The ASSAM MONEY LENDERS' (AMENDMENT) ACT, 1943
(Received the assent of the Governor-General on the 25th June 1943.)

LPublished in the Assam _Ga;:.ette of the 14th July 1943]_

_An Act_ _to_ _amend_ _the_ _Assam_ _Money_ _Lemurs'_ _Act, 193_

Preamble. Whereas it is expedient to make better provi- Assam Act

sion for the safety of debtors by amending IV of 1934.

the existing Act :
##### It is hereby enacted as follows :-

Short Title. 1. (1) This Act may be called the Assam

Money Lenders' (Amendment) Act, 1943.

Commence- (2) It shall come into force at once and it

ment. shall apply to pending suits and appeals.

Extent. (3) It extends to the whole of Assam in Assam Act

which the Assam Money Lenders' Act, 1934, is in IV of 1934.
force. r

(4) That the provisions of the T ransfer of ~~~~ I V [0 ]

Property Act, l 882, the Indian Contract Act, Act ix of

Ul72, the Indian Registration Act, 1908, and the 1872.

CiviJ Procedure Code, 1908, shall, to the extent Act XVI of

necessary to give effect to the provisions of this A~~[08]•v aoo~

Act, be deemed to have been repealed or modi- 1908.

fied

Amen~ment 2. {1) That after the word "person'' in sub-

ofseC'tton [2]• section (1) of section 2 of the principal Act, a

"comma " and the following words, "Society or
Bank either' private or registered under the Co- Act II of

operative Societies Act, 1912, or the Indian Com- 1912.

panies Act, 1913" be inserted. Act VH of

1913.

(2) That in sub-section (3) of section 2 of the

principal Act, the words "and shall include any
bond bearing interest executed in respect of past
liabilities" be deleted.

(3) That after the word " loan " in line 5 in

sub-section (3) of section 2 of the principaJ Act,
the foiJowing words be inserted, namely:-

" but it shall not include a deposit of money
in a Government Post Office Bank " .

(4) That in the last Jine of sub-section (3) of

section 2 of the principaJ Act, after the . wot·d

"and" the fo!Jowing be added, namely:-

"also a bond taken for arrears of rent shall

be considered to constitute a loan ."

Amendment 3. (1) That in the first line of section 4 of the

ofsrction 4. principal Act, after the word "made" the words

"before or" be added.

(2) That the proviso to section 4 of the princi-

pal Act be deleted.
Amendment 4. That for section 8 of the principal Act, the
of section R. following shall be substituted, namely:-

,, 8. Where in any suit in respect of any

money lent or any security taken for

money lent by a money-lender after the

commencement of the Usurious Act x of
Loans Act, 1918, it is               - found 1918.
that the interest charged exceeds the
rate of 9} per cent. per annum in the

case of a secured loan or 12! per cent.

per annum in the case of an unsecured
Joan, the Court shall not decree as
interc.-st any sum in excess of 9# per
cent. per annum and 12! per cent. per
annum respectively.

_[Pnce anna_ _I_ _or_ _ld.l_


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gage debts as well as bonds, for the satisfaction of

the interest whereof land has been delivered by _:_
debtors, in conformity with local custom, into
the posse\tioon of creditors to be enjoyed in lieu
of interest by the latter."

Amen~me~~t 5. That for section 9 of the principal Act, the

afstctaon [9]• following shall be substituted, namely:-

"9. (1) No money-lender shall, in respect
of any loan made before or after the
commencement of this Act, recover, on
account of interest and principal, whe-
ther through Court or otherwise or by
way ofusufruct of lands in usufructuary
mortgages, a sum greater in aggregate
than double the principal of the loan :
Provided that nothing in this sub-section shall

##### affect:-

_(i,_ A Bank advancing money at interest not
exceeding 6 per cent. per annum

#### or

_(ii)_ Subscribers to a loan made to or deben-

tur<•s or other securities of any descrip-
tion issued by Government, a public
body, a Bank, or a Company.

_Explanation.-The_ term 'aggregate' means

and includes the amount aln ady paid amicably
or otherwise.

(2) Notwithstanding anything contained in

sub-section (1), a usufructuary mortgage, in

cases where the loan did not exceed five hundred
rupees in principal, shall, unless discharged pre-
viously, be deemed to stand discharged:-

_(i)_ if the mortgage was executed before the

commencement of the Assam Money
Lenders' (Amendment) Act, 1943. after
the expiration of twelve years from the
date of such e-xecution, or

(ii) if the mortgage was executed after the
commencement of that Act, after the
expiration of nine years from the date
of such execution .

(3) In the case of a bond or any o~her instru-

ment executed for past liabilitie~ the original sum
actually advanced shall be considered as the
principal of the loan for the purpose of sub-section
##### (1).

(4) The heirs, successors or assigns of a mortga-

gor shall have lhe same-rights under this section
as the original mortgagor would have had, and
##### jf by any instrument executed subsequently to
the original instrument any property has been
substituted for the property mortgaged by the
original instrument, the provisions of this section
shall apply to the property so substituted as if it
were the property mortgaged by the original

instrument."

A. G. P. (L.C.) No.69-SSO+ Sl0- l2-8 1943.


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