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(Bombay Act No. XXXI of 1947)

An Act to regulate the transactions of money lending in the Province of Bombay

Whereas it is expedient to made better provision for the regulation and control of transactions of money lending in the Province of Bombay;

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1. As extended to the Union Terr

S.1 Short title, extent and commencement

(1) This Act may be called the Bombay Money Lenders Act, 1946.

(2) It extends to the whole of the Union Territory of Tripura.

S.2 Definitions

 In this Act, unless there is anything repugnant in the subject or context –

(1) "bank" means a banking company as defined in the Banking Companies Act, 1949 (X of 1949) ;

(2) "business of money-lending" means the business of advancing loans whether or not in connection with or in addition to any other business;

(3) "capital" means a sum of money which a money-lender invests in the business o

S.3 Appointment of Registrar-General, Registrars and Assistant Registrars

The Chief Commissioner of Tripura may, by notification in the Tripura Gazette, appoint such persons, whether police officers or not as he thinks proper, to be a Registrar General, Registrars and Assistant Registrars of moneylenders for the purposes of this Act and may define the areas within which each such officer shall exercise his powers and perform his duties.

S.4 Register of Money Lenders

Every Assistant Registrar shall maintain for the area in his jurisdiction a register of money-lenders in such form as may be prescribed.

S.5 Money-lender not to carry on business of money-lending except for area under licence and except in accordance with terms of licence

No money lender shall carry on the business of money-lending except in the area for which he has been granted a licence and except in accordance with the terms and, conditions of such licence.

S.6 Application for licence

(1) Every money-lender shall annually before such date as may be prescribed make an application in the prescribed form for the grant of a licence to the Assistant Registrar of the area within the limits of which, the place where he intends to carry on the business of money-lending or if he intends to carry on the business at more than one places in the area, the principal place of such business is situated. Such application shall contain the following particulars, namely:

(a) the name in which such

S.8(a) Refusal of issue of licence

(1) The grant of licence shall not be refused except on any of the following grounds:

(a) that the applicant, or any person responsible or proposed to be responsible for the management of his business as a money-lender is disqualified from holding a licence;

(b) that the applicant has not complied with the provisions of this Act or the rules in respect of an application for the grant of a licence;

S.8(b) Registrar's power to cancel licences

(1) The Registrar may, during the term of any licence, cancel the same by an order in writing on the ground that the person to whom it was granted has been guilty of any Act or conduct for which he might under Section 8-A have refused him the grant of the licence and which Act or conduct, was not brought to his notice at the time of the grant.

(2) Before cancelling a licence under sub-section (1) the Registrar shall give notice in writing to the licensee and may hold such inquiry as may be necessary

S.9 Term of licence

A licence shall be valid from the date on which it is granted to the 31st day of March following.

S.10 Stay of suits by money-lenders not holding licence

(1) After the expiry of six months from the date on which this Act comes into force, no Court shall pass a decree in favour of a money-lender in any suit filed by a money-lender to which this Act applies unless the Court is satisfied that at the time when the loan or any part thereof to which the suit relates was advanced, the money-lender held a valid licence.

(2) If, during the trial of any such suit, the Court finds that the money-lender had not held such licence, the Court may on the applicatio

S.11 Entry in register and grant of licence to money-lender directed to obtain licence under Section 10

Any money-lender who is required under sub-section (2) of Section 10 to produce a licence shall make an application to the Registrar through the Assistant Registrar in the manner specified in Section 6 and on receipt of such application the Registrar may, subject to the provision of Section 8-A, and after making such inquiry as he deems fit, grant the money-lender on payment of the arrears of licence fee, and the penalty, if any, directed by the Court to be paid, a licence in the form and subject to the conditions specified in Section 7 and direct the Assistant Registrar to enter the name of the money-lender in the register.

S.12 Application for cancellation of licence

(1) Any person may, during the currency of a licence, file an application to the Registrar General for the cancellation of the licence issued to a money-lender on the ground that such money-lender has been guilty of any Act or conduct for which the Registrar may under Section 8-A refuse him the grant of a licence. At the time of filing his application the said person shall deposit such amount not exceeding Rs. 100 as the Registrar General may deem fit.

(2) On the receipt of such application and dep

S.13 Power of authorised officer to require production of records or documents

For the purpose of verifying whether the business of money-lending is carried on in accordance with the provisions of this Act, any Registrar, Assistant Registrar or any other officer authorised by the Chief Commissioner of Tripura in this behalf, may require any money-lender or any person in respect of whom the Registrar, Assistant Registrar or the officer so authorised has reason to believe that he is carrying on the business of money-lending in the Union Territory to produce any record or document in his possession which in his opinion is relevant for the purpose and thereupon such money-lender or any person in respect of whom the Registrar, Assistant Registrar or the officer so authorised has reason to be

S.14 Court's power to cancel or suspend a licence

(1)(i) A Court passing an order of conviction against a money-lender for an offence under this Act, or

(ii) A Court trying a suit to which this Act applies, if satisfied that such money-lender has committed such contravention of the provision of this Act or the rules as would, in its opinion, make him unfit to carryon the business of money- lending(a) may order that all the licences held by such money- lender in the Union territory be cancelled or suspended for such time as it may think fit ; and

S.15 No compensation for suspension or cancellation of licence

 Where any licence is suspended or cancelled under this Act, no person shall be entitled to any compensation or the refund of any licence fee.

S.16 Persons debarred from business during period of suspension or cancellation of licence

A person whose licence has been suspended or canceled in accordance with the provisions of this Act shall, during the period of suspension or cancellation, as the case may be, be disqualified from holding any licence in the Union territory.

S.17 Persons whose licence is suspended or cancelled not to apply without giving particulars of endorsement or of disqualification

No person whose licence has been endorsed under Section 14 or who has been disqualified from holding a licence shall apply for, or be eligible to hold a licence, without giving particulars of such endorsement of disqualification.

S.18 Duty of money-lender to keep accounts and furnish copies

 (1) Every money-lender shall keep and maintain a cash book and a ledger in such form and in such manner as may be prescribed.

(2) Every money-lender shall –

(a) deliver or cause to be delivered –

(i) to the debtor within 30 days from the date on which a loan is made, a statement in any recognised language showing in clear and distinct terms the amount and date of the loan and of its ma

S.19 Delivery of statement of accounts and copies thereof by moneylender

 (1) A money-lender may recover from a debtor fees for the statements or a pass book supplied to him under sub-section (2) of Section 18 or sub-section (1) of Section 19 and in respect of copies of such statements supplied to the Assistant registrar under the said sub-sections, or in respect of copies of statement supplied to him under sub-section (2A) of Section 18.

(2) Such fees shall be recoverable at such rates and in such manner as may be prescribed, subject to the

S.19(a) Fees for certain statements supplied to debtors and Assistant Registrars

(1) Every money-lender shall deliver or cause to be delivered every year to each of his debtors a legible statement of such debtor's accounts signed by the money-lender or his agent of any amount that may be outstanding against such debtor. The statement shall show-

(i) the amount of principal and the amount of interest, separately, due to the money-lender;

(ii) the amount of every payment already received by the money lender in respect of the loa

S.20 Debtor not bound to admit correctness of accounts

 A debtor to whom a statement of accounts or a pass book has been furnished under Section 19 shall not be bound to acknowledge or deny its correctness and his failure to do so shall not, by itself, be deemed to be an admission of the correctness of the accounts.

S.21 Procedure of Court in suits regarding loans

Notwithstanding anything contained in any law for the time being in force, in any suit to which this Act applies –

(a) a Court shall, before deciding the claim or merits, frame and decide the issue whether the money-lender has complied with the provisions of Sections 18 and 19 ;

(b) if the Court finds that the provisions of Section 18 or Section 19 have not been complied with by the money-lender, it may, if the plaintiff's claim is established, in

S.22 Provisions of certain sections not to apply to loans made by company or unincorporated body exempted by Government

 Nothing in Sections 18 to 21 shall apply to loans advanced by any company or unincorporated body which the Chief Commissioner of Tripura may, by notification in the Tripura Gazette, exempt from the operation of those sections.

S.23 Power of Court to limit interest recoverable in certain cases

 Notwithstanding anything contained in any agreement or any law for the time being in force, no Court shall, in respect of any loan whether advanced before or after the date on which this Act comes into force, decree, on account of interest, a sum greater than the principal of the loan due on the date of the decree.

S.24 Power of Court to direct payment of decretal amount by instalments

Notwithstanding anything contained in the Code of Civil Procedure, 1908 (v of 1908), the Court may, at any time, on application of a judgment-debtor, after notice to the decree holder, direct that the amount of any decree passed against him whether before or after the date on which this Act comes into force, in respect of a loan, shall be paid in such number of instalments and subject to such conditions, and payable on such dates, as, having regard to the circumstances of the judgment- debtor and the amount of the decree, if considers fit.

S.25 Limitation on rates of interest

(1) The Chief Commissioner of Tripura may, from time to time by notification in the Tripura Gazette, fix the maximum rates of interest for any local area or class of business of money-lending in respect of secured and unsecured loans.

(2) Notwithstanding anything contained in any law for the time being in force, no agreement between a money-lender and a debtor for payment of interest at rates exceeding the maximum rates fixed by the Chief Commissioner of Tripura under sub-section (1) shall be valid

S.26 Prohibition of charge for expenses on loans by money- lenders

No money-lender shall receive from a debtor or intending debtor any sum other than reasonable cost of investigating title to the property, cost of stamps and registration of documents in cases where an agreement between the parties includes a stipulation that property is to be given as security or by way of mortgage and where both parties have agreed to such costs and reimbursement thereof; or where such costs, or charges are leviable under the provisions of the Transfer of Property Act, 1882 (IV of 1882), or any other law for the time being in force.

S.27 Notice and information to be given on assignment of loan

 (1) Where a loan advanced, whether before or after the date on which this Act comes into force, or any interest of such loan or the benefit of any agreement made or security taken in respect of such loan or interest is assigned to any assignee, the assignor (whether he is the money-lender by whom the money was lent or any person to whom the debt has been previously assigned) shall, before the assignment is made(a) give the assignee notice in writing that the loan, interest, agreement or security is affected by the operation of this Act

S.28 Application of Act as respects assignees

 (1) Save as hereinafter provided, where any debt due to a money-lender in respect of money lent by him whether before or after the date on which this Act comes into force or of interest on money so lent or of the benefit of any agreement made or security taken in respect of any such debt or interest has been assigned, the assignee shall be deemed to be the money-lender and all the provisions of this Act shall apply to such assignee as if he were the money-lender.

(2) No

S.29 Re-opening of transactions

Notwithstanding anything contained in any law for the time being in force, the Court shall, in any suit to which this Act applies, whether heard ex- parte or otherwise –

(a) re-open any transaction, or any account already taken between the parties ;

(b) take an account between the parties;

(c) reduce the amount charged to the debtor in respect of any excessive interest;

S.30 Inquiry for taking accounts and declaring the amount due

(1) Any debtor may make an application at any time to the Court, whether the loan to which the suit relates has or has or has not become payable, for taking accounts and for declaring the amount due to the money-lender. Such application shall be in the prescribed form and accompanied by the prescribed tee.

(2) On receipt of such application, the Court shall cause a notice of the application to be given to the money-lender.

(3) On t

S.31 Deposit in Court of money due to money-lender

Notwithstanding any agreement between the parties or any law for the time being in force, when a statement is delivered or pass book is supplied to a debtor under Section 19 or if accounts are taken under Section 30 or a tender is made by a debtor to a money-lender in respect of a loan under Section 31 before the sixteenth day of a calendar month, the interest due shall be calculated as payable for fifteen days of the said month, and if the statement is delivered or pass book is supplied or accounts are taken or tender is made on any subsequent day, then for the entire calendar month irrespective of the fact that such statement is delivered or pass book is supplied or such accounts are taken or such tender is

S.31(a) When interest to be paid for entire month

(1) At any time a debtor may tender to a money-lender any sum of money due from him to the money-lender in respect of a loan by way of principal, interest or both.

(2) If the money-lender refuses to accept any sum so tendered, the debtor may deposit the said sum in Court to the account of the money-lender.

(3) The Court shall thereupon cause written notice of the deposit to be served on the money-lender, and he may, on presenting a petition statin

S.32 Entry of wrong sum in bond etc., to be an offence

(1) No money-lender shall take any promissory note, acknowledgment, bond or other writing which does not state the actual amount of the loan, or which states such amount wrongly or executes any instrument in which blanks are left to be filled after execution.

(2) Whoever contravenes the provisions of sub-section (1) shall, on conviction, be punishable with fine which may extend to Rs. 1,000 or with imprisonment of either description which may extend to six months or with both.

S.33 Penalty of molestation

Whoever molests, or abets the molestation of, a debtor for the recovery of a debt due by him to a creditor shall, on conviction, be punishable with imprisonment of either description which may extend to three moths or with fine which may extend to Rs. 500 or with both.

Explanation. For the purposes of this section a person who, with intent to cause another person to abstain from doing any Act which he has a right to abstain from doing –

(a) obstru

S.34 General provisions regarding penalties

Whoever fails to comply with or Act in contravention of any provision of this Act shall, if no specific penalty has been provided for in this act, be punishable –

(a) for the first offence with simple imprisonment which may extend to two months or with fine which may extend to Rs. 500 or with both;

(b) for the second or subsequent offence with imprisonment of either description which may extend to six months or with fine or with both.

S.35 Offences by corporations etc

 Notwithstanding anything contained in the Code of Criminal Procedure, 1898, offences punishable-

(a) under Section 34 for contravening the provision of Section 5 ; and

(b) under Section 33, shall be cognizable.

S.35(a) Certain offences to be cognizable

If the person contravening any of the provisions of this Act is an undivided Hindu family or a company or an unincorporated body, the person responsible for the management of the business of such family, company or body shall be deemed to be guilty of such contravention.

S.36 Arrest and imprisonment in execution of decree for money against agricultural debtors, abolished

 Notwithstanding any law for the time being in force, no debtor who cultivates land personally and whose debts do not exceed Rs. 1,500 shall be arrested or imprisoned in execution of a decree for money passed in favour of a money-lender, whether before or after the date on which this Act comes into force.

S.37 Every officer to be public servant

Every officer of the Government acting under the provisions of this Act shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code (Act XLV of 1860).

S.38 Power of Chief Commissioner of Tripura to delegate his powers

The Chief Commissioner of Tripura may delegate to any officer any of the powers conferred on him by or under this Act.

S.39 Rules

 (1) The Chief Commissioner of Tripura may make rules for carrying out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing provision, such rules may provide for all or any of the following matters:

(a) the form of the register under Section 4 ;

(b) the form of the application for a licence, the further particulars to be included therein