KARNATAKA PAWNBROKERS ACT, 1961
13 of 1962
MARCH 21, 1959
STATEMENT OF OBJECTS AND REASONS Karnataka Gazette, Extraordinary, dated 3-2-1979 KARNATAKA ACT No. 29 of 1979 The Karnataka Pawnbrokers Act 1961, which was brought into force from 29th day of March, 1962 has revealed in the course of working that certain Pawnbrokers are in the habit of pledging with Commercial Banks the articles pledged with them for securing monetary accommodation and that the money so taken is being utilised by them in their money lending transactions for which high rate of interest are being charged. It has become, therefore necessary to amend the relevant provision of the Act, so that the said practice adopted by the Pawnbrokers could be brought within the purview of the provisions of the Act. Hence the Bill.
An Act to regulate and control the business of Pawn-brokers in the State of Kamataka. Whereas, it is expedient to make provision for the regulation and control of the business of pawn-brokers in the State of Karnataka; Be it enacted by the Karnataka State Legislature in the Twelfth Year of the Republic of India as follows:-
Section 1 Short title, extent and commencement
(1) This Act may be called the Karnataka Pawn-brokers Act, 1961.
(2) It extends to the whole of the State of Kamataka.
(3) It shall come into force.
(a) at once in the Madras Area; and
(b) in such other area of the State on such date as the State Government may by notification specify.
Section 2 Definitions
In this Act, unless the context otherwise requires,-
(1) "Company" means a company as defined in the Companies Act, 1956 (Central Act 1 of 1956)
;
(2) "Co-operative Society" means a society registered or deemed to be registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959);
(3) "Interest" includes any amount, by whatsoever name called, in excess of the principal, paid or payable to a pawnbroker in consideration of or otherwise in respect of a loan; but does not include any sum lawfully charged in accordance with the provisions of this Act by a pawnbroker for or on account of charges;
(4) "Licence" means a licence granted under this Act;
(5) "Loan" means an advance at interest whether of money or in kind and includes any transaction which the Court finds in substance to amount to such an advance but does not include
(i) a deposit of money or other property in a Government Post Office Savings Bank or Government Savings Bank or banking company or in a company or with a co-operative society;
11. Clause (12) substituted by Act No. 9 of 1998, w.e.f. 21-4-1998 [(ii) an advance made by.-
(a) a banking company as defined in the Banking Regulation Act, 1949 (Central Act 10 of 1949); or
(b) the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955); or
(c) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959); or
(d) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970); or
(e) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Central Act 40 of 1980); or
(f) a regional rural bank constituted under the Regional Rural Banks Act, 1976 (Central Act 21 of 1976); or
(g) the National Bank for Agriculture and Rural Development established under the National Bank for Agriculture and Rural Development Act, 1981 (Central Act 61 of 1981); or
(h) the Agricultural Finance Corporation Limited, a company incorporated under the Indian Companies Act, 1956 (Central Act 1 of 1956); or
(i) a Co-operative society registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959);]
(ii) of clause (5) substituted by Act No. 40 of 1985 and shall be deemed to have come into force w.e.f. 31-5-1985.
(iii) an advance made by Government or by any person authorised by Government to make advances on their behalf, or by any local authority;
(iv) an advance made by any person bona fide carrying on any business not having for its primary object the lending of money, if such loan is advanced in the regular course of such business; and
(v) an advance made by a landlord to his tenant, for the purpose of carrying on agriculture;
(6) "Notification" means a notification published in the Official Gazette;
(7) "Pawn-broker" means a person who carries on the business of taking goods and chattels in pawn for a loan; Explanation.-Every person who keeps a shop for the purchase or sale of goods or chattels and who purchases goods or chattels and pays or advances thereon any sum of money, with or under an agreement or understanding expressed or implied that the goods or chattels may be afterwards re-purchased on any terms, is a pawnbroker within the meaning of this clause;
(8) "Fawner" means a person delivering an article for pawn to a pawnbroker;
(9) "Pledge" means an article pawned with a pawnbroker;
(10) "Prescribed" means prescribed by rules made under this Act;
(11) "Principal" means in relaton to a loan the amount actually lent to the pawner;
11. Clause (12) substituted by Act No. 9 of 1998, w.e.f. 21-4-1998 [(12) "Year" means the year commencing on the First day of April.]
Section 3 Pawn-broker to obtain licence
No person shall, after the expiry of six months from the date on which the provisions of this Act come into force in any area, carry on or continue to carry on business as a pawnbroker at any place in such area, unless he has obtained a pawn-broker's licence under this Act 11. Inserted by Act No. 40 of 1985 and shall be deemed to have come into force w.e.f. 31-5-1985. [and after the commencement of the Karnataka Pawn Brokers (Amendment) Act, 1985, except on payment of security deposit as provided in Section 4A.]
Explanation 1.-Where a pawnbroker has more than one shop or place of business, whether in the same town or village or in different towns and villages he shall obtain a separate pawnbroker's licence in respect of each such shop or place of business.
Explanation 2.-Every pawn-broker's licence granted under this Act shall be valid 22. Substituted for the words and figures "from the date on which it is granted to the 31st December following but may be renewed from year to year" by Act No. 9 of 1998, w.e.f. 21-4-1998 [for a term of five years, but may be renewed from term to term.]
33. Explanation 3 inserted by Act No. 9 of 1998, w.e.f. 21-4-1998 [Explanation 3.-Where a licence has been granted in the middle of a year, for the purpose of computing the term of licence, the remaining part of the year shall be deemed to be a year.]
Section 4 Grant and renewal of licences
(1) Every application for the grant or renewal of a pawnbroker's licence shall be in writing and shall be made to the prescribed licensing authority.
(2) The grant or renewal of a licence shall not be refused except on any of the following grounds, namely
(a) that the applicant is of bad character;
Explanation.-If any evidence of bad character is adduced against the applicant, he shall be given an opportunity of rebutting such evidence;
(b) that the shop or place at which he intends to carry on the business of a pawnbroker or any adjacent house or shop or place, owned or occupied by him, or frequented by persons of bad character, or
(c) that the applicant does not hold a licence under the Karnataka Money lenders Act, 1961.
(3) Any person aggrieved by an order refusing the grant or renewal of a licence may, within the prescribed time, appeal to the prescribed authority.
(4) Every licence shall be granted or renewed in such form and 11. Substituted for the words "subject to such conditions" by Act No. 40 of 1985 and shall be deemed to have come into force w.e.f. 31-5-1985. [subject to the conditions specified in Section 4A and such other conditions] as may be prescribed.
22. Sub-section (5) substituted by Act No. 9 of 1998, w.e.f. 21-4-1998 [(5) Every application for the grant or renewal of a licence, shall be accompanied by a fee at the following rates
(a)
If the place at which the business is to be carried on is not more than one
Rupees two thousand five hundred
(b)
If the business is to be carried on at more than one place
Rupees two thousand five hundred for the principal place of business and Rupees one thousand two hundred and fifty for each of the other places.]:
Provided that where an application is made after the expiry of the period prescribed by rules in respect of such application, it shall be accompanied by a fee at double the rates specified above.
(6) The fee payable under this section shall be paid in the manner prescribed and shall not be refunded, notwithstanding the fact that the grant or renewal of the licence is refused or the application is withdrawn.
Constitution of IndiaS.44 of the Karnataka Money lenders Act, 1961S.22 of the KARNATAKA PAWNBROKERS ACT, 1961S.7A of the Karnataka Money lenders Act, 1961S.4A of the KARNATAKA PAWNBROKERS ACT, 1961S.4(2)(c) OF THE Constitution of IndiaS.23(2) OF THE Constitution of IndiaArt.14 OF THE Constitution of IndiaS.19(1)(g) OF THE Constitution of IndiaArt.14 OF THE Constitution of IndiaS.19(1)(g) OF THE Constitution of India
Section 4A A Conditions of licence
11. Sections 4-A and 4-B inserted by Act No. 40 of 1985 and shall be deemed to have come into force w.e.f. 31-5-1985.
22. Sub-section (1) substituted by Act No. 9 of 1998, w.e.f. 21-4-1998 [(1) Every person making an application for grant of a licence under S.4 of the Karnataka Co-operative Societies Act, 1959 shall, at the time of making such application pay security deposit as provided under sub-section (2) and in the case of an application for renewal of such licence the security deposit shall be paid two months before the expiry of such licence.]
(2) Every licensee specified in column
(1) of the Table below shall in prescribed manner deposit in the Government Treasury the amount specified in the corresponding entry in the column
(2) of the said Table by way of security for the due observance of the conditions of the licence.
(3) For the purposes of sub-section (2), the amount of security payable by a licensee in a year shall be determined on the basis of 77. Substituted for the words "aggregate amount lent by him during the previous year" by Act No. 9 of 1998, w.e.f. 21-4-1998 [the amount invested by him in the business during the previous year] 88. Inserted by Act No. 9 of 1998 and shall be deemed to have been inserted w.e.f. 31-5-1985 [and such security deposit shall not carry any interest]:
Provided that the security deposit made by a licensee under the provisions of the Karnataka Money Lenders Act, 1961 (Karnataka Act 12 of 1962) shall be deemed to be the security deposit for the purposes of this Act also:
11. Clause (12) substituted by Act No. 9 of 1998, w.e.f. 21-4-1998
Section 4B Forfeiture of security
(1) The licensing authority may, at any time, by order in writing, forfeit to the Government the whole or any portion of the security deposit paid or deemed to have been paid under sub-section [2] of Section 4A, if the licensee,-
(a) carries on the business of money lending in contravention of any of the provisions of this Act or the rules made thereunder or the conditions of licence; or
(b) is convicted of an offence under sub-section (3) of Section 9, Section 15, Section 16 or Section 16A or Section 18; or
(c) maintains false accounts.
(2) Before forfeiting to the Government the whole or any portion of the security deposit under sub-section (1), the licensing authority shall give the licensee a notice in writing stating the grounds for which it is proposed to take action and requiring him to show cause against it within such time as may be specified in the notice.
(3) Every order of the licensing authority under this section shall be communicated to the licensee in such manner as may be prescribed.
(4) Every person aggrieved by an order under sub-section (1) may, within a period of one month from the date on which the order was communicated to him, prefer an appeal to the prescribed authority whose decision shall be final.
(5) The licensing authority may, out of the amount forfeited, direct payment of such amount and at such rates as may be prescribed to the borrowers affected by the acts of the licensee.]
Section 5 Pawn-brokers to exhibit their names over shops, etc.
Every pawnbroker shall.-
(a) always keep exhibited in large characters over the outer door of his shop or place of business his name with the word pawnbroker in English and its equivalent in Karvnada, and
(b) always keep placed in a conspicuous part of his shop or place of business so as to be clearly visible to all persons resorting thereto the information required to be printed on pawn-tickets by rules made under this Act, in the Kannada language.
Section 6 Interest and charges allowed to pawn-brokers
(1) No pawnbroker shall charge interest in respect of a loan on a pledge at a rate exceeding nine per cent per annum simple interest or at such other rate as the State Government may by notification fix from time to time.
(2) A pawnbroker may demand and take from the pawner such charges and in such cases as may be prescribed.
(3) A pawnbroker shall not demand or take from the pawner any profit, interest, charge or sum whatsoever, other than the interest due to him and the charges, if any, referred to in sub-section(2).
Section 7 Pawn-ticket to be given to pawner
Every pawnbroker shall on taking a pledge in pawn give to the pawner a pawn-ticket in the prescribed form signed by the pawner and the pawnbroker, and shall not take a pledge in pawn unless the pawner takes the pawn-ticket.
Section 8 Person producing pawn-ticket presumed to be entitled to redeem the pledge
(1) The holder for the time being of a pawn-ticket shall be presumed to be the person entitled to redeem the pledge, and subject to the provisions of this Act, every pawnbroker shall on payment of the principal and interest, deliver the pledge to the person producing the pawn-ticket, and he is hereby indemnified for so doing.
(2) Except as otherwise expressly provided in this Act, a pawnbroker shall not be bound to deliver back a pledge unless the pawn-ticket for it is delivered to him.
Section 9 Protection of owners and pawners not having pawn-tickets
(1) The following provisions shall have effect for the protection of owners of articles pawned, and of pawners not having their pawn-tickets to produce:-
(a) Any person claiming to be the owner of a pledge but not holding the pawn-ticket or any person claiming to be entitled to hold a pawn-ticket, but alleging that the same has been lost, mislaid, destroyed or stolen, or fraudulently obtained from him, may apply to the pawnbroker in a printed form of declaration (which shall be in the prescribed form), which the pawnbroker shall deliver to him:
Provided that an application shall not be made under this clause where the loan exceeds two hundred and fifty rupees unless the applicant has caused a public notice of his claim, containing such particulars as may be prescribed, to be published in the prescribed manner not less than the prescribed number of days before the date of the application.
(b) If the applicant delivers back to the pawn-broker the declaration duly made before any Magistrate or Judge by the applicant and by a person identifying him, the applicant shall have, as between himself and the pawn-broker, all the same rights and remedies as if he had produced the pawn-ticket:
Provided that such a declaration shall not be effectual for that purpose.-
(i) in cases where the loan exceeds two hundred and fifty rupees, unless the applicant executes a bond with two sureties, to the satisfaction of the pawn-broker or of such authority or person as may be prescribed in this behalf, agreeing to indemnify the pawnbroker in respect of any liability which may be incurred by him by reason of delivering the pledge or otherwise acting in conformity with the declaration; and
(ii) in all cases, unless the declaration is duly made and delivered back to the pawnbroker within such period after the delivery of the form to the applicant, as may be prescribed;
(c) The pawnbroker is hereby indemnified for not delivering the pledge to any person until the expiration of the period aforesaid.
(d) The pawnbroker is hereby further indemnified for delivering the pledge or otherwise acting in conformity with the declaration unless, he has had notice within the meaning of the Transfer of Property Act, 1882 (Central Act IV of 1882), that the declaration was fraudulent or was false in any material particulars.
(2) Notwithstanding anything contained in sub-section (1), but without prejudice to his liability to account for the pledge to the owner of the pledge or the person entitled to hold the pawn ticket, the pawnbroker may deliver the pledge to any person claiming to be the owner of the pledge but not holding the pawn-ticket, if the pawnbroker is satisfied that such person is the owner of the pledge and is entitled to the delivery of the pledge, either after obtaining a bond from the claimant or otherwise.
(3) Any person making a declaration under sub-section (1), either as an applicant or as identifying an applicant knowing the same to be false in any material particular, shall, on conviction be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both.
Section 10 Pawn-brokers to keep books, give receipts, etc
(1) Every pawnbroker shall.-
(a) regularly record and maintain or cause to be recorded and maintained in a pledge book in the prescribed form an account showing for each pawner separately.-
(i) the date of the loan, the amount of the principal of the loan and the rate of interest charged on the loan per cent per annum or per rupee per mensem or per rupee per annum;
(ii) the amount of every payment received by the pawnbroker in respect of the loan, and the date of such payment;
(iii) a full and detailed description of the article or of each of the articles taken in pawn;
(iv) the time agreed upon for the redemption of the pawn; and
(v) the name and address of the pawner, and where the pawner is not the owner of the article or of any of the articles pawned, the name and address of the owner thereof;
(b) keep and use in his business the following documents and books (which shall be in the prescribed form) and enter therein from time to time, as occasion requires, in a fair and legible manner such particulars and in accordance with such directions as may be prescribed:-
(i) pawn-ticket;
(ii) sale book of pledges;
(iii) declaration where pledge is claimed by owner;
(iv) declaration of pawn-ticket lost; and
(v) receipt on redemption of pledge;
(c) give to the pawner or his agent a receipt for every sum paid by him, duly signed and, if necessary, stamped at the time of such payment; and
(d) on requisition in writing made by the pawner furnish to the pawner or, if he so requires to any person mentioned by him in that behalf in his requisition, a statement of account signed by himself or his agent, showing the particulars referred to in clause
(a) and also the amount, which remains outstanding on account of the principal and of interest, and charge such sum as the State Government may prescribe as fee therefor.
(2) All records or entries made in the books, accounts and documents referred to in sub-section (1) shall be either in English or in Kannada as may be prescribed:
Provided that the State Government may by notification permit the use of any other language in any area for such period, not exceeding three years, as may be specified in the notification.
(3) All books, accounts and documents referred to in sub-section (1), and all pledges taken by the pawnbroker shall be open to inspection at any time by the licensing authority or an officer sub-ordinate to the licensing authority by that authority.
(4) Notwithstanding anything contained in the Indian Evidence Act, 1872 (Central Act I of 1872), a copy of the account referred to in clause (a) of subsection (1), certified in such manner as may be prescribed, shall be admissible in evidence in the same manner and to the same extent as the original account.
(5) A pawner to whom a statement of account has been furnished under clause (d) of sub-section (1) and who fails to object to the correctness of the account shall not, by such failure alone, be deemed to have admitted the correctness of such account.
(6) In the pawn-ticket furnished to the pawner, in the receipt given under clause (c) of sub-section (1) and in the statement of account furnished under clause (d) of that sub-section, the figures shall be entered only in Arabic numerals.
Section 11 Redemption of pledge
(1) Every pledge shall be redeemable within one year from the day of pawning exclusive of that day; and there shall be added to that year of redemption fifteen days of grace within which every pledge (if not redeemed within the period of redemption) shall continue to be redeemable.
(2) A pledge pawned for a sum not exceeding ten rupees, if not redeemed within the period of redemption and days of grace, shall at the end of the days of grace become the pawnbroker's absolute property.
(3) A pledge pawned for a sum exceeding ten rupees shall further continue to be redeemable until it is disposed of as provided in this Act, although the period of redemption and days of grace have expired. Explanation.-Where the contract between the parties provides a longer period for redemption than one year, the provisions of sub-sections (1), (2) and (3) shall be read and construed as if references to such longer period had been substituted for the references to the period of one year therein.
Section 12 Sale of pledge and inspection of sale book
(1) A pledge pawned for a sum exceeding ten rupees shall, when disposed of by the pawnbroker, be disposed of by sale by auction and not otherwise, and the sale shall be conducted in accordance with such rules as may be prescribed.
(2) A pawnbroker may bid for and purchase at a sale by public auction conducted under sub-section (1), a pledge pawned with him; and on such purchase he shall become the absolute owner of the pledge.
(3) At any time within three years after the public auction, the holder of the pawn-ticket may inspect the entry relating to the sale either in the pawnbroker's book or in such catalogue of the auction as may be prescribed.
(4)
(a) Where on such inspection or otherwise the pledge appears to have been sold for more than the amount of the loan and the interest and charges due at the time of the sale, the pawnbroker shall pay to the holder of the pawn-ticket, on demand made within three years after the sale, the surplus after deducting therefrom the necessary costs and charges of the sale.
(b) If on such demand it appears that the sale of the pledge has resulted in a surplus but that within twelve months before or after such sale, the sale of another pledge or pledges of the same person has resulted in a deficit, the pawnbroker may set off the deficit against the surplus and shall be liable to pay only the balance, if any, after such set off.
Section 13 Liability of pawn-broker in case of fire
(1) Where a pledge is destroyed or damaged by or in consequence of fire, the pawnbroker shall nevertheless be liable on application made within the period during which the pledge would have been redeemable, to pay the value of the pledge, after deducting the amount of the principal and interest.
Explanation.-For the purpose of this sub-section, the value of the pledge shall be its estimated value (if any) entered in the pledge book at the time of the pawn together with interest on the amount of the principal and shall in no case be less than the aggregate of the amount of the principal and interest and twenty-five per cent on the amount of the principal.
(2) A pawnbroker shall be entitled to insure to the extent of the value so estimated.
Section 14 Compensation for depreciation of pledge
If a person entitled and offering to redeem a pledge shows to the satisfaction of a Civil Court having jurisdiction to entertain a suit for such redemption that the pledge has become or has been rendered of less value than it was at the time of pawning thereof by or through the default, neglect or wrongful act of the pawnbroker, the Court may, if it thinks fit, award reasonable compensation to the owner of the pledge in respect of the damage, and the amount awarded shall be deducted from the amount payable to the pawnbroker, or shall be paid by the pawnbroker (as the case requires) in such manner as the Court directs.
Section 15 Pawn-broker advancing smaller amount or receiving higher interest than that specified in accounts to be punishable
(1) Any pawnbroker who actually advances an amount less than that shown in the pawn-ticket or in his accounts or registers or who takes or receives interest or any other charge at a rate higher than that shown in the pawn-ticket or in his accounts or registers shall, on conviction be punished with fine which may extend to five hundred rupees.
(2) If a pawnbroker is convicted of an offence under sub-section (1) after having been previously convicted of a similar offence, the Court convicting him may order his licence as a pawnbroker to be cancelled.
Section 16 Certain other acts of pawn-brokers to be punishable
33. Section 16-A inserted by Act No. 29 of 1979.
(1) Where before the commencement of the Karnataka Pawnbrokers (Amendment) Act, 1979 any pawnbroker has pawned or hypothecated any pledge with any person, such pawnbroker shall, redeem the pledge within thirty days from the date of such commencement.
(2) Any pawnbroker who fails to so redeem shall, on conviction, be punished with imprisonment for a term which may extend to six months and with fine which may extend to rupees one thousand:
Provided that the terms of imprisonment shall not be less than one month and the fine shall not be less than rupees five hundred.]
Section 16 A. Pawn-broker to redeem pledges
33. Section 16-A inserted by Act No. 29 of 1979.
(1) Where before the commencement of the Karnataka Pawnbrokers (Amendment) Act, 1979 any pawnbroker has pawned or hypothecated any pledge with any person, such pawnbroker shall, redeem the pledge within thirty days from the date of such commencement.
(2) Any pawnbroker who fails to so redeem shall, on conviction, be punished with imprisonment for a term which may extend to six months and with fine which may extend to rupees one thousand:
Provided that the terms of imprisonment shall not be less than one month and the fine shall not be less than rupees five hundred.]
Section 17 Certain acts of pawners to be punishable
(1) Any person who-
(a) offers to a pawnbroker an article by way of pawn, being unable or refusing to give a satisfactory account of the means by which he became possessed of the article; or
(b) wilfully gives false information to a pawnbroker as to whether an article offered by him in pawn to the pawnbroker is his own property or not, or as to his name and address, or as to the name and address of the owner of the article; or
(c) not being entitled to redeem and not having any colour of title by law to redeem, a pledge, attempts or endeavours to redeem the same; shall, on conviction be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both.
(2) In every case falling under sub-section (1), and also in any case, where on an article being offered in pawn, for sale, or otherwise, to a pawnbroker he reasonably suspects that it has been stolen or otherwise illegally or clandestinely obtained, the pawnbroker shall, in the absence of reasonable excuse, inquire into the name and address of the person concerned, and seize
(3) A list of properties believed to have been stolen may be delivered by the police to any pawnbroker licensed under this Act and thereupon it shall be the duty of such pawnbroker-
(a) if any article answering the description of any of the properties set forth in any such list is offered to him in pawn, for sale, or otherwise, to proceed in accordance with the provisions of sub-section (2); and
(b) if any such article is already in his possession, forthwith to communicate to the nearest police station the facts of the case (including full particulars as to the name and address of the person concerned in the delivery of the article to the pawnbroker) and also, if so required by the police, to deliver the article to them.
Section 18 General penalty for contravention of Act
(1) Whoever contravenes any of the provisions of this Act or of any rule or of any terms or conditions of a licence made or granted thereunder shall, if no other penalty is elsewhere provided in this Act for such contravention, on conviction be punished with fine which may extend to fifty rupees and, if such person has been previously convicted whether under this section or any other provision contained in this Act, with fine which may extend to one hundred rupees.
(2) Any person who after having been convicted of the offence of carrying on, or continuing to carry on the business of pawnbroker in contravention of the provisions of Section 3, continues to commit the same offence in the same year, shall in addition to the fine to which he is liable under sub-section (1), be punished with a further fine which may extend to ten rupees for each day after the previous date of conviction during which he continues so to offend.
(3) Any Court convicting a pawnbroker of contravention of the provisions of clause (d) of sub-section (1) of Section 10, may direct him to furnish a statement of account in accordance with the provisions of that clause, and if the pawnbroker fails to comply with the direction, the Court may order his licence as a pawnbroker to be cancelled.
Section 19 Jurisdiction to try offences
No Court inferior to that of a Magistrate of the second class shall try any offence against this Act.
Section 19A Offences by Hindu Undivided Family, Companies etc.
11. Section 19-A inserted by Act No. 29 of 1979.
(1) If any of the provisions of this Act is contravened by a Hindu undivided Family, the person responsible for the management of the business of such Family shall be deemed to have contravened such provision.
(2)
(a) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed,
Provided that nothing contained, in this clause shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge of that he exercised all due diligence to prevent the commission of such offence.
(b) Notwithstanding anything contained in clause (a), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary, or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be pro- ceeded against and punished accordingly.
Explanation.-For the purposes of this section-
(a) "Company" means, a body corporate and includes a firm or other association of individuals, and
(b) "Director" in relation to a firm means, a partner in the firm.]
Section 20 Certain offences to be Cognizable
11. Section 20 substituted by Act No. 29 of 1979. Offences punishable-
(a) under Section 16 for an act referred to in Clause (7) thereof;
(b) under Section 16A; and
(c) under Section 18 for contravening the provision of Section 3. shall be cognizable.]
Section 21 Contract of pawn to be void in certain cases and not to be void in certain other cases
(1) If any pawnbroker not licensed under this Act, takes any article in pawn for a loan, the contract of pawn so far as it confers any right on the pawnbroker in respect of the article pawned shall be void and the retention of the article by such pawnbroker shall be wrongful.
(2) Where a pawnbroker is guilty of an offence against this Act (not being an offence against any provision of this Act relating to licences), any contract of pawn or other contract made by him, in relation to his business of pawnbroker, shall nevertheless not be void by reason only of that offence, nor shall he by reason only of that offence, lose his lien on or right to the pledge or to the loan and the interest and other charges, if any, payable in respect thereof:
Provided that if a pawnbroker fails to deliver to the pawner a pawn-ticket as required by Section 7 or fails to give to the pawner or his agent a receipt as required by clause (c) of sub-section (1) of Section 10 or to furnish on a requisition made under clause (d) of that sub-section, a statement of account as required therein within one month after such requisition has been made, the pawnbroker shall not be entitled to any interest for the period of his default: Provided further that if in any suit or proceeding relating to a loan the Court finds that a pawnbroker has not maintained accounts as required by clause (a) or clause (b) of sub-section (1) of Section 10, he shall not be allowed his costs.
Section 22 Power to make rules
(1) The State Government may after previous publication, by notification, 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 of, and the particulars to be contained in, an application for a pawnbroker's licence under this Act; and
(c) the form in which books, accounts and documents specified in this Act shall be recorded, maintained, kept or used.
(3) Every rule made under this Act, shall be laid, as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
Section 23 Savings
(1) Nothing contained in this Act shall apply to any loan advanced on a pledge in any area in which this Act is brought into force by a notification under sub-section (3) of Section 1 before the expiry of six months from the date appointed in such notification.
(2) The provisions of this Act shall be in addition to the provisions of the Karnataka Money lenders Act, 1961.
Section 24 Repeal
The Madras Pawnbrokers Act, 1943 (Madras Act XXIII of 1943) as in force in the Madras Area is hereby repealed:
Provided that S.6 of the MYSORE GENERAL CLAUSES ACT, 1899 (Karnataka Act III of 1899) shall be applicable in respect of the repeal of the said enactment and S.8 OF THE Madras Pawnbrokers Act, 1943 and S.24 OF THE Madras Pawnbrokers Act, 1943 said Act shall be applicable as if the repealed enactment had been repealed and re-enacted by this Act.
RULE:
KARNATAKA PAWN-BROKERS RULES, 1966
In exercise of the powers conferred by Section 22 of the Karnataka Pawn-brokers Act, 1961 (Karnataka Act 13 of 1962), the Government of Karnataka hereby makes the following rules, the draft of the same having been published in Part IV of sub-section of Karnataka Gazette, dated 9th July, 1964, as required by sub-section (1) of the said section, namely:-
Rule 1 Title
These rules may be called the Karnataka Pawn-brokers Rules, 1966.
Rule 2 Definitions
In these rules, unless the context otherwise requires.-
(a) "Act" means the KARNATAKA PAWNBROKERS ACT, 1961;
(b) "Form" means a form appended to these rules;
(c) "Licensing Authority" means the Registrar of Money Lenders appointed under the Karnataka Money Lenders Act, 1961;
(d) "Section" means a section of the Act.
Rule 2A Prescribed Authority
The Registrar General of Money Lenders shall be the prescribed authority for the purpose of S.4B OF THE Karnataka Pawn brokers Act, 1961.]
Rule 3 Application for licence
(1) A person desiring to carry on the business of taking goods and chattels in pawn for a loan shall make an application for a pawn-broker's licence addressed to the Licensing Authority for the area in which he carries on business. The application shall be delivered at the Office of the Assistant Registrar of Money Lenders appointed as such under the Karnataka Money Lenders Act, 1961, during office hours either personally by the applicant or through an agent duly authorised in writing in this behalf or sent by registered post addressed to such Assistant Registrar.
(2) An application for the grant of a licence for the first time may be made at any time and an application for renewal of licence shall be made 33. Substituted for the words "on any date within two months before the expiry of the period of licence" by GSR 77, dated 16-3-1988. [before the last date of October of every year.]
44. Proviso inserted by GSR 77, dated 16-3-1988. [Provided that where an application for grant of licence for the first time is made between the first day of November and thirty-first day of December of a year, the application for renewal of licence for the succeeding year shall be made before the expiry of the period of licence.]
Rule 4 Manner of payment of licence fees
The fee payable in respect of an application for the grant or renewal of a licence shall be paid either in cash at the time of presenting the application or by Money Order addressed to the Assistant Registrar of Money Lenders or by crediting to Government account at a Treasury, sub-Treasury or the Reserve Bank of India. The receipt for having sent the Money Order or the Treasury or Bank challan as the case may be, shall be attached to such application.
Rule 4A Payment of security amount
11. Rules 4-A to 4-D inserted by GSR 223, dated 12/13-9-1985.
(1) Every licensee shall deposit in the Government Treasury in cash, the security amount specified in S.4A OF THE Karnataka Pawn Brokers Act, 1961 under the head of account notified by the licensing authority.
(2) The treasury receipt for having deposited the security amount shall be sent to the licensing authority.
Rule 4B Communication of order under Section 4B
Every order of the licensing authority under S.4B OF THE Karnataka Pawn brokers Act, 1961 shall be communicated to the licensee either personally or to his agent or by registered post acknowledgement due addressed to the licensee's residence or place of business or last known residence or place of business.
Rule 4C Payment out of forfeited amount
1. A borrower who has been affected by the acts of a licensee shall make an application to the licensing authority specifying the nature of claim and the amount due from such licensee.
2. The licensing authority may on receipt of an application under sub-rule (1), after holding such enquiry as it deems fit, determine the amount payable to the applicant out of the forfeited amount:
Provided that if there are more than one applicant the amount shall be paid ratably in proportion to the amount determined to be payable to the applicants.
Rule 4D Refund of security amount
1. A licensee who has wound up his business or has not renewed his license may apply to the licensing authority for refund of the amount deposited under S.4A OF THE Karnataka Pawn Brokers Act, 1961.
2. The licensing authority may, on receipt of an application under sub-rule (1), after being satisfied that tine licensee has either would up his business or has not renewed his license and that no case against him regarding contravention of any of the provisions of the Act or of the rules made thereunder is pending, order refund of the amount deposited under S.4A OF THE Karnataka Pawn Brokers Act, 1961 or so much of the balance thereof, if any, remaining after the forfeiture to the Government under S.4B OF THE Karnataka Pawn brokers Act, 1961.]
Rule 5 Grant or renewal of Licence
The Assistant Registrar of Money Lenders after making such enquiries as to the bona fides of the applicant for a licence shall forward the applications to the Licensing Authority who after such further enquiry, if any, as he deems fit may subject to the provisions of S.4 OF THE Karnataka Pawn brokers Act, 1961 by order grant, renew, refuse to grant, or renew the licence. The licence if granted or renewed shall be in Form B and C subject to the conditions specified therein.
Rule 6 Reasons for refusing to grant or renew a licence to be communicated to applicant
Where the Licensing Authority refuses to grant or renew a licence, the reasons for doing so shall be recorded in writing and communicated to the applicant.
Rule 7 Appeal against Order refusing the grant or renewal of a licence
(1) An appeal against the order of a Licensing Authority refusing to grant or renew a licence shall be to the Registrar General of Money Lenders appointed as such under the Karnataka Money Lenders Act, 1961, and shall be filed within a period of 30 days from the date on which the order of refusal is communicated to the applicant.
(2) The Appellate Authority shall decide the appeal after giving the appellant or his pleader, as the case may be, a reasonable opportunity of being heard.
Rule 8 Display of licences
Every pawn-broker shall exhibit his licence in a prominent place on the premises he carries on the pawn- broker's business. The number of his licence shall be indicated in the signboard displaying the name in which he is carrying on business:
Provided that the Registrar General of Money Lenders or the Registrar of Money Lenders may, subject to the general or special Order of the State Government, exempt any pawn-broker from the operation of all or any of the provisions of this rule.
Rule 9 Issue of duplicate licence
(1) When a licence granted under these rules is lost, destroyed or torn or otherwise defaced in such a manner as to render it illegible, the pawn-broker may make an application to the Licensing Authority through the Assistant Registrar of Money Lenders concerned, for the grant of a duplicate licence.
(2) Where a duplicate licence is required on the ground that the original licence is torn or defaced, the money lender shall surrender the original licence to the Licensing Authority along with the application made under sub-rule (1).
(3) The application under sub-rule (1) shall be accompanied by a fee of rupee one and shall be paid in the same manner as specified in Rule 4.
(4) On receipt of such application, if the Licensing Authority is, after making such inquiry as he may deem necessary, satisfied that a duplicate licence may be issued to the pawn-broker, he shall issue a duplicate licence and direct the Assistant Registrar of Money Lenders to make a note of the issue of such a duplicate licence to the pawn-broker against his name in the register of licences maintained by him.
(5) The duplicate licence so issued shall bear on its face the number and date of the original licence and shall also bear the word "Duplicate".
Rule 10 Forms of declaration
The declaration where pledge is claimed by the owner shall be in Form C and the declaration of pawn ticket, lost shall be in Form D.
Rule 11 Pledge Book
The Pawn-brokers shall maintain a pledge book in Form E.
Rule 12 Pawn Ticket, Sale Book of pledges and Receipt on Redemption of Pledge
The pawn ticket, the sale book of pledges and the receipt on redemption of pledge shall be in Forms F, G and H, respectively.
Rule 13 Charges allowed to Pawn-brokers
(1) The charges which a broker may demand and take from the pawner in respect of the following cases shall be as indicated therein namely.-
(a) for inspection of the entry of a sale in the sale book of pledges referred to in sub-clause (ii) of clause (b) of sub-section (1) of S.10 OF THE Karnataka Pawn Brokers Act, 1961 shall be six Paise.
(b) for a statement of accounts furnished by him under clause (d) of sub-section (1) of S.10 OF THE Karnataka Pawn Brokers Act, 1961.-
(2) Separate fee may be charged in respect of each loan and each requisition.
(3) The charges levied under sub-rule (1) may be recovered by the pawnbroker as if the same were included in the loan but no interest shall be charged on such charges.
(4) Where a pawner redeems the pledge before it is actually disposed of by sale in public auction the pawn-broker may demand and take from him the charges, if any, incurred by the pawn-broker in bringing the pledge to auction.
Rule 14 Certification of copy of the account
No copy of the account maintained by the pawn-broker shall be admissible in evidence unless it contains a certificate at the foot, by the pawn-broker himself or his agent. The certificate shall be in Form J.
Rule 15 Language in which records, etc., should be maintained
All records or entries made in the books, accounts and documents referred to in sub-section (1) of S.10 OF THE Karnataka Pawn Brokers Act, 1961 shall within the area mentioned in column (2) of the Table below be either in English or in Hindi subject to review after one year or in the language or languages mentioned in the corresponding entry in column (3) thereof.
Rule 16 Manner of furnishing statement of account
(1) The statement of accounts referred to in clause (d) of sub-section (1) of S.10 OF THE Karnataka Pawn Brokers Act, 1961 shall be sent to the pawner by registered post, acknowledgment due, to the address given in requisition made by the pawner:
Provided that it shall not be necessary to send it by registered post where the pawner has agreed in writing to the statement being delivered personally.
(2) When a pawner takes personal delivery of the statement of account, he shall acknowledge receipt of the same in writing. The pawner shall sign the acknowledgement or if he is illiterate, affix his thumb impression thereto.
(3) If the statement of account is sent by registered post, the production of the postal receipt and acknowledgement shall be sufficient proof of the sending of such statement.
(4) The charges for sending the statement by registered post shall be entered in the accounts and shall be recoverable by the pawn-broker along with the loan amount. But no interest shall be charged on such charges.
Rule 17 Public Notice of claim in certain cases
The public notice referred to in the proviso to clause (a) of sub-section (1) of S.9 OF THE Karnataka Pawn Brokers Act, 1961 shall contain the following particulars, namely.-
(a) the name, place of business and licence number of the pawn-broker concerned;
(b) full and detailed description of the article (weight to be noted in case of jewels);
(c) name and address of the pawner;
and
(d) the basis on which the applicant makes his claim, that is, whether as the owner of the pledge but not holding the pawn ticket or as a person claiming to be entitled to hold the pawn ticket but alleging that it has been lost, mislaid, destroyed, stolen, or fraudulently obtained from him.
(2) The notice under sub-rule (1) shall be published on two successive days in a newspaper circulating in the place where the pawn-broker carries on his business and approved by the licensing authority, or the Inspector of Money Lenders and the Pawn-broker twenty-one days before the date of making the application.
Rule 18 Prescribed Authority for the purpose of proviso (1) to Section 9(1)(b).
The authority for the purposes of proviso (1) to clause (b) of subsection (1) of S.9 OF THE Karnataka Pawn Brokers Act, 1961 shall be the Tahsildar of the Taluka in which the pawn-broker has his place of business or where a Deputy Tahsildar is holding charge independently of the Tahsildar, such Deputy Tahsildar.
Rule 19 Period within which declaration should be delivered to the pawnbroker
The period within which the declaration referred to in proviso (ii) to clause (b) of sub-section (1) of S.9 OF THE Karnataka Pawn Brokers Act, 1961 shall be delivered back to the pawn-broker shall be fifteen days after the delivery of the form of declaration to the applicant.
Rule 20 Procedure in auction of pledges
The procedure for sale by public auction of pledges shall be as follows.-
(1) The sale shall be conducted by an auctioneer approved by the Licensing Authority or from the Inspector of Money Lenders and the Pawn-brokers.
(2) The auctioneer shall.-
(i) cause all pledges to be exposed to public view;
(ii) get a catalogue of the pledges to be sold in auction containing the following particulars printed.-
(a) the name, place of business and licence number of the pawn-broker concerned;
(b) date of loan;
(c) number of the pledge in the pledge book;
(d) full and detailed description of the article (weight to be noted in case of jewels);
(e) name and address of pawner;
(f) date, hour and place of sale;
(iii) publish the printed catalogue by getting a copy thereof posted at the place of business of the pawn-broker and by distributing copies among intending bidders;
11. Clause (iv) substituted by GSR 347, dated 17-9-1969. [(iv) send at least a week before the date fixed for the sale.-
(a) two copies of the printed catalogue to the Police Station having jurisdiction over the premises where the auction is to be held, one copy for being posted on the notice board of the police station and another copy for record at the police station;
(b) one copy of the printed catalogue to the police station or each of the police stations having jurisdiction over the place of the business of the pawn-broker concerned for record at such police station;
(c) in any case, shall notify each of the police stations having jurisdiction over the places of business of the pawn-broker concerned and the place or places of sale, and postponement of such auction and all the subsequent dates of auction;]
(v) send a copy of the printed catalogue by registered post to the pawner at least a week before the date fixed for sale.
(3) The pledges of each pawn-broker in the catalogue shall be separate from the pledges of any other pawn-broker notifying the sale in a news paper approved by the Licensing Authority or the Inspector of Money Lenders and the Pawn-brokers furnishing the following details also.-
(a) the pawn-broker's name and place of business;
(b) the months in which the pledges were pawned.
(4) Where the pawn-broker himself bids at the sale, the auctioneer shall not take the bidding in any form other than that in which he takes, the bidding of other persons at the same scale, and the auctioneer on knocking down any article to a pawn-broker shall forthwith declare audibly the name of the pawnbroker as purchaser.
(5) The auctioneer shall, within fourteen days, after the sale, deliver to the pawn-broker an authenticated copy of the catalogue, or of so much thereof as relates to the pledges of that pawn-broker indicating also the charges for the sale of each article.
(6) The pawn-broker shall preserve every such catalogue for at least three years after the auction.
APPENDIX A FORM
[See Rule 3]
FORM A
[See Rule 3]
Form of application for a
Pawn-broker's licence.
To The Assistant Registrar of Money Lenders.
Name of the applicant (in
full).
Address in full (any
subsequent change
should be notified)
8. Father's name
List of the properties owned
by the applicant
Address of shop or place of
business in respect
of which the licence is applied for (any subs-equent change should be
notified)
If the applicant has more
than one shop of
place or business the address of each such
shop or place of business shall be mentioned.
Has the applicant applied for
a separate licence in
respect of each shop or place of business mentioned
against Item 6 and if so, with what result?
Is the present application
made for the grant
of a new licence or for the renewal of a licence
granted in the previous year?
The financial year for which
the licence is
applied for.
Has the applicant paid the
prescribed fee for the licence?
(The Treasury receipt should fee enclosed)
Signature of the applicant.
I declare that the particulars furnished above are correct to the best of my
knowledge and belief.
Signature of the applicant.
APPENDIX B FORM B
[See Rule 5]
FORM B
[See Rule 5]
I, ____________________ the
Registrar of Money Lenders being the Licensing Authority prescribed under the
Karnataka Pawn-brokers' Act, 1961, do hereby uthorize and empower Sri. ____________________
now residing at____________of ____________________ to carry on the business of
a pawn-broker in premises No ________ in ____________________ District from____________________upto
and until the 31st day of March, ___________ on the conditions noted below :-
This licence
shall not be transferred to any other persons.
This licence
shall be produced before any Licensing
Authority or the Inspector of Money Lender and the
Pawn-brokers, whenever demanded, by such Officer.
The licence
shall exclude premises or persons of bad
character from the licensed premises.
All books,
accounts and documents maintained by the
licensee and all pledges taken by him shall be open to
inspection by any Licensing Authority or the Inspector
of Money Lenders and the Pawn-brokers.
The licensee
shall not remove any article pledged with
him to any place outside the town or village in which he
is carrying on the business of a pawn-broker except with
the permission in writing of the Licensing Authority or
the Inspector of Money Lenders and the Pawn-broker.
A breach of
any of the above conditions shall be
punishable in accordance with the provisions of
sub-section (1) of Section 18 of the Act.
Given under my hand and seal, the____________________ day of____________________ Fee paid Rs.
10.
Registrar, Money Lender
(Licensing Officer)
APPENDIX C FORM C
[See Rule 10]
FORM C
[See Rule 10]
Declaration when
Pledge is claimed by owner
This declaration shall not be effectual unless it
is duly made and delivered back to the pawn-broker not later than fifteen days
after the day on which the form was delivered to the applicant by the
pawn-broker.
Last date for delivery back to
pawn-broker.
Any person making the declaration either as an
applicant or as identifying an applicant, knowing the same to be false in any
material particular is punishable under sub-section (2) of Section 9 of the
Act.
I, ____________________ of____________________ in pursuance of the Karnataka Pawn-brokers
Act, 1961 (Karnataka Act 13 of 1962), do solemnly and sincerely declare that
the article / articles described below is / are my property and that I believe
it is/they are pledged at the shop of____________________
The article/articles above
referred to is/are of the following description.
Signature of the owner
Designation
Address.
I____________________ in pursuance
of the said Act do solemnly and sincerely declare that I know the person now
making the foregoing declaration to be____________________
of____________________
Signature of Identifying person.
Designation
Address
Declared before me this____________________
day of____________________
Magistrate or Judge.
APPENDIX D FORM D
[See Rule 10]
FORM D
[See Rule 10]
Declaration where
pawn ticket is lost, etc.
(This declaration shall not be effectual unless it
is duly made and delivered back to the pawn-broker not later than fifteen days
after the day of which the form was delivered to the applicant by the
pawn-broker.
Last day for delivery back to pawn-broker
Any person making the declaration either as an
applicant or as identifying an applicant, knowing the same to be false in any
material particular shall be liable under sub-section (2) of Section 9 of the
Act).
I____________________ of____________________ in
pursuance of the Karnataka Pawn-brokers Act, 1961 (Karnataka Act 13 of 1962),
do solemnly and sincerely declare that I pledge at the shop of____________________
pawn-broker, the article/articles described below being my property and having
received a pawn ticket for the same, which was Since been____________________ by ____________________and that the pawn ticket
has not been sold or transferred to any person by me or to my knowledge or
belief.
The article/articles above
referred to is/are of the following description.
Signature of Pawner.
I ____________________of ____________________in
pursuance of the said Act do solemnly and sincerely declare that I know the person
now making the foregoing declaration to
be ____________________of____________________
Signature of
identifying person.
Designation.
Address.
Declared before me
This __________________________________day of_________________.
Magistrate or Judge.
APPENDIX E FORM E
[See Rule 11]
FORM E
[See Rule 11]
Pledge Book
Name of Fawner Full address
Number of
pledge
Date of loan
Amount of
principal of the loan
Rate of
interest charged
The amount
of every payment
received towards loan and the
date
Full and
detailed description of
the articles (weight to be noted
in the case of jewels)
Value of
article or articles
The time
agreed upon for the
redemption of the pawn
Date of
redemption on sale in
auction
Name and
address of the owner,
if he is not himself the pawner
Name and
address of person
redeeming or purchasing at
sale in auction.
APPENDIX F FORM F
[See Rule 12]
FORM F
[See Rule 12]
Pawn Ticket
Number of Pledge
Name and
address of pawn-broker
Number and date
of licence of pawn-broker
The following
article/articles is/are pawned with me:
Name and full address of pawner
Date
Amount of principal of the loan
Rate of interest charged
Full and detailed description of
the articles (weight to be noted
in the case of jewels).
Value of article or articles
The time agreed upon for redemption of the articles.
Signature or thumb-impression
of the pawner.
(Signature/Thumb-impression of
pawner)
Signature of pawn-broker or his
agent
Reverse
1. The rate of interest on any
pledge shall not exceed:
Eighteen per cent per annum simple interest (that is to say,
1.5 p.
per rupee per mensum simple interest in the case of loans of
twenty-five rupees and below; and
Fifteen per cent per annum simple interest (that is to say,
1.25 p.
per rupee per mensum simple interest in other cases).
Every pledge shall be redeemable within a period of one year or
such longer period as may be provided in the contract between the parties,
from the day of pawning (exclusive of that day) and shall continue to be
redeemable during seven days of grace following the said period.
The holder of this ticket is presumed to be the person entitled
to redeem the pledge.
If this ticket is lost, mislaid, destroyed or stolen or
fraudulently obtained from the pawner, the pawner should at once apply to
the pawn-broker for the supply, free of cost, of a printed form of
declaration to be made before a Magistrate or a Judge, complete it and
deliver it back to the pawnbroker not later than fifteen days after the
date of the delivery of the form by the pawn-broker. The pawner shall then
have the same rights and remedies as if he had produced the pawnticket.
Where the loan exceeds two hundred and fifty rupees, the
applicant shall before applying to the pawn-broker, cause to be published
a notice containing the following particulars, namely.
the name, place of business and licence number of the
pawn-broker concerned;
full and detailed description of the articles (weight to be
noted in the case of jewels);
name and address of the pawner; and
the basis on which the applicant makes his claim, that is
whether
as the owner of the pledge but not holding the pawn-ticket, or as
a person claiming to be entitled to hold the pawn-ticket but alleging that
it has been lost, mislaid, destroyed, stolen or fraudulently obtained from
him.
Such notice
shall be published on two successive days in a newspaper circulating in the
place where the pawn-broker carries on his business and approved by the
Licensing Authority or the Inspector of Money Lenders and the Pawn-broker.
The application
for the Form of declaration shall be made 21 days after the publication of the
notice.
APPENDIX G FORM G
[See Rule 12]
FORM G
[See Rule 12]
Sale Book of
Pledges
Date and place of sale.
Name and place of business of auctioneer.
Number of
pledge as in the pledge book.
Date of
pawning
Name of
Pawner
Amount of
loan
Amount for
which pledge is sold as stated by the auctioneer.
Signature of
the auctioneer or his agent
Name and
address of purchaser.
APPENDIX H FORM H
FORM H
[See Rule 12]
Receipt on
redemption of pledge
Date____________________
Received
From ____________________________________________________________on redemption
of ledge,
number ____________________amount of loan Interest____________________.
Total____________________
Signature of
pawn-broker or his agent.
APPENDIX J FORM J
[See Rule 14]
FORM J
[See Rule 14]
Certificate of
the Pawn-broker or his Agent
I certify that
the above is a true copy of the account maintained under clause (a) of
sub-section (1) of Section 10 of the Karnataka Pawn-brokers Act, 1961,
(Karnataka Act 13 of 1962) for the loan of Rs ____________________ taken by ____________________on____________________(Date)
and that there are no alterations or erasures in the account (except the
following):
(1)
(2)
(3)
Signature of
Pawn-broker or his Agent. |
