THE ASSAM MONEY LENDERS' ACT, 1934

TH.E ASS,\ .\f MONEY LENDERS' ACT, 1934. lllubli!lherl in the 4.$/JtVIt Gazette of the 27th June 1984.] An Act ttl prrr<.•,:cle J'o" more a.lfe~tiUJI contrflt of' uwneJ-ieniti.11f1 i11 Assam~ PnJambtu. WuEn.Eu it is expeuieut to make better provision fo .. the cont.,~•ol of money-lending and to give addic,ional powers flo Courts to deal with money-:unders in Assam ; And whereas the pJ:evious sanction of the Governor General has been obtained under suh-!;ection (:3) of section 8HA of the Government o.lf l11dia Act to the passing of this Act. lt is beroby enacted a.s follows :- ~~~t t~~~t l. (1) This Act may b~ called the Assam ~IIIIIIOOcorn~>Dt, Money-Lenders Act, 1934. (2) It extends to the whole of Assam including AJwc Act n the territories mentioned in section 14 of the ot .1$10, Ass11.m General Clauses Act, 1915. (:3) It; shall come into foxcc on such date as the Local Governmen~ may by notification direct. D•JI'II.tlou. 2. In this :\ ct, unless there is anything ~ • repugnant in tbe subject or context,- ,/-~ ~~ (1) ''.Money~lender" means a person ho )!'""'+ L grants a loan. (-, t r (2) "Interest" means rate of iotereat and inQlud~s tbe retum to be made over and above what w~ a.etua.lly lent wliethel' the same ill charged or sought to be ~·ecovered apeoi.fic~ly bl wa,y of btterest or otherwise ; ~ (3) HLoa•1" means ~n advance {whether of money Ol' in kind) at intetest JDa.de by a m~ney• I lender and sha1t include any bona bearing interest executed in respect of pa-st liabiliti~ta.nd any i ·a.nt:actiou which in subsba.nce i> a. loan; [Expla· L nation. - A bond bearing interest executed in respect of good& taken on cxedit constitutes a loan.] and · {4) r. Prescribed'' UJEWH prescribed by rules made under this Act. "M .- ;t_ ,l....4._. 3 .,......,_ bJ.· ~V1111I";IrP. Prici-E9Jglisk: 4d.l {lttdi.a.: ani.aB 8 • . 2 at~r::u' 1.,~:~ :J. I1 the loan actually made be less t han tho ~.~un,th In lbo sum entered in the bond or band note, the luahJ I~:~ ae room~y-lender shall be guilty of a. oontranntioo of tho proTisioos of this Act and shall, on con• viction, be punishable with fine not exceeding two hundred rupees. /..L.r-,.,. l'rohlblllon • f 4· An[ contract made'8lter the commenae· eompound • t ~~~~~~~"' a:"~ ment o 1 dthis Actll for ~ 16 loa. 1 n .of money by.'"" dof"••ttlu1. money- en er sba be tl1 P.ga 111 ~ so far a.s tt pn>vid~s directly or indirectly for th o payment of compound interest or for . the rate or amonnt of interest being increased by reason of a.ny default in the payment of s•1ms due under the con tract : Slmt•l~ Into. /: Provided that provision may be mado by any rut In case or h b t if d 1!... 1 · ad · h dotant•. ~uc contract t a OJ.a.U t ts m e 10 t o pa.y· ment upon tbc due date of any sum p~yable to the money-lender under the contract, whether in respect of friocipa.l or interest, or both, the money lender sbal be entitled to charge simple interest on that sum from the date of the default until the sum is paid, at a. rat-e not exceeding the rate payable in respect of the principal apart from any default, and any interest so oha.rge\1 shall not be reckoned for the purposes o.f this Act as ~rt of tho interest charged in respect of the loan.J Prohlbttloo 5. .t\ ny agreement between a money-lender of c•••r!Ct for • • f b n pmMt .. n t.nu a borrower or mtending borrower or t e ~:d~:1. moo~,. payment by the borrower or intending borrower to the money-lender of any sum on account of costa, charges or expenses incidental to or rola~iug to the negotiations f,n· or the granting of the loan or proposed loan shall be illegal, and if a'tlY. sum is pa.id to a money-lender by a borrower or intending borrowet· as for or on account of any suoh costs, charges or expenses, that sum shall be recoverable as o. debt due to the borrower or intending borrower, or, in the event of t he loan being completed, eha.ll, if no~ so recovered be set off against the amount actually lent and that amount shall be deernod to be reduced accordingly. E :s::ception.-This will not debar money-lenders from recovering reaconable 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 etipulation that property is giTen as security ot· l>y way of mortgage and where both parties have agreed to £moh costs and l'eimbnrsement there of. • . . t I ~11\m ~~~- ~ :P.R .. •~ •AN. ,...rlu""',._ 3 !:!~:f.. 01 6. Every money-lender shall keep acconnts in t he form prescribed. Obligation °1 7 (1) In respect of everv contract for the re-mo~1;reocltr ~ • -.1 IIIJIPIJ' totnrma· pat"ment of a. loan made by a money-lender I IOn IS 10 IIIII .I , ot IOGn and wbetlter made before or a!ter the commencement · ~f~t: 0:01~~~ of thia Act, the money-lender shall on demand in ~her~to. writing being made by the borrower at tlie time of executing the contract or at -any time durin2 the continuance of the contract , supply to the bonower, or, i£ the borrower so requires, to any pcu-aon specified in that behalf in the demand, a statement signed by the '1lonoy- lender or hia agent showing- (") the date on wwch the loan was made, the amount of the principal of the loan, and the rate per cent. per annum of interest charged ; and (b) lhe amount of any payment already receind by the money-lender in respect of t he loan and the date on which it was made : and {r) the amount of e\·ery sum due to the money-lender, but unpaid, and the date upon which it became due a.nd the amount of interest accrued due and unpaid in respect of every aucb sum ; nnd (d) tho amount of every sum not yet due which renu.1.ins outstanding and tbe date upon which it will become due : Provided tha.t when a demand under this sub­ section has once been complied with, a second domn.nci ma.y not be made in respect of the samo loan within six months. ~~~ ,:,' f~;~: (2) A money-lender shall on demand in writing u,nr. by tho bonowcr, and on tender of the presol'ibod sum for expenses, supply a copy of any document relating to a loan made by him or any secu rity therefor, to tbe borrower, .or if the borrower ~:o requires, to any person specified in that behalf in tbe tlomand. ~!~'~o'::i1':ae:~ (:3) If a ruoney-lhie.nder t? w~!Dl a. bdemand has been made under t s section 1.a.1 wtt out reB~Son- abl~ excuse to complv therewith within one month after the demand has been made, he shall not so long a.s the defanlt continues be entitled to sue for or recover any sum doe under the con­ tru.ct on account either of principal or interesr, and interest shall not be chargeable in respeot of the period of the default. fh':-:.~'~fac•':. /J3. Where in nny suit iu rc~pcct of a.ny loan tala toane. made or any 11eC111 ity taken for :L loan mndt: by a money-lender a.(ter the commencement of the Usurious Loans Act, 1918, it is tound t.La.t tho Act xotltlt8. inte rest charged exceeds tho l'ate of 12~ per cent. per annum in the case of a secured loan or 1!;~ ~ ; -:; t:.., /..,., por cent. per annum in the cn."e of A.n un;.ecurcd ~ I'""'\ Ll loan, the 1 ourt Rhall, until tho contrary is proved, ~v-· · presume for tho purpos\.'S of scotian :~ of tho , i:}. '1 Usur ious Loans Act, 1918, thn.t tho int.eret-b A~t x ot touL L_ ~· . .._J."' -; ,-v obargcd .is oxcessi,,o and thnt the trn.u:;actiou wsu• .'). /rl'~ as between t ho parties thereto, snbHtn.llti~Nlly 1 r, ¥~ · uofo.ir, but thi~ provision shall bo without pro· 'Jl -t' judice to tho powers of the Court under the 13n.id section wilcre the Cou• t i!': sa.tisfiP•l that tlte ..:J interest charged though not. oxcecding 12~ per cent. per ann:un or 18!- per cent. pt!r a.nnnm, ;u; t he ease may be, is ex.cessi\·e.7 Bu to rccomy [ 9. No Courts Rhall, in resper·t of MY lon.n rna.do of lnurm •·a· b £ 'f 1 · 1 . <) c.c~tn1 lbe e ore or after the cummenc mont o t n.- ·' ct, .Lov • prta~lpal. decree on account of arrears of intere:;t a ,um · · C'\ U "'1./'frl' .- greater than tho principal of the loa.n."7 ~i:'A·.,_:, • ../ f.;;) ~ .f f If'" co~C:l~moa!~ 10. (1) Where a borrower has l"Cn' Lo a money- · ... L' do• to moollf·londer by J>O»tn.l moMv-ordel' or hv l'Cgisien:d ,.,- ltodtr " • · post with acl.nowledgment due any ~um of money due £rom him to the lliOlH'y-lr~oJer in r!.'~­ pect of a loan and the money-lon1ll'l' has t·ofn!'!'d to accept tho ~<arne, the borrower may a.pply in the prescribed manner to the lowe L Gh il Com~ having juri diction o'•er the plnC'o where he resides fot· po.mist;ion to depo~it Lhe s.1 i1l "lllll i 1 Court to tho rtccount of the money-lander, nnd the Court shall t,hercnpon k<:op lh11 s'um in dopoflit and shall ~;end a notice of the , d1•posib in the prescribed manner to the money-louder. B.Mbldlona oa IZODt J·ItDd\DJ ldnrllttmtDIS. (2) If the money-lender accept!=! money sent in .-- the manner spe1•ified in snb-:;ection (1) by n. borrower or withdraws money deposited 11nder the ea.id sub-section, he shall not be bound by any statement made by the borrower in remittiug or depositing tho money. 11.(1) No per!;on shsll kno,,ingly send or delh·er or cnu~e lo be sent or delinm.:d to an\ person except. in response to his writh·n reqne;t any circnll\r or other document dverti:>'iog the name or address of a money-lender, or '·ontaining n.n invitat ion- (a) to borrow money from a money-lender i ot J ) c (6) to enter into any transaction involving the borrowing of money from a money­ lender; or (c) to apply to any place with a view to obtaining information or advice as to borrowing any money from a. money lenler. A~ ~ • onnneebr~ lnvlt· (2) No money-lender O.l' any person on Ius be• lag horrowo··~ b } f J J 1 1 f h must not bo a a 1a amp oy any agent or canvasser or t e :~~~·~mlcr~! pmposo of inYi t ing any person to borrow money or to enter into any transaction involving tbe bon.;> wing o£ money from a money-lender, and no person shall act as l:lnCh agent or canve.sser or demand or receive directly or indirectly any sum or other valuable consideration by way of com­ mission Ol' otherwise for introducing or under­ taking to introduce to a money-lender any person desiring to borrow money. PollAIIY. (3) Any rerson acting in contravention of any of tho p rovisions of this section shall in respect of each offence be liable, on conviction to imprison­ mont for a term not exceeding three months or a line not exceeding three hundred rupees or both. Ol•ll ofl'cch ol (4•) Where it is shown that a money-lending contr.vi'Dtlon. h · transaction was broug t abont by a contravenbton of any of the provisions of this section, tb.e trans­ action shall be illegal, unless the money-lender proves that the contravention occurred without his conseut or connivance. Pennlhy In Qase 12. (1) Where in arty suit in t•espect • of fraud. of any money lent or in respect o£ any secudty taken fot• money lent by a money-lender, tile trying Court is of opinion that the money· lender IHlS been guilty of fraud, Ol' of any contra­ vention of ths proyisions of this t\ ct, or is otherwise un fit to carry on the business of money­ lending, the Court may make a.u order debarring him from carrying on such business for such time 1\8 may be specified in the orde'!' and an appeal shall lie fi'Om such a.ll order to the court to which au appeal ordinarily lies under the provisions of the Code of Civil Procedure, 1908, irrespective of Acto v l ltoS. tbe money value of bhe suit. P~~•Uy. (2) Any money-lender carrying on the business of mousy-lending in contravention of any order made undor sub-section {l) shall, on conviction, be liable to a. fine wlllch may C!Xtend to five hundred rupees. Aprfal. 13. Any order of conviction passed under this Act sl11~l1 be appealable to the Court to which appeal ordinarily lies undet· the Code 'of Cri miua.l PTocedure, 1898, irrespective o£ the amount of Ao 1 \'l)r 1 89'. • 6ne to wllich an accused may be sentenced. Po wer 01 Local 14. (1) Tbe Local Go\·ernmeot may make rules n onrnmea~ to . • malo rnlea. for ca.rrymg out the purposes of thiS Act . (2) In particular, and without prejudice to the generality of tbe foregoing power, such rules may provide fot· all or an,y of the following :. matters, namely:- (i) the form in which money~l~nders shall keep accounts; (• i) the intervals at wbioh borrowers 'may demand sta.temeuts of accounts under sub-section (l ) of section 7 and the fees to b~· paid for copies of documents sup­ plied under sub-section (2) of the same section; (ii i ) the manner in which an· appliC'a.biou for a deposit is to be macle under aub-section {1) of section 10, and a notice of the deposit is to be sent to the money-lender under the said sub-section; and (iu) the enforcement of orders made under sub-section (1) of section I t. (13) The power to make rula.;-~under:'"tbis Act shall be subject to ' the condition of previous publication. ~ ~ n..A. . )t.. :I.. I .X 1- l'h "!.) 0 ( ) Tile 12th Jlarch 1935. No. 1099G.J. - In exercise of tho powers oonforred by section H of the Assam Money Lenders Act, 1934. (Auam Act IV of 1934), the GoYernor in Couuoil is pleased to make the following rules for carrying out the purposes of the Act. RULES. 1. Tho account prescribed by section 6 ehall be maintainedlin the Form I shown in tbe ~ohedule attached to these rules. " Provided that in tbe case of a society registered under tho Co­ operative Societies Act, 1912 {Act II of 1912), tho account shall be kept in tho form prescribed by that Act or rnles framed thereunder ". 2, The fees to be paid for copies of documents to be supplied under suh·section (2) of section 7 of the Act shall be three annas for nery 800 vernacular or 150 English wor-ds or part thereof: ProYided that wbere the borrower or his authorised agent is allowed to copy a doou• ment, no fe~ ehall be charged. 8. Tho application under sub-section {1) of section 10 fot permis­ sion to deposit in the Court any sum of money due from a debtor to a mooey-lender in respect of any Joan or loans shall be in writing and t~hall contain the following particulars :- (a) the name and full address of the money-lender in whose favour the deposit is made; (h) a recital that the debtor he.s sent the money to the money­ lender by post.al money order or by registered post with acknowledgment due and that the money-lender has refused to accept it. ('rhe 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 8 of rule 15 of Order I in Schedule I to the Code of Civil Prooedure, 1908, by the debtor, or by his autho.,ised agent. 4, The application shall bear a court-fee stamp of eight armas as required by Articla 1 (b) of Schedule II of t he Court-fees Aot, 1870, and shall further be accompanied by pridted form& of notice in Form II annexed to these rules for service on the money-lender with P.rooess­ feos payable in court-fee stamps according to the scale presor1bed by the IIi~h Court for service of summons on defendants. The blank spaces 10 Form II shall be filled in by the debtor or by hie authorised agen~. If it appears to the Conrt, to whioh an application for permis­ sion to deposit under section 10 is made, that the applicant is entitled under that section to deposit the money, it shall receive the same and give the receipt in Form Til annexed to these rules. 6. The money-lender may apply for withdrawal of the money in Form IV annexed to these rules, and the prooedure in connection with such withdrawalrhalt be the same as in the case of wi,bdrawal of other civil doposits. 1. A copy of the order under sub-section {1) of section 12 of the Act shall be served on the money-lender in the manner laid down for eenioe of summons OD defendants. Loan Account of Openin~ balance (if any)­ Princlpal- Interest- Dr. .<1 i I Ado&Dee ir> ~l>utes. .. "' :s 0 I \" ~ .. ~ 0 ~ .,!;! ~ .,; .<: " = "' :a; . ... ·r .s " . m .. .. ... 0 ~ .. .. " ' - "' .. 0 .c .. 5 "' e " " -]] I -=- 0 ~ ~ ... ..: "' g .... ]. .. ... C:o i< A t,) 1>- lJ SCHEDULE. FORM I. (8ec rule L) I - - - 1 "' Jlemar.h. .. .::! .. .. J .: li : .s 3 .:! 0 0 § Jl ,; s ~ • .,; < Q -- ) ( residence.~---- Cr. "' I --~- " ' :;; ReJXI)"mOnta Ia 6gu~. I ApprOpri&~loo. 0 .::; .. I ' :! I ~ I I 5 .. ~ ""' ~ " ., z :;; I " .: [ ~ . ; .. I J .. .. I .... .. c. 0 1'1 I .. .8 ,:. .. .. I ... • c. 0 l e .. :!"' '0 ";i 1£ .; .e: ... -al ~ J! .. I ... " .. ih .<i .. -;; Q ., a ~<I ~ =-= ·c ,e ~ ;.. II< 1'1- 0 0 I 9 FORM Il. (St:e rule 4.) Form of notice of depo1it ulldet ucti·)n 10(1) Name of money-lender... . .. . ... ....... .... .. . . Address .. . . . ..... . You a.re hereby informed that _ _ _ _ _ ~ of_-:r---.,...,-- ba.e on deposited in this Court under section J O(l) of the Assam Money Lenders' Ant, 1984 a sum of Rs. (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 ioour in conneclion with the aforesaid sum while it remains in depoeib with the Court. Signature of Munsif. Address Dated the 10 (&e rule 5.) Station. Court. Whereas an application bas been filed by~-;-:-;--: .....,...,..,..,...,.~~under sub-section (1) of section 10 of the Assam Aot IV of 1984, for depositing a. sum of money oo account of his debt and wbereai 'the Court is of opinion that the said is entitled t.o depo9it tbe amount under the s·-a-ria..--e-e-otion it is hereby ~iveu in writ ing that the undermentioned amount has been depositod 1n this Court by ---- NA!Dt of Won~· Dak leadtr, loa of Amoaat or Paym~l i.olward• Paymenl to,..rde Total. a . loao. Prin~lpal. 10~11. -- I Date· Signature .... ... . . Seal of the Court. 0 r 11 FORM IV. (&e rule 6.} F r. rm of wit~dratll.tl. PAYMENT ORDER. P .Al•T I . -Application for payment of Depoeits (to be filled in by the applicant J· Namo of applioaut . l'ate of dt>p<>sit. I Au1ouat to b. paid. 1 2 I 3 --------------.!-----·----'----- Signature of applioant ...... .... .. .. . .. .. .. Dt~te .. ..... .. .. .... ......... ... .. *Examined and found correot. Signature of Chief Ministeri<.~.l Officer .. .. ..... ..... . .. Signature of Preeid.i ng Officer ....... ... .. • The signature below the words •• Examined and found correoL '' mua~ of course be hPid to indieat• that the officer signing the certificate h• Aniia6ed himtelf •• t.bat t.lle applicant is t ho proper p3rty to reoein pa_yment of the amount daiaod", &nd that tbe parlicv.Lm ttak!d are correct, while tht Judge in ehaPgtt will be Pel• poolible that the amonnt claimed h, iD deposit, that there is no bar to ~yment, uo that the name of the olaimaut oorrcspcnds with that of tho JMYM eatered in hi1 Regieter. 12 PnT ll.- (To be fi lled in by the Court or under its order.) s,rtal oum~r aud roan '• obalan numl~r and cb•lao date or the Court'• number a.nd AI "hOI date of orl~lnal dopo11U lroo1 <la.te or the original Amount In oredlt In Jl&1mPnt ordor: " loh the t•yment ·deposit. dapoeU•. dOPOJ!t.• Ia IIOUir ~. -- I a I ~ J ' I & I 6 I ' I 8 I I - I ,_ I I I I I I • I T Tl Officer in charge of the Treasury at o- to ---. C!'sh1er of the Court • Please pay as above to or order Rupeest Signature of Court's Accountant- Signature of Judge in charge- • At per Co:m•• R~-trlater of Deposit• Received. t w .. rd. ud e, .. ,.. •. Non 1,-Tbil Ol'dor I 1 uot payable mOre th•n o~ month alter dMe " II boa I a ••new• I t~nl~~et­ ~~~tot b7 th~ Coon and It 1.1 ab.oluteiJ laP'JUIIDd tescea to bate etroct on the Slit ~areh o&rl. Non !,-Payt>e I, h~rtb7 co \Ike notice tbal alw tender and P"J"'•at o! thl• ord~r. tbt TroalllrJ• Olllct "lll 1\Jmlt Qcl rurtlwr roepoo~lbl!ltJ. lt ta tba daty ol the , Jl"Jel t·• ett~ to tbt (!roper ouiOdJ or thll dotomout oa til II 1.1 caehAid. . . A 13 PuT 11 1.-[to bo fi])ed in at Treasury (or at Court if payable there)]. 'l'he Beoeived oonteute, Rupees . ...... .. ...•••.. . Signature of Disbursing Ca.~>hier ..... ••• ·· ... . '11reasury No ... ... Pa.y Rupees .. . ... .. . ..... .. . 19 . Examined ~~ond. entered. • t11mp of one aona 1f for more than R~. 20. Payee's signature. Accountant... . . .. . . . . . . . .. • Officer in oba.rgo of.;rreaeury. J . A. DAWSON, Chief 6ecrPtary to i!te Gouernmc~e o( tiwwt. A '• · P. (v.~t.J.I ~o. 107-600- :W-12·1936. scan0001 scan0002 scan0003 scan0004 scan0005 scan0006 scan0007 scan0008 scan0009 scan0010 scan0011 scan0012 scan0013