THE ASSAM MONEY LENDERS' (AMENDMENT) ACT, 1943

ASSAM ACT VI OF 1943 THE ~SSAM MONEY LENDERS' (AMENDMENT) ACT, 1943 /'- (Pas sed by the Assa1n Legislature.) (Received the assent of the Governor-General on the 25th June 1943.) LPublished in the Assam Ga;:.ette of the 14th July 1943] Preamble. Short Title. Commence- ment. Extent. An Act to amend the Assam Money Lemurs' Act, 193 Whereas it is expedient to make better provi- Assam Act sion for the safety of debtors by amending IV of 1934. the existing Act : It is hereby enacted as follows :- 1. (1) This Act may be called the Assam Money Lenders' (Amendment) Act, 1943. (2) It shall come into force at once and it shall apply to pending suits and appeals. (3) It extends to the whole of Assam in Assam Act which the Assam Money Lenders' Act, 1934, is in IV of 1934. force. r (4) That the provisions of the T ransfer of ~~~~ IV 0 Property Act, l 882, the Indian Contract Act, Act ix of Ul72, the Indian Registration Act, 1908, and the 1872. CiviJ Procedure Code, 1908, shall, to the extent Act XVI of necessary to give effect to the provisions of this A~~08•v aoo~ Act, be deemed to have been repealed or modi- 1908. fied Amen~ment 2. {1) That after the word "person'' in sub ­ ofseC'tton 2• section (1) of section 2 of the principal Act, a "comma " and the following words, "Society or Bank either' private or registered under the Co­ operative Societies Act, 1912, or the Indian Com­ panies Act, 1913" be inserted. (2) That in sub-section (3) of section 2 of the principal Act, the words "and shall include any bond bearing interest executed in respect of past liabilities" be deleted. (3) That after the word " loan " in line 5 in sub-section (3) of section 2 of the principaJ Act, the foiJowing words be inserted, namely:- " but it shall not include a deposit of money in a Government Post Office Bank " . (4) That in the last Jine of sub-section (3) of section 2 of the principaJ Act, after the . wot·d "and" the fo!Jowing be added, namely:- "also a bond taken for arrears of rent shall be considered to constitute a loan ." Amendment 3. (1) That in the first line of section 4 of the ofsrction 4. principal Act, after the word "made" the words "before or" be added. (2) That the proviso to section 4 of the princi­ pal Act be deleted. Amendment 4. That for section 8 of the principal Act, the of section R. following shall be substituted, namely:- ,, 8. Where in any suit in respect of an y money lent or any security taken for money lent by a money-lender after the Act II of 1912. Act VH of 1913. commencement of the Usurious Act x of Loans Act, 1918, it is - found 1918. that the interest charged exceeds the rate of 9} per cent. per annum in the case of a secured loan or 12! per cent. per annum in the case of an unsecured Joan, the Court shall not decree as interc.-st any sum in excess of 9# per cent. per annum and 12! per cent. per annum respectively. [Pnce anna I or ld.l 2 Explanation.-" Secured Loans " means mort· gage debts as well as bonds, for the satisfaction of the interest whereof land has been delivered by debtors, in conformity with local custom, into the posse\tioon of creditors to be enjoyed in lieu of interest by the latter." Amen~me~~t 5. That for section 9 of the principal Act, the afstctaon 9• following shall be substitu ted, namely:- "9. (1) No money-lender shall, in respect of any loan made before or after the commencement of this Act, recover, on account of interest and principal, whe­ ther through Court or otherwise or by way ofusufruct of lands in usufructuary mortgages, a sum greater in aggregate than double the principal of the loan : Provided that nothing in this sub-section shall affect:- (i, A Bank advancing money at interest not exceeding 6 per cent. per annum or (i i) Subscribers to a loan made to or deben­ tur<•s or other securities of any descrip­ tion issued by Government, a public body, a Bank, or a Company. Explanation.-The term 'aggregate' means and includes the amount aln ady paid amicably or otherwise. (2) Notwithstanding anything contained in sub-section (1), a usufructuary mortgage, in cases where the loan did not exceed five hundred rupees in principal, shall, unless discharged pre­ viously, be deemed to stand discharged:- (i) if the mortgage was executed before the commencement of the Assam Money Lenders' (Amendment) Act, 1943. after the expiration of twelve years from the date of such e-xecution, or (ii) if the mortgage was executed after the commencement of that Act, after the expiration of nine years from the date of such execution . (3) In the case of a bond or any o~her instru­ ment executed for past liabilitie~ the original sum actually advanced shall be considered as the principal of the loan for the purpose of sub-section (1). (4) The heirs, successors or assigns of a mortga­ gor shall have lhe same-rights under this section as the original mortgagor would have had, and jf by any instrument executed subsequently to the original instrument any property has been substituted for the property mortgaged by the original instrument, the provisions of this section shall apply to the property so substituted as if it were the property mortgaged by the original instrument." A. G. P. (L.C.) No.69-SSO+ Sl0- l2-8 1943. : scan0001 scan0002