S.1 Short title, extent and commencement

       (1) This Act may be called the 2[Tamil Nadu] Money-lenders Act, 1957.
       (2) It extends to the whole of the 1[State of Tamil Nadu].
       (3) It shall come into force in any area on such date as the Government may, by notification specify which date shall not be earlier than the expiry of one month from the publication of the notification and the Government may cancel or modify any such notification.
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       1 These words were substituted for the words "State of Madras" by the Tamil Nadu Adaptation of Laws Order, 1969, as amended by the Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1969.
       2 Substituted for the word "Madras" by ibid.

S.2 Definitions

       In this Act, unless the context otherwise requires --
       1[(1) "bank" means --
       (a) a banking company to which the Banking Regulation Act, 1949 (Central Act X of 1949) applies;
       (b) the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955);
       (c) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959);
       (d) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970);
       (e) a Regional Rural Bank established under the Regional Rural Banks Act, 1976 (Central

S.3 Money-lender to obtain licence

       (1) No person shall, on and after the date on which the provisions of this Act are brought into force in any area carry on, or continue to carry on, business as a money-lender at any place in such area except under and in accordance with the terms of a licence.
       (2) Where a money-lender has more than one shop or place of business, whether in the same town or village or in different towns or villages, he shall obtain a separate licence in respect of each such shop or place of business.
       (3) (a) Where a money-lender is a registered firm, the licence shall be obtained in the firms name.
       (b) Where a money-lender is an undivided Hindu family, the licence shall be obtained in the name of the manager or the karnavan or the yajaman, as the case may be, described as such in the licence.
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S.4 Grant and refusal of licence

       (1) Every application for a money-lenders licence shall be in writing and shall be made to the licensing authority prescribed under this Act:
       Provided that a person under the age of eighteen years shall be eligible to apply for a licence only through a guardian:
       Provided further that if any person acting as a guardian on behalf of a minor applies for, and obtains a licence under this Act, such guardian shall be subject to all the provisions of this Act as if the licence has been granted to himself.
       (2) Every licence shall be granted in such form and subject to such conditions as may be prescribed including conditions as to payment of licence fees not exceeding one hundred rupees.
       (3) The licensing authority may, by order in writing, refuse to grant

S.5 Change of place of business by money-lender

No money-lender shall change his place of business without previous notice to the licensing authority and without having the address of the new place of business duly endorsed on his licence.

S.6 Money-lenders to exhibit their names over shops

Every money-lender shall always keep exhibited over his shop or place of business his name with the words "money-lender" and its equivalent in the regional language.

S.7 Interest and charges allowed to money-lenders

       1[(1) No money-lender shall charge interest on any loan, at a rate exceeding such rate as the Government may, by notification, fix, from time to time:
       Provided that the rate of interest as may be fixed by the Government shall be correlated to the current bank rates of lending as may be fixed by the Reserve Bank of India, from time to time.]
       (2) A money-lender may demand and take from the debtor such charges and in such cases as may be prescribed.
       (3) A money-lender shall not demand or take from the debtor any interest, profit or other sum whatsoever in excess of that payable under sub-section (1).
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       1 Sub-section (1) was substituted by the Tamil Nadu Money-lenders (Amendment) Act, 1979 (T

S.8 Power to deposit in Court money due on loan

       (1) Where a money-lender refuses to accept the whole or any portion of the money or other property due in respect of his loan, the debtor may deposit the said money or property into the Court having jurisdiction to entertain a suit for recovery of such loan and apply to the Court to record full or part satisfaction of the loan, as the case may be.
       (2) Where any such application is made, the Court shall, after due inquiry, pass orders recording full or part satisfaction of the loan, as the case may be.
       (3) The procedure laid down in the Code of Civil Procedure, 1908 (Central Act V of 1908) for the trial of suits shall, as far as may be, apply to applications under this section.
       (4) An appeal shall lie from an order passed by a Court under sub-section (2) as if such an order relates to the execu

S.9 Money-lender to keep books, give receipts, etc.

       (1) Every money-lender shall --
       (a) regularly record and maintain or cause to be recorded and maintained, an account showing for each debtor separately --
       (i) the date of the loan, the amount of the principal of the loan, the rate of interest charged on the loan and the nature of security taken, if any; and
       (ii) the amount of every payment received by the money-lender in respect of the loan, and the date of such payment;
       (b) give to the debtor or his agent a receipt for every amount paid by him, duly signed and, if necessary, stamped at the time of such payment;
       (c) on requisition in writing made by the debtor furnish to him, or if he so requires, to any person mentioned by him in that behalf in his requi

S.10 Appointment of Inspectors and their powers

       (1) The Government or any authority or officer empowered by them may, by notification, appoint one or more persons to be Inspectors for the purposes of this Act and specify in such notification the local limits of their jurisdiction.
       (2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (Central Act XLV of 1860).
       (3) (a) 1[A District Magistrate, an Additional District Magistrate, or a Sub-Divisional Magistrate] may, on receiving a report from an Inspector that a person carries on without a licence or that a money-lender carries on in contravention of the provisions of this Act or the conditions of the licence granted thereunder the business of money-lending at any place within the jurisdiction of such Magistrate, issue a warrant empowering the Inspector to enter such plac

S.10(a) Entry of wrong sum in bond, etc., to be an offence

       1(1) No money-lender, whether licensed or not, shall take from a debtor or an intending borrower any note, promise to pay, acknowledgement, power of attorney, bond, security or other document which does not state the actual amount of the loan, the rate of interest charged and the time, if any, within which the principal is stipulated to be repaid in full, or which states any of such particulars incorrectly, nor shall he take from any debtor or an intending borrower any document in which any entry is left blank for completion at a later date.
       (2) Whoever contravenes the provisions of sub-section (1) shall be punished with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.
       (3) Notwithstanding anything contained in section 21 or in any other law for the time being in force, any not

S.11 Money-lender advancing smaller amount or securing higher interest than that specified in the accounts, etc., to be punishable

       1[(1) Any money-lender whether licensed or not --
       (a) who actually advances an amount less than the amount shown in his accounts or registers or other documents relating to the loan, or
       (b) who takes or receives interest or any other charge at a rate higher than the rate shown in the accounts, registers or documents aforesaid or allowed under this Act, shall be punished with imprisonment for a term not exceeding six months but not less than three months:
       Provided that the Court may, in addition to such imprisonment, impose fine which may extend to one thousand rupees.]
       (1-A) Notwithstanding anything contained in the Indian Evidence Act, 1872 (Central Act I of 1872), or in any other law for the time being in force, in any suit by or against a money-l

S.12 Cognizance of offences

No Court shall take cognizance of an offence punishable under this Act or the rules made thereunder except on a complaint in writing made by any prescribed authority.

S.12(a) Offence under section 18-A to be cognizable

       1Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), an offence under section 18-A shall be deemed to be a cognizable offence within the meaning of that Code.
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       1 Section 12-A was inserted by section 8, ibid.

S.13 Penalty for molestation of debtor

       1[Whoever molests or abets the molestation of any debtor for the recovery of any loan shall be punished with imprisonment for a term not exceeding six months but not less than three months:
       Provided that the Court may, in addition to such imprisonment, impose fine which may extend to one thousand rupees.]
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       1 Section 13 was substituted by section 9, ibid.

S.14 Power to [cancel or suspend licences], etc.

       1(1) The licensing authority may, at any time, during the term of any licence, cancel it by an order in writing --
       (a) if the licensee carries on the business in contravention of any of the provisions of this Act or the rules made thereunder or the conditions of the licence, or
       (b) if any reason for which the licensing authority could have refused to grant the licence to the money-lender under subsection (3) of section 4, is brought to the notice of that authority after the grant of the licence, or
       (c) if the licensee is convicted for an offence under 2[section 10-A or section 11] or section 13, or
       (d) if the licensee maintains false accounts or is found to molest or abet the molestation of any debtor for the recovery of any debt.
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S.15 Publication of order of cancellation [or suspension]

       1Every order of cancellation 1[or suspension] of a licence under this Act shall be notified in the District Gazette and also on the notice-board of the office of the licensing authority.
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       1 These words were added by section 3(i), by the Tamil Nadu Money-lenders (Amendment) Act, 1982 (Tamil Nadu Act 51 of 1982).

S.16 No compensation for [cancellation or suspension] of licence

       1A person whose licence is 2[cancelled or suspended under section 14 3[or is deemed to have been cancelled under sub-section (2) of section 18-A] shall not be entitled to any compensation in respect of 4[such cancellation or suspension] or to the refund of any fee paid in respect of such licence.
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       1 Substituted for the word "cancellation" by section 4(a) of the Tamil Nadu Money-lenders (Amendment) Act, 1982 (Tamil Nadu Act 51 of 1982).
       2 Substituted for the expression "cancelled under section 14" by section 4(b), ibid.
       3 These expressions were inserted by the Tamil Nadu Money-lenders (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979).
       4 Substituted for the expression "such cancellation"

S.17 Penalty for carrying on business without licence

       Whoever carries on the business of money-lending without a licence or otherwise than in conformity with the terms and conditions of a licence shall be punished with fine which may extend to one thousand rupees:
       Provided that a person shall not be deemed to carry on the business of money-lending but was taking steps to recover any loan advanced by him.

S.18 Penalties

       (1) Whoever contravenes any of the provisions of this Act or of any rule made thereunder or of any terms or conditions of a licence granted or deemed to be granted thereunder or makes a claim or a statement which is false or which he does not believe it to be true shall, if no other penalty is elsewhere provided for in this Act for such contravention, be punished with fine which may extend to one thousand rupees.
       Explanation.-- The 1[cancellation or suspension] of a licence under section 14 shall not be deemed to be a penalty for the purpose of this sub-section.
       (2) Where a contravention of any of the provisions of this Act or of any rule made thereunder of which a person is convicted consists of an omission to do a thing, the Magistrate may, when convicting the offender, direct him to do the thing before an appointed day and may, on the

S.18(a) Non-citizens not to carry on business of money

       1(1) Notwithstanding anything contained in sections 3 and 4, no person who is not a citizen of India shall, on and from the date of publication of the Tamil Nadu Money-lenders (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979) in the Tamil Nadu Government Gazette (hereinafter in this section referred to as the said date), carry on the business of money-lending.
       (2) All licences granted under this Act to any person who is not a citizen of India shall be deemed to have been cancelled on and from the said date and all transactions of money-lending carried on by such person as a money-lender, shall cease from the said date.
       (3) Any person referred to in sub-section (1) who had obtained a licence for money-lending under this Act, prior to the said date may, subject to the provisions of this Act including section 21-A recover through a competen

S.19 Transfer of licence to heir

       (1) Where a licensee under this Act dies, any person claiming to be his legal representative may apply to the licensing authority for transferring in his name the licence standing in the name of the deceased.
       (2) Every such application shall be in such form and shall contain such particulars as may be prescribed.
       (3) The licensing authority may, if he is satisfied that the applicant is in fact the legal representative of the deceased and that he is otherwise eligible to a licence under this Act, transfer the licence in the name of the applicant after obtaining from the applicant a declaration in the prescribed form.
       (4) Any licence transferred under sub-section (3) shall be deemed to have been granted to the applicant himself and shall be valid for the period for which it would have been valid

S.20 Jurisdiction to try offences

       1No Court inferior to that of a Metropolitan Magistrate or of a Judicial Magistrate of the first class shall try any offence punishable under this Act.
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       1 Sections 20, 20-A, 20-B, 20-C and 20-D were substituted for the original section 20 by section 13 of the Tamil Nadu Money-lenders (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979).

S.20(a) 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 date of the publication of the Tamil Nadu Money-lenders (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979), in the Tamil Nadu Government Gazette, decree on account of interest a sum greater than the principal of the loan due on the date of the decree.

S.20(b) Power of Court to direct payment to decretal amount by instalments

Notwithstanding anything contained in the Code of Civil Procedure, 1908 (Central Act V of 1908), the Court may, at any time, on application of a judgment-debtor and after notice to the decree-holder, direct that the amount of any decree passed against him, whether before or after the date of the publication of the Tamil Nadu Money-lenders (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979), in the Tamil Nadu Government Gazette, 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 judgment-debtor and the amount of the decree, it considers fit.

S.20(c) Re-opening of transaction

       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) taken an account between the parties;
       (c) reduce the amount charged to the debtor in respect of any excessive interest;
       (d) if on taking accounts it is found that the money-lender has received more than what is due to him, pass a decree in favour of the debtor in respect of such excess amount:
       Provided that in the exercise of these powers, the Court shall not --
       (i) re-open any adjustment or agreement purporting

S.20(d) 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 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 fee.
       (2) On receipt of such application, the Court shall cause a notice of the application to be given to the money-lender.
       (3) On the date fixed for the hearing of the application or on such date to which the hearing may be adjourned, from time to time, the Court shall make an inquiry and shall, after taking an account of the transactions between the parties, pass an order declaring the amount, if any, still payable by the debtor to the money-lender, in respect of the principal and interest, if any.]

S.21 Contracts not to be void on account of offences

       1[Subject to the provisions of sub-section (3) of section 10-A], where a money-lender, is guilty of an offence punishable under this Act any contract made by him in relation to his business of money-lending shall not be void by reason only of that offence nor shall he, by reason only of that offence, lose his right to the loan and the interest and other charges, if any, payable in respect thereof.
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       1 These expressions were substituted for the words "where a money-lender" by section 14 of the Tamil Nadu Money-lenders (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979).

S.21(a) Saving

       (1) Nothing in this Act shall affect, or shall be deemed to affect any of the benefits conferred on any of the provisions of the Tamil Nadu Agriculturists Relief Act, 1938 (Tamil Nadu Act IV of 1938) or the Tamil Nadu Debt Relief Act, 1972 (Tamil Nadu Act 38 of 1972) or the Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1976 (Presidents Act 15 of 1976) or the Tamil Nadu Indebted Persons (Temporary Relief) Act, 1976 (Presidents Act 16 of 1976) or the Tamil Nadu Indebted Agriculturists and Indebted Persons (Special Provisions) Act, 1976 (Presidents Act 17 of 1976) or the Tamil Nadu Debt Relief Act, 1976 (Presidents Act 31 of 1976) or the Tamil Nadu Debt Relief Act, 1978 (Tamil Nadu Act 40 of 1978), notwithstanding anything to the contrary contained in this Act.
       (2) Save as otherwise provided in sub-section (1), the provisions of this Act shall be in addition to, and not i

S.22 Power to make rules

       (1) The State Government may, after previous publication, make rules to carry out the purposes of this Act.
       (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for --
       (a) all matters expressly required or allowed by this Act to be prescribed;
       (b) the form and the particulars to be contained in an application for a licence under this Act;
       (c) the terms and conditions subject to which a licence may be granted;
       (d) the form in which books, accounts and documents specified in this Act shall be recorded, maintained kept, or used;
       (e) the procedure which should be followed and the powers which may be exercised by t