The Andhra Pradesh Pawn Brokers Act, 2002
**THE ANDHRA PRADESH PAWN BROKERS ACT, 2002**

**ACT NO. 6 OF 2002**

**ARRANGEMENT OF SECTIONS**

**SECTIONS**

**1.** Short title, extent and commencement
**2.** Definitions
**3.** Pawn Broker to obtain licence
**4.** Granting and refusal of licence
**5.** Pawn brokers to exhibit their names
**6.** Change of place of business by pawn broker
**7.** Interest chargeable by pawn broker
**8.** Pawn ticket to be given to pawner
**9.** Pawn entitled to redeem pledge
**10.** Protection of pawners not having pawn tickets
**11.** Pawn Broker to keep books, give receipts etc.
**12.** Redemption of pledge
**13.** Sale of pledge and inspection of sale books
**14.** Liability of pawn-broker in case of fire
**15.** Compensation for depreciation of pledge
**16.** Appointment of inspectors and take their powers
**17.** Powers to order production of accounts and powers of
entry and inspection
**18.** Power to summon witnesses and cause production of
documents
**19.** Assistance of police officers
**20.** Power to cancel licence, etc.
**21.** Publication of order of cancellation
**22.** No refund of licence fee
**23.** Appeals
**24.** Pawn broker advancing smaller amount or receiving
higher interest than that specified in the accounts to
be punishable
**25.** Certain other acts of pawn brokers to be punishable
**26.** Certain acts of pawners and others to be punishable
**27.** Duties of the Pawn Broker
**28.** General penalty of contravention of Act etc.
**29.** Penalty for carrying on business without licence or in
violation of the conditions of the licence
**30.** Liability of the pawn broker for the acts committed by
agents or employees
**31.** Transfer of licence to heirs
**32.** Contracts not to be void on account of offence but
interest and costs not to be allowed in certain cases
**33.** Power of revision by the Government
**34.** Bar of Certain Proceedings
**35.** Power to make rules
**36.** Act not to effect or alter the law relating to relief of
agricultural and other indebtedness
**37.** Repeal and savings


-----

**THE ANDHRA PRADESH PAWN BROKERS ACT, 2002**

**ACT NO. 6 OF 2002**

(13th March, 2002)

**AN ACT TO CONSOLIDATE THE LAWS RELATING TO PAWN**
**BROKING IN THE STATE OF ANDHRA PRADESH AND FOR**
**MATTERS** **CONNECTED** **THEREWITH** **OR** **INCIDENTAL**
**THERETO.**

Whereas, it is expedient to provide for the regulation and control
of the business of Pawn Broking in the State of Andhra Pradesh.

Be it enacted by the Legislative Assembly of the State of Andhra
Pradesh in the Fifty-third Year of the Republic of India as follows:
**1. Short title extent and commencement- (1) This Act may be called**
the Andhra Pradesh Pawn Brokers Act, 2002.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date and in such areas as the
Government may by notification, appoint and they may appoint different
dates for different areas.

**2. Definitions- In this Act, unless the context otherwise requires,-**

(1) “Appellate authority” means any officer or authority
appointed by the Government to exercise the powers of an appellate
authority under this Act;

(2) “Company” means a body corporate and includes a firm,
association of persons or body of individuals whether incorporated or
not.

(3) “Co-operative Society” means a society registered or deemed
to have been registered under the Andhra Pradesh Co-operative
Societies Act, 1964 (Act 7 of 1964) or the Andhra Pradesh Mutually
Aided Co-operative Societies Act, 1955 (Act 30 of 1995).

(4) “Government" means the State Government of Andhra
Pradesh.

(5) “Interest” does not include any sum lawfully charged in
accordance with the provisions of this Act by a Pawn Broker for or on
account of costs, charges or expenses, but saved as aforesaid, includes
any amount by whatsoever name called, in execess of the principal, paid
or payable to a Pawn Broker in consideration of or otherwise in respect
of a loan.

(6) “Licence” means a Pawn Broker’s licence granted under
section 4.

(7) “Licensing Authority” means an officer or authority
appointed by the Government to perform the functions of a licensing
authority under this Act.
(8) “Loan” means an advance whether of money or in kind at
interest, and includes any transaction which the Court finds in
substance to amount to such an advance but does not include,
(a) a deposit of money or other property in a Government Post
Office Savings Bank or in a Bank or in a Company as defined in
the Companies Act, 1956 (Central Act 1 of 1956) or with a Cooperative Society ;
(b) an advance made to any loan floated by the Government of


-----

India or the Government of any State ;
(c) an advance made by a Bank or a Co-operative Soceity or an
advance made from a provident fund to which the Provident
Funds Act, 1925 (Central Act 19 of 1925) applies ;

(d) an advance made by the Government or by any person
authorised by the Government to make advances on their
behalf, or by any local authority;

(e) an advance made by any authorities specified by the
Government by notification ;

(f) an advance made by a trader bonafied carrying on any
business, other than Pawn-Broking, if such loan is advanced in
the regular course of such business ;

(g) an advance made to its members by any Nidhi or Permanent
Fund registered under any Chit Fund scheme or Chit;

(9) “Members of Weaker Sections" means any individual whose
total income from all sources put together does not exceed rupees eleven
thousands per annum.

(10) “Notification” means a notification published in the Andhra
Pradesh Gazette, and the word “notified” shall be construed accordingly.

(11) “Pawn Broker” means a person who carries on the business
of taking goods and chattels in pawn for a loan;

Explanation:- Every person who keeps a shop for the purpose of sale of
goods or chattels and who purchase goods or chattels and pays or
advances thereon any sum of money, with or under an agreement or
understanding expressed or implied that the goods or chattels may be
afterwards repurchased on any term is a Pawn Broker within the
meaning of this clause.

(12) “Pawner” means a person delivering an article for pawn to a
pawn Broker.

(13) “Pledge” means an article pawned with a Pawn Broker;

(15) “Prescribed” means prescribed by rules made under this
Act;
(16) “Principal” in relation to a loan means the amount actually
lent to the pawner, and
(17) “Year” means the financial year.

**3. Pawn Broker to obtain licence- (1) No person, shall commence or**
carry on or continue business a Pawn Broker at any place to which this
Act applies without a licence obtained under this Act or in contravention
of the terms thereof:

Provided that nothing in this section shall be deemed to prohibit a
licensee under the Andhra Pradesh (Andhra Area) Pawn Broker Act,
1943 (Act XXIII of 1943) or the Andhra Pradesh (Telangana Area) Money
Lenders Act, 1349F (Act 5 of 1349F) who has applied for a licence within
three months from the commencement of this Act to carry on or to
continue business as a Pawn Broker pending orders on his application.


-----

(2) Where a Pawn Broker has more than one shop or place of
business, whether in the same town or village or in different towns or
villages, he shall obtain a separate licence in respect of each such shop
or place of business.

(3) (a) Where a Pawn Broker is a registered firm, the licence
shall be obtained in the firm’s name.

(b) Where a Pawn Broker is an undivided joint family, the
licence shall be obtained in the name of the manager or the
Kartha, as the case may be, described as such in the licence.

(c) Where a Pawn Broker is any other association of
individuals, not required to be registered under the Indian
Companies Act, 1956, (Central Act 1 of 1956) a separate licence
shall be obtained by each such individual in his name
describing himself as a member of the association:

Provided that nothing contained in this sub-section shall affect
the operation of section 69 of the Indian Partner-ship Act, 1932
(Central Act 9 of 1932).

**4. Granting and refusal of licence- (1) Every appIication for a Pawn**
Broker’s licence shall be in writing and shall be made to the licensing
authority in such manner and accompanied by such licence fee as may
be prescribed.

(2) Every licence shall be granted in such form and subject to such
conditions as may be prescribed.

(3) The Licensing Authority may by order in writing refuse to grant
a licence, if such authority is satisfied,
(a) 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 of licence ; or

(b) that the applicant has made willful default in complying
with or knowingly acted in contravention of any requirement of
this Act; or

(c) that the applicant has,
(i) knowingly participated in or connived at any fraud or
dishonesty in the conduct of or in connection with the
business of Pawn Broking ; or

(ii) is found guilty of an offence punishable under this Act or
any other law for the time being in force in respect of or in
connection with the business of Pawn Broking; or

(d) that the application is made within six months of the
cancellation of the previous licence of the applicant.

(4) Every order of the Licensing Authority under Sub-section (3)
shall be communicated to the applicant in such manner as may be
prescribed.
(5) The Licensisng Authority may, if it is satisfied that an applicant
coming under the purview of the proviso to Sub-section (1) of section 3
could not apply for a licence under this Act, within the period referred to
therein for reasons beyond his control, condone the delay upto a
maximum period of ninety days subject to payment of a penalty equal to
the prescribed licence fee.
(6) Every licence granted under this Act shall, subject to the
provisions of sub-section (8), be for a period of three years.


-----

(7) A licence granted under Sub-section (2) may be renewed on an
application which shall be made atleast two months before the expiry of
the period of licence and the provisions of Sub-sections (1) to (6) shall
apply in relation to the renewal of licence as they apply in relation to the
grant of a licence.
(8) If orders refusing to renew a licence are not communicated to a
Pawn Broker by the Licensing Authority before the expiry of his current
licence, the Pawn Broker shall, notwithstanding such expiry, be deemed
to have a valid licence till the orders are received by him on his
application for renewal.
(9) Nothing in this section shall be deemed to disentitle a Pawn
Broker whose licence has expired or has not been renewed from taking
steps to recover any loan advanced during the period when the licence
was in force.

**5. Pawn brokers to exhibit their names- Every Pawn Broker shall**
always exhibit over his shop or place of business his name with the
word “Pawn Broker” and its equivalent in the regional language.

**6. Change of place of business by pawn broker-No Pawn Broker shall**
change his place of business without previous notice to the licensing
Authority and without having the address of the new place of business
duly endorsed on his licence.
**7. Interest chargeable by pawn broker- (l)No Pawn Broker shall**
charge interest on any loan at a rate exceeding by more than two
percent the rate charged by commercial banks on similar loans granted
by them.
(2) No Pawn Broker shall demand or take any gifts, articles,
commission, charges or amount under any name whatsoever from the
pawner while advancing a loan in terms of this Act, other than the
interest.

(3) The total interest payable on a loan shall not exceed the
quantum of the principal.

**8. Pawn ticket to be given to pawner- Every Pawn Broker shall on**
taking a pledge in pawn, give to the pawner, a pawn-ticket in the
prescribed form, and shall not take a pledge in pawn unless the pawner
takes the pawn-ticket.

**9. Pawn entitled to redeem pledge- (1) Subject to the provisions of**
this Act, every Pawn Broker shall on payment of the principal and
interest, deliver the pledge to the pawner.

(2) Except as otherwise expressly provided in this Act, a Pawn
Broker shall not be bound to deliver back a pledge unless the pawnticket, is delivered to him.

**10. Protection of pawners not having pawn tickets - (1) (a) A Pawner**
alleging that the pawn ticket has been lost, mislaid, destroyed or stolen
or fraudulently obtained from him, may apply to the pawn Broker for
the prescribed declaration form which the Pawn Broker shall deliver to
him.

(b) If the Pawner delivers back to the Pawn Broker the
declaration duly made before any Magistrate or Notary by the
pawner and by a person identifying him, the pawner shall have,
as between himself and the Pawn Broker, all the same rights
and remedies as if he had produced the pawn ticket:


-----

Provided that such a declaration shall not be effectual for
that purpose, unless the declaration is duly made and delivered
back to the Pawn Broker within such period after the delivery of
the form to the applicant, as may be prescribed.

(2) A pawner making a declaration under Sub-section (1), knowing
the same to be false in any material particular, shall be punished with
imprisonment for a term which may extend to one year or with fine
which may extent to rupees five thousand or with both.

(3) A person falsely identifying the pawner under Sub-section (1)
knowing that he is not the real pawner making such declaration shall be
punished with imprisonment for a term which may extend to one year or
with fine which may extent to rupees five thousand or with both.

**11. Pawn Broker to keep books, give receipts etc.- (1) Every Pawn**
Broker shall, 
(a) regularly record and maintain or cause to be recorded and
maintained, in a pledge book in the prescribed form, an account
showing for each debtor separately,
(i) the name and address of the pawner;
(ii) a full and detailed description of the article or each of
the articles taken in pawn;
(iii) the date of the loan, the amount of the principal of the
loan and the rate of interest charged on the loan;
(iv) the time agreed upon for the redemption of the pawn;
and
(v) the amount of every payment received by the Pawn
Broker in respect of the loan, and the date of such
payment;

(b) keep and use in his business, the following documents and
books as may be prescribed and enter therein from time to time,
as occasion requires, in a fair and legible manner such
particulars and in accordance with such directions, as may be
prescribed,
(i) Pawn - ticket;
(ii) sale book of pledge;
(iii) declaration of pawn-ticket lost; and
(iv) receipt on redemption of pledge;

(c) give to the pawner or his agent a receipt for every sum paid
by him, duly signed and, if necessary, stamped at the time of
such payment; and

(d) on a requisition in writing made by the pawner, furnish to
him or to any person mentioned by him, a statement of account
signed by himself or his agent, showing the particulars referred
to in clause (a) and also the amount which-remains outstanding
on account of the principal and of interest, and may charge such
sum as the State Government may prescribed as fee therefor.

(2) All records or entries made in the books, accounts and
documents referred to in sub-section (1) shall be either in English or in
such language of the locality as may be prescribed; and all such books,
accounts and documents and all pledges taken by the Pawn Broker
shall be open to inspection by the Licensing Authority or an Inspector
appointed under section 16 or any Police Officer not below the rank of


-----

Sub-Inspector or by any Revenue Officer not below the rank of a Mandal
Revenue Officer.
(3) Notwithstanding anything contained in the Indian Evidence
Act, 1872 (Central Act 1 of 1872), a copy of the account referred to in
clause (a) of sub-section (1), certified in such manner as “may be
prescribed, shall be admissible in evidence in the same manner and to
the same extent as the original account.

(4) A pawner to whom a statement of account has been furnished
under clause (d) of sub-section (1) and who fails to object to the
correctness of the account shall not, by such failure alone, be deemed to
have admitted the correctness of such account.

(5) In the pawn-ticket furnished to the pawner under section 8, in the


receipt given under clause (c) of sub-section (1) and in the statement of
account furnished under clause (d) of that sub-section the figures shall
be entered only in Arabic numerals.

(6) If any Pawn Broker fails to give to the pawner or his agent a
receipt under clause (c) or a statement under clause (d) of sub-section
(1) he shall be liable to a fine not exceeding rupees five thousand.

**12. Redemption of pledge- Every pledge shall be redeemable within**
two years from the day of pawning, exclusive of that day.

Explanation:- where the contract between the parties provides a longer
period for redemption than two years, the provisions of this section shall
be read and construed as if the references to such longer period had
been substituted for the references to the period of two years therein.

**13. Sale of pledge and inspection of sale books -**

(1)  A pledge may be disposed of by the Pawn Broker by public
auction and not otherwise, and the sale shall be conducted in such
manner as may be prescribed.

(2)  A Pawn Broker shall not bid for and purchase at a sale by public
auction conducted under sub-section (1), a pledge pawned with him.

(3) Where in a public auction, the pledge has been sold for more than
the amount of the loan and interest thereon and charges due at the time
of sale, the Pawn Broker shall pay to the Pawner or his agent, the
surplus amount within one month from the date of sale after deducting
there from the necessary costs and charges of the sale and the Pawner
or his agent may inspect the entry relating to the sale either in the Pawn
Broker’s book or in such catalogue of the auction, as may be prescribed,
at any time within one month from such payment.

(4) where the surplus amount is not paid to the pawner within one
month of the sale under sub-section (3), the same shall be deposited
with the licensing authority, within seven days thereafter.

**14. Liability of pawn-broker in case of fire-** (1) where a pledge is
destroyed or damaged by or in consequence of fire, the Pawn Broker
shall nevertheless be liable on application made within the period
during which the pledge would have been redeemable, to pay the value
of the pledge, after deducting the amount of the principal and interest.

Explanation:- For the purpose of this sub-section, the value of the
pledge shall be its estimated value entered in the pledge book at the
time of the pawn together with interest on the amount of the principal
and shall in no case be less than the aggregate of the amount of the


-----

principal and interest and twenty five percent on the amount of
principal.

(2) A Pawn Broker shall be entitled to insure to the extent of valued
so estimated.

**15. Compensation for depreciation of pledge - If a person entitled to**
redeem a pledge shows to the satisfaction of a Civil Court having
jurisdiction to entertain a suit for such redemption that the pledge has
become or has been rendered of less value than it was at the time of
pawning thereof by or through the default, neglect or willful
misbehaviour of the Pawn Broker, the Court may if it thinks fit, award
reasonable compensation to the owner of the pledge in respect of the
damage, and the amount awarded shall be deducted from the amount
payable to the Pawn Broker, or shall be paid by the Pawn Broker (as the
case requires) in such manner as the Court directs.

**16. Appointment of inspectors and take their powers- (1) The**
Government or any authority or officer empowered by them in this
behalf may, by notification, appoint one more persons possessing such
qualifications as may be prescribed to be the Inspector’s for the purpose
of this Act and specify in such notification the local limits of their
jurisdiction.

(2) Every Inspector shall be deemed to be a public servant within
the meaning of section 21 of the Indian Penal Code, 1860 (Central Act
45 of 1860).

**17. Powers to order production of accounts and powers of entry**
**and inspection-** (1) Any Licensing Authority or appellate authority,
may, for the purposes of this Act, by notice require any Pawn Broker,
(a) to produce or cause to be produce before him any accounts,
registers, records or other documents; or
(b) to furnish or cause to be furnished any other information
relating to his business within such time as may be specified in
such notice and such Pawn Broker shall comply with such
requisition.

(2) Any Inspector or Licensing Authority may, at any reasonable time,
with or without the assistance of police officers or other officers enter
any place of business or office of the Pawn Broker and inspect any cash,
accounts, registers, records, safes, vaults or other documents in such
premises.

(3) If any officer referred to in this section, has reason to believe, that
the Pawn Broker has violated any of the provisions of this Act or the
rules made there under, he may, for reasons to be recorded in writing,
enter and search the place of business of the Pawn Broker or any other
place which includes any godown, building, vessels, vehicle, box or
receptacle, where the Pawn Broker keeps or is reasonably believed to be
keeping any accounts, registers, other records, documents or pledges
relating to his business;
Provided that no residential building or premises shall be entered or
searched unless such officer is specifically authorised in writing by an
officer not below the rank of Mandal Revenue Officer.

(4) All searches under this section shall, so far as may be, made in
accordance with the provisions of the Code of Criminal Procedure, 1973
(Central Act 2 of 1974).


-----

(5) The Officer making the inspection or search may seize such
accounts, registers, records or other documents as he considers
necessary and on such seizure shall grant the Pawn Broker a receipt of
the things so seized.

(6) The accounts, registers, records or other documents seized under
sub-section (5) shall not be retained by the officer seizing them, beyond
a period of thirty days from the date of the seizure except with the
permission of the next higher authority, unless they are required for any
prosecution under this Act.

(7) The power conferred by sub-sections (3) and (5) shall include,
(a) the power to break open any box or receptacle, safe, vault or
door of any premises in which any accounts, registers, records
or pledges of the Pawn Broker are kept or reasonably suspected
to be kept:

Provided that the power to break open the door shall be
exercised only after the owner or any other person in occupation
of the premises fails or refuses to open the same on being called
upon to do so.

(b) the power to seal any box, receptacle, room or building
where any accounts, registers or other documents are kept or
reasonably believed to be kept and if the owner or any other
person in occupation leaves the premises or refuses to open the
box, receptacle, room or building or is not available, then to
break open such box, receptable, room or building on
authorisation in writing by the officer referred to in subsection
(3) of this section:

(c) the power to search any person who has got out of or is
about to get into or is in any place referred to in subsection (2) of
this section, if the officer has reason to suspect that such person
has secreted about his person, any accounts, registers, records
or other documents.

**18. Power to summon witnesses and cause production of**
**documents - (l)The licensing authority or the appellate authority shall**
for the purposes of this Act, have all the powers conferred on a Civil
Court by the Code of Civil procedure, 1908, (Central Act 5 of 1908) in
respect of the following matters, namely:
(a) summoning and enforcing the attendance of any person and
examining him on oath or affirmation;

(b) compelling the production of any documents;

(c) impounding of any documents, accounts or other records
produced for reasons to be recorded in writing; and

(d) any other matter as may be prescribed;

(2) The Officer who impounds the documents, accounts or registers of
the Pawn Broker shall grant a receipt of the things so impounded to the
person concerned.

**19. Assistance of police officers- Any Officer authorised to inspect or**
search under section 17 may seek the assistance of the officer incharge
of the Police Station having jurisdiction over the area to be inspected or
searched and thereupon, such officer of the police station shall render
all assistance necessary to the officer for the conduct of such inspection
or search.


-----

**20. Power to cancel licence, etc. - (1) The licensing Authority may, at**
any time, during the term of any licence, cancel it by an order in
writing,
(a) if the licensee carries on the business in contravention of any
of the provisions of this Act or the rules made thereunder or of
the conditions of the licence;

(b) if, it is brought to the notice of the authority after the grant
of the licence, that for any reason the licensing authority could
have refused to grant the licence to the Pawn Broker under subsection (3) of section 4; or

(c) if the licensee is convicted for an offence under section 11 or
section 24; or

(d) if the licensee maintains false accounts.

(2) Before cancelling a licence under sub-section (1), the Licensing
Authority shall give the licensee a notice in writing stating the grounds
on which it is proposed to take action and requiring him to show cause
against the proposed action within such time as may be specified in the
notice.

(3) Every order of the Licensing Authority under this section shall be
communicated to the licensee in such manner as may be prescribed.

**21. Publication of order of cancellation- Every order of cancellation of**
a licence under this Act, shall be notified in the district gazette and also
affixed on the notice board of the office of the licensing authority.

**22. No refund of licence fee- A person whose licence is cancelled under**
section 20 shall not be entitled to the refund of any fee paid in respect of
such licence or for any compensation for such cancellation.

**23. Appeals- (1) Any person, aggrieved by an order of the Licensing**
Authority under sub-section (3) of section 4 or sub-section (1) of section
20, may within thirty days from the date of communication of such
order, appeal in such manner as may be prescribed to the appellate
authority having jurisdiction over the area.

(2) The appellate authority may admit an appeal preferred after the
period of thirty days aforesaid, if it is satisfied that the appellant had
sufficient cause for not preferring an appeal within the said period.

(3) The appellate authority may, after giving the appellant an
opportunity of being heard, pass such orders on the appeal as it may
deem fit.

(4) Every order passed by the appellate authority shall be
communicated to the appellant and to the Licensing Authority in such
manner as may be prescribed.

**24. Pawn broker advancing smaller amount or receiving higher**
**interest than that specified in the accounts to be punishable-(1) Any**
Pawn Broker, who actually advances an amount less than that shown in
pawn-ticket or in his accounts or registers or who takes or receives
interest or any other charge at a rate higher than that shown in the
pawn-ticket or in his accounts or registers or allowed under this Act,
shall be punished with imprisonment for a term which shall not be less
than one year but which may extend to three years and with fine which
may extend to rupees fifty thousand.


-----

(2) If a Pawn Broker is convicted of offence under subsection (1) after
having been previously convicted of such offence, the Court convicting
him may order his licence as a Pawn Broker to be cancelled.

**25. Certain other acts of pawn brokers to be punishable- A Pawn**
Broker who,—

(1) takes an article in pawn from any person appearing to be under
the age of eighteen years, or to be intoxicated or of unsound mind shall
be punished with imprisonment for a term which may extend to one
year or fine which may extend to five thousand rupees or with both.

(a) purchases or takes in pawn or exchanges a pawnticket issued
by another pawn broker; or

(b) employs any person under the age of eighteen years to take
pledges in pawn; or

(c) under any pretence purchases any pledge while in pawn
with him; or

(d) suffers any pledge while in pawn with him to be redeemed
with a view to his purchasing it; or

(e) makes any contract or agreement with any person pawning
or offering to pawn any article, for the purchase, sale, or
disposition thereof within the time of redemption; or

(f) sells or otherwise disposes of any pledge pawned with him
except at such time and in such manner as is authorised by or
under this Act, shall be punished with imprisonment for a term
which shall not be less than one year but which may extend to
three years and with fine which may extend to rupees fifty
thousand.

**26. Certain acts of pawners and others to be punishable- Any**
person who,
(a) offers to a Pawn Broker an articles by way of pawn, being
unable or refusing to give a satisfactory account of the means by
which he became possessed of the article; or

(b) willfully gives false information to a Pawn Broker as to
whether an article offered by him in pawn to the Pawn Broker in
his own property or not, or as to his name and address or as to
the name and address of the owner of the article; or

(c) not being entitled to redeem, and not having any colour of
title bylaw to redeem, a pledge, attempts or endeavours to
redeem the same, shall be punished with imprisonment for a
term which shall not be less than one year but which may
extend to three years and with fine which may extend to rupees
fifty thousand.

**27. Duties of the Pawn Broker - (1) In every case falling under section**
26 and also in any case where, on an article being offered in pawn, for
sale or otherwise, to a Pawn Broker, he reasonably suspects that it has
been stolen or otherwise illegally or clandestinely obtained, the Pawn
Broker shall, in the absence of reasonable excuse, inquire into the name
and address of the person concerned, and seize and detain such person
and the article, if any, and forthwith communicate to the nearest police
station the facts of the case and shall deliver the person and the article,
if any, seized to the police.


-----

(2) A list of properties believed to have been stolen may be delivered by
the police to any Pawn Broker licensed under this Act and thereupon it
shall be the duty of such Pawn Broker,
(a) if any article answering the description of any of the
properties set forth in any such list is offered to him in pawn, for
sale or otherwise, to proceed in accordance with the provisions
of sub-section (1); and

(b) if any such article is already in his possession, forthwith to
communicate to the nearest police station the fact of the case
(including full particulars as to the name and address of the
person concerned in the delivery of the article to the Pawn
Broker) and also, if so required by the police, to deliver the
article to them.
**28. General penalty for contravention of Act etc.-(1) whoever**
contravens any of the provisions of this Act or of any rule made or of
any term and conditions of a licence granted thereunder shall, if no
other penalty is elsowhere provided in this Act for such contravention,
be punished with imprisonment for a term which shall not be less than
one year but which max extend to three years and with fine which may
extend to rupees fifty thousand.

(2) Any Court convicting a Pawn Broker of a contravention of the
provisions of clause (c) or clause (d) of sub-section (1) of section 11, may
direct him to furnish a receipt or statement of account in accordance
with the provisions of that clause, and if the Pawn Broker fails to comply
with the direction, the Court may order his licence as a Pawn Broker to
be cancelled.

**29. Penalty for carrying on business without licence or in violation**
**of the conditions of the licence - Whoever carries on the business of**
Pawn Broking without a licence or in violation of the conditions of the
licence or otherwise than in conformity with the term and conditions of
the licence shall be punished With imprisonment for a term which shall
not be less than one year but which may extend to three years and with
fine which may extend to rupees fifty thousand.

**30. Liability of the pawn broker for the acts committed by agents or**
**employees -** Where any agent or employee of the Pawn Broker
contravenes any of the provisions of this Act or of any rule made
thereunder or of the term and conditions of a licence granted or deemed
to be granted whether with or without the knowledge of the Pawn
Broker, the Pawn Broker shall without prejudice to the liability of the
agent or the employee, be liable for the penalty' provided under this Act,
as if the Pawn Broker himself has committed such contravention.

**31. Transfer of licence to heirs - (1) Where a licencee under this Act,**
dies, any person claiming to be his legal representative may apply to the
Licensing Authority for transferring in his name, the licence standing in
the name of the deceased.
(2) Every such application shall be in such form and shall contain
such particulars as may be prescribed.

(3) The Licensing Authority may, if lie is satisfied that the applicant is
in fact the legal representative of the deceased and that he is otherwise
eligible for a licence under this Act, transfer the licence in the name of
the applicant after obtaining from the applicant a declaration in the
prescribed form.


-----

(4) Any licence transferred under sub-section (3) shall be deemed to
have been granted to the applicant himself and shall be valid for the
period for which it would have been valid if the licence had not been
transferred and the provisions of this Act shall apply accordingly;

**32.** **Contracts not to be void on account of offences but interest**
**and costs not to be allowed in certain cases - Where a Pawn Broker is**
guilty of an offence other than an offence of carrying in business of
Pawn Broking without a licence punishable under this Act, any contract
made by him, in relation to his business of Pawn Broking, shall not be
void by reason only of that offence, nor shall he by reason only of that
offence, loose his lien on or right to the pledge or to the loan and the
interest and other charges, if any, payable in respect thereof:

Provided that if a Pawn Broker fails to deliver to the Pawner a pawn

ticket as required by section 8 or fails to give to the pawner or his agent
a receipt as required by clause (c)of sub-section (1) of section 11 or to
furnish on a requisition made under clause (d) of that sub-section, a
statement of account as required therein within one month after such
requisition has been made, the Paw n Broker shall not be entitled to any
interest for the period of his default;

Provided further that if in any suit or proceeding relating to a loan,
the Court finds that Pawn Broker has not maintained accounts as
required by clause (a) or clause (b) of sub-section (1) of section 11, he
shall not be allowed his costs.

**33. Power of revision by the Government - (1) The Government may**
either suo-motu or on application call for and examine the record of any
order passed by an Inspector, Licensing Authority or Appellate Authority
to satisfy themselves as to the legality, regularity or correctness of such
order and in any case it appears to them, that such order should be
modified, annulled or reversed or remitted for reconsideration, they may
pass orders accordingly:

Provided that no order under this section adversly affecting a person
shall be passed unless that person has had an opportunity of being
heard.

(2) No licencee shall make an application under sub-section (1)
unless he has paid the penality against which such revision is sought.

(3) No Licensee shall make an application under sub-section (1)
unless he has exhausted the appellate remedy available under this Act.

(4) No application seeking a revision of an appellate order under this
section shall be made after expiry of a period of ninety days from the
date of such order.

(5) No order of suo-motu revision shall be made by the Government
under this section after the expiry of three years from the date of the
order which is sought to be revised.

**34. Bar of Certain Proceedings- (1) No suit, prosecution or other**

proceedings shall lie against any officer or employee of the Government

or any act done or purporting to be done under this Act, without the

previous sanction of the Government.

(2) No suit, prosecution or other legal proceedings shall be instituted

against any person for anything which is, in good faith, done or

intended to be done under this Act or the rules made thereunder.


-----

**35. Power to make rules- (1) The Government may, by notification,**
make rules for carrying out the purpose of this Act.

(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for,
(a) the authority to whom an appeal shall lie against an order
of the licensing authority;

(b) the form and the particulars to be contained in an
application for a licence under this Act;

(c) the terms and conditions subject to which a licence may be
granted;

(d) the form in which books, accounts and other documents
specified in this Act shall be recorded, maintained, kept or used;

(e) the procedure which should be followed and the powers
which may be exercise by the authorities exercising functions,
holding inquiries and hearing appeals under this Act;

(f) the charges and expenses which the Pawn Broker may
demand from the pawner;

(g) any other matter which is required to be or may be
prescribed.

(3) Every rule made under this Act, shall immediately after it is made,
be laid before the Legislative Assembly of the State, if it is in session and
if it is not in session, in the session immediately following for a total
period of fourteen days, which may be comprised in one session or in
two successive sessions, and if, before the expiration of the session in
which it is so laid or the session immediately following the Legislative
Assembly agrees in making any modification in the rule or in the
annulment of the rule, the rule shall, from the date on which the
modification or annulment is notified, have effect only in such modified
form or shall stand annulled, as the case may be, so however, that any
such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.

**36.** **Act not to effect or alter the law relating to relief of**
**agricultural and other indebtedness - The provisions of this Act, shall**
be in addition to and not, save as otherwise expressly provided in this
Act, in derogation of any other law for the time being in force, in the
State, relating to the relief of indebtedness including indebtedness
amongst agriculturists, members of weaker sections and members of
Scheduled Castes and Scheduled Tribes.

**37. Repeal and savings - The following enactments are hereby**
repealed, namely,
(i) The Andhra Pradesh (Andhra Area) Pawan Brokers
Act, 1943 (Act XXIII of 1943);

(ii) The provisions relating to Pawn Broking contained in
the Andhra Pradesh (Telangana Area) Money Lenders Act,
1349F (Act 5 of 1349F):

Provided that section 8 of the Andhra Pradesh General


-----

Clauses Act, 1891 (Act 1 of 1891) shall be applicable in
respect of the repeal of the said enactments and sections 8
and 18 of the said Act shall be applicable as if the said
enactments had been repealed and reenacted by an Andhra
Pradesh Act.

**G. TRINATHA RAO,**
**Secretary to Government (i/c),**
**Legislative Affairs & Justice,**
**Law Department.**


-----

