PUNJAB REGISTRATION OF MONEY-LENDERS' ACT, 1938

Act No. 03 of 1938

31st August, 1938

Whereas it is expedient to register money-lenders and to regulate their business in the manner herein after appearing, it is hereby enacted as follow:-- 1. For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1933, page 87, for the Select Committee's report see Punjab Government Gazette, 1938, Part V, pages 134-151, and for the proceedings in Assembly, see the Punjab Legislative Assembly Debates, 1938, Volume V, pages 227-57, 978-1030, 1031-1089, 1100-1170, 1174-1234 and 1292-1324.

Read full Act

S.1 Short Title, Extent and Commencement

(1) This Act shall be called the Punjab Registration of Money-lenders' Act, 1938.

(2) It shall extend to 1[Haryana]

(3) It shall come 2[into force in the principal territories] on such 3date as the 4[State] Government may by notification, direct 5[and in the transferred territories on the 30th December, 1960.].

1. The word "Punjab" was substituted by the word "Haryana" by the Haryana Adaptation of Laws Order, 1968.

2. Substituted for the words " into force" by the Haryana Adaptation of Laws Order, 1968.

3. It came into force on 1st July, 1939, Vide Punjab Government Notification No. 3470-J-39/20108, dated 2nd June, 1939.

4. Substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.

5. Substituted for the words "British India" by the Adaptation of Laws (Third Amendment) Order, 1951.

S.2 Definitions

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

• (1) "Bank" means a company carrying on the business of banking and registered under any of the enactment's relating to companies for the time being in force in the United Kingdom or in any of the Colonies or Dependencies thereof or in 4[any Part A State or Part C State] or incorporated by an Act of Parliament 5[of the United Kingdom] or by Royal Charier or Letters Patent or by any Act of 6[Parliament].
• (2) "Collector" means a Collector of the District or such other officer not below the rank of Assistant Collector first grade as may be specially empowered by the 3[State] Government to discharge the functions of a Collector for the purposes of this Act.
• (3) "Commissioner" means the Commissioner of the Division in which a money-lender is registered.
• (4) "Company" means a Company registered under any of the enactment's relating to companies for the lime being in force in
  

S.3 Suits and applications by moneylenders barred, unless money-lender is registered and licensed

Notwithstanding anything contained in any other enactment for the time being in force, a suit by a money- lender for the recovery of a loan, or an application by a money-lender for the execution of a decree relating to a loan, shall, after the commencement of this Act, be dismissed, unless the money-lender--

• (a) at the time of the institution of the suit or presentation of the application for execution; or
• (b) at the time of decreeing the suit or deciding the application for execution--
  • (i) is registered; and
  • (ii) holds a valid license, in such form and manner as may be prescribed; or
  • (iii) holds a certificate from a Commissioner granted under section 11, specifying the loan in respect of which the suit is instituted, or the decree in respect of which the application for execution is presented; or
  • (iv) if he is not already a registered and licensed moneylender, satisfies the Court that he has applied to the Colle
    

S.4 Registration of moneylenders

(1) Every money-lender may apply for registration of his name at the office of the Collector of the District; and his name shall be registered on furnishing such particulars as may be prescribed and on payment of a fee of Rs. 5.

1[(2) No money lender shall carry on the business of advancing loans unless he gets himself registered under sub-section (1).

(3) Any money lender who contravenes the provisions of sub-section (2) shall be liable, on conviction, to a fine not exceeding one thousand rupees for the first offence and two thousand rupees for every subsequent offence.]

1. Inserted by Haryana Act 18 of 1976 (See section 26)

S.5 Licensing of moneylenders

Every money-lender may apply to the Collector for a license which shall be granted for such period, in such form, and on such conditions, and on payment of such fees, as may be prescribed.

Explanation--When an application for the renewal of a license has been received from a licensed money-lender before the expiry of his license, the existing license, shall be deemed to continue in force until orders on the application have been issued.

S.6 Where license may be cancelled

A license may be cancelled by the Collector and shall not be renewed for such period as may be specified by him, if after the commencement of this Act, a money-lender commits an act or is guilty of an omission with reference to which he--

• (i) has been held by a Court to have contravened the provisions of section 3 of the Punjab Regulation of Accounts Act (I of 1930), in more than two suits;
• (ii) has had his suit dismissed, in whole or in part, under section 37 of the Punjab Relief of Indebtedness Act (VII of 1934);
• (iii) has had his suit dismissed with a finding that he has made, dishonestly or fraudulently, a materiel alteration in any document relating to a loan;
• (iv) has had his suit dismissed with a finding that it is fraudulent;
• (v) has been found by a Court to have charged higher rates of interest than those prescribed under section 5 of the Punjab Relief of Indebtedness Act (VII of 1934) in more than one suit;
• (vi) ha
  

S.7 When Collector may act

(1) The Collector may take proceedings suo-motu or on the application of any person interested for the cancellation of a money-lender's license:

Provided that no license shall be cancelled without giving the money-lender a notice in such form as may be prescribed.

(2) The Collector may during the period of limitation for an appeal, either of his own motion or on the application of a party interested, review his own order, provided no appeal is pending with the Commissioner.

S.8 Effect of cancellation of license

The name of a money-lender whose license has been cancelled under section 6, shall be struck off the register maintained at the office of the Collector for the registration of money-lenders:

Provided that a license shall not be deemed to be cancelled nor the name of the money-lender deemed to be struck off the register during the period an appeal or an application for review or an application under section 11 is pending.

S.9 Saving

Nothing in this Act shall apply to suits or applications for execution pending--

• (a) at the lime of the commencement of this Act; or
• (b) on the date of the cancellation of the license of the money-lender, if before his current license is granted or renewed, a Court has not given any such finding as would render him liable to have his license cancelled under the provisions of section 6 of this Act.

S.10 Further legislation and licensing of money-lender after expiry of period for which license was cancelled

A money-lender may, after the termination of the period for which his license has been cancelled, apply for registration and for the grant of a license, to the Collector who shall, on his furnishing such particulars as may be prescribed, register his name on payment of a fee of Rs. 5; and shall grant him a license for such period, in such form and subject to such conditions and on payment of such fees, as may be prescribed.

S.11 Appealed, reviews and certificates

(1) An appeal shall lie to the Commissioner against the order of the Collector under section 6 cancelling a license provided that the appeal shall be instituted within 30 days of the order appealed against, not including the period requisite for obtaining copies of such order.

(2) If the money-lender or the appellant is not present at the time of announcement of the original or the appellate order, the order shall be communicated to him in such manner as may be prescribed.

(3) The Commissioner may, in dismissing an appeal grant to the money-lender a certificate specifying the loans decrees in respect of which a suit may be instituted by him or the decrees in respect of which an application for execution may be presented.

(4) A money-lender without appealing against an order of the Collector under section 6, may within 30 days of the Collector's order cancelling his license, apply to the Commissioner for a certificate of the nature specified in sub-clause (3).

S.12 Exemption

The 1[State] Government may, by notification, exempt any person or class of persons from the operation of this Act or from any of the provisions thereof.

1. Substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.

S.13 Rule-making powers

(1) Subject to previous publication tie 1[State] Government may make rules, for carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing powers, such rules may specify--

• (a) the place where a money-lender shall apply for registration for obtaining a license, the district or districts in which a money-lender who operates in more than one district shall be required to register, and the area in which a license shall be valid;
• (b) the scale of fees payable for the issue or renewal of a license of a money-lender;
• (c) the form of a license; and the conditions under which a license shall be issued; and
• (d) the particulars which a money-lender shall supply at the time of being registered.

1. Substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.