Act Description : THE BOMBAY MONEY LENDERS ACT, 1946
Act Details :-
THE BOMBAY MONEY LENDERS ACT, 1946
(Bombay Act No. XXXI of 1947)
An Act to regulate the transactions of money-lending in the State of Bombay.
PREAMBLE
WHEREAS it is expedient to make better provision for the regulation and control of transactions of money-lending in the State of Bombay, It is hereby enacted as follows:-,
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called the Bombay Money-lenders Act, 1946.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall come into force in the pre-Reorganisation State of Bombay on such date as the State Government may, by notification in the - Official. Gazette, -appoint in this behalf and in that part of the State of Bombay to which it is extended by the Bombay Money-lenders (Unification and Amendment) Act, 1959 it shall come into force on such other date as the State Government may, by notification published in the like manner, appoint in this behalf.
SECTION 02: DEFINITIONS
In this Act, unless there is anything repugnant in the subject or context-
(1) “bank” means a banking company as defined in the Banking Regulation Act, 1949 and-includes;—
(i) the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934;
(ii) the State Bank of India constituted under the State Bank of India Act, 1955;
(iii) a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959;
(iv) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Under takings) Act, 1970; and -
(v) any other banking institution .notified by the Central Government under section 51 of the Banking Regulation Act, 1949;
(2) “business of money-lending” means the business of advancing loans whether in cash or kind whether or not in connection with or in addition to any other business;
(3) “capital” means a sum of money which a money-lender invests in the business of money-lending -
(4) “company” means a company as defined in the Companies Act, 1956;
(5) h society” means a society registered or deemed to have been registered under the Maharashtra Co-operative Societies Act, 1960 or the co-operative Societies Act 1912, or any Act of any other State Legislature relating to co-operative societies;
(5A) “inspection fee” means the fee leviable under 9A in respect of inspection of books of account of a money-lender;
(6) “interest” includes any sum, by whatsoever name called, in excess of the principal paid or payable to a money lender in consideration of or otherwise in respect of a loan, but does not include any sum lawfully charged by a money-lender for or on account of costs, charges or expenses in accordance with the provisions of this Act, or any other law for the time being in force;
(7) “licence” means a licence granted under this Act
(8) “licence fee” means the fee payable in respect of a licence;
(9) “loan” means an advance at interest whether of money or in kind, but does not include
(a) a deposit of money or other property in a Government Post Office Bank or in any other bank or in a company or with a co-operative society;
(b) a loan to, or by, or a deposit with any society or association registered under the Societies Registration Act, 1860, or any other enactment relating to a public, religious or charitable object;
(c) a loan advanced by Government or by any local authority authorised by Government;
(cc) a loan advanced to a Government servant from a fund, established for the welfare or assistance of Government servants, and which is sanctioned by the State Government;
(d) a loan advanced by a co-operative society;
(dd) an advance made to a subscriber to, or a depositor in, a Provident Fund from the amount standing to his credit in the fund in accordance with the rules of the fund;
(d2) a loan to or by an insurance company as defined in the Insurance Act, 1938;
(e) a loan to, or by bank;
(ee) loan to, or by, or deposit with, any body (being a body not falling under any of the other provisions of this clause), incorporated by any law for the time being in force in the State;
(f) an advance made on the basis of a negotiable instrument as defined.. in the Negotiable Instruments Act, 1S81, other than a promissory note;
(g) except for the purposes of sections 23 and 25,—
(iii) a loan, by a landlord to his tenant for financing of crops or seasonal finance, of not more than Rs. 50 per acre of land held by the tenant;
(iv) a Joan advanced .to an agricultural labourer by his employer;
Explanation.-The expression “tenant” shall have the meaning assigned to it in the Bombay Tenancy and ‘Agricultural Lands Act, 1948, or any other relevant tenancy law in force relating to tenancy of agricultural lands, and the expressions “financing of crops” and “seasonal finance” shall have the meanings assigned to them in the Bombay Agricultural Debtors’ Relief Act, 1947;
(10) “money-lender” means— (i) an individual, or
(ii) an undivided Hindu family; or
(iiia) a company, or
(iv) an unincorporated body of individuals, who Or which—
(a) carries on the business of money-lending in the State; or
(b) has his or its principal place of such business in the State; and includes a pawn-broker but does not include,—
(1) Government,
(ii) a local authority,
(iii) a bank,
(iv) the Agricultural Refinance corporation constituted under the Agricultural Refinance Corporation Act 1963; or
(v) any other banking, financial or any institution which The State Government may, by notification in the Official Gazette, specify in this behalf;
(10A) “pawn-broker” means a money-lender who in the ordinary course of his business advances a loan and takes goods in pawn as security for payment of such loan;
(11) “prescribed” means prescribed by rules made under this Act;
(12) “principal” means in relation to a loan the amount actually advanced to the debtor,
(12A) “Provident Fund” means a Provident Fund as defined in the Provident Funds Act, 1925, and includes a Government Provident Fund and a Railway Provident Fund as defined in the said Act;
(13) “State” means the State of Maharashtra;
(13A) “recognised language” means in Greater Bombay Marathi or Gujarati; and elsewhere the language of the Court;
(14) “register means a register of money-lenders maintain ed under section 4;
(15) “rules” means rules made under this Act;
(17) “suit to which this Act applies” means any suit or proceedings
(a) for the recovery of a loan made after the date on which the Act comes into force
(b) for the enforcement of any security taken or any agreement, made after the date on which this Act comes into force in respect of any loan made either before or after the said date; or
(c) for the redemption of any security given after the date on which this Act comes into force in respect of any loan made either before or after the said date;
(18) “trader” means a person who in the regular course of business buys and sells goods or other property, whether moveable or immoveable, and includes
a wholesale or retail merchant,
a commission agent, -
a broker,
a manufacturer,
a contractor,
a factory owner,
but does not include an artisan or a person who sells his agricultural produce or cattle or buys agricultural produce or cattle, for his use.
Explanation.—For the purposes of this clause an “artisan” means a person who does not employ more than ten workers in a manufacturing process on any one day of the twelve months immediately preceding.
NOTES: (A) Changes made by the new amendment in two of the definitions have created disturbance in business community and especially the money-lenders who were advancing loans to traders.
(B) Definition of word LOAN in sub-section 2 has been amended by addition of words WHETHER IN CASH OR KIND AND after the words ADVANCING LOANS. These words appear to have been added to clarify the word loan as to include the advance in kind like grains advanced with condition to return one and half times after harvest. The definition of word LOAN in sub section (9) even prior to the amendment states that the loan meant an advance whether of money or in kind. Thus this particular amendment only strengthens the said position and does not make any new change in existing law. The Usurious Loans Act, 1918, and the Money-Lenders Acts in some other States have also similar definition. The rumor in market that the said new amendment is intended to cover transactions of sales of goods on credit has no basis. If goods are sold on credit and even if there is stipulation that the price will have to be paid with interest the amount of price and interest can be said to be a debt but not a loan. Loan means a loan by a money-lender who is carrying on business of money-lending. The Act applies to business of money-lending and Section 5 prohibits business of money-lending without licence.
(C) Before the new amendment loans to traders were given exemption from operation of the Act except for the purposes of sections 23 and 25. The new amendment has put traders at par with other debtors from 29th July 1976. This has been done by removal of sub-section (9)(i).
(D) This has affected those money-lenders who were giving loans to traders as they will have now to comply with all the provisions of this Act to the loans to traders also. The traders even though they get more rights under the new amendment, are afraid that they may not get loans as freely as they were getting before.
(E) However as the provisions of this Act are not applicable (i) to loans without interest and (ii) to loans advanced on the basis of Bill of Exchange or cheque the traders can be given such loan without licence.
(F) The Central Government has increased stamp duty on Bill of Exchange from 1st June 1976 and therefore a special note about stamp duty on promissory notes, receipts and Bills of exchange is given herewith as appendix I.
(G) The definition of BUSINESS OF MONEY-LENDING as per sub-section (2) shows that the Act applies to the money-lendings as part of business and not casual loan or to an accommodation loan to an acquaintance. The word BUSINESS imports the notion of system, repetition and continuity. Please refer to AIR 1974 Patna 107, AIR 1974 Gauhati.
(H) The Loan is an advance at interest under sub-section 9 and therefore amount advanced without interest will not be covered by the Act.
According to judgment reported in 73 Bom LR 458 a promissory note which does not mention interest under section 80 of negotiable Instruments Act 1881. In another case reported in AIR 1976 A.P 65 where provisions of Negotiable Instruments Act were not argued a suit on promissory note which did not mention about interest was held to be suit to which similar provisions under Hyderabad Money Lenders Act were not applicable.
(I) Deposit of money in a company and loan to or by or deposit with any body incorporated by any law in force in State of Maharashtra are exempted from the provisions of the Act by Virtue of sub-section9(a) and 9(ee). The Act therefore does not apply to loans or deposits that may be advanced to a limited company.
(J) The exemption of traders having been removed the definition of trader(sub-section18) is redundant.
SECTION 03: APPOINTMENT OF REGISTRAR GENERAL, REGISTRARS AND ASSISTANT REGISTRARS:
The State Government may, by notification in the Official Gazette, appoint such persons, whether public officers or not, as it thinks proper, to be a Registrar General, Registrars anti Assistant Registrars of money-lenders for the purposes of this Act and may define the areas within which each such officer shall exercise his powers and perform his duties.
SECTION 04: REGISTER OF MONEY-LENDERS
Every Assistant Registrar shall maintain for the area in his jurisdiction a register of money-lenders in such form as may be prescribed:
Provided that any such register maintained in any area to which this Act is extended by the Bombay Money-lenders (Unification and Amendment) Act, 1959, immediately before the commencement of this Act in that area shall, in so far as it is not inconsistent with this Act or the rules made thereunder, be deem ed to have been maintained under this Act.
NOTES: (A) Rule 3 prescribes Form No.1 as the form for Register of Money-lenders to be maintained by the Assistant Registrars.
(B) Rule 4 makes it obligatory on the Assistant Registrars to display on notice board of their office a list of money lenders, licenced to carry on business of money-lending, in the area und their jurisdictions.
SECTION 05: MONEY-LENDER NOT TO CARRY ON BUSINESS OF MONEY-LENDING EXCEPT FOR AREA UNDER LICENCE AND EXCEPT IN AC CO WITH TERMS OF LICENCE.
No money-lender shall carry on the business of money-lending except in the area for which he has been granted a licence and except in accordance with the terms and conditions of such licence;
NOTES: After the new amendment if any money-lender carries on business without licence, the suit filed by him will be dismissed under section 10 and he will be also liable to be prosecuted under section 32B. The Officers authorities under section 13A have powers, of search without warrant, of inspection of record or document and of questioning for interpreting and verifying the record that the Officers may have inspected.
SECTION 06: APPLICATION FOR LICENCE
(1) Every money-lender shall annually before such date as may be prescribed make an application in the prescribed form for the grant of a licence to the Assistant Registrar of the area within the limits of which the place, where he carries on or intends to carry on the business of money-lending is situated. When be carries on or intends to carry on such business at more than one place; a separate application in respect of each such place be made to such Assistant Registrar. Such application shall contain the following particulars, namely
(a) the true name in which such money-lender intends to carry on business and the true name of the person proposed to be responsible for the management of the business;
(b) if the application is by or on behalf of—
(1) an individual, the true name and address of such individual;
(ii) an undivided Hindu family, the true names and addresses of the manager and the adult coparceners of such family;
(iii) a company, the true names and addresses of the directors, manager or principal officer managing it;
(iv) an unincorporated body of individuals, the true names and addresses of such individuals.
(c) the area and the place or principal, place of the business of money-lending in the State;
(d) the name of any other place in the State where the business of money-lending is carried on or intended to be carried on;
(e) whether the person signing the application has him self or any of the adult coparceners of an undivided Hindu family, or any director, manager or principal officer of the company or -any member of the unincorporated body on behalf of which such application has been made, as the case may be, has carried on the business of money-lending in the State in the year ending on the 31st day of. Ma immediately preceding the date of the application either individual or in partnership, or jointly with any other coparcener or any other person and whether in the same or any other name;
(f) the total amount of the capital which such person intends to invest in the business of money-lending in the year for which the application has been made;
(g) if the places at which the business of money-lending is to be carried on are more than one, the true names of persons who shall be in the management of the business at each such place;
(2) The application shall be in writing and shall be signed—
(a) (z) if the application is made by an individual, by the individual;
(ii) if the application is made on behalf of an un divided Hindu family, by the manager of such family;
(iii) if the application is made by a company or un incorporated body, by the managing director or any other person having control of its principal place of business in the territory of India except Part B Slates but including the Saurashtra and Hyderabad areas of the State of Bombay or of its place of business in the area in which it intends to carry on the business; or
(b) by an agent authorised in this behalf by a power of attorney by the individual money-lender himself, or the family, or the company or the unincorporated body, as the case may be.
(3) The application shall also contain such other particulars as may be prescribed.
(4) Every application shall be accompanied by a licence fee of one hundred rupees-:
Provided that, where an application is made after -the expiry of the period prescribed by rules, ft shall be accompanied by a licence fee of two hundred rupees.
(5) The fee payable under this section shall be paid in the manner prescribed and shall not be, refunded, notwithstanding the fact that the application is withdrawn.
SECTION 07: GRANT OF LICENCE AND ENTRY IN REGISTER
(1) On the receipt of an application under section 6 the Assistant Registrar shall forward the application, together with his report to the Registrar. Subject to the provisions of this Act, the Registrar.- Subject to the provision's of this Act, the Registrar may after making such further inquiry, if any, as he deems fit, grant the applicant a licence in such form and subject to such conditions as many be prescribed, and direct the Assistant Registrar to enter the name of such applicant in the register maintained by him under, section 4.
SECTION 07A: CERTIFICATE REQUIRED FOR GRANT OF LICENCE
(1) A licence shall not be granted unless the applicant holds an eligibility certificate (hereinafter referred to as the certificate) granted in accordance with the provisions of this section; and a separate certificate shall be required in respect of every separate licence Any licence granted in contravention of this section shall be void.
(2) In rural area, such certificate shall be granted by the Sub-Inspector of Police within whose jurisdiction the place where the money-lender carries on or intends to carry on the business of money-lending is situated, and in urban area, such certificate shall be granted by the Inspector of Police within which whose jurisdiction such place is situated.
Explanation.—For the purpose of this ‘sub-section, “rural area” means an area for the time being within the jurisdiction of Zilla Parishtad established under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961, and includes any ‘B’ Class, or ‘C’ Class municipal area as classified under the Maharashtra Municipalities Act, 1965 but does not include the area within the limits of the cantonments of Poona, Kirkee and Kamptee defined under the Cantonments Act, 1924; and “urban area” means all’ other area in the State.
(3) The form of application for the certificate and of the certificate shall be such s may be prescribed.
(4) Every such certificate shall show the true name of the money-lender and the name under which and the address at which he is authorised by the certificate to carry on the business of money4ending. No such certificate shall authorise a money lender to tarry on the business of money-lending under more than one name or under any name which includes the word “bank” or otherwise implies that he carries on banking business, and no such certificate shall authorise a money-lender to carry on business under any name except—
(a) his “true name, or
(b) the name of a firm in which he is a partner.
(5) A certificate granted under this section shall come into force on the date specified therein and shall expire on the thirty-first day of July next following.
(6) The certificate under this section shall not be refused except on some one or more of the following grounds, namely:—
(a) that satisfactory evidence has not been produced of the good character of the applicant, and in the case pf a company, of the persons responsible for the management thereof;
(b) that satisfactory evidence- has been produced that the applicant or any person responsible or proposed to be responsible for the management of his business as a money-lender is not a fit and proper person to hold a certificate;
(c) that the applicant or any person responsible or proposed to be responsible for the management of his business as a money-lender, is by an order of the court disqualification from holding a licence or a certificate;
(d) that the applicant has not complied with the provisions of any rules made under this section with respect to applications for certificates.
(7) Any person aggrieved by the refusal of a Sub-Inspector Police, or, as the case may be, of an Inspector of Police to grant the certificate may appeal to the District Magistrate whose decision thereon shall be final.
(8) Nothing in this section shall apply to any person holding a licence under this Act immediately before the commencement-, of the Bombay Money -lenders (Amendment) Act, 1975, until such licence is in operation.
SECTION 07B: SUSPENSION AND CANCELLATION OF CERTIFICATE
(1) Where any person, being the holder of a certificate, is convicted of any offence under this Act, the court—
(a) may order that all certificates held by him and, where the money-lender is a partner of a firm, certificates held by any other partner in the firm, shall either be suspended for such time as the court thinks fit, or shall be cancelled, and may also, if the court thinks fit, declare any such money-lender, or any person r the management of the money-lending business carried on b him to be disqualified for ob taming any fresh certificate for such time as the court thinks fit; and
(b) shall cause particulars of the conviction and of any order made by the court under this sub-section to be endorsed on every certificate held by the person convicted or by any other person affected by the order and shall cause copies of those particulars to be sent to the authority by whom any certificate so endorsed was granted, and also to the Registrar
Provided that, where by order of a court, a certificate held by any person is suspended or cancelled, or any person is disqualified for obtaining a certificate, he may, whether or not he is the person convicted, appeal against the order in the same manner as any person convicted may appeal against his conviction; and the court may, if it thinks fit, pending the appeal, defer the operation of the order.
(2) Any certificate required by a court for endorsement in accordance with the foregoing provisions of this section shall be produced in such manner and within such time as may be directed by the court, by the person by whom it is held, and any person who, without reasonable cause, makes default in producing any certificate so required shall on conviction, be punished with fine which may extend to fifty rupees each day during which the default continues.
(3) Where a certificate held by any person is ordered to be suspended’ or to be cancelled under the foregoing provisions of section, any licence granted to him, whether in pursuance ofthat or any other certificate, shall be-suspended during the period for which the certificate is ordered to be -suspended or becomes void, as the case may be.
SECTION 08: REFUSAL OF ISSUE OF LICENCE
(1) The grant of a licence shall not be refused except on any of the following grounds:
(a) that the applicant, or any person responsible or proposed to, be responsible for the management of his business as a money-lender is disqualified from holding a licence;
(b) that the applicant has not complied with the provisions of this Act or the rules in respect of an application for the grant of a licence; or that the applicant does not hold a certificate under section 7A;
(c) that the- applicant has made wilful default in complying with or knowingly acted in contravention of any requirement of this Act;
(d) that satisfactory evidence has been produced that the applicant or any person responsible or proposed to be responsible for the management of his business of money-lending has—
(i) knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of money-lending or
(ii) been found guilty of an offence under Chapter XVII or section 465, 477 or 477-A of. Chapter XVIII of the Indian Penal Code.
(2) The Registrar shall, before refusing a licence under sub section (1) give to the applicant a reasonable opportunity of producing evidence, if any, in support of the application and of showing cause why the licence should not be refused; and record the evidence adduced before him and his reasons for such refusal.
(3) An appeal shall lie from an order of the Registrar refusing a licence under sub-section (1) to the Registrar General, whose decision shall be final.
SECTION 08A: REGISTRAR’S POWER TO CANCEL LICENCES
(1) The Registrar may during the term of any licence, cancel the same by an order in writing on the ground that the person to whom it was granted has been guilty of any act or conduct for, which he might under section 8 have refused him the grant of the licence and which act or conduct was not brought to his notice at the time of the grant.
(2) Before cancelling a licence under sub-section (1) the Registrar shall give notice in writing to the licensee and may hold such inquiry as may be necessary.
(3) An appeal shall lie from an order of the Registrar cancelling a licence under sub-section (1) to the Registrar General whose decision shall be final.
SECTION 09: TERM OF LICENCE
A licence shall be valid from the date on which it is granted to the 31st day of July following:
Provided that when an application for renewal of a licence has been received by an Assistant registrar within the prescribed period, the licence shall, until the application is finally disposed of, be deemed to be valid.
SECTION 09A: LEVY OF INSPECTION FEE
(1) An inspection fee shall in addition to the licence fee leviable under section 6 be levied from a moneylender applying for a renewal of a licence at the rate of one per cent of the maximumcapital utilized by him during the period of the licence ,ought to be renewed.
(2) it default of payment of an inspection fee leviable, under sub-section (1), it shall be recoverable from the defaulter in the same manner as an arrear of land revenue.
Explanation-For the purposes of this section -maximum capital" means tile highest total amount of the capital sum which may remain invested in the money-lending business on any day during the period of a licence.
SECTION 10: (COURT TO DISMISS SUIT IF NO VALID LICENCE)
(1) No court shall pass a decree in favour of a money, lender ;it an, it to which this Act applies [including such ,suit pending in the court before the commencement of the Bombay Money-lenders (Amendment) Act, 1975] unless the court is satisfied that at the time when the loan or any part thereof, to which the suit relates was advanced, the money-tender held a valid licence, and if the court is satisfied that the money-lender did rot ]told a valid licence, it shall dismiss the suit.".
(5) Nothing in this section shall affect suits in respect of loans advanced by a moneylender before the date on which this Act comes into force;
(b) the powers of a Court of Wards, or an Official Assingee, a receiver, an administrator or a Court under !It, provisions of the Presidency-towns Insolvency Act 1909, or the Provincial Insolvency Act, 1920, or any other law in force corresponding, to that Act, or of a liquidator under the Companies Act, 1956, to realise the property of a moneylender.
SECTION 12: APPLICATION FOR CANCELLATION OF LICENCE
(1) Any person may, during the currency of a licence, file en application to the Registrar General for the cancellation of the licence issued to a moneylender on the ground that such money-lender has been guilty of an) act or conduct for which the Registrar may under section 8 refuse him the grant of a licence At the time of filing his application the said person shall deposit such amount not exceeding Rs. 100 as the Registrar General may deem fit.
(2) On the receipt of such application and deposit or of a report to that effect from an officer acting under section 13A the Registrar General shall hold an inquiry and if he is satisfied that the money-lender has been guilty of such act or conduct he may direct the Registrar to cancel the licence of the money-lender and may also direct the return of the deposit made under subsection (I).
(3) If in the opinion of the Registrar General an application trade under subsection (1) if frivolous or vexatious, he may, cut of the deposit made under sub-section (1), direct to be paid to the in one, -lender such amount as he deems fit as compensation.
SECTION 13: REGISTRAR GENERAL, REGISTRAR AND ASSISTANT REGIS PAR TO HAVE POWER OF CIVIL COURT
For the purposes of sections 7 and 13 A, the Registrar, Assistant Registrar and, as the case may be, the officer authorised under section 13A and for the purposes of section 12 the Registrar General shall have and may exercise the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 in respect of the following matters :
(a) enforcing the attendance of any person and examining him on oath;
(b)compelling the production of documents and material objects;
(c) issuing commissions for the examination of witnesses; and
(d) proof of facts by affidavits.
SECTION 13A: POWER OF AUTHORISED OFFICER TO REQUIRE PRODUCTION OF RECORDS OR DOCUMENTS
For the purpose of verifying whether the business of money-lending is carried on in accordance with the provisions of this Act any Registrar, Assistant Registrar or any other officer authorised by the State Government in this behalf may require any money-lender or any person in respect of whom the Registrar, Assistant Registrar or the officer so authorised has reason to believe that he is carrying on the business of money-lending in the State to produce any record or document in his possession which in his opinion is relevant for the purpose and thereupon such money-lender or person shall produce such record or document., The Registrar, Assistant Registrar or officer, so authorised may after reasonable notice at any reasonable time enter and search without warrant any premises where he believes such record or document to be and inspect such record or document and may ask any question necessary for interpreting or verifying such record.
SECTION 13B: DISPOSAL OF PROPERTY PLEDGED WITH MONEYLENDER CARRYING ON BUSINESS OF MONEY-LENDING WITHOUT VALID LICENCE
(1) If upon the inspection of records and documents made under section 13 A, the inspecting officer is satisfied that the money-lender is in possession of property pledged to him by a debtor as security for the loan advanced by the money-lender in the course of his business of money-lending without a valid, licence, the inspecting officer shall require the money-lender to deliver forthwith the possession of such property to him.
(2) Upon the property being delivered to him, the inspecting officer, if he is not the Registrar, shall entrust it to the Registrar and the Registrar (when he is also the inspecting officer) shall keep it in his custody for being disposed of as hereinafter provided.
(3) On delivery of the property under sub-section (1) Or sub-section (2), the Registrar shall, after due verification and id thereof, return it to the debtor who had pledged it or, where the debtor is dead, to his known heirs.
(4) If the debtor or his known heirs cannot be traced, the Registrar hall, within ninety days from the date of taking possession of the properly, publish a notice in the prescribed manner inviting claims thereto. If before the expiry of the said period, a claim is received, whether in answer to the notice or otherwise, he shall adjudicate upon and decide such claim. If the Registrar is satisfied that any claim is valid, he shall deliver the possession of the property to the person claiming it on his giving a receipt therefor; and such delivery of the property to the person claiming it shall discharge the Registrar of his liability in respect of such property against any other person. If the claim is refused, the property shall stand forfeited to the State Government.
(5) Where the possession of the property pledged by a debtor cannot, for any reason (including identity thereof) be deliver ed to him, then the money-lender to whom it was pledged shall be required to pay to the debtor of if he is dead to his known heir, the value of such property if such debtor or, as the case may be the heir claims the property. If the money-lender fails to pay the value, it may be recoverable from him as an arrear of land revenue; and on recovery of the value, it shall be delivered to the debtor by whom such property was pledged or as the case may be to the heir.
(6) If there is difference of opinion between the money lender and the debtor or as the case may be, his heir on the question of value of the property or its identity the question shall be referred to the Registrar for decision and his decision on the question shall be final.
(7) The value of the property may be determined with the assistance of the services of an expert appointed by the State Government in that behalf. The expert may be paid such honoraria as the State Government or any officer not below the rank of a Tahsildar appointed by it may by an order in writing front time to time in relation to any area or areas determine
SECTION 14: COURT'S, POWER TO CANCEL OR SUSPEND A LICENCE
(1) (i) A Cara passing an order of conviction against a moneylender for an offence under this Act, or
(ii) a Court trying a suit to which this Act applies, it satisfied that such money-lender has committed such contravention of the provisions of this Act or the rules as would, in its opinion, wake hill, mull to carry on the business of money-lending
(a) may order that all the licences held by such moneylender in the Stale be cancelled or suspended for such time as it may think fit, and
(b) may, if it thinks fit, declare ally such moneylender, or if any money-lender is an undivided Motto family, a company or air unincorporated body, such family, company or body and also any person responsible for the management of the business of money lending carried on by such family company or body, to be disqualified from holding any licence in the State for such time as the Court may think fit.
(2) Where a Court convicts a money-lender of an offence under this Act, or makes an order or declaration under clause (a) or (b) of sub-section (1) it shall cause the particulars of the conviction, order or declaration, as the case may be, to be endorsed on ,all the licence, held by the moneylenders convicted or by any other person affected by the order or declaration and shall cause copies of its order or declaration to be sent to the Registrars by whom the licences are granted for the purpose of entering such particulars in the registers
Provided that where any licence held by any money-lender is suspended or cancelled or any money-lender is disqualified from holding any licence under this section be may appeal against such order to the Court to which an appeal ordinarily lies from the decision of the Court passing the order; and the Court which passed the order or the Court of appeal may if it thinks fit, pending the appeal, stay the operation of the order under this Section.
(3) Any licence required by a Court for endorsement in accordance with sub-section (2) shall be Produced by the person by whom it is held in such manner and within such time as may be directed by the Court and any person who, without reasonable cause, makes default in producing the licence so required shall be liable, on conviction, to a fine not exceeding Rs. 500 for each day for the period during which the default continues.
(4) Powers conferred on a Court under this section may be exercised by any Court in appeal or in revision.
SECTION 15: NO COMPENSATION FOR SUSPENSION OR CANCELLATION OF LICENCE
Where a licence is suspended or cancelled under this Act. no person shall be entitled to any compensation or the refund of an) licence fee or inspection fee.
SECTION 16: PERSONS DEBARRED FRONT DOING BUSINESS DURING PERIOD OF SUSPENSION OR CANCELLATION OF LICENCE
A person whose licence has been suspended or cancelled in accordance with the provisions of this Act hall, during the period of suspension or cancellation as, the case may be, be disqualified front holding an, licence in the State.
SECTION 17: PERSON WHOSE IS SUSPENDED OR CANCELLED NOT TO APPLY WITHOUT GIVING PARTICULARS OF ENDORSEMENT OR OF DISQUALIFICATION:
No person whose licence has been endorsed under section 14 or who has been disqualified from holding a licence shall apply for, or be eligible to hold a licence, without giving particulars of such endorsement or disqualification.
SECTION 18: DUTY OF MONEY-LENDER TO KEEP ACCOUNTS AND FURNISH COPIES
(1) Every moneylender shall keep and maintain a cash book and a ledger in such form and in such mariner as may be prescribed.
(2) Every money-lender shall-
(a) delivery or cause to be delivered-
(i) to the debtor within 30 days from the date on which a loan is made, a statement in any recognised language showing in clear and distinct terms the amount and date of the loan and of its maturity, the nature, of the security, if any, for the loan, the name and address of the debtor and of the moneylender and the rate of interest charged.
Provided that no such statement hall be required to be delivered to a debtor if he is supplied by the money-lender with a pass book which shall be in, prescribed form and shall contain an up-to-date account of the transactions with the debtor.
(ii) to the Assistant Registrar, within the said Period a statement containing the particulars referred to in clause (a) (i);
(b) upon repayment of a loan in full, mark indelibly every paper signed by the debtor with words indicating payment or cancellation, and discharge every mortgage, restoreevery pledge, return every note and cancel or reassign every assignment given by the debtor as security for the loan.
(2A) Notwithstanding anything contained in clause (a) (ii) of sub-section (2), the State Government may by order in writing permit such class of money-lenders as may be specified in the order to deliver or cause to be delivered to the Assistant Registrar trar a statement containing the particulars referred to in clause (a) (i) of subsection (2) in respect of all loans made during every such period as may be specified in the order. And upon the issue of such order a money-lender electing to deliver a periodical statement as provided in this subsection shall deliver or cause to be delivered the same within a period of 30 days from the date of expiry of every such period.
(3) No moneylender shall receive any payment from a debtor on account of any loan without giving him a plain and complete receipt for the payment,
(4) No money-lender shall accept from a debtor any article as a pawn, pledge or security for a loan without giving him a plain signed receipt for the same with its description, estimated value, the amount or loan advanced against it and such other particulars as may be prescribed. Such moneylender shall maintain the duplicates of such receipts in a separate register
SECTION 19: DELIVERY OF STATEMENT OF ACCOUNTS AND COPIES THEREOF BY MONEY-LENDER
(1) Every moneylender shall deliver or cause to be delivered every year to each of his debtors a legible statement of such debtor's accounts signed by the moneylender or his agent of any amount that may be outstanding against such debtor. The statement shall show
(i) the amount of principal, the amount of interest and the amount of fees referred to in section 19A, separately due to the moneylender at the beginning of the year:
(ii) the total amount of loans advanced during the year;
(iii) the total amount of repayment received during the year; and
(iv) the amounts of principal and interest due at the end or the year,
The statement shall be signed by the money-lender, or his agent, and shall be in any recognised language. It hall be in such farm and shall be supplied to the debtor on or before such date as may be prescribed: Provided that no such statement shall be required to be delivered to a debtor if he is supplied by the money-lender with a pass book which shall be in the prescribed form and shall contain an up-to-date account of the transactions with the debtor.
The money-lender shall on or before the aforesaid date deliver or cause to be delivered a statement containing the particulars specified in clauses (i) to (iv) to the Assistant Registrar.
(2) In respect of any particular loan, whether advanced before or after the date on which this Act comes into force, the moneylender shall, on demand in writing being made by the debtor at any time during the period when the loan or any part thereof has not been repaid. and on payment of the prescribed fee supply to the debtor, or if the debtor so require to any person specified in that behalf in the demand, a statement, in any recognised language, signed by the money-lender or his agent, and containing the relevant particulars specified in subsection(1)
(3) A money-lender shall, on a demand in writing by the debtor, and tender of the prescribed sum of expenses, supply a copy of any document relating to a loan made by him or any security therefore to the debtor, or if the debtor so requires to any person specified in that behalf in the demand.
(4) For the purposes of this section "year" means the year for which the accounts of the money-lender are ordinarily maintained in his own books.
SECTION 19A: FEES FOR CERTAIN STATEMENTS SUPPLIED TO DEBTORS AND ASSISTANT REGISTRARS
(1) A money-lender may recover from a debtor fees for the statements or a pass back supplied to him under subsection (2) of section 18 or subsection (1) of section 19 and] in respect of copies of such statements supplied to the Assistant Registrar under the said sub-sections or in respect of copies of statements Supplied to him under sub-section (2A) of section 18,
(2) Such fees shall be recoverable at such rates and in such manner as may be prescribed, subject to the maximum of two rupees per debtor, pet year, irrespective of the number of statements or copies thereof supplied to the debtor or file Assistant Registrar during the relevant year.
SECTION 20: DEBTOR NOT BOUND TO ADMIT CORRECTNESS OF ACCOUNT
A debtor to whom a statement of accounts or a pass book has been furnished under section 19 shall not be bound to acknowledge or deny its correctness and his failure to do so shad not, by itself, be deemed to be an admission of the correctness of the accounts.
SECTION 21: PROCEDURE OF COURT IN SUIT REGARDING LOANS
Notwithstanding anything contained in any law for the time being in force, in any suit to which this Act applies
(a) a Court shall, before deciding the claim (in merits, frame and decide the issue whether the money-lender has complied with] the provisions of sections 18 and 19;
(b) if the Court finds that the provisions of section 15 or section 19 have not been complied with by the money-lender, it may, if the plaintiff's claim is established, in whole or in part, disallow the whole or am, portion of the interest found due, as may seem reasonable to it in the circumstances of the case and may disallow costs.
Explanation.-A money-lender who has given the receipt or furnished a statement of accounts or a pass book in the prescribed form and manner, shall be held to have complied with the provisions of section 18 or section 19 as the case may be, inspite of any errors and omissions, it the Court finds that such errors and omissions are not material or not made fraudulently.
SECTION 22: PROVISIONS OF CERTAIN SECTIONS NOT TO APPLY TO LOAN, MADE BY COMPANY OR UNINCORPORATED BODY EXEMPTED BY GOVERNMENT:
Nothing in sections 18 to 21 shall apply to loans advanced by any, company or unincorporated body which the State Government may by notification in the Official Gazelle exempt from the operation of those sections.
SEC TION 23: POWER OF COURT TO LIMIT INTEREST RECOVERABLE IT, CERTAIN CASES
Notwithstanding anything contained in any agreement or any law for the time being in force no Court shall in respect of any loan whether advanced before or after the date on which this Act comes into force, decree on account of interest, a sum greater than the principal of the loan due on the date of the decree.
SECTION 24: POWER OF COURT TO DIRECT PAYMENT OF DECRETAL AMOUNT BY INSTALLMENTS
Notwithstanding anything contained in the Code of Civil Procedure, 1908, the Court may, at any time, on application of a judgment-debtor, after notice to the decree-holder, direct that the amount of any decree passed against him whether before or after the date on which this Act comes into force, in respect f a loan, shall be paid in such number of installments and subject to such conditions, and payable on such dates, as, having regard to the circumstances of the judgment-debtor and the amount of the decree, it considers fit.
SECTION 25: LIMITATION ON RATES OF INTEREST
(1) The State Government may from time to time by notification, in the Official Gazette fix the maximum rates of interest for any local area or class of business of money-lending in respect of secured and unsecured loans.
(1A) No money-lender shall receive from a debtor or in fencing debtor any sum by way of compound interest on a loan advanced or intended to be advanced or any sum by way of interest at a rate higher than the rate fixed under sub-section (1) for any default committed by tire debtor in payment of the sums on due date in accordance with the terms on which the loan is granted :
Provided that the moneylender, in case of such default, may charge simple interest at a rate not exceeding the rate payable in respect of the principal oil the sums due in respect of the period commencing on the date oil which they become due for payment and ending on the date on which they are actually paid.
(2) Notwithstanding anything contained in any law for fit, time being in force, no agreement between a moneylender and a debtor for payment of interest at rates exceeding the maximum rates fixed by the State Government under sub-section (1) and no agreement in contravention of the provisions of sub-section (1A) shall be valid.
(3) If any money-lender or a person advancing a loan specified in sub-clause (g) of clause (9) of section 2 makes air oral or written demand or charge, or receives from a debtor interest at rate exceeding the maximum rate fixed by the State Government under sub-section (1) he shall for the purposes of section 34, be deemed to have contravened the provisions of this Act.
SECTION 26: PROHIBITION OF CHARGE FOR EXPENSES ON LOANS BY MONEY-LENDERS
(1) No money-lender shall receive from a debtor or intending debtor any sum other than reasonable costs of investigating title to the property, costs of stamp, registration of documents and other usual out of pocket expenses in cases where an agreement between the parties includes a stipulation that property is to be given as security or by way of mortgage and where both parties have agreed to such costs and reimbursement thereof or where such costs, charges or expenses are leviable under the previsions of the Transfer of Property Act, 1882, or any other law for the time being in force.
(2) Any sum received by a moneylender in contravention subsection (1) front a debtor or intending debtor on account of costs, charges or expenses referred to in that sub-section shall be recoverable from the money-lender as debt due from him to the debtor or as the case may be, intending debtor, or shall be liable to be set off against the loan actually lent to the debtor or intending debtor.
SECTION 27: NOTICE AND INFORMATION TO BE GIVEN ON ASSIGNMENT OF LOAN
(1) Where a loan advanced, whether before or after the date on which this Act comes into force, or any interest of such loan or the benefit of any agreement made or security taken in respect of such loan or interest is assigned to any assignee, the assignor whether he is the money-lender by whom the money was lent or any person to whom the debt has been previously assigned, shall before the assignment is made
(a) give the assignee notice in writing that the loan, interest, agreement or security is affected by the operation of this Act.;
(b) supply to the assignee all information necessary to enable him to comply with the provisions of this Act; and
(c) give the debtor notice in writing of the assignment supplying the came and address of the assignee.
(2) Any person acting in contravention of the provision, of Subsection (1) shall be liable to indemnify any other person who is prejudiced by the contravention.
SECTION 28: APPLICATION OF ACT AS RESPECTS ASSIGNEES
(1) Save as hereinafter provided where any debt due to a money-lender in respect of money lent by him whether before or after the date on which this Act comes into force or, of interest on money so lent or of the benefit or any agreement made or security taken in respect of any such debt or interest has been assigned the assignee shall be deemed to be the money-lender and all the provisions of this Act shall apply to such assignee as it he were the money-lender,
(2) Notwithstanding anything contained in this Act or in any other law for the time being in force where for any reason any such assignment is invalid and the debtor has made any payment of money or transfer of property on -account of any trap which has been so assigned the assignee shall in respect of such payment or transfer be deemed to he the agent of the money-lender for all the purpose, of this Act.
SECTION 29: REOPENING OF TRANSACTIONS
Notwithstanding anything contained in any law for the tint, being in force the Court shall in any suit to which this Act applies, whether heard ex parte or otherwise
(a) reopen any transaction, or any account already taker between the parties;
(b) take 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 amount
Provided that in the exercise of these powers the Court shall not
(i) reopen any adjustment or agreement purporting to close previous dealings and to create new obligations which have been entered into by the parties or any person,
through whom They claim at a date more than six years from the date of the suit;
(ii) do anything which affects any decree of a Court.
Explanation:-For the purpose of this section excessive interest means interest at a rate which contravenes any of the provisions of section 25.
SECTION 30: INQUIRY FOR TAKING ACCOUNTS AND DECLARING THE AMOUNT DUE
(1) Any debtor may make an application at any time to the Court whether the loan 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 cu 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 !he money-lender, in respect of the principal and interest, if any. In taking accounts under this section the Court shall follow the provisions of sections IS to 29 and section 31A.
SECTION 31: DEPOSIT IN COURT OF MONEY DUE TO MONEY-LENDER
(1) At any time a debtor may tender to a money-lender any sum of money due from him to the money-lender in respect of a loan by way of principal interest or both.
(2) If the money-lender refuses to accept any sum so tendered, the debtor may deposit the said sum in Court to the ac. count of the money-lender.
(3) The Court shall thereupon cause written notice of 'he deposit to be served on the money-lender, and he may, on presenting a petition stating the sum then due in respect of the loan, and has willingness to accept the said sum, receive and appropriateit first towards the interest and the residue if any towards the principal.
(4) When the money-lender does not accept the sum, the Court hill appropriate the said sum first towards the interest and the residue if any towards the principal.
SECTION 31A: WHEN INTEREST TO BE PAID FOR ENTIRE MONTH
Notwithstanding any agreement between the parties or out low for the time being in force, when a statement is delivered or pass book is supplied to a debtor under section 19 or if accounts are , taken under section 30 or a tender is made by a debtor to a moneylender in respect of a loan under section 31 before the sixteenth day of a calendar month, the interest due shall be calculated as payable for fifteen days of the said month, and if the statement is delivered or pass book is supplied or amounts are taken or tender is made on any subsequent day, then for the entire calendar mouth irrespective of the fact that such statement is delivered or pass book is supplied or such accounts arc taken or such tender is made on any such day.
SECTION 32: ENTRY OF WRONG SUM IN BOND, ETC., TO BE AN OFFENCE
(1) No money-tender shall take any promissory note, acknowledgement bond or other writing which does not state the actual amount of the loan, or which states such amount wrongly or execute any instrument in which blanks are left to be filled after execution,
(2) Whoever contravenes the provisions of subsection (1) shall, on conviction be punishable with fine which may extend to Rs. 5,000 or with imprisonment of either description which may extend In two years or with both.
SECTION 32A: PENALTY FOR MAKING FALSE STATEMENT
Whoever in any document required by, or for the purposes of, any of the provisions of this Act, wilfully makes a statement it, any material particulars knowing if to be false, shall, on conviction, be punished with imprisonment for a term which may extend to two years or with fine which may extend to five thousand rupees or with both,
SECTION 32B: PENALTY FOR OBTAINING LICENCE UNDER FICTITIOUS NAME CARRYING ON MONEY-LENDING BUSINESS WITHOUT VALID LICENCE AND ENTERING INTO AGREEMENT, IN THE COURSE OF MONEY-LENDING BUSINESSCARRIED ON UNDER FICTITIOUS NAME:
Whoever
(a) obtains a licence in the name which is not his true more or carries on the business of money-lending under the licence so obtained, or
(b) carries on the business of money-lending at any place without holding a valid licence authorising him to carry on such business at such place, or
(c) enters into any agreement in the course of business ,of money-lending without a valid licence or under a licence obtained in the name which is not his true name shall, on conviction, be punished,-
(i) for the first offence, with imprisonment of either description which may extend to one year or with fine which may extend to topics one thousand and five hundred or with both, and
(ii) for the second or subsequent offence, in addition to or in lieu of, the penalty specified in clause (i), with imprisonment which shall not be less than two years, where such person is not a company, and with fine which shall not be less than rupees five thousand, where such person is a company.
SECTION 33: PENALTY FOR MOLESTATION
(1) Whoever molests, or abets the molestation, of a debtor for the recovery of a debt due by him to a creditor shall, on convictionbe perishable with imprisonment of either description Much may extend to three month., or with fine which may extend to Rs. 500 or with both.
Explanation. -For the purposes of this section a person who, with intent to cause another person to abstain from doing any act which lie has a right to do or to do any act which he has a right to abstain from doing
(a) obstructs or uses violence to or intimidates such other person, or
(b) persistently follows such other person from place to place or interfere, with any property owned, or used by him or deprives him of, or hinders him in, the use thereof, or
(c) loiters near a house or other place where such other person resides or works, or carries on business, or happens to be, does any act calculated to annoy or intimidate such other person, shall be deemed to molest such other person
Provided that a person who goes to such house or place in order merely to obtain or communicate information shall not be deemed to molest.
SECTION 34: GENERAL PROVISION REGARDING PENALTIES
Whoever fails to comply with or acts in contravention of any provision of this Act, shall, if no specific penalty has been provided for in this Act, be punishable
(a)for the first offence with simple imprisonment which may extend to one year or with fine which may extend to Rs. 5,000 or with both, and
(b)for the second or subsequent offence with imprisonment of either description which may extend to two years or with fine which may extend to Rs. 1,000 or with both.
SECTION 35: OFFENCES BY CORPORATIONS, ETC.
If the person contravening any of the provisions of this Act is an undivided Hindu family or a company or an unincorporated body, the person responsible for the management of the business of such family, company or body shall be deemed to be guilty of such contravention.
SECTION 35A: CERTAIN OFFENCES TO BE COGNIZABLE
Notwithstanding anything contained in the Code of Criminal Procedure. 1898, offences punishable
(a) under section 34 for contravening the provisions of section 5, and
(b) under section 33, shall be cognizable.
SECTION 35B: COGNIZANCE OF CERTAIN OFFENCES
No Court shall take cognizance of any offence punishable under section 34 for contravening the provisions of section 18 or section 19, except with the previous sanction of the Registrar.
SECTION 36: ARREST AND IMPRISONMENT IN EXECUTION OF DECREE FOR MONEY, AGAINST AGRICULTURAL DEBTORS, ABOLISHED
Notwithstanding any law for the time being in force, no debtor who cultivates land personally and whose debts do not exceed Rs. 15,000 shall be arrested or imprisoned in execution of a decree for money passed in favour of a money-lender, whether before or after the date on which this Act comes into force.
Explanation:-"To cultivate personally" has the meaning assigned to it in clause (6) of section 2 of the Bombay Tenancy and Agricultural Lands Act, 1948,
SECTION 37: EVERY OFFICER TO BE PUBLIC SERVANT
Every officer of the Government acting under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
SECTION 38: PROVISIONS OF BOM XXVIII OF 1947 DATED
Nothing in this Act shall affect any of the provisions of the Bombay Agricultural Debtors Relief Act 1947 or of any other law relating to relief of agricultural indebtedness in force corresponding to that Act, and no Court shall entertain or proceed under this Act with any suit or proceeding relating to my loan in respect of which debt adjustment proceedings can be taken under the said Act or, as the case may be, the said law.
SECTION 38A: POWER OF SAVE GOVERNMENT TO DELEGATE ITS POWER
The State Government may delegate to any officer any of the powers conferred on it by or under this Act.
SECTION 39: RULES
(1) The State Government may make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing provision, such rules may provide for all or any of the following matters:
(a) the form of the register under section 4;
(b) the form of the application for a licence, the further particulars to be included therein and the manner of payment of licence fee under section 6;
(c) the form and conditions of the licence, and the manner of payment of licence fee under section 7;
(ca) the form of ppl,cation for certificate and the form of certificate under sub-section (3) of section 7 A;
(cb) the manner of publishing a notice under sub-section (4) of section 13 B for inviting claims to property pledged with a money lender.
(d) the form of cashbook and ledger and the manner in which they should be maintained under subsection (1) and the other particulars to be prescribed nuclei subsection (4), of section 18
(e) the form of the statement of accounts and pass book, to be famished or delivered and the date before which it s to be tarnished or delivered under subsection (1) the fee to be paid under subsection (2), and the sum of expenses to be paid under sub-section (3), of section 19;
(ee) the rates at which and the manner in which fees may be recovered under section 19A;
(f) the form of application and the fee to be paid under Subsection (1) of section 30 any other matter which is, or may be prescribed under this Act or any matter for which there is no provision or insufficient provision in this Act and for which provision is, in the opinion of the State Government, necessary for giving effect to the provisions of this Act.
(3) The rules made under this section shall subject to the condition of previous publication, be published in the official Gazette.
(4) The rules made under section shall be laid before each House of the State Legislature at the session thereof nest following and shall be liable to be modified or rescinded by a resolution in which both Houses concur and such rule shall, after notification in the Official Gazette, be deemed to have been modified or rescinded accordingly.
SECTION 40: REPEAL AND SAVINGS
On the commencement of this Act in that part of the State to which it is extended by the Bombay Money-lenders (Unification and Amendment Act, 1959, the Central Provinces and Berar Money-lenders Act, 1934 and the Central Provinces and Berar Protection of Debtors Act, 1937 in their application to the Vidarbha region of the State, the Money-lenders Act, 1349 Fasli and the Hyderabad Money Lenders Validity of Licences Act 1956 in their application to the Hyderabad area of the State and the Bombay Money-lenders Act, 1946 as applied to the Kutch area of the State shall be repealed .
Provided that the repeal of any of the Acts shall not affect to the previous operation of any Act so repealed or anything duly done or suffered thereunder
(b) any right, privilege, obligation or liability acquired, accrued or incurred under any Act so repealed; or
(c) any penalty, forfeiture or punishment, incurred in respect of any offence committed against any Act so repealed: or
(d) any investigation, legal proceeding or remedy in respect of any such right, privilege obligation, liability penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if the Bombay Moneylenders (Unification and Amendment) Act, 1959 had not been passed
Provided further that, subject to the preceding proviso anything done or an, action taken including rules, delegations and authorisations made. registers maintained. registration certificates and licences granted and notifications issued under a provision of any Act so repealed shall, in so far as it is not inconsistent with any of the provisions of this Act, be deemed to have been done or taken under the corresponding provision of this Act, and shall continue to be in force accordingly, unless and until altered amended, or superseded by anything done or any action taken under this Act.
