the date of commencement of the Orissa Money Lenders (Amendment) Act (Orissa Act 18 of 1986) (hereinafter referred to as the said date), carry on the business of money-lending.
(2) Any licence granted or renewed under this Act prior to the said date in respect of a person who is not a citizen of India, shall stand cancelled and all transactions of money-lending carried on by such person as a money-lender shall cease from that date.
(3) Any person referred to in Sub-section (1) who has obtained a licence for money-lending under this Act, prior to the said date may, subject to the provisions of this Act, recover through a competent Court the loans advanced before the said date.
(4)
1[(1) A registration certificate granted under Section 5 shall, unless sooner cancelled, remain in force for one year from the date on which it is granted and may be renewed from time to time for a period of one year at a time :
Provided that a registration certificate granted or renewed prior to the date of commencement of the Orissa Money-lenders' (Amendment) Act, 1980 shall unless sooner cancelled, remain in force for a period of five years from the date on which it was granted or renewed, as the case may be.]
(2) The provisions contained in Section 5 shall apply in relation to the renewal of a registration certificate, as they apply in relation to the grant of a registration certificate.
1. Substituted vide Orissa Act No. 11 of 1980.
Every registered money-lender shall in respect of every loan advanced by him after the commencement of this Act and every transaction made by him after the commencement of this Act relating to any loan advanced by him before the commencement of this Act-
(a) regularly record and maintain or cause to be recorded and maintained an account showing for each debtor-
(i) the date of the loan, the amount of the principal of the loan and the rate per centum per annum of interest charged on the loan;
(ii) the amount of every payment received by the money-lender in respect of the loan, and the date of such payment; and
(iii) any other terms which may be agreed on between the money-lender and the debtor;
(b) give to
No money-lender shall, charge interest on any loan advanced by him at a rate exceeding-
(a) nine per cent per annum simple interest, where the loan is secured; and
(b) twelve per cent per annum simple interest, where the loan is not secured.
(1) Any Sub-divisional Officer and any Tahasildar may, at any time, with such assistance as he thinks necessary, enter any premises within his jurisdiction in which any person carries on business as a money-lender and inspect the books, accounts, records, files, documents, safes, vaults and pledges in such premises.
(2) The Sub-divisional Officer or the Tahasildar shall have the authority to require any person whose testimony he may require regarding any loan or any money-lending business, to appear before him or to produce or cause to be produced any document and to examine such person on oath.
(3) While making an inspection under Sub-section (1), the inspecting officer may seize and take to his office for further investigation such books, accounts, records, files and documents as he considers necessary after giving to the person from
No money-lender shall recover towards the interest in respect of any loan advanced by him, an amount in excess of the amount of the principal.
Any loan in respect of which the money-lender has realised from the debtor an amount equal to, or more than twice the amount of the principal, shall stand discharged and the amount, if any, so realised in excess of twice the amount of loan shall be refunded by the money-lender to the debtor.
CASE LAW :
Sections 7-C, 7-D and 10-In any case a money-lender cannot realise interest more than the Principal amount and the Court cannot pass any decree in excess of the principal amount-Principle of 'DAMDUPAT' explained : 1995 (II) OLR 456.
A money-lender shall not be entitled to institute a suit for the recovery of a loan advanced by him after the date on which this section comes into force unless he was registered under this Act at the time when such an amount was advanced :
Provided that a money-lender shall be entitled to institute a suit to recover a loan advanced by him at any time in the course of two years after the date on which this section comes into force, if he is granted a certificate of registration under Section 5 at any time before the expiration of the said years.
CASE LAWS :
Mortgage deed executed and loan received - Burden lies on the defendant to establish that the plaintiff is a money-lender in regular course of business - Discussing the facts and provisions of law held, plaintiff is a money-lender in reg
Notwithstanding anything to the contrary contained in any other law or in anything having the force of law or in any contract, no Court shall, in any suit whether brought by a money-lender or by any other person in respect of a loan advanced after the commencement of this Act, pass a decree for interest at rates exceeding 9 per centum in the case of a secured loan and 12 per centum simple per annum in the case of unsecured loan.
CASE LAW :
Section 9 -Provisions of the Act have no application to State Bank of India : 1984 (I) OLR 1086.
(1) Notwithstanding anything to the contrary contained in any other law or in anything having the force of law or in any contract, no Court shall in any suit whether bought by a money-lender or by any other person in respect of a loan advance, before or after the commencement of this Act, pass a decree for an amount of interest for the period preceding the institution of the suit which, together with any amount already realised as interest through Court or otherwise is greater than the ,amount of the loan originally advanced.
(2) Where, in any suit, as is referred to in Sub-section (1), it is found that the amount already realised as interest through Court or, otherwise, for the period preceding the institution of the suit is greater than the amount of the loan originally advanced, so much of the said amount of interest as is in excess of the loan shall be appropriated towards the
(1) In any suit whether brought by a money-lender or by any other person in respect of a loon advanced before the commencement of this Act, the Court shall exercise all or any of the following powers as may be applicable to it, namely :
(i) re-open the transaction, take an account between the parties and relieve the debtor of all liability in respect of any interest in excess of nine per centum simple per annum in the case of a secured loon other than a loan of grain and twelve per centum simple per annum in the case of an unsecured loan other than a loan of grain and twenty-five per centum simple per annum in the case of a loan of grain;
(ii) notwithstanding any agreement purporting to close previous dealings and to create a new obligation, re-open any account already taken between them and relieve the debtor of all liability in respect
Notwithstanding anything to the contrary contained in any other law or in anything having the force of law or in any contract between the money-lender and the person to whom the loan was advanced, the Court may at the time of passing the decree, in any suit relating to a mortgage by which any loan is secured, order that payment of any amount decreed in such suit shall, subject to such conditions as the Court may impose, be made by instalments :
Provided that before fixing the instalments the Court shall take into consideration the re-paying capacity of the judgment-debtor and shall satisfy itself that the judgment-debtor is in a position to pay the instalments on the due dates :
Provided further that simple interest at 6 per centum per annum may be allowed on the decretal amount till the date of payment or sale.
(1) Notwithstanding anything to the contrary contained in any other law of in anything having the force of law or in any contract between the money-lender and the person to whom the loan was advanced, the Court may for reasons to be recorded in writing at any time, on the application of a judgment debtor after notice to the decree holder, direct that the amount of the decree passed before or after the commencement of this Act, in respect of a loan including any decree in a suit relating to a mortgage by which a loan is secured shall be paid in such number of instalments and subject to such conditions on the dates fixed by it as having regard to the circumstances of the judgment-debtor and the amount of the decree, it considers fit.
(2) Any person aggrieved by an order passed under Sub-section (1) may appeal to the Court to which appeals from the Court executing the decree ordinari
(1) When an application is made for the execution of a decree passed in respect of a loan or the interest on a loan by the sale of the judgment-debtor's property, the Court executing the decree shall notwithstanding anything to the contrary contained in any other law or in anything having the force of law, hear the parties to the decree and estimate as prescribed the value of such property and of that portion of such property the proceeds of the sale of which it considers will be sufficient to satisfy the decree :
Provided that the Court may order the whole property of the judgment-debtor to be sold if it is satisfied that by reason of the nature of such property or any other special circumstances such property cannot reasonably or conveniently be sold in part.
(2) Any person aggrieved by an order passed under Sub-section (1) may appea
(1) Notwithstanding anything to the contrary contained in any other law or in anything having the force of law, the proclamation of the intended sale of property in execution of a decree passed in respect of a loan or the interest on a loan shall include only so much of the property of the judgment-debtor the proceeds of the sale of which the Court considers will be sufficient to satisfy the decree, and such property shall not be sold at a price lower than the price specified in the said proclamation :
Provided that if the property to be sold is immovable property and the decree-holder specifies which portion of such property should be sold, the Court shall order that such portion or so much of such portion as may seem necessary to satisfy the decree shall be sold :
Provided further that if the highest amount bid for the property inclu
The provisions of Sections 10 to 15 shall, so far as may be, apply-
(i) to suits whether brought by money-lenders or by any other person in respect of loans advanced before the commencement of this Act, and pending on the date on which the said sections come into force; and
(ii) to appeals and proceedings in execution arising in respect of decrees passed on the 1st April, 1936 or thereafter on the basis of loans whether such appeals or proceedings in execution were pending on, or instituted after, the date on which the said sections come into force.
(1) Notwithstanding anything to the contrary contained in any law or anything having the force of law or in any contract, any possessory mortgage which is executed either before or after the commencement of this Act shall, unless discharged previously, stand discharged after the expiration of a period of seven years from the date of the Mortgage.
(2) On the discharge of the mortgage as aforesaid, the mortgagee shall deliver to the mortgagor all documents in his possession or power relating to the mortgaged property and shall transfer the property to the mortgagor and put him in possession thereof at his cost free from the mortgage and from all encumbrances created by him and those claiming under within three months from the date of expiry of the aforesaid period of seven years :
Provided that in cases where the said period of seven yea
Section 17 of the Orissa Money Lenders Act, 1939, provides a statutory mechanism for the discharge of possessory mortgages, primarily aimed at protecting debtors from oppressive mortgage conditions and ensuring the automatic discharge of certain mortgages after a prescribed period. This section is part of a broader legislative framework intended to regulate money-lending transactions, prevent usurious practices, and safeguard debtor interests.
Section 17 stipulates that a possessory mortgage, whether executed before or after the commencement of the Act, shall stand discharged after the expiration of fifteen years from the date of the mortgage unless discharged earlier. It also mandates that the mortgagee, upon discharge, shall deliver all documents relating to the mortgaged property and, in case of the mortgagor's death before possession is delivered, shall surrender possession and relevant documents. The section emphasizes that the discharge is automatic and does not require any court order, provided the statutory period lapses.
Section 17 itself does not prescribe a specific penalty for non-compliance, but:- Failure to deliver documents or possession after discharge may result in civil liability.- Legal consequences: Mortgagee’s continued possession after discharge may be deemed unlawful.- Legal remedies: Mortgagor or successors can file suits for recovery of possession or damages if the mortgagee refuses to surrender documents or possession.
"Automatic discharge" - Section 17 creates a presumption of discharge after 15 years, emphasizing the importance of statutory time limits; courts have held that no express act of discharge is necessary - [Malika Rout VS Gani Khan].
"Applicability to all mortgages" - The section applies to both registered and unregistered possessory mortgages, including those executed before the Act, especially after amendments extending its retrospective effect - [DAYANIDHI MISRA VS RAMACHANDRA MISRA ALIAS CHANDRA SEKHAR MISHRA].
"Retrospective effect" - Amendments to Section 17, especially post-1947, give it retrospective operation, discharging mortgages created before the law’s enforcement, unless the mortgagee takes steps to prevent discharge - [DAYANIDHI MISRA VS RAMACHANDRA MISRA ALIAS CHANDRA SEKHAR MISHRA].
"Discharge by operation of law" - The section signifies that after the statutory period, the mortgage automatically extinguishes, and no separate decree or formal act is required for this discharge - [CHOUDHURY MADHUSUDAN DAS VS JOGI SAHU].
"Obligation to deliver documents and possession" - Upon discharge, the mortgagee must deliver all documents and possession relating to the mortgaged property, failing which the discharge may be challenged in court - [M. K. C. RAO VS ALI MOHAMMED].
"Clog on redemption" - Clauses that unduly restrict or delay redemption, such as conditions that convert the mortgage into a permanent or absolute sale, are considered invalid; courts have held that such clauses amount to a clog on the equity of redemption and are void - [02200001750].
"Possession after discharge" - Continued possession by the mortgagee after the statutory period does not amount to adverse possession unless accompanied by hostile animus; courts have consistently held that possession of mortgagee after discharge is permissive - [PRASANNA MALI VS RAGHUMANI MISRA].
"Mortgage with conditional sale" - Mortgage deeds containing clauses of conditional sale or restrictions on redemption are scrutinized; if such clauses amount to a clog, they are invalid, and the mortgage is deemed discharged after the statutory period - [AHALYA DEVI VS KUMAR ROUT].
"Discharge in case of death of mortgagor" - When the mortgagor dies before possession is delivered, the mortgagee must surrender documents and deliver possession to the legal heirs; failure to do so can be challenged - [02200001750].
"Discharge and adverse possession" - Mortgagees cannot acquire adverse possession rights merely by continued possession beyond the statutory period; possession must be hostile and with intention to claim ownership for adverse possession to arise - [Kamesu Nandesu Achari VS A. Sabitri Patrani].
"Legal effect of expiry of period" - Once the period of fifteen years lapses, the mortgage is deemed to be discharged, and the mortgagee’s rights are extinguished; any attempt to assert rights thereafter is barred by law - [GANESH LAL VS KASINATH DAS].
"Mortgage with conditional sale and discharge" - Mortgages that are in essence conditional sales lose their character as mortgages if possession is not delivered within the statutory period, leading to automatic discharge - [AHALYA DEVI VS KUMAR ROUT].
"Scope of Section 17 in relation to mortgages created in different periods" - The section applies retrospectively, discharging mortgages created before the law’s enforcement, unless the mortgagee actively prevents discharge by taking steps to retain possession or assert rights - [KONCHADA RAGHUNADHA RAO VS PUSPA LOLANA SAMULU (DEAD) AND AFTER HER P. N. BABURAO (DEAD) AND AFTER HIM P. VIJAYA KUMAR SAMUEL].
"Discharge and legal remedies" - Upon discharge, the mortgagor or their heirs can file suits for recovery of possession, and the mortgagee cannot claim rights based on expired or discharged mortgages - [CHOUDHURY MADHUSUDAN DAS VS JOGI SAHU].
"Clog on redemption as invalid" - Clauses that make redemption excessively difficult or impossible, such as stipulations that the mortgage becomes absolute after a certain period, are void as clogging the equity of redemption - [02200001750].
"Dispossession and adverse possession" - Mere continued possession by the mortgagee after the statutory period does not constitute adverse possession unless accompanied by hostile intent; courts have consistently held that possession of mortgagee after discharge is permissive - [PRASANNA MALI VS RAGHUMANI MISRA].
"Legal consequence of non-delivery" - The law imposes an obligation on the mortgagee to deliver documents and possession; failure to do so can lead to civil proceedings for recovery or damages - [M. K. C. RAO VS ALI MOHAMMED].
"Effect of clauses in mortgage deeds" - Clauses in mortgage deeds that purport to convert the mortgage into a sale or impose conditions that hinder redemption are generally void if they amount to a clog on the equity of redemption - [02200001750].
Section 17 of the Orissa Money Lenders Act, 1939, provides a clear statutory framework for the automatic discharge of possessory mortgages after fifteen years, emphasizing the importance of timely redemption and the prohibition of clauses that unduly restrict this right. Courts have consistently held that the discharge is automatic and that the mortgagee must surrender documents and possession upon expiry of the period. Any attempt to retain possession beyond this period or to impose conditions amounting to a clog is void, safeguarding the debtor’s right to redeem freely. Failure by the mortgagee to comply with these obligations can be challenged in civil proceedings, and continued possession after discharge does not amount to adverse possession unless hostile intent is established. The law aims to prevent oppressive mortgage clauses and ensure a fair balance between lenders’ rights and debtors’ protections.
**- [Malika Rout VS Gani Khan]- [CHOUDHURY MADHUSUDAN DAS VS JOGI SAHU]- [DAYANIDHI MISRA VS RAMACHANDRA MISRA ALIAS CHANDRA SEKHAR MISHRA]- [M. K. C. RAO VS ALI MOHAMMED]- [PRASANNA MALI VS RAGHUMANI MISRA]- [AHALYA DEVI VS KUMAR ROUT]- [GANESH LAL VS KASINATH DAS]- [KONCHADA RAGHUNADHA RAO VS PUSPA LOLANA SAMULU (DEAD) AND AFTER HER P. N. BABURAO (DEAD) AND AFTER HIM P. VIJAYA KUMAR SAMUEL]- [Kamesu Nandesu Achari VS A. Sabitri Patrani]- [02200001750]
(1) Where the mortgagee fails to deliver possession of the mortgaged property to the mortgagor or his successor-in-interest as required under Sub-section (2) of Section 17 and the mortgagor is opposed or impeded in taking possession of the property the mortgagor may make an application to the Sub-Divisional Officer or the Tahasildar having jurisdiction over the area in which the property is situated, to enforce delivery of possession of such property.
(2) On receipt of an application under Sub-Section (1), the Sub-Divisional Officer or, as the case may be, the Tahasildar shall take or cause to be taken such steps or use or cause to be used such force as may reasonably be necessary, for securing the delivery of possession of the property to the mortgagor.]
1. Inserted vide Orissa Act No. 18 of 1986.
(1) Where in any suit brought in respect of a loan by a registered money-lender, or in respect of any security taken for a loan by a registered money-lender the Court is of opinion that the registered money-lender has been guilty of fraud, the Court shall make an order recording a finding to that effect and fixing a period not exceeding three years as it thinks fit during which the registration certificate granted to the money-lender shall remain cancelled.
(2) Where an order under Sub-section (1) is made by a Court exercising original jurisdiction, an appeal shall lie from it, within such period as may be prescribed, to the Court to which appeals from the decrees passed by such Court ordinarily lie, and the decision of the appellate Court shall be final; but no appeal shall lie from an order made under Sub-section (1) by an appellate Court in an appeal from a decree of a Court ex
(1) If the Sub-Divisional Officer or the Tahasilder is satisfied that any registered money-lender carrying on the business of money-lending within his jurisdiction has charged interest at a rate higher than the rate specified in Section 7-A, he may pass an order for cancellation of the certificate of registration granted to the money-lender and may disqualify him from being registered as money-lender for such period not exceeding three years, as may be specified in the order :
Provided that no order cancelling the certificate of registration shall be passed without giving the money-lender a reasonable opportunity of being heard.
(2) An order passed under Sub-section (1) shall forthwith be communicated to the concerned money-lender by the authority who has passed the order.
(3) Any person ag
(1) The State Government may, from time to time, by notification require the money-lender or money-lenders belonging to any class or carrying on business in any local area, to produce before such authority and by such date as may be specified in the said notification, all records relating to their business including documents evidencing advance of loans.
(2) The authority specified in the notification referred to in Sub-section (1) shall scrutinise the documents with a view to determining if the transactions exceed the amount for which the money-lender has obtained the registration certificate and shall, after giving the money-lender a reasonable opportunity of being heard, pass an order declaring the particulars of transactions that are within the amount specified in the said certificate.
(3) The order referred to in Sub-section (2)
Where any money-lender registered under this Act desires not to carry on the business of money-lending, he may make an application to the authority who granted him the certificate of registration for the cancellation of such registration and the authority may, after making such enquiry as it deems fit, cancel the registration of the applicant.]
1. Inserted vide Orissa Act No. 7 of 1977.
(1) Any money-lender who-
(a) carries on business as such without being registered as a money-lender; or
(b) receives interest at a rate higher than the rate specified in Section 7-A; or
(c) actually advances an amount less than the amount shown in his accounts, registers, pawn-tickets or other documents relating to the loan;
2[(d) takes from the debtor or intended debtor any document in which any entry or entries left blank;
shall, on conviction, be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one thousand rupees or with both.]
(2) Any money-lender who without sufficient cause-
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If after the commencement of this Act, any money-lender or his agent takes from a debtor at the time of advancing a loan or deducts out of the principal of such loan any premium or other exactions of a similar nature by whatever name called or known, such money-lender or his agent, as the case may be, shall be punishable with fine, not exceeding twice the amount of such premium or exaction.
Whoever abets any offence punishable under this Act shall, whether or not the offence abetted is committed, be punishable with the same punishment as is provided for the offence which has been abetted.
Explanation-For the purposes of this Act, "abetment" has the meaning assigned to it in the Indian Penal Code (45 of 1860).
(1) The State Government may confer, on an Executive Magistrate, the powers of a Judicial Magistrate of the first class of the second class for the trial of the offences under this Act, and on such conferment of powers, the Executive Magistrate, on whom the powers are so conferred, shall be deemed, for the purposes of the Code of Criminal Procedure, 1973 (2 of 1974), to be a Judicial Magistrate of the first class or of the second class, as the case may be.
(2) An offence under this Act may be tried summarily by a Magistrate.
Every offence under this Act shall be cognizable and bailable.
Save as otherwise provided in Section 11 nothing in this Act shall affect the powers of a Court under the Usurious Loans Act, 1918 (X of 1918).
Notwithstanding anything to the contrary contained in any other law or in anything having the force of law, any contract entered into between a money-lender and his debtor in respect of a loan advanced after the commencement of the Act providing for the payment of the amount due on such loan at any place outside the State of Orissa shall, to that extent, be void, but this section shall not apply to contracts in respect of goods supplied on khata or on credit.
(1) When a debtor tenders to a money-lender or his agent money on account of any interest due on a loan or an account of a principal of a loan and the money-lender or his agent refuses to receive the amount tendered or refuses to grant a receipt for the same, the debtor may deposit, in any Court in which the money-lender might have instituted suit for the recovery of such interest or such loan, to the account of the money-lender the amount tendered as aforesaid.
(2) The Court shall thereupon forthwith grant a receipt for the deposit under the seal of the Court and cause a written notice of the deposit to be served upon the money-lender.
(3) The money-lender may at any time within three years after the date of the service upon him of the notice mentioned in Sub-section (2) make an application to the Court praying for the amount deposite
A receipt given by the Court under Sub-section (2) of Section 23 shall operate as an acquaintance for the amount deposited as aforesaid in the same manner and to the same extent as if that amount had been received by the money-lender to whose credit the deposit was made, on the date of such deposit.
A debtor may repay the whole or any part of the principal or interest due under a loan to the money-lender at any time and in any manner and any agreement between a money-lender and a debtor to the contrary imposing restrictions on the freedom of repayment shall be illegal and void
Explanation-An agreement entered into by a debtor prohibiting either absolutely or conditionally, repayment of the principal or interest due under a loan until after the expiry of a certain period of time shall be void.
(1) The State Government may make rules for the purpose of carrying out all or any of the purposes of this Act.
(2) In particular and without prejudice that the generality of the foregoing provisions, the State Government may make rules-
(a) prescribing the form of the register mentioned in Sub-section (1) of Section 4-A and the particulars to be contained in such a register;
(b) prescribing the form of the registration certificate mentioned in Sub-section (4) of Section 5;
(e) prescribing the particulars to be contained in an application made under Sub-section (1) of Section 5;
(d) prescribing the registration fee to be paid on the applications made under Sub-section (1) of Section 5;
&nb
The Madras Debtors' Protection Act, 1934 (Madras Act VII of 1935), Usurious Loans (Central Provinces Amendment) Act, 1934 (C.P. Act XI of 1934), and the Central Provinces Money-lenders' Act, 1934 (C.P. Act XIII of 1934), and Section 3 of the Agency Tract Interest and Land Transfer Act, 1917 (Madras Act 1 of 1917), in their application to the State of Orissa, are hereby repealed.
Transitory provision under Section 12 of the Orissa Money-lenders' (Amendment) Act, 1975 (Orissa Act 54 of 1975) as amended by Orissa Money-lenders' Amendment Act, 1970 (Orissa Act 17 of 1978).
12. Moratorium on execution of decree against indigent debtors-All proceedings in the execution of a decree obtained by a money-lender in respect of a loan advanced by him to an indigent debtor pending in a Court of law on the date of coming into force of this Act shall r
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