Extra No. 14 EGISTERED No. G/GNR/2
The Gujarat Gobernment Gasette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
EE%E———VOL ता] FRIDAY, APRIL 8, 2011/CAITRA 18, 1933
__Separate paging is given to this Part in order that it may be filed as a Separate Compilation.
PART IV
Acts of Gujarat Legislature and Ordinances promulgated and
Regulations made by the Governor.
The following Act of the Gujarat Legislature, having been assented to by the
Governor on the 6™ April, 2011, is hereby published for general information.
C.J. GOTHI,
Secretary to the Government of Gujarat,
Legislative and Parliamentary Affairs Department.
GUJARAT ACT NO. 14 OF 2011.
(First published, after having received the assent of the Governor, in the "Gujarat
Government Gazette", on the 8" April, 2011).
AN ACT
fo regulate the transaction of money-lending in the State of Gujarat.
It is hereby enacted in the Sixty-second Year of the Republic of
India as follows:-
CHAPTER 1
PRELIMINARY
1. (1) This Act may be called the Gujarat Money-Lenders Act, sport title,
2011. extent and
commencement.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may,
by notification in the Official Gazette, appoint.
IV-Ex.,-14-1 14-1
14-2 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
Definitions. Z In this Act, unless the context otherwise requires, -
(1) “appointed day” means the date on which this Act comes into force;
(2) “bank™ means -
(i) a banking company or a co-operative bank to which the
Banking Regulations Act, 1949 applies;
(i) the State Bank of India constituted under the State Bank of 23r19ss.
India Act, 1955;
(iii) a Subsidiary Bank as defined in the State Bank of India 3g.¢;0s9.
(Subsidiary Banks) Act, 1959;
(iv) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) 5of1970.
Act,1970, or the Banking Companies (Acquisition and 40 of19so.
Transfer of Undertakings) Act, 1980; and
(v) a regional rural bank established under section 3 of the
Regional Rural Banks Act, 1976; 21 of 1976.
(3) “business of money-lending” means the business of advancing
loans, whether in cash or kind and whether or not in connection
with or in addition to, any other business and includes the business
of payment of loan by an agreement under any law for the time
being in force;
10 of 1949.
(4) नवुजाव" means a sum of money which a Money-Lender invests in
the business of money-lending;
(5) “company” means a company as defined in the Companies Act, 1 of1956.
1956;
(6) “co-operative society” means a society registered or deemed to have
been registered under the Gujarat Co-operative Societies Act, 1961
or any other Act relating to co-operative societies and includes a
Multi State Co-operative Society registered under the Multi State
Co-operative Societies Act, 2002; 39 of 2002.
Guj. 10 of 1962.
(7) “debtor” means a person to whom a loan is advanced and includes a
successor-in-interest or surety;
(8) “interest” includes the sum to be made over and above principal
amount lent, whether the same is charged or sought to be recovered
specifically by way of interest or otherwise, but does not include
any sum lawfully charged by Money-Lender as costs, charges,
expenses, towards evaluation, assessment and creation of the
security;
(9) “loan” means an advance whether of money or in kind, at an
interest, with or without security, and includes advance, discount,
money paid for or on account of or on behalf of or at the request of
any person, or the forbearance to require payment of money owing
on any account whatsoever, and every agreement under any law for
the time being in force (whatever its terms or form may be) which is
in substance or effect a loan of money, but does not include -
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-3
XXI of 1860.
4 of 1938.
1 of 1956.
61 of 1981.
28 of 1981.
39 of 1989.
53 of 1987.
(10)
(8)
(0)
(०)
(d)
(e)
®
(2
(h)
(i)
@
(k)
O
(m)
(n)
(0)
a deposit of money or other property in a Government post
office, a bank, a company or a co-operative society:
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;
a loan advanced by the State Government or by any local
authority authorized by the State Government;
a loan advanced to a Government employee from a fund,
established for the welfare or assistance of Government
employees and which is sanctioned by the State
Government;
a deposit of money with or a loan advanced by a co-
operative society;
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;
a loan to or by an insurance company as defined in the
Insurance Act, 1938;
a loan advanced by a Government company as defined in the
Companies Act, 1956;
an advance made borna fide by any trader carrying on any
business, other than money-lending, if such advance is made
in the regular course of such business;
a loan advanced by the National Bank for Agriculture and
Rural Development established under the National Bank for
Agriculture and Rural Development Act, 1981;
a loan advanced by the Export-Import Bank of India
established under the Export-Import Bank of India Act,
1981;
a loan advanced by the Small Industries Development Bank
of India, established under the Small Industries
Development Bank of India Act, 1989;
a loan advanced by the National Housing Bank, constituted
under the National Housing Bank Act, 1987 ;
a loan advanced by State Financial Corporations established
under the State Financial Corporations Act, 1951 ; and
a loan advanced by any institution -
(1) established by or under an Act of Parliament or the
legislature of a State, which grants any loan or advance
in pursuance of the provisions of that Act, or
(2) notified in this behalf by the State Government, in
consultation with the Reserve Bank:
“Money-Lender” means-
63 of 1951.
14-4 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(i) an individual, or
(i1) a Hindu Undivided Family, or
(iii) acompany, or
(iv) a pawn-broker, or
(v) an unincorporated body of individuals, including a firm,
who or which -
(a) carries on the business of money-lending in the State,
or
(b) has his or its principal or subsidiary place of such
business in the State;
(11) “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;
(12) “prescribed” means prescribed by rules;
(13) “principal” means, in relation to a loan, the amount actually
advanced to the debtors; and if the loan is in kind, the value of the
quantity of the thing or commodity advanced, calculated at the
market rate of price of such thing or commodity prevailing on the
date of the advance;
(14) “provident fund” means a provident fund as defined in the Provident
Funds Act, 1925 and includes a Government provident fund and a4 o¢ 1955,
railway provident fund as defined in the said Act;
(15) “register” means a register of Money-Lenders maintained under
section 4;
(16) registration” means registration granted to a Money-Lender under
section 7;
(17) “Registrar” means Registrar of Money-Lenders appointed under
section 3;
(18) *“Registrar General” means the Registrar General of Money-Lenders
appointed under section 3; and includes the Additional Registrar
General of Money-Lenders;
(19) “rules” means rules made under this Act;
(20) “State” means the State of Gujarat;
(21) ”Suit to which this Act applies” means any suit or proceedings -
(a) for the recovery of a loan made after the date on which this
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 in respect of any
loan advanced by a Money-Lender;
PART-IV] GUJARAT GOVERNMENT GAZETTE. Ex. 8-4-2011 14-5
(22) “trader” means a person who in the regular course of business buys
and sells goods or other property whether movable or immovable,
and includes -
(i) a wholesale merchant,
(ii) a commission agent,
(iii) a broker,
(iv) a manufacturer,
(४) a contractor,
(vi) afactory owner,
but does not include, a person who sells his agricultural produce or
cattle or buys agricultural produce or cattle for his use or an artisan.
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.
CHAPTER प्रा
AUTHORITIES
3. (1) For carrying out the purposes of this Act, the State
Government shall appoint -
(i) an officer to be called the Registrar General of Money-
Lenders, and to assist him, may appoint Additional Registrar
General of Money-Lenders and Joint Registrar General of
Money-Lenders for the whole of the State of Gujarat;
(ii) such number of Registrars of Money-Lenders, Assistant
Registrars of Money-Lenders and other officers and persons
with such designations as the State Government thinks
necessary.
(2) The State Government may, by notification in the Official Gazette,
specify the areas of his jurisdiction within which the officer appointed
under sub-section (1) shall exercise such powers and perform such duties as
may be conferred or imposed upon them by or under this Act.
(3) The superintendence and control for the proper execution of the
provisions of this Act and the rules made thereunder shall vest in the
Registrar General.
[V-Ex..-14-2
Authorities for
implementation
of the Act.
Register of
Money-Lenders.
No business of
money-lending
except
registration.
Application
for
Registration.
14-6 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
CHAPTER III
PROVISIONS RELATING TO REGISTRATION
4. Every Registrar shall maintain a register of Money-Lenders in the
prescribed form, to whom registrations have been granted for carrying on
the business of money-lending in the area within his jurisdiction.
5 (1) No Money-Lender shall commence or carry on the business of
money-lending except in the area for which he has been granted a
registration and except in accordance with the terms and conditions of such
registration.
(2) Non-banking finance companies registered under the provisions of
the Reserve Bank of India Act, 1934, with the Reserve Bank of India shall
be deemed to have been registered for the purposes of this Act and they
shall intimate to the concerned Registrar about their such registration with
the Reserve Bank of India in the prescribed proforma.
6. (1) A person who intends to commence or to carry on the
business of money-lending in any area may make an application in writing
in the prescribed form for the grant of registration to the Registrar having
jurisdiction. :
(2) An application under sub-section (1) shall contain the following
particulars, namely :-
(a) if the application is by or on behalf of -
(1) an individual, the name and address of such
individual;
(i) a Hindu Undivided Family, the name and addresses
of the manager and the adult coparceners of such
family;
(iii) a company, the name and addresses of the directors,
manager or principal officer managing it;
(iv) an unincorporated body of individuals, फिट names
and addresses of such individuals; and if such body
is a firm, the names and addresses of all its partners;
(b) the name in which the applicant intends to carry on फिट
business of money-lending and the name of the person who
shall be responsible for the management of the business;
(c) the area in which he intends to carry on the business and the
name of the place at which he intends to carry on the
business in that area; and if he intends to carry on the
business at more than one place in such area, the names of
the principal place and other places at which he intends to
carry on the business;
(d) the name of any other place outside such area, if any, at
which he intends to carry on the business:
(e) whether the person signing the application himself, or any of
the adult co-parceners of a Hindu Undivided Family or any
2 ०1934.
Grant of
Registration.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-7
director, manager or the principal officer of the company or
any member of the unincorporated body or any partner of
the firm 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
March immediately preceding the date of the application
either individually or in partnership, or jointly with any
other coparcener or any other person and whether in the
same name or in any other name;
() the total amount of the capital along with its source 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 names of persons who
shall be in the management of the business at each such
place;
(h) such other particulars as may be prescribed.
(3) The application made under sub-section (1) shall be signed, -
(a) (i) by the individual, if the application is made by an .
individual; _
ही) by the manager of a Hindu Undivided Family, if the
application is made on behalf of such family;
(1) by the managing director or any other person duly
authorized and having control of its principal place of
business in the area in which it intends to carry on the
business, if the application is made by a company or an
unincorporated body of individuals;
(iv) by any partner of the partnership firm, if the
application is made by a firm; or
(b) by an agent authorized in this behalf by 8 power of attorney,
by the person authorized to sign such application referred to
in clause (a).
(4) No application for grant of registration shall be entertained by the
Registrar unless it is accompanied by an application fee at the rates, as may
be notified by the Registrar General from time to time. The fees payable
under this sub-section shall be non-refundable.
42 (I) On receipt of an application made under section 6, the
Registrar shall after making such inquiry as may be necessary and on
payment of registration fees as may be prescribed by the State Government,
grant the certificate of registration in such form and subject to such
conditions as may be imposed, and enter the name of such applicant in the
register maintained under section 4, or may refuse to grant registration after
recording the reasons for the same.
Term of
Registration.
14-8 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(2) The registration granted under sub-section (1) shall specify the area
for which such registration is granted and the place at which the Money-
Lender intends to carry on his business in such area.
(3) If the Money-Lender is granted registration in respect of more than
one place of business in the area within the jurisdiction of the Registrar, the
registration shall specify the principal place as well as all other places of his
business and also the names of persons responsible for the management of
the business at each such place.
(4) If a Money-Lender who holds a registration for carrying on the
business of money-lending in any area within the jurisdiction of the
Registrar is desirous of carrying on such business in some other area in the
State within the jurisdiction of some other Registrar, he may make an
application for grant of a registration under section 6 to such other
Registrar, accompanied by the requisite registration fee and true copies of
certificate of registration held by him and the fees paid therefore. On
receipt of the application as aforesaid, the Registrar may grant to the
applicant the registration under sub-section (1) for such other area without
making any inquiry referred to in sub-section (I) unless there are reasonable
grounds for making an inquiry.
(5) The application fees paid under sub-section (1) or (4) shall not be
refunded, notwithstanding the fact that the registration is refused or the
application is withdrawn.
8. Subject to the provisions of this Act, -
(a) a registration granted under section 7 shall be valid for a
period of five years from the date on which it is granted;
(b) a registration validly in force on the appointed day shall be
valid till the next 31st day of March of the year in which this
Act comes into force.
9. (1) On the expiry of the period of validity of a registration under
section 8, the registration shall be liable to be renewed on an application for
renewal made, in such form and with such fees and within such period as
may be prescribed, before the expiry of the validity of the registration :
Provided that the Registrar may, in any case in which he is satisfied
that the applicant could not make an application for renewal of a
registration within the prescribed period for reasons beyond his control, he
may, for reasons to be recorded in writing, condone such delay; and may
renew the registration on payment of such penalty as may be prescribed by
the State Government, in addition to the renewal fee.
(2) The provisions of section 6 shall, so far as may be, apply to an
application for renewal of a registration as if it were an application for grant
of a registration.
Renewal of
Registration.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-9
(3) Where an application for renewal of registration has been made to
the Registrar within the period prescribed under sub-section (1) but has not
been disposed of before the expiry of the period of validity of the
registration under section 8, the registration shall, notwithstanding the
expiry of such period, be deemed to be valid until such application is
disposed of.
10. (1) The grant or renewal of registration 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 under this Act;
(b) that the applicant has not complied with the provisions of
this Act or the rules made thereunder in respect of an
application for the grant or renewal of registration;
(c) that the applicant has made wilful default in complying with,
or knowingly acted in contravention of any provision of this
Act; 3
(d) that satisfactory evidence has been produced that the
applicant or any person responsible for the management of
his business of money-lending has-
() knowingly participated in or connived at any fraud or
dishonesty in the conduct of or in connection with,
the business of money-lending, or
ही) been found guilty of an offence under Chapter XVII
or section 465, 477 or 477-A of Chapter XVIII of the
Indian Penal Code;
(e) that the applicant has made an application for grant or
renewal of registration, during the period for which his
registration has been suspended or during the period for
which he has been disqualified under this Act for holding
registration;
() that the applicant or the person responsible or proposed to be
responsible for the management of the business of money-
lending, being a member of a family of a Hindu Undivided
Family or a member of a board of directors of a company or
a member of an unincorporated body of individuals or a
partner of a firm who has been refused the grant or renewal
of registration under any of the clauses (a) to (e); and
| (g) such other grounds as may be prescribed.
(2) The Registrar shall, before refusing to grant or renew registration
“under sub-section (1), give to the applicant a reasonable opportunity of
IV-Ex..-14-3
Refusal for
grant or
renewal of
registration.
XLV of 1860.
Grant of
duplicate
certificate of
Registration.
Power of
Registrar to
inspect.
Suspension
of
Registration.
14-10 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
producing evidence, if any, in support of the application and of showing
cause as to why the grant or renewal of registration should not be refused;
and record the evidence adduced before him and the reasons for such
refusal.
(3) An appeal shall lie to the Registrar General against the order of the
Registrar refusing the grant or renewal of registration under sub-section (1)
and the decision of the Registrar General, thereon shall be final.
11. When a certificate of registration is lost, mutilated, destroyed, torn
or otherwise defaced, a duplicate certificate of registration may be granted
to the Money-Lender on an application made to the Registrar along with
such fees as may be prescribed by the State Government.
12. The Registrar shall, by an order, provide for the periodical
inspection by such officers appointed under this Act for the purposes of
sections 18 and 19.
13. (1) Where a complaint has been filed in a court against a
‘Money-Lender for contravention of any of the provisions of this Act or the
rules made thereunder or any inquiry is pending under sub-section (2) of
section 14 or under sub-section (1) of section 15 against such Money-
Lender, the Registrar may suspend the registration of such Money-Lender
until the case is decided by the court or, as the case may be, final order in
such inquiry is passed.
(2) An appeal shall lie from the order of the Registrar suspending
registration under sub-section (1) to फिट Registrar General, whose decision
shall be final. दे
14. (1) Any person may file an application to the Registrar General
for the cancellation of registration issued to a Money-Lender on the ground
that such Money-Lender has been guilty of any act or conduct for which the
Registrar may under section 10 refuse the grant of registration. At the time
of filing such application, the person shall deposit such amount not
exceeding rupees five hundred as the Registrar General may direct.
(2) On receipt of such application alongwith deposit, the Registrar
General shall hold such inquiry as he deems fit 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 registration of such Money-Lender and thereupon
the Registrar shall, by an order in writing, cancel such registration :
Provided that no such direction shall be issued without giving to
such Money-Lender a reasonable opportunity of being heard.
(3) Ifin the opinion of the Registrar General, an application made under
sub-section (1) is frivolous or vexatious, he may, out of the deposit made
under sub-section (1), direct to be paid to the Money-Lender such amount
as he deems fit as compensation and balance amount of deposit to be
forfeited to the State Government and where no amount is directed to be
paid to the Money-Lender direct the whole amount to be forfeited to the
Application to
Registrar
General for
cancellation of
Registration.
No compensation
or refund of fees
for suspension or
cancellation of
registration.
Money-Lender
debarred from
carrying on
business during
suspension or
cancellation of
registration.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-11
State Government, and in any other case the Registrar General may on
completion of the proceedings under this section, direct the whole amount
of the deposit to be returned to the depositor.
(4) A Money-Lender whose registration has been cancelled under this
section shall be disqualified for holding registration in the State for such
period, not exceeding three years, as the Registrar may direct.
(5) Any Money-Lender who is aggrieved by the order of the Registrar
under this section may file an appeal to the State Government within a
period of sixty days from the date of receipt of such order, and the order of
the State Government on such appeal shall be final and shall not be called
in question in any court.
15. (1) Notwithstanding anything contained in section 14, if the
Registrar has reason to believe with respect to any Money-Lender holding
registration for the area within his jurisdiction that such Money-Lender has
been guilty of any act or conduct for which the Registrar might under
section 10 have refused the grant or renewal of the registration and which
act or conduct was not brought to the notice at the time of grant or renewal
of such registration, or that such Money-Lender has contravened any of the
provisions of this Act after the grant or renewal of such registration and if
in the opinion of the Registrar such contravention makes such Money-
Lender unfit for carrying on the business of money-lending, the Registrar
may, after holding such inquiry as he deems fit and after giving to such
Money-Lender a reasonable opportunity of being heard, by an order in
writing, cancel such registration.
(2) A Money-Lender whose registration has been cancelled under sub-
section (1) shall be disqualified for holding registration in the State for such
period, not exceeding three years as the Registrar may specify in the order
of cancellation of his registration.
(3) A Money-Lender who is aggrieved by the order of the Registrar
under this section may file an appeal within a period of sixty days from the
date of receipt of such order to the Registrar General, whose decision shall
be final.
16. Where any registration is suspended or cancelled under this Act, no
person shall be entitled to any compensation or refund of any fees paid -
under this Act.
17. (1) A Money-Lender whose registration has been suspended or
cancelled in accordance with the provisions of this Act or any
corresponding law in force in any other State shall, during the period of
such suspension or cancellation, as the case may be, disqualified from
holding any registration in the State of Gujarat and shall forthwith cease to
carry on business of money-lending in the State of Gujarat.
Power of
Registrar to
cancel
registration in
certain
circumstances.
Registrar
General and
other officers to
have powers of
civil courts for
certain purposes.
2 ०1974.
14-12 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(2) No Money-Lender shall lend any money to a member of the
Scheduled Tribes residing in Scheduled Areas of the State as referred to in
clause (1) of article 244 of the Constitution of India, without previous
sanction of the village panchayat of that village.
CHAPTER 1V
SEARCH AND SEIZURES
18. The Registrar General, Registrar, Assistant Registrar and any officer
authorized under section 19 shall have and exercise the same powers for the
purpose of making inquiries under this Act as are vested in Courts under
the Code of Civil Procedure, 1908 in respect of the following matters,
namely:-
(a) enforcing the attendance of any person as a witness and
examining him on an 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.
19. (1) For the purpose of verification whether the business of
money-lending is carried on in accordance with the provisions of this Act
or not, the Registrar General, Registrar or any other officer authorized by
the Registrar General in this behalf may require any Money-Lender or any
person in respect of whom the Registrar General, Registrar, or the officer so
authorized 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.
(2) The Registrar General, Registrar or any officer authorized under
sub-section (1) may enter and search without warrant any premises where
he has reason to believe that an offence under this Act has been or is being
or is about to be committed and may seize any record or document found
therein or from any person therein which he has reason to believe may
furnish evidence of the commission of an offence punishable under this Act
and he may, so far as may be necessary for the purpose of such search or
seizure, detain any person whom he has reason to believe to have
committed an offence punishable under this Act.
(3) Save as otherwise provided in this section, every search or seizure
made under this section shall be carried out in accordance with the
provisions of the Code of Criminal Procedure, 1973 relating to searches or
seizures made under that Code.
V of 1908.
Powers of certain
officers to
require
production of
record on
documents,
search and
seizure, etc.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-13
20. (1) If, upon the inspection of records and documents made Disposal of property
under section 19, the inspecting officer is satisfied that the Money-Lender pledgedor
is in possession of property pledged to him by a debtor as security for the mortgaged with
£ s i . Money-Lender
loan advanced by the Money-Lender without a valid registration, the carrying on
inspecting officer shall require the Money-Lender to deliver forthwith the pusiness of money-
possession of such property to him. lending without
valid registration.
(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 identity thereof, return it to the
debtor who has pledged it or, where the debtor is dead, to his legal heir.
(4) If the debtor or his legal heir cannot be traced, the Registrar shall,
within ninety days from the date of taking possession of the property,
publish notice in the prescribed manner inviting claims thereto. If 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 thereof; 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 can not
for any reason (including identity thereof) be delivered to him, then the
Money-Lender to whom it was pledged shall be required to pay to the
debtor or if he is dead, to his legal 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 arrears
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
legal heir and if the debtor or his legal heir can not be traced, the provisions
of sub-section (4) apply.
(6) If there is any difference of opinion between the Money-Lender and
the debtor, or as the case may be, his legal heir, on the question of value of
the property or its identity, the question shall be referred to the Registrar
General for decision and his decision shall be final.
(7) The value of the property may be determined with the assistance of
the services of an expert appointed by the Registrar General in that behalf.
The expert may be paid such honoraria as the Registrar General may, by an
order in writing from time to time in relation to any area or areas,
determine. (
IV-Ex.-14-4
Duty of Money-
Lender to keep
accounts and
furnish
statements.
14-14 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
CHAPTER V
ACCOUNTS AND STATEMENTS
21. (1) Every Money-Lender shall keep and maintain proper
accounts and a cash book, ledger, register of securities, register of debtors
and such other books of accounts in such form and in such manner as may
be prescribed. The cash book, the ledger and the register of securities shall
contain an up-to-date and true accounts of all transactions, particulars of a
pawn, pledge of security and where it is kept.
(2) Every Money-Lender shall.-
(a) deliver or cause to be delivered to the debtor on the same day
on which a loan is advanced -
(1) a statement in the prescribed form containing an up-to-date
and true account of the transaction with the debtor, the
amount (both in words and figures) and the date of the loan,
the date of its maturity, the nature of security, if any, for the
loan, the rate of interest charged and the names and full
addresses of the debtor and the Money-Lender and such
other particulars as may be prescribed; and if the loan
advanced is in kind, the statement shall show, in place of the
amount of the loan and the rate of interest, the correct value
of the thing or commodity on the date on which it is
advanced and the quantity of the thing or commodity in
excess of the loan recoverable in liex of interest;
(ii) a pass book in the prescribed form containing an up to date
and true account of all transactions relating to the loan;
(b) submit to the Registrar such returns of the loans advanced by him,
_ in such form and at such time, as may be prescribed;
(c) keep and maintain with himself a copy of the statement
referred to in sub-clause (i) of clause (a);
(d) upon repayment of a loan in full, mark indelible entry in every
paper signed by the debtor with words indicating payment or
cancellation, and discharge every mortgage, restore every pledge,
return every note and cancel or reassign every assignment given by
the debtor as a security for the loan.
(3) All the particulars required to be entered in the statement and the
pass book referred to in clause (a) of sub-section (2) shall be entered therein
in clear, distinct and legible terms in local language, or, if so required by
debtor, then, in Hindi or English.
(4) No Money-Lender shall receive any payment from a debtor on
account of any loan without giving him a plain and complete receipt for
such payment and without obtaining the signature or thumb impression of
the debtor or his agent on the copy of such receipt to be kept with the
Money-Lender where the payment is made in person.
Delivery of
statement of
yearly accounts
and documents to
debtors by
Money- Lender.
PART-IV] GUJARAT GOVERNMENT GAZETTE. Ex. 8-4-2011 14-15
(5) No Money-Lender shall accept from a debtor any article as a pawn,
pledge or security for a loan without giving him a plain receipt for such
article, signed by the Money-Lender and showing therein the description
and the estimated value of the article, the amount of loan advanced against
it and such other particulars as may be prescribed.
(6) A Money-Lender shall keep and maintain articles received as a
pawn, pledge or security in safe custody and produce the same to the
authority referred to in sub-section (1) of section 19 on demand.
(7) Where any dispute arises as to the correctness of the market value of
the commodity advanced as a loan, the matter shall be referred to the
Registrar having jurisdiction in the area in which such loan is, or is to be,
advanced and the decision of the Registrar shall be final.
(8) A Money-Lender who has not maintained the record of any
transaction relating to a loan advanced by him in the books of accounts as
required under this Act shall be deemed to have advanced such loan in
contravention of the provisions of this Act.
(9) A Money-Lender shall keep and maintain relevant books of
accounts as referred to in this section for five years except in the cases
where the Registrar or Court requires or has required such books of
accounts or statements or pass books for any longer period, as the case may
be. ;
22. (1) Every Money-Lender shall deliver or cause to be delivered
every year to each of his debtors within thirty days after the expiry of the
year, a legible statement in the prescribed form of such debtor’s accounts
and of any amount that may be outstanding against such debtor. The
statement shall contain the following particulars, namely:-
(1) the principal amount, the interest and the expenses due to the
Money-Lender 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;
(iv) the principal amount and interest due at the end of the year;
and
(v) particulars of location of article as a pawn, pledge or
security where it is kept.
(2) The statement to be delivered under sub-section (1) shall be signed
by the Money-Lender or his agent, and shall be in local language, or, if 50
required by debtor, then, in Hindi or English.
(3) In respect of any particular loan, whether advanced before or after
the appointed day, the Money-Lender shall, on a demand in writing being
made by the debtor at any time during the period when the loan or any part
Audit of
accounts of
Money-Lender.
9 of 1872.
14-16 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011
thereof 18 outstanding, supply to the debtor, or, if the debtor so requires, to
any person specified in that behalf in the demand, -
(a) a statement written in the language referred to in sub-section
(2), signed by the Money-Lender or his agent, and
containing the relevant particulars specified in sub-section
(1);
(b) acopy of any document relating to a loan made by him or of
any security thereof.
Explanation.- For the purposes of this section “year” in relation to
any Money-Lender, means the financial year.
23. (1) The accounts of every Money-Lender shall be audited at
least once in every year by a person who is a Chartered Accountant within
the meaning of the Chartered Accountants Act, 1949, and the audit report
shall be submitted to the Registrar within such period as may be prescribed.
(2) If the audit report under sub-section (1) discloses any irregularity or
any contravention or non-compliance of the provisions of this Act or the
rules made thereunder, or of any of the conditions of the registration, the
Registrar to whom such audit report is submitted, may without prejudice to
any other action that may be taken under any other provision of this Act,
by order in writing direct the Money-Lender to take such action as may be
specified in the order within the time mentioned therein to remedy the
irregularity, or to take such steps necessary to comply with the provisions
of this Act or the rules made thereunder or of the conditions of the
registration.
24. A debtor to whom any statement or pass book has been furnished
under section 21 or 22 shall not be bound to acknowledge the correctness of
the particulars mentioned therein and his failure to do so shall not by itself,
be deemed to be an admission of the correctness of any of such particulars.
CHAPTER VI
CERTAIN OTHER DUTIES OF MONEY-LENDERS
25. Subject to the provisions of sections 176 to 179 of Chapter IX of the
Contract Act, 1872 or anything contained in any law for the time being in
force, no Money-Lender shall dispose off any article taken from a debtor as
a pawn, pledge or security for the loan advanced to him, before a period of
two years from the date stipulated for final repayment of the loan.
26. (1) In every suit to which this Act applies filed by a Money-Lender
after the appointed day or in every such suit pending before any court on
the appointed day, the court shall consider and decide the point whether
such Money-Lender held a valid registration or not at the time when the
loan to which the suit relates was advanced and if the Court finds that such
Money-Lender did not hold valid registration at that time. it shall dismiss
the suit forthwith.
[PART-IV
38 of 1949.
Debtor not
bound to admit
correctness of
particulars in
statements or
pass book.
Money-Lender
not to dispose
off pawned
articles before
certain period.
Stay of suits by
Money-Lender
not holding
valid
registration.
111 of 1909.
V of 1920.
1 of 1956.
Power of Court
to limit interest
recoverable in
certain cases.
Power of Court to
direct payment of
decretal amount
by installments.
Reopening of
transactions.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-17
(2) Nothing contained in sub-section (1) shall affect the powers of a
Court of Wards, or an official assignee, a receiver, or an administrator or a
Court under the 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 Money-Lender.
CHAPTER VII
SUITS AND POWERS OF COURT
27. (1) Inany suit to which this Act applies-
(a) a Court shall, before deciding the claim on merits, frame and
decide the issue whether the Money-Lender has complied
with the provisions of sections 21 and 22;
(b) if the Court finds that the provisions of section 21 or section
22 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 any portion of the interest found
due, as may seem reasonable to it in the circumstances of the
case and may disallow cost to the Money-Lender.
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 deemed to have complied with the
provisions of section 21 or section 22, as the case may be, in spite
of any errors and omissions, if the Court finds that such errors and
omissions are not material or not made fraudulently.
(2) A Court trying a suit to which this Act applies shall, in a case in
which it finds that the provisions of section 21 or section 22 have not been
complied with by the Money-Lender, cause a copy of its judgment or order
containing such finding duly authenticated by it and bearing the seal of the
Court to be sent to the Registrar by whom the registration was issued to
such Money-Lender and on receipt of such copy of the judgments or order,
the Registrar may, without holding any further inquiry or giving an
opportunity of being heard to the Money-Lender, cancel his registration, or
suspend it for such period as the Registrar thinks fit.
28. 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 appointed day, decree, on account of interest, a
sum greater than the principal of the loan due on the date of the decree.
29. The court may, at any time on the application of the judgment-
debtor, after notice to the decree-holder, direct that the amount of any
decree passed against him, whether before or after the appointed day, in
respect of 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.
30. (1) Notwithstanding anything contained in any law for the time
being in force, the court shall, in any suit to which this Act applies, whether
heard ex-prate or otherwise, -
IV-Ex.,-14-5
Procedure of
Court in suits
regarding loans.
14-18
(2)
GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(a) reopen . any transaction, or any account already taken
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 -
(1) reopen any adjustment or agreement purporting to
close previous dealings and to create new obligations which
have been entrusted 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 33.
(i) Notwithstanding anything to the contrary contained in any
law, custom or contract, where in any such suit, it is alleged by the
debtor -
(a) that the loan was advanced to him by the Money-Lender
either before or after the appointed day, not in fact on the
security of any property held by him but that the loan was
actually advanced to him on his transferring by way of sale
of such property to the Money-Lender or to a relative of the
Money-Lender, or
(b) that the transaction was in fact in the nature of a mortgage,
the court shall declare the transaction to be a sale or, as the case
may be, a mortgage, if the court is satisfied that the circumstances
connected with the transaction showed the transfer to be in the
nature of a sale or a mortgage and thereupon the court shall proceed
accordingly.
(1) In any such suit, if such relative has not been impeded as a
party, the court shall declare such relative to be a party to such suit.
Explanation.- For the purpose of this sub-section, the
expression “relative” shall mean any ascendant to the second degree
and his descendant to the third degree and spouse of any such
ascendant or descendant.
Deposit in
Court of
money due to
Money-
Lender.
Limitation
on rate of
interest.
PART-IV] GUJARAT GOVERNMENT GAZETTE. Ex. 8-4-2011 14-19
31. (1) Any debtor may make an application in prescribed form 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.
(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 on 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 the Money-Lender in respect of the principal and interest,
if any. In taking accounts under this section, the Court shall, so far as may
be, have regard to the provisions of sections 21 to 30 and sections 33 to 37.
32. (1) At any time, the debtor may tender to a Money-Lender any sum
of money due from him in respect of a loan by way of principal or interest
or both.
(2) If a Money-Lender refuses to accept any sum so tendered, the
debtor may deposit the said sum in the Court which has jurisdiction to try
the suit for the recovery of such sum, to the account of the Money-Lender.
(3) The Court shall thereupon cause written notice of the ला be
served on the Money-Lender, and the Money-Lender may, on presenting a
petition stating the sum then due in respect of the loan, and his willingness .
to accept the said sum, receive and appropriate it first towards the interest
and the residue, if any, towards the principal.
(4) When athe Money-Lender does not accept the sum, the Court shall
appropriate the said sum first towards the interest and the residue, if any,
towards the principal.
CHAPTER VIII
RATES OF INTEREST, ASSIGNEES, ETC.
33 @ 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.
(2) No agreement between a Money-Lender and a debtor for payment
of interest at rates exceeding the maximum rates fixed by the State
Government under sub-section (1) shall be valid and no Court shall in any
suit to which this Act applies award interest exceeding the said rates.
(3) No Money-Lender or a person advancing a loan shall make an oral
or written demand or charge or receive from a debtor interest at a rate
exceeding the maximum rate fixed by the State Government under sub-
section (1).
Inquiry for
taking accounts
and declaring
the amount due.
Prohibition of
charge for
expenses on
loans by
Money-Lender.
4 of 1882.
14-20 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(4) Any loan in respect of which the Money-Lender or any person has
realized from the debtor an interest at rates exceeding the maximum rates
fixed by the State Government under sub-section (1), shall stand discharged
and the amount of excessive interest, if any, so realized shall be refunded
by the Money-Lender or any person, as the case may be, to the debtor. If
the Money-Lender or any person fails to pay such amount of excessive
interest to the debtor, it shall be recoverable from him as an arrears of land
revenue, and on recovery thereof, it shall be paid to the debtor.
34. (1) No Money-Lender shall receive from a debtor or intending debtor
any sum, by whatsoever name called, as costs, charges or expenses on the
loans other than reasonable costs of investigating title to the property, cost
of stamp, registration of documents and other usual out-of-pocket expenses
in cases where an agreement between parties includes a stipulation of that
property is to be given as security or by way of mortgage and where both
parties have agreed to such costs and expenses and to reimbursement
thereof, or where such costs, charges or expenses are leviable under the
provisions of the Transfer of Property Act, 1882, or any other law for the
time being in force.
(2) Any sum received by a Money-Lender in contravention of sub-
section (1) from 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 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.
35. (1) Where a loan advanced, whether before or after the appointed
day, 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 a 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
(८) give 10 the debtor a notice in writing of the assignment,
supplying the name and address of the assignee and send or
cause to be sent a copy thereof to the Registrar.
(2) Any person acting in contravention of the provisions of sub-section
(1) shall be liable to indemnify any other person who is prejudiced by such
contravention.
36. (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
appointed day or of interest on money so lent or of the benefit of any
agreement made or security taken in respect of any such debt or interest,
Notice and
information to
be given on
assignment of
loan.
Application
of Act as
respects
assignees.
Entry of wrong
sum in
documents, etc.
to be offence.
Prohibition
against
recovery of loan
or interest
except in cash.
Penalty for
molestation.
PART-IV] GUJARAT GOVERNMENT GAZETTE,. Ex. 8-4-2011 14-21
has been assigned, the assignee shall be deemed to be the Money-Lender
and the provisions of this Act shall apply to such assignee as if he were a
Money-Lender.
) 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
loan which has been so assigned, the assignee shall in respect of such
payment or transfer, be deemed to be the agent of the Money-Lender for all
the purposes of this Act.
37. Notwithstanding anything contained in any agreement between the
parties or any law for the time being in force, when a statement is delivered
and pass book is supplied to a debtor under section 21 or accounts are taken
under section 31 or a tender is made by a debtor to a Money-Lender in
respect of a loan under section 32 before the sixteenth day of a month, the
interest due shall be calculated as payable for fifteen days of the said
month, and if the statement is delivered and pass book is supplied or
accounts are taken or tender is made on any subsequent day, then interest
shall be calculated for the entire month, irrespective of the fact that such
statement is delivered and pass book is supplied or such accounts are taken
or such tender is made on any such day.
Explanation.- For the purpose of this section, ‘month’, in relation
to any loan, means a month of the year for which the accounts of the
Money-Lender relating to such loan are ordinarily maintained in the books
of account of the Money-Lender.
CHAPTER IX
OFFENCES AND PENALTIES
38. No Money-Lender shall accept any promissory note,
acknowledgment, bond or other writing from the debtor which does not
state the actual amount of the loan, or which states such amount wrongly or
which contains erasures or over-writings not duly authenticated by the
debtor or accept from the debtor any documents signed by such debtor in
which blanks are left, or execute any instrument affecting a debtor in which
blanks are left for being filled in after execution.
39. Notwithstanding anything contained in this Act or in any other law
for the time being in force, no Money-Lender shall recover the principal of
the loan advanced by him or the interest thereon either in part or in whole
except in cash.
40. Whoever molests or abets the molestation of a debtor for the
recovery of a loan due by him to a Money-Lender shall, on conviction, be
punished with imprisonment for a term which may extend to two years and
with fine which may extend to twenty-five thousand rupees :
Provided that in absence of the special and adequate reasons to the
contrary to be mentioned in the judgments of the Court -
IV-Ex.,-14-6
Manner of
calculating
interest.
14-22
41.
(@)
(i)
GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
for the first offence, such Lm'pn'sonm-ent shall not be less
than six months and such fine shall not be less than ten
thousand rupees;
for the second and subsequent offences, such imprisonment
shall not be less than one year and such fine shall not be less
than twenty-five thousand rupees.
Explanation.- For the purposes of this section, a
person who, with intent to cause another person to abstain
from doing any act which he 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 interferes with any property owned or used
by him or deprives him of, or hinders him in the use
thereof, or
(0) loiters near a house or other place where such other
person resides or works, or carries on business, or -
happens to be, or 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.
If any Money-Lender or a person takes from a debtor at the time of
advancing a loan or deduct out of the principal of such loan any salami,
batta, dharmada or other extraction of similar nature by whatever name
called, he shall be punishable with fine which may extend to twenty
thousand rupees.
42. Whoever-
(a) carries on the business of money-lending in any area without
(b)
(०)
registration in contravention of section 5; or
fails to produce any record or document in compliance with
any requirement made under sub-section (1) of section 19 or
knowingly produces any false record or document; or
obstructs any officer making an entry, inquiry, search,
seizure or entrance under sub-section (2) of section 19; or
Penalty for
salami, batta,
dharmada, etc.
Penalty for
contravention
of section
5.19.33 or 38.
Penalty for
contravention
of section 21 or
section 22.
General
provision for
penalty.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-23
(d) demands, charges or receives from a debtor the interest at
higher rate in contravention of sub-section (3) of section 33;
or
(e) accepts any promissory note, acknowledgement bond or
other writing or document or any instrument in
contravention of section 38; or
) tempers with debtors’ record or transaction or makes a
wrongful or false entry therein or tempers or mutilates or
destroys pawn or property -
shall on conviction, be punished with imprisonment for a term
which may extend to two years and with fine which may extend to
twenty-five thousand rupees :
Provided that in absence of the special and adequate reason
to the contrary to be mentioned in the judgments of the Court -
(1) for the first offence, such imprisonment shall not be
less than three months and such fine shall not be less
than five thousand rupees,
(i) for the second and subsequent offences, such
imprisonment shall not be less than six months and
such fine shall not be less than ten thousand rupees.
43. Whoever contravenes the provisions of section 21 or section 22
shall, on conviction, be punished with imprisonment for a term which may
extend to one year and with fine which may extend to ten thousand rupees :
.
Provided that in absence of the special and adequate reason to the
contrary to be mentioned in the judgments of the Court -
(i) for the first offence, such imprisonment shall not be less
than one month and such fine shall not be less than five
thousand rupees;
(i) for the second and subsequent offences, such imprisonment
shall not be less than six months and such fine shall not be
less than ten thousand rupees.
44. Whoever fails to comply with, or acts in contravention of, any of the
provisions of this Act shall, on conviction, if no specific penalty is provided
for such offence in this Act, be punished with imprisonment for a term
which may extend to one year and with fine which may extend to ten
thousand rupees :
Provided that in absence of the special and an adequate reason to the
contrary to be mentioned in the judgments of the court -
Power of Court
to suspend or
cancel
registration in
_certain cases.
14-24 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(1) for the first offence, such imprisonment shall not be less
than one month and such fine shall not be less than two
thousand rupees;
(i) for the second and subsequent offences, such imprisonment
shall not be less than two months and such fine shall not be
less than five thousand rupees.
45. (1) A Court passing an order of conviction against a Money-
Lender for an offence under this Act, if it is satisfied that such Money-
Lender has committed such contravention of the provisions of this Act or
rules made thereunder as would make him unfit to carry on the business of
money-lending, may, by order, direct, in addition to any penalty which it
may impose on him for such offence, that such Money-Lender shall be
disqualified from holding any registration in the State for carrying on such
business for such period, not being less than six months, as the Court may
think fit.
(2) Where a Court convicts a Money-Lender of an offence under this
Act, or makes an order under sub-section (1), it shall cause the particulars of
the conviction and the order passed by it to be endorsed -on all the
authorized registrations held by the Money-Lender convicted or by any
other person affected by the order and shall cause a copy of its judgment
and order duly authenticated by it to be sent to the Registrars by whom the
registrations were granted, for the purpose of entering such particulars in
the registers :
Provided that where any Money-Lender is disqualified from holding
any registration under this section, he may appeal against such order to the
Court to which an appeal ordinarily lies from the decision of the Court
passing the order of conviction; 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 registration 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
registration so required shall be liable, on conviction, to a fine not
exceeding five hundred rupees 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.
46. (1) If the person committing an offence under this Act is a Hindu
Undivided Family, the person responsible for the management of business
of such family shall be deemed to be guilty of such contravention.
Offences by
corporations.
Certain
offences to
be
cognizable,
Cognizance of
certain offences
with sanction of
Registrar.
Compounding
of certain
offences.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-25
(2) Where an offence under this Act or rules made thereunder has been
committed by a company, every person, who, at the time the offence was
committed, was in charge of, and was responsible to the company for the
conduct of the business of the company as well as the company, shall be
deemed to be guilty of the offence, and shall be liable to be proceeded
against and punished accordingly :
Provided that nothing contained in this sub-section shall render any
such person liable to any punishment provided in this Act, if he proves that
the offence was committed without his knowledge, or that he exercised all
due diligence to prevent the commission of the offence.
(3) Notwithstanding anything contained in sub-section (2), where an
offence under this Act has been committed by a company and it is proved
that the offence has been committed with the consent or connivance of, or
is attributable to any neglect on the part of, any director, manager or other
officer, such director, manager or officer shall also be deemed to be guilty
of that offence and shall be liable to be proceeded against and punished
accordingly.
Explanation.- For the purpose of this section -
(a) “company” means a body corporate and includes any firm
or other association of individuals, and
(b) “director”, in relation to a firm, means a partner in the firm.
47. Notwithstanding anything contained in फिट Code of Criminal
Procedure, 1973, offences punishable-
(a) under section 40,
(b) under section 42 for contravening the provision of section 5 -
shall be cognizable.
48. No court shall take cognizance of any offence other than offences
referred to in section 47 except with the previous sanction of the Registrar.
49. (1) The Registrar General or any other officer authorized by him
in this behalf, may accept, from the person who has committed or is
reasonably suspected of having committed any offence under this Act, by
way of compounding of such offence -
(a) a sum of money equal to the maximum amount prescribed as
fine under this Act, if the offence is committed for the first
time; and
(b) in other cases, twice the amount of such fine prescribed
under the respective sections :
IV-Ex. -14-7
2 0f 1974,
Prohibition of
arrest and
imprisonment of
agricultural
debtors in
execution of
decrees of money.
Officers and
employees to be
public servants.
14-26 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
Provided that an offence with respect to which a proceeding
is pending before the Court shall not be compoundable :
Provided further that the offences punishable under sections
42 and 43 of this Act shall not be compoundable.
50. Notwithstanding anything contained in any law for the time being in
force, no debtor who cultivates land personally and whose debts does not
exceed rupees fifty thousand shall be arrested or imprisoned in execution of
a decree for money passed in favour of a Money-Lender, whether before or
after the appointed day.
Explanation.- For the purpose of this section, the expression “to
cultivate personally” will have the meaning assigned to that expression in
the relevant tenancy law.
CHAPTER X
MISCELLANEOUS
51. Every officer of the Government when acting or purporting to act in _
pursuance of the provisions of this Act or the rules made thereunder shall
be deemed to be public servant within the meaning of section 21 of the
Indian Penal Code.
52. No suit, prosecution or other legal proceedings shall lie against the
Registrar General, Registrar, Assistant Registrar or any officer or employee
subordinate to him appointed under section 3 or any person acting on his
authority, in respect of anything which is in good faith done or purported to
be done by him in pursuance of the provisions of this Act, or rules made
thereunder or any instructions, for carrying out the purposes of this Act.
53. Nothing in this Act shall affect any of the provisions of any law
which may be in force in any part of the State relating to relief of
agricultural indebtedness and no Court shall entertain, or proceed under this
Act with any suit or proceeding relating to any loan in respect of which
debt adjustment proceedings can be taken under the said Act, or as the case
may be, the said law.
54. Whenever a copy of any document from the record of any
application, inquiry or appeal under this Act is required by any party to
such application, inquiry or appeal, it may be granted on payment of such
fees as may be prescribed by the State Government.
55. (1) The State Government may, by notification in the Official
Gaczette, make rules generally 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 :-
45 of 1860.
Indemnity.
Provisions of
any other
Actin force
saved.
Grant of copies of
documents on
payment of fees.
Power to make
rules.
PART-IV] GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 14-27
(@)
(b)
(c)
(d)
(६)
®
(2
(h)
@)
@
(k)
M
the form of the register of Money-Lenders to be maintained
by the Registrar under section 4;
the form of ८०80 for registration under sub-section (1)
of section 6; the other particulars of such application, under
sub-section (2);
the form of certificate of registration, the conditions of
registration and fees for registration and the manner of
payment thereof under sub-section (1) of section 7;
the form of application for renewal of registration, the period
for making such application; and the fee for renewal of
registration; to fix amount of penalty and the manner of
payment thereof under sub-section (1) of section 9;
the fee for the issuance of a duplicate certificate of
registration under section 11;
the manner of publishing a notice under sub-section (4) of
section 20 for inviting claims to property pledged with a
Money-Lender;
the form of cash book, register of securities, register of
debtors, ledger and such other books of accounts; and the
manner in which they shall be maintained under sub-section
(1) of section 21; the form of statement of accounts, pass
books and returns to be submitted to the Registrar and the
period for submission under sub-section (2) of section 21;
and the other particulars to be prescribed under sub-section
(5) of the section 21;
the form of the statement under sub-section (1) of section
225
the period for submission of audit report to the Registrar
under sub-section (1) of section 23;
the form of application to be made to the Court under sub-
section (1) of section 31;
the payment of fees for copies of documents under section
54;
such other matters which are to be or may be, prescribed
under this Act. b
Power of State
Government
to exempt.
Provisions
of Guj. 35
of 1976 not
to affect.
Repeal and
savings.
14-28 GUJARAT GOVERNMENT GAZETTE, Ex. 8-4-2011 [PART-IV
(3) The rules made under this section shall, subject to the condition of
previous publication, be published in the Official Gazette.
(4) All rules made under this section shall be laid for not less than thirty
days before the State Legislature as soon as may be after they are made,
and shall be subject to rescission by the State Legislature or to such
modification as the State Legislature may make during the session in which
they are so laid or the session immediately following.
(5) Any rescission or modification made by the State Legislature shall
be published in the Official Gazette and shall thereupon take effect.
56. The State Government may, by general or special order to be
published in the Official Gazette, exempt any Money-Lender or class of
Money-Lenders from all or any of the provisions of this Act subject to such
conditions and for such period as may be specified in such order.
57. Nothing in this Act shall affect the operation of the Gujarat Rural
Debtors Relief Act, 1976.
58. (1) The Bombay Money-Lenders Act, 1946 is hereby repealed.
(2) Notwithstanding such repeal of the Act refer to in sub-section (1)
(hereinafter in this section refer to as the “said Act™) -
(a) any license issued under the said Act and validly in force
immediately before the appointed day shall be deemed to be
the registration issued under this Act, and
(b) any appointment, notification, order, rule, form, notice or
register made, issued or maintained under the said Act shall,
so far as it is not inconsistent with the provisions of this Act,
continue in force and be deemed to have been made, issued
or maintained under the provisions of this Act, unless and
until it is superseded by any appointment, notification, order,
rule, form, notice or register made, issued or maintained
under the provisions of this Act.
(3) Any other thing done or action taken under the said Act, so far as it
is not inconsistent with the provisions of this Act, shall be deemed to have
been done or taken under the corresponding provisions of this Act and shall
continue in force accordingly, unless and until superseded by any thing
done or any action taken under this Act.
Government Central Press, Gandhinagar
Guj. 35 of
1976.
XXXI of 1947.