TUE ASSA.\f MONEY LENDERS' ACT,
1934. [Publi$hed in the ..J.ss1i111 Gazelle 0£ the 27th June 1984.] Ari Act to p1·o·v1"de for more effectual control o/ mone~·-lending i11 Assam, WHEREAB it is' expedient to m;ke better provision fo" the conti•ol of money-lending and to givo addioioual powers fJo Courts tQ deal with money· :~uders in Assam ; And whereas the ptevious sanction of the Governor General has been obtained under sub-!lection (:3) of section 8oA of the Government oil India Act to the passing of this Act. It is hereby enacted as follows :- :!1~t t~~~ 1. (l) This Act may be called the Assam 001111DOnceinont. Money-Lenders Act, 1934. (Z) I t extends to the whole of Assam including AMam .ut u the t.erritories mentioned in section 14 of the ot 191.G, Ass~m (:i enera.l Clauses Act, l 915.
(3) It shall come into force on such date as the Local Government may by notification direct. _, _ Defttit!l.001. 2, Iu this .1\ ct, unless there is anything ~ - repugnant in the subject or context,- /-~ ~/ (1) "Money-lender" means a person ho )'""'+ L grants a loan. ,., tr (2) "Interest" means l'ate of inte:rf;)at and inolud~s the return t.o be made over and above wha.t wa11 a.ctnally lent whether the same is 1 charged or sought to he recovered speoiftcally 1 ~J bl wa.y of i11terest or atherwise ; t ..Jr <J (3) "Loan" mea.os a.n advance (whether of ~t.- If' ~money or in kind) at interest made by a money• - - I lender and shall include any boud bearing interest .... t}A executed in respect of pa.st liabiliti~iya.od any J;;;.11* .:-A i ·a.1u~aation which in substance i l a loan; [E%pla• L. ~ l nation. -A bond bearing interest executed in , ~- · -1 -'f " '" respect of goods ta.ken .oo credit constitutes a ~ ~.., t loan.] and ~J • · (4) '-Presoribed" mean-, prescribed b.r rules made under this Aot. ~ - ~ .t....4..· 3 "l _.., _ "(V,- J( v '" 1 '' ,,J? Pric1-E_.nglisk: 4d.l (l,.c1•a1: at&i1111 8. 2 etit~~;tty iari~~ 3. If the loan actually made be less than the amnunt In tbo sum entered in the bond or hand note the bood than ac· • 1 tua111 tant. money-lender shall be gmlty of a oontra;yention of tho proTieions of this Act and shall, on con viction, be punishable with fine not exceeding two hundred rupees. l..L.t ,,. Prohibition °1 4· Any contract madera£ter the oommenceco mp o u u d · ,1. lntero'!l and ment of this Act for the loan of money by a 1>ro•ls1ons ft8 to l d b ll b .11 l . f . dofaultiug. money- en er s a e 1 P.ga 1tl • so ar as it provides directly or indirectly for tho payment of compound interest or for the rate or amount of interest being increased by reason of any default in the payment of s11ms due under the contra.ct : Slmpl~ Into. /; Provided that provision may be made by any rut In caso or b h t if d f l · ad · h dolault. sue contract t a e au t ts m e mt o payment upon the due date of any sum pa.yable to the money-lender under the contract, whether in respect of principal or interest, or both, the money lender shall be entitled to charge simple interest on that sum from the date of the default until the sum is paid, at a rate not exceeding the rate payable in respect of the principal apart from any default, and any interest so charge1I shall not be reckoned for the purposes of this Act as ert of the interest charged in respect of the loan . .]~ Prohlb!Uoo 5. J\ ny agreement between a money-lender of cnarge lor · • £ h openses en and a borrower or mtendmg borrower or t e \:·d~~ mooe;y- payment by the borrower or intending borrower to the money-lender of a.ny sum on account of costs, charges or expenses incidental to or rola.tiog to the negotiations for or the granting of the loan or proposed loan shall be illegal, a.ud if any sum is pa.id to a. money-lender by a borrower or intending borrower ae for or on account of any such costs, charges or expenses, that sum shall be recoverable as a debt due to the borrower or intending borrower, or, in the event of the loan being completed, Bhall, if not so recovered . be set off against the amount actually lent and that amount shall be deemed to be reduced accordingly. Exceptioo.-This will not deba.r money-lenders from recovering reasonable costs of inspection of Revenue or Registration records including exami nation of titles and also costs of inspection of pro perty, in cases where the contract includes a stipulation that property is given a.s security or 1'y way of mortgage and where both parties have agreed to such costs and reimbursement there of. • \ \ ' •'.I"~~- "-. ,,,..., l ~·• rnn. ~··"· :P.R 4lf i. -..w. ,'HU.(lUC' 3 !ce:':f.. 01 6. Every money-lender shall keep accounts in the form prescribed. Obligation of 7 (1) I t f t t f tb mooc1.Jender to • n respec o every con rac or e rernpply Inform•· payment of a. loan made by a money-lender t ion as io 11ate • or loon and wbetlier ma.de before or after the commencement . ~r~~: 0:e1:tfu~ of this Act, the money-lender shall on demand in ther~to. writing being made by the borrower at tlie time of executing the contract or at - any time durine the continuance of the contract, s\1pply to the borrower, or, if the borrower so requires, to any p1nson specified in that behalf in the demand, a statemei:it signed by the money-lender or bis agent showing- (") the date on which the loan was made, the amount of the principal of the loan, and the rate per cent. per annum of interest charged ; and
(b) the amount of any payment already receind by the money-lender in respect of the loan and the date on which it was made : and
(c) the amount of every sum due to the money-lender, but unpaid, and the date upon which it became due and the amount of interest accrued due and unpaid in respect of every &uch sum ; and
(d) the amount of every sum not yet due which re1~ains outstanding and the date upon which it will become due :
Provided that when a demand under this sub section bas once been complied with, a second domnincl may not be ma.de in respect of the sa.mo loan within six months. ~~~ ro~1 g~~~: (2) A money-lender shall on demand in writing uwor, by the borrower, and on tender of the prescribed sum for expenses, supply a copy of any document relating to a. loan made by him or any security therefor, to the borrower, .or if the borrower so requires, to any person specified in that behalf in the demand. Ohll effee.11 of (3) If a money-lender to whom a demand has aon-eomphauce, h' . £ 'l . h been made under t is section a.1 w1t out reasonable excuse to compl v therewith within one month after the demand has been lllade, he shall not so long as the default continues be entitled to sue for or recover any sum due under the con tract on accoum either of principal or interest , and interest shall not be chargeable in respect of the period of the default. 4 ib!'9:a'~t~f0c~:. /)3. Where in any suit iu tcspect of any loan taln 10•01. made or any security taken for a loa.n mad~ by a. money-lender after the commencement of the Usurious Loans Act, HUS, it is found that the Act :<of 101s. interest charged exceeds the l'ate of 12i per cent. 71 per annum in the case of a secured loan or 18~ ~ ; -::; f :_ _ / per cent. per annum in the ca.;e of an un~ecuretl ~ r"\ 1.l loan, the t ourt shall, until the contrary is proved, J.,,1(J;J-"''-· P!esumo for the purposes of seQLion :3 of Lhe , ;:;:, '1 Usurious Loans Act, Hll8, that lhO' inLerest Att x or ma. J_ - """". ·-" -"7 tr" charged is excessive and that the transacLion was, ~ frl'""""' as between the parties thereto, sttbstn.11tiailly · / r> lf ~ · unfair, but this provis ion shall be without pre- "' .It' judice to the powers of the Court under the said section where the Coui t iF: satisfied tlrn.t the ..'.J interest cha.rged though not exceeding 12~ per cent. per annum or 18! per cent. per annum, as the ca.so may be, is excessive7 nar to rt1Co•ery L9. No Courts shall, in respec·t of any loan mado of fntereat t•:i:· • • 1 c; coedtng Ibo beforo or after the cvmmenc" moot of t Ins ,\ct, ..i..v-· prlorlpat. decree on account of arrears of interest a. i:;um ~ r./lrf'~ greater than the principal of the loan) ~ ·>.'~4) ' ~ ./ f fY' ~o~f'::'lt-moo!; 10. (1) Where a borrower has sent to a money- ~, do• to mooer· lender by postal moMy-order or bv 1·egislorcd lender. post with acknowledgment due ;ny tzum of money due from him to the mo~1ey-lc0Jer in res pect of a loan and the money-lender has i·oru~Pd to accept the same, the borrowet• ma.y apply in the prescribed manner to the lowe t Ci, U ConrL having jurirdiction over the place whore he resides for poi mission to deposit the aa itl e:nm in Court to the account of the money-lender, :~ml the Court shall thereupon kc:ep L11111 sum in dopoi;it and shall send a notice of the , cfoposit in the prescribed manner to the money-lender. '&tltrlctlon1 on moo•:r·lendiog tldnrllsemeou.
(2) If the money-lender accepts money sent in the manner spe1·ified in sub-section (1) by a borrower or withdraws money deposited under the said sub-section, he shall not be bound by any statement made by the borrower in remitting or depositing the money.
11.(1) No person shall knowingly send or del iver or cauee to be sent or delirnrcd to any person except in response to his writtt>n request any circular or other document :•dvertising t..he name or address or a. money-Jender, or 1·ontaining an invitation-
(a) to borrow money from a money-lender; or ,_.- .r ,,... .
(b) to enter into any transaction involving the borrowing of money from a monoy lender; or
(c) to apply to any place with a view to obtaining information or advice as to borrowing any money from a. money lenJer. A~ ~ • 011nueaor~ 1nvft· (2) No money-lender or any person on his being borrowol'e h l f h ]) 1 f h must not bo a s a emp oy any agent or canvasser or t e employed by f · · · b money·lmilm. purpose o lllYttmg any person to orrow money or to enter into any transaction involving the botrQwing of money from a money-lender, and no person shall act a.s snch agent or canvasser or demand or receive directly or indirectly any sum or other valuable consideration by way of com mission or otherwise for introducing or under taking to introduce to a. money-lender any person desiring to borrow money. Pooalty. (3) Any rerson acting in contravention of any of the provisions of this section shall in respect of each offence be liable, on conviction to imprison ment for a term not exceeding three months or a fine not exceeding three hundred rupees or both. Chll olfcots ol (4) Whore it is shown that a. money-l~n<ling contr.vc01 Ion. • h b b · transaction was broug t a out y a contravention of any of the provisions of this section, the trans· action shall be illegal, unless the money-lender proves that the oontra.vention occurred without his consent or connivance. PeMlty\naRst 12. (1) Where in arty suit in respect • of fraud. of any money lent or in respect of any security taken for money lent by a money-lender, the Lrying Court is of opinion that the money lender has been guilt.r of fra.ud, or of any contra vention of the proTisions of this A ct, or is otherwise unfit to carry on the business of money lending, the Court may make an order debarring him from carrying on such business £01· such time a.s may be specified in the orde::- and an appeal sha.11 lie from such an order to the court to which an appeal ordinarily lies under the provisions of the Code of Civil Procedure, 1908, irrespective of Acto v 11oos. the money value of the suit. Pena1t1. (2) Any money-lender carrying on the business of monay-lending in contravention of any order made under sub-section ·!l) shall, on conviction, be liable to a fine which may extend to five hundred rupees. AprfBt, 1:3. Any order of conviction passed under this Act shall be appeala.ble to the Court to wli ich appeal ordinarily lies unde1· the Code'o£ Criminal Procedure, 1898, irrespective of the amount of Ao~ v 0 1 !89~. • fine to wuich an accused may be sentenced. Power ot Local 14. (1) T be Local Go,·ernment may make rules O o•ernmeni to . • malo rule!. for carryrng out the purposes of this Act. Ji I:;,-_
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or a.n.Y of the following: . matters, namely:- (i ) the form in which money-lenders shall keep accounts; (1 i) t ho i11tervale a t which borrowers 'may demand statements of accounts under sub-section (1 ) of section 7 and the fees to be paid for copies of documents sup pliec.l under sub-section (Z) of the same section;
(iii) the manner in which a.n-application for a deposit is to be made under sub-section (1 ) of section 10, and a notice of the deposit is to be sent to the money-lender un<l er the said su b-ssction ; and
(iu) the enforcement of orders made under sub-section (1) of section I t .
(3) The power to make rulai>-~under:"tbis Act shall be subject to · the condition of previous publication. ~~ n..A.' Jl..~1.x1- J5s?) 0 ( ) The 12th J/a,rch 1935, No. 1099G.J, - In exercise of tho powers conferred by section H of the Assam Money Lenders Act, 1934 (As&am Act IV ofl934), the Gonrnor in Council ie pleased to make the following ruloe for carrying out the purposes of the Act. RULES.
1. The account prescribed by section 6 ehall be maintained!in the Form I shown in the ::- ohedole attached to these rules. " Provided that in the case of a society registered under the Co operative Societies Act, 1912 (Act I I of 1912), the account shall be kept in tho form prescribed by that Act or rnles framed thereunder ".
2. T he fees to be paid for copies of documents to be supplied under sub-section (2) of section 7 of the Act shall be three annas for enry 300 vernacular or 150 English wor.ds or part thereof: ProTided that where the borrower or hie authorised agent is allowed tu copy a doou• ment, no fM eball be charged.
8. The application under sub-section (1) of section 10 for permis sion to deposit in the Court any sum of money due from a debtor to a money-lender in respect of any loan or loans shall be in writing and 11hall contain the following, particulars :-
(a) the name aud full address of the money-lender in whose favour the deposit is made ;
(b) a recital t hat the debtor has sent the money to the money lender by postal money order or by registered poet with acknowledgment due and that the money-lender has refused to accept it. ('l'he amounts sent on account of principal and interest should be separately stated with the date of the remittance), The application shall be signed and verified in the manner provided in sub-rules 2 and 3 of rule 15 of Order I in Schedule I to the Code of Civil Procedure, 1908, by the debtor, or by hie authorised agent. 4, The application shall bear a court-fee stamp of eight annas as required by Artiola l (b) of Schedule II of the Court-fees Act, 1870, and shall further be accompanied by printed forms of notice in Form II annexed to these rules for service on the money-lender with r.rocess fees payable in court-fee stamps according to the scale prescribed by the High Court for service of summons on defenda.nts. The blank spaces in Form II shall be filled in by the debtor or by his authorised agent.
5. If it appears to the Court, to which an application for permis sion to deposit under section 10 is made, that the applicant is entitled under that sect ion to deposit the money, it shall receive the same and give the receipt in Form III annexed to these rules.
6. The money-lender may apply for withdrawal of tbe money in Form IV annexed to these rules, and the procedure in connection with such withdrawal fhall be the same as in the case of withdrawal of other civil deposits.
1. A copy of the order under sub-section (1) 0£ section 12 of the Act shall be served on the money-lender in the manner laid down for sernoe of summons on defendants. ... ""'J : ... Loan Account of ~---~~--~--- 0 pen in g balance (i£ any) Principal - Interest- Dr. .a i .. I Advance in ~~ures. .. .. .<I ' -,; I .a ij: . 'E 0 <· .. .9 ~ .,,; r ..a c . .. .. .. . ., ·q; .s " t: .. .. .. m -g 0 ~ ' .. ~ ' 0 .. .a .. .. "' .. e " .. " 0 -... .:. il.E ,; 1 "' g '::.I< ~ c: ·:s " .. ~ A 0 I> . •1 A I ~ - ~ . -: f !l " - 0 .. -.. c; ) c I . i j 0 ... 3 s " ·-0 .. " " 0 B < -- l SOHEDULE. FORM I. (8ec rule I.) - --· ·-~ O&j>te residence ----- Cr. I --1-.,, c I :;:; Re~ymonU in 6gutee. I Appropriation.
0 ..a I 5 I ' I 00 .. t ... I· ..a Q; -.i ..c " .. ltemarb. .. ~ ;;; " "' .., Q - . a ; <I I ~ ... 0 ! I ... !'! 0 ;:. I .8 .. l 0 I "" a e I -ii :i • " - .. ;: -a] e 0 ... i! .. I "" ~ -;; .. ,; ~~ ,a Q ., a " ... ~ :iQ ~ :;a ·;:: a ~ .. ;> p., Q i:..- 0 .... . . i 0 °l I ) 9 FORM Il. ( s~e rule 4.) Form of notice of depo1it u11dc1 ucti·in 10(1) Name of money-lender ... ... . . ... .. ..... ..... .. . Address •. .. . .•.... You are hereby informed that _ _ _ __ of has on deposited in this Court -u-n7de_r_s_e-ct~i-on- J 0(1) of the Assam Money Lenders' Ant, 1934 a r;;um of H.s. (Rs. on account of principal and Rs. on account of interest) to your account in connection with the loan of Rs. which was made by you to him on . You are requested to withdraw thi11 amount a.t your earliest conve nience. Government accept no responsibility for any loss which you may incur in conneclion with the aforesaid sum while it remains in depoeib with the Court. Signature of M unsif. Address Dated the 1-0 l•'ORM Ill. (&e role 5,) Receipt granted hJ Court for depoait of moneJ due to motte,-"11der. Station. Court. Whereas an application bas been filed by ___ _ . under sub·section (1) of section 10 of the Assam Aot IV of 1934, for depositing a sum of money on account of his debt and wbere1H tthe Court is of opinion that the aaid-.,..,,.--- is entitled to depo~it the amount under the said section it is hereby ~iven in writing that the undermentioned amount has been depoaited in this Court by Nr.me ot Money· lender, Date· Date of loon. Amoont (If Paymenttowude Poyment towards Total. loan. Prlnolpal. lotertsl. ,. Signature ...... .. . . Seal of the Court. 0 - 11 FORM IV. (See rule 6.) Fr,rm of witlidratt1.1l. PAYMENT ORDER. P..u.T ! .-Application for payment of Deposits (to be filled in by the applicant J· Name of applicaut. Pate of deposit. / Ainount to be paid. l 2 I 3 -----------J---- ----------- - Signature of applicant .. .... ............. .. D11te .. . ... . ... . ................ .. *Examined and found correct. Signature of Chief Ministerfal Officer ......... ...... . . Signature of Presiding Officer .......... . . • The signature below the words •• Examined and found correct •· must of course be held to indicate that the officer signiogthe certificate hae sati1fied himeelf ••that the applicant is the proper party to receive pa_yment of the amount claimed", i.nd that t he particuLu-a stated are correct, while th6 Judge in charge will be Pea• pontible that the amount claimed is iD deposit, that there is no bar to payment, ano that the name of the .claimant corresponds with I.hat of t'he P•lYee entered i11 hi1 Regi1ter. 12 Pn.T 11.- (To be fHled in by the Court or under its order.) Stria) nombor and date of 11ayment order'. ronrt'a ohalan onmber and ch•lan date of the orlglnal dopoelt hoot which the pa,ment 11 sough~. Court'a number and date of the original deposit. T Th Officer in charge of the Treasury at o- e ---~ Casb1er of the Court • Please pay as above to Signature of Court's Accountant- Amount lo dopoelt•. At whose credit In dOJ)Q<. • 8 or order Rupeest Sign:tture of Judge in charge- • At per Coart'll Roihler of DeJ>O'lh Rll(:eived. t W'>M and &guru, NOTS 1,-Tbis order Ii not p:1yable more th•o ono month alter date wtthool a uoewal onfaoe mont by tb~ Co1111 ood It i. ab.olul.ely lap,es and ceru:ea to bate ell'eot on tho :!lat March nor:t. N Ptll 2,-Payee la hereby'° Cake notice that alter tender and p~yineut ol thh order, tbo Troamry• Qft\ce will admit oo rurlhor lilapooslbi:tty. lt ta th& duty of tbe ,p:>yeq t-• - to tl\o proper ooet;ody or thla document until ll i. c111b8d. . . , 18 P.aaT 111.-[to bo filled in a.t Treasury {or at Court if payable there)). Roceived contents, Rupees . . . .... .. . ' ...... . Signature of Disbursing Ca.$hier ..... . ........ . Treasury No ... ••• ~ Pay Rupees .. .. ... .. .••.. ..•• 'l 'he 19 . Examined 1md.ent.ered. St amp of one aona 1f for more than R~ . 20. Payee's signature. Accountant. .. . . . . . . . . . . . . . • Officer in charge of11Treasury, J . A. DAWSON, .. Chief SecrPtary to lite Govtrnmeue of .tlmi111. 4 1, . P. Cl.T.&.J.I ..No. 107-600- :!0·12·1936. scan0001 scan0002 scan0003 scan0004 scan0005 scan0006 scan0007 scan0008 scan0009 scan0010 scan0011 scan0012 scan0013