The Decree No. 386, dated 22nd February, 1906 promulgated by Arrete No. 385, dated 18th June, 1906 shall stand repealed.
------------------------ 498 ANNEXURE THE MADRAS PAWNBROKERS ACT, 1943 (As extended to the Union territory of Puducherry) (Madras Act XXIII of 1943) AN ACT to regulate and control the business of pawnbrokers in the State of Madras.
Whereas it is expedient to make provision for the regulation and control of the business of pawnbrokers in the State of Madras;
It is hereby enacted as follows : -
1. Short title, extent and commencement. – (1) This Act may be called the Madras Pawnbrokers Act, 1943.
(2) It extends to the whole of the State of Madras.
(3) [Omitted.]
2. Definitions. – In this Act, unless there is anything repugnant in the subject or context ---
(1) (Omitted)
(2) ‘Company’ means the Company ---
(a) registered under any of the enactments relating to companies for the time being in force in India or in the United Kingdom or in any of the British Dominion or in any of the Colonies of the United Kingdom; or
(b) incorporated by an Act of Parliament of the United Kingdom or by Royal Charter of Letters Patent or by any Central Act.
(3) “Co-operative Society” means a society registered or deemed to be registered under the Puducherry Co-operative Societies Act, 1965 (Act No. 11 of 1965);
499 (3-A) “Inspector” means an Inspector appointed under sub-section (1) of section 10-B;
(4) “interest” does not include any sum lawfully charged in accordance with the provisions of this Act by a pawnbroker for or on account of charges, but save as aforesaid 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;
(5) “loan” means an advance of money or in kind at interest, 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 in a company or with a co-operative society;
(ii) an advance made by a Banking Company as defined in section 5
(c) of the Banking Regulation Act, 1949 (Central Act X of 1949) or by the State Bank of India or by any other banking institution notified under section 51 of the said Act or a co-operative society;
(iii) an advance made by Government or by any person authorised by Government to make advances in 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, by a lessor to his lessee, or by one partner in cultivation or co-sharer to another for the purpose of carrying on agriculture;
(6) “pawnbroker” 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;
(7) “pawner” means a person delivering an article for pawn to a pawnbroker;
(8) “pledge” means an article pawned with a pawn broker;
(9) “prescribed” means prescribed by rules made under this Act;
(10) “principal” in relation to a loan means the amount actually lent to the pawner; and 500
(11) “year” means the financial year.
3. Pawnbroker to obtain licence annually. – (1) No person shall, after the expiry of three 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 pawnbroker’s licence under this Act.
Explanation. --- 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 shop or place of business.
(2) Every pawnbroker’s licence granted under this Act shall expire on the last day of the year for which it was granted, but may be renewed from year to year.
4. Grant and refusal of licences. – (1) Every application for a pawnbroker’s licence shall be in writing and shall be made to the licensing authority prescribed under this Act.
(2) The licence shall not be refused except on one or both 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;
and
(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, is frequented by thieves or persons of bad character:
Provided that the licence shall not be refused under this sub-section unless the applicant has had a reasonable opportunity of making his representations.
(3) In granting or refusing to grant a licence under this section, the licensing authority may consult such authority or officer as may be prescribed.
(3-A) Any person aggrieved by an order of the licensing authority refusing to grant a licence under this section may, within such time as may be prescribed, appeal to such authority as the Administrator may specify in this behalf and such authority may make such order in the case as he may think fit.
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(4) Every licence shall be granted in such form and subject to such conditions as may be prescribed and on payment of such fee not exceeding 1 [one hundred rupees] as the Administrator may, from time to time, by notification in the Official Gazette, determine.