The ASSAM MONEY LENDERS' ACT, 1934.
###### TUE ASSA.\f MONEY LENDERS' ACT,

1934.

[Publi$hed in the ..J.ss1i111 _Gazelle 0£_ the 27th June 1984.]

_Ari_ _Act to_ _p1·o·v1"de for_ _more effectual_ _control_

###### o/ mone~·-lending i11 Assam,

WHEREAB it is' expedient to m;ke better

provision fo" the conti•ol of money-lending and to
###### givo addioioual powers fJo Courts tQ deal with

money· :~uders in Assam ;

And whereas the ptevious sanction of the

Governor General has been obtained under

sub-!lection (:3) of section 8oA of the Government
oil India Act to the passing of this Act.

###### It is hereby enacted as follows :-

:!1~t t~~~ 1. (l) This Act may be called the Assam

001111DOnceinont. Money-Lenders Act, 1934.

(Z) I t extends to the whole of Assam including AMam .ut u

the t.erritories mentioned in section 14 of the ot 191.G,

Ass~m (:i enera.l Clauses Act, l 915.
(3) It shall come into force on such date as

the Local Government may by notification direct.

_, _ Defttit!l.001. 2, Iu this _.1\ ct, unless there is_ anything
###### ~ - repugnant in the subject or context,-
 /-~ ~/ (1) "Money-lender" means a person ho )'""'+ L grants a loan. ,., tr (2) "Interest" means l'ate of inte:rf;)at and

inolud~s the return t.o be made over and above
wha.t wa11 a.ctnally lent whether the same is

1 1 charged or sought to he recovered speoiftcally

~J bl wa.y of i11terest or atherwise _;_

t _..Jr_ _<J_ (3) "Loan" mea.os a.n advance (whether of
###### ~t.- If' ~money or in kind) at interest made by a money•
 - - I lender and shall include any boud bearing interest
 .... t}A executed in respect of pa.st liabiliti~iya.od any
 J;;;.11* .:-A i ·a.1u~aation which in substance i l a loan; [E%pla•
 L. ~ nation. -A bond bearing interest executed in

, ~- · _-1 -'f " '" l respect_ of goods ta.ken .oo credit constitutes a
###### ~ ~.., t loan.] and

~ J •            - (4) '-Presoribed" mean-, prescribed b.r rules

made under this Aot.

###### ~ - ~ .t....4..· 3 "l _.., _ "(V,- J( v '" 1 '' ,,J?
 Pric1-E_.nglisk: 4d.l (l,.c1•a1: at&i1111 8.


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###### •

 2

etit~~;tty iari~~ 3. If the loan actually made be less than the

amnunt bood than In tbo ac· sum entered in the bond or • hand note 1 the

tua111 tant. money-lender shall be gmlty of a oontra;yention
of tho proTieions of this Act and shall, on con-
viction, be punishable with fine not exceeding
two hundred rupees. _l..L.t ,,._

Prohibition °1 4· Any contract madera£ter the oommence-
co mp o u u d                - _,1._

lntero'!l and ment of this Act for the loan of money by a

1>ro•ls1dofaultiug. ons ft8 to money- en l d er s a b ll b e 1 .11 P.ga l . 1tl • so f ar as it .

provides directly or indirectly for tho payment
of compound interest or for the rate or amount of
interest being increased by reason of any default
in the payment of s11ms due under the contra.ct :

Slmpl~ Into. /; Provided that provision may be made by any

rut dolault. In caso or sue b contract t a h t if d e au t f l · ts m e ad · mt h o pay-
ment upon the due date of any sum pa.yable to
the money-lender under the contract, whether in
respect of principal or interest, or both, the money

lender shall be entitled to charge simple interest
on that sum from the date of the default until
the sum is paid, at a rate not exceeding the rate
payable in respect of the principal apart from any

default, and any interest so charge1I shall not be
reckoned for the purposes of this Act as ert of
the interest charged in respect of the loan . .] ~

Prohlb!Uoo 5. _J\ ny_ agreement between a money-lender
of cnarge lor                 -                 - £ h
openses en and a borrower or mtendmg borrower or t e

\:·d~~ mooe;y- payment by the borrower or intending borrower

to the money-lender of a.ny sum on account of
costs, charges or expenses incidental to or \

rola.tiog to the negotiations for or the granting
of the loan or proposed loan shall be illegal, a.ud
if any sum is pa.id to a. money-lender by a

borrower or intending borrower ae for or on
account of any such costs, charges or expenses,
that sum shall be recoverable as a debt due to \
the borrower or intending borrower, or, in the
event of the loan being completed, Bhall, if not
so recovered. be set off against t he amount
actually lent and that amount shall be deemed
###### to be reduced accordingly.
Exceptioo.-This will not deba.r money-lenders
from recovering reasonable costs of inspection of

## '

Revenue or Registration records including exami-

nation of titles and also costs of inspection of pro-
perty, in cases where the contract includes a

stipulation that property is given a.s security or
1'y way of mortgage and where both parties have
agreed to such costs and reimbursement there of.


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                     - ·• '. I"~~-rnn. "-. ~· ·"· ,,,..., l :P.R 4lf i.
###### -..w. ,'HU.(lUC'
 3

 !ce:':f.. 01 6. Every money-lender shall keep accounts in

the form prescribed.

mooc1.Jender Obligation of to 7 • (1) I n respec o every con rac t f t t f or tb e re-

rnpply Inform•· payment of a. loan made by a money-lender
t ion as _io_ 11ate             -
or loon and wbetlier ma.de before or after the commencement

0

###### . ~r~~: :e1:tfu~ of this Act, the money-lender shall on demand in

ther~to. writing being made by the borrower at tlie

time of executing the contract or at - any time

durine the continuance of the contract, s\1pply

to the borrower, or, if the borrower so requires,
to any p1nson specified in that behalf in the
demand, a statemei:it signed by the money-lender
or bis agent s howing-

_(")_ the date on which the loan was made,

the amount of the principal of the loan,

and the rate per cent. per annum of
interest charged ; and

_(b)_ the amount of any payment already

receind by the money-lender in respect
of the loan and the date on which it

was made : and

_(c)_ the amount of every sum due to the
money-lender, but unpaid, and the
date upon which it became due and the
amount of interest accrued due and
unpaid in respect of every &uch sum ;

and

_(d)_ the amount of every sum not yet due
which re1~ains outstanding and the date
upon which it will become due :

Provided that when a demand under this sub-
section bas once been complied with, a second
domnincl may not be ma.de in respect of the sa.mo
loan within six months.

~~~ ro~1 g~~~: (2) A money-lender shall on demand in writing

uwor, by the borrower, and on tender of the prescribed
sum for expenses, supply a copy of any document
relating to a. loan made by him or any security
therefor, to the borrower, .or if the borrower so
requires, to any person specified in that behalf in
the demand.

Ohll effee.11 of (3) If a money-lender to whom a demand has

aon-eomphauce, h' . £ 'l . h
been made under t is section a.1 w1t out reason-
able excuse to compl v therewith within one
###### month after the demand has been lllade, he shall
not so long as the default continues be entitled
to sue for or recover any sum due under the con-
tract on accoum either of principal or interest ,
and interest shall not be chargeable in respect of
the period of the default.


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###### 4

0
ib!'9:a'~t~f c~:. /)3. Where in any suit iu tcspect of any loan

taln 10•01. made or any security taken for a loa.n mad~ by a.

money-lender after the commencement of the
Usurious Loans Act, HUS, it is found that the Act :<of 101s.
interest charged exceeds the l'ate of 12i per cent.

###### 71 per annum in the case of a secured loan or 18~

~ ; -::; **f :_ _ /** per cent. per annum in the ca.;e of an un~ecuretl
###### ~ r"\ 1.l loan, the t ourt shall, until the contrary is proved,
 J.,,1(J;J-"''-· P!esumo for the purposes of seQLion :3 of Lhe , ;:;:, '1 Usurious Loans Act, Hll8, that lhO' inLerest Att x or ma.
 "7 J_ - """". tr" ·-" - charged is excessive and that the transacLion was,

~ frl'""""' as between the parties thereto, sttbstn.11tiailly

###### · / r> lf ~ · unfair, but this provision shall be without pre- "' .It' judice to the powers of the Court under the said

section where the Coui t iF: satisfied tlrn.t the ..'.J

interest cha.rged though not exceeding 12~ per
cent. per annum or 18! per cent. per annum, as
the ca.so may be, is excessive7

nar to rt1Co•ery L9. No Courts shall, in respec·t of any loan mado
of fntereat t•:i:·                -                -

###### c; coedtng Ibo beforo or after the cvmmenc" moot of t Ins ,\ct,
_1_

_..i..v-·_ prlorlpat. decree on account of arrears of interest a. i:;um
###### ~ r./lrf'~ greater than the principal of the loan)
 ~ · >.'~4 ) ' ~ ./ f fY' ~o~f'::'lt-moo!; 10. (1) Where a borrower has sent to a money-

~, do• to mooer· lender by postal moMy-order or bv 1·egislorcd

lender. post with acknowledgment due ;ny tzum of

money due from him to the mo~1ey-lc0Jer in res-
pect of a loan and the money-lender has i·oru~Pd
to accept the same, the borrowet• ma.y apply in
the prescribed manner to the lowe t Ci, U ConrL
having jurirdiction over the place whore he

resides for poi mission to deposit the aa itl e:nm in
Court to the account of the money-lender, :~ml

the Court shall thereupon k c:ep L11111 sum in dopoi;it
and shall send a notice of the , cfoposit in the
prescribed manner to the money-lender.

###### ,_.-

(2) If the money-lender accepts money sent in

the manner spe1·ified in sub-section (1) by a

borrower or withdraws money deposited under
the said sub-section, he shall not be bound by

any statement made by the borrower in remitting
or depositing the money.

'&tltrlctlon1 on 11.(1) No person shall knowingly send or
moo•:r·lendiog
tldnrllsemeou. deliver or cauee to be sent or delirnrcd to any

person except in response to his writtt>n request
any circular or other document :•dvertising t..he
name or address or a. money-Jender, or 1·ontaining

an invitation-

(a) to borrow money from a money-lender; or


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###### .r

(b) to enter into any transaction involving

the borrowing of money from a monoy-

lender; or

###### •

_(c)_ to apply to any place with a view to
obtaining information or advice as to
borrowing any money from a. money
lenJer.

A~ ~    -

011nueaor~ 1nvft· (2) No money-lender or any person on his be-

ing must borrowol'e not bo h l a s f h a ]) emp 1 oy any agent or canvasser f or t e h

employed money·lmilm. by purpose o lllYttmg f ·                 - · any person to b orrow money

or to enter into any transaction involving the
botrQwing of money from a money-lender, and no
person shall act a.s snch agent or canvasser or
demand or receive directly or indirectly any sum
or other valuable consideration by way of com-

mission or otherwise for introducing or under-
taking to introduce to a. money-lender any person

desiring to borrow money.

Pooalty. (3) Any rerson acting in contravention of any

of the provisions of this section shall in respect of
each offence be liable, on conviction to imprison-
ment for a term not exceeding three months or a
fine not exceeding three hundred rupees or both.

Chll olfcots ol (4) Whore it is shown that a. money-l~n<ling

contr.vc01 Ion.             - h b b             -
transaction was broug t a out y a contravention
of any of the provisions of this section, the trans·
action shall be illegal, unless the money-lender
proves that the oontra.vention occurred without
his consent or connivance.

PeMlty\naRst 12. (1) Where in arty suit in respect

###### . ,,... of fraud. securof any ity taken money for lent money or lent in by respect a money-lender, of any

the Lrying Court is of opinion that the money-
lender has been guilt.r of fra.ud, or of any contra-
vention of the proTisions of this _A ct,_ or is
otherwise unfit to carry on the business of money-
lending, the Court may make an order debarring

him from carrying on such business £01· such time
a.s may be specified in the orde::- and an appeal
sha.11 lie from such an order to the court to which

an appeal ordinarily lies under the provisions of
the Code of Civil Procedure, 1908, irrespective of Acto v 11oos.

the money value of the suit.

Pena1t1. (2) Any money-lender carrying on the business

of monay-lending in contravention of any order

made under sub-section ·!l) shall, on conviction,
be liable to a fine which may extend to five
hundred rupees.


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AprfBt, 1:3. Any order of conviction passed under this

Act shall be appeala.ble to the Court to wli ich
appeal ordinarily lies unde1· the Code'o£ Criminal

Procedure, 1898, irrespective of the amount of Ao~ v
0 [1 ] [!89~] [. ]

                   - fine to wuich an accused may be sentenced.

O Power o•ernmeni to ot Local 14. (1) . T be Local Go,·ernment may • make rules

malo rule!. for carryrng out the purposes of this Act.

(2) In particular, and without prejudice to the

generality of the foregoing power, such rules may
provide for all or a.n.Y of the following:. matters,
###### namely:-

_(i)_ the form in which money-lenders shall
keep accounts;

_(1 i)_ t ho i11tervale at which borrowers 'may
demand statements of accounts under

###### 0

sub-section _(1 )_ of section _7 and_ the fees

to be paid for copies of documents sup-
pliec.l under sub-section (Z) of the same

section;

###### (iii) the manner in which a.n-application for
 a deposit is to be made under sub-section

Ji (1) of section 10, and a notice of the

deposit is to be sent to the money-lender
un<l er the said su b-ssction ; and

_(iu)_ the enforcement of orders made under

sub-section (1) of section _I t ._

(3) The power to make rulai>-~under:" tbi s Act

shall be subject to · the condition of previous
publication.

###### ~~ n..A.' Jl..~1.x1- J5s?)
 I:;,-_

(


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_The 12th J/a,rch 1935,_
No. 1099G.J,           - In exercise of tho powers conferred by section H

of the Assam Money Lenders Act, 1934 (As&am Act IV ofl934), the
Gonrnor in Council ie pleased to make the following ruloe for carrying
out the purposes of the Act.

RULES.

###### 1. The account prescribed by section 6 ehall be maintained!in the
Form I shown in the ::- ohedole attached to these rules.

" Provided that in the case of a society registered under the Co-

operative Societies Act, 1912 (Act I I of 1912), the account shall be
kept in tho form prescribed by that Act or rnles framed thereunder ".

2. T he fees to be paid for copies of documents to be supplied under

sub-section (2) of section 7 of the Act shall be three annas for enry 300

vernacular or 150 English wor.ds or part thereof: ProTided that
where the borrower or hie authorised agent is allowed tu copy a doou•
ment, no fM eball be charged.

###### 8. The application under sub-section (1) of section 10 for permis-

sion to deposit in the Court any sum of money due from a debtor to a
money-lender in respect of any loan or loans shall be in writing and
11hall contain the following, particulars :-

_(a)_ the name aud full address of the money-lender in whose

favour the deposit is made ;
_(b)_ a recital t hat the debtor has sent the money to the money-

lender by postal money order or by registered poet with
acknowledgment due and that the money-lender has refused
to accept it. ('l'he amounts sent on account of principal

and interest should be separately stated with the date of the
remittance), The application shall be signed and verified
in the manner provided in sub-rules 2 and 3 of rule 15 of
Order I in Schedule I to the Code of Civil Procedure,
1908, by the debtor, _or by_ hie authorised agent.

4, The application shall bear a court-fee stamp of eight annas as

required by Artiola l _(b)_ of Schedule II of the Court-fees Act, 1870,
and shall further be accompanied by printed forms of notice in Form II
annexed to these rules for service on the money-lender with r.rocess-
fees payable in court-fee stamps according to the scale prescribed by
the High Court for service of summons on defenda.nts. The blank

) spaces in Form II shall be filled in by the debtor or by his authorised

agent.

5. If it appears to the Court, to which an application for permis-

sion to deposit under section 10 is made, that the applicant is entitled
under that section to deposit the money, it shall receive the same and
give the receipt in Form III annexed to these rules.

###### 6. The money-lender may apply for withdrawal of tbe money in

Form IV annexed to these rules, and the procedure in connection with
such withdrawal fhall be the same as in the case of withdrawal of other

civil deposits.

_1._ A copy of the order under sub-section (1) 0£ section 12 of the

Act shall be served on the money-lender in the manner laid down for
###### sernoe of summons on defendants.


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|I .~ .. a. .., c.,; ·q; .s .t:. m . .0. . ~ ~.. .ea "' " .":. 0 .g. 1 "' " 0 ~ I>|. ~ -: f -!l " -0.. .. c;|
|---|---|

|ltemarb. ,; ~ Q|--1- .,, c I :;:; I Re~ymonU in 6gutee. I Appropriation. 0 . .. 5a I . I ' I ... t ..a .Q ...c ..; - ;.i ;" I.· ; ~.., - " "' aQ ; ... ... <I I ~ ! I 0 .!;0'.: !. I .8 l 0 :i • I I e"a -e"" -.i.i. .. -a] 0 -;; i.!, i~ : :i .~ Q .- I 0, . ~a . :"" ;" a . ;~. >. · p;Q : .: , .a ...|Col3|Col4|Col5|;.:. .. a ~|
|---|---|---|---|---|---|
|||I I ' I t -.i ;" I.· ;; ~.., - "' ; ... <I I ~ 0 .!;0'.: !. I .8 l a -e"" e" -.i.i. 0 -;; :"" ;" a . ;~. >. · p;Q : .: ,||.. i.!, a ....||
|||||||


...

###### SOHEDULE.

 FORM I.

_(8ec_ rule I.)

Loan Account of ~---~~--~---""'J : ...                - --·                - ~ O&j>te residence -----

0 pen in g balance (i£ any)-

Principal -

###### Interest-
 Dr. Cr.

.a .. i Advance in ~~ures. ~ - _I_ .,, :;:; c Re~ymonU in 6gutee. --1-I Appropriation.

' .<I -,; .. .. I . ..a 0 I I I 00

.a ij: 5 I I '

'E . 0 I ~ ..a ..c Q; .. ... -.i t

<· . r A ~ ,; ' ' .9 -c: 0 -g '::.I< . " .. .. ., .. .. .. .. il.E .. ... ·:s 1 0 "' ..a .:. ·q; .a ~ ~ .. .. .. .. " " e t: 0 .. .. .s I> "' .,,; 0 m ~ ~ .. " g c . ---: 0 c; !l f .. .. "                                                - j i ... < .. s " " " 3 0 0 -B ltemarb. Q ~ ,; i:..--a] 0 ~~ .. ! .. :iQ " a Q :i • ... I I I I 0 ,a .. ~ ~ ... .8 :;a e "" ; .., " a 0 " ;;; --<I ... ;> " "' .. !'! ;:. e "" 0 ~ 0 . I· I l I _-ii -;; ·;:: p., ... Q_ ~ .... .. a i! ., ;: ~ .. .. a

l

###### . -- . .

 i
 )

_•1_ 0 °l

A

##### c


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###### 9

 FORM Il.

 ( s~e rule 4.)

_Form_ _of notice of depo1it_ _u11dc1_ _ucti·in 10(1)_

Name of money-lender... ... . . ... .. ..... ..... .. .

Address •. ... .•....

You are hereby informed that _ _ _ __ of

7
has on deposited in this Court -u-nde_r_s_ect~i- on--

J 0(1) of the Assam Money Lenders' Ant, 1934 a r;;um of H.s.

###### (Rs. on account of principal and Rs.

on account of interest) to your account in connection with the loan

of Rs. which was made by you to him on .
You are requested to withdraw thi11 amount a.t your earliest conve-
nience. Government accept no responsibility for any loss which you
may incur in conneclion with the aforesaid sum while it remains in
depoeib with the Court.

Signature of M unsif.

Address

Dated the


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|Amoont (If loan.|Paymenttowude Prlnolpal.|
|---|---|


###### 1-0

l•'ORM Ill.

_(&e_ role 5,)

_Receipt granted hJ Court for depoait_ _of moneJ due_ _to_ _motte,-"11der._

Station. Court.

Whereas an application bas been filed by ___ _
. under sub·section (1) of section 10 of the Assam Aot IV

of 1934, for depositing a sum of money on account of his debt and

wbere1H tthe Court is of opinion that the aaid-.,..,,.---
is entitled to depo~it the amount under the said section it is hereby

~iven in writing that the undermentioned amount has been depoaited

in this Court by

Nr.me ot Money             - Date of Amoont (If Paymenttowude Poyment towards Total.

lender, loon. loan. Prlnolpal. lotertsl.

###### ,.

### -

###### Date· Signature ......... .

Seal of the Court.
#### 0


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|l|2|I 3|
|---|---|---|
|----------J -|--- ------ -|- - -- - -|


###### 11

 FORM IV.

 (See rule 6.)

_F_ _r,rm_ _of witlidratt1.1l._

###### PAYMENT ORDER.

P..u.T ! .-Application for payment of Deposits (to be filled in by

###### the applicant J·

Name of applicaut. Pate of deposit. / Ainount to be paid.

l 2
3
###### I

 -----------J---- ----------- -

Signature of applicant ...... ............. ..

_D11te_ _.. . ... ...._ . ................ ..

*Examined and found correct.

###### Signature of Chief Ministerfal Officer ............... . .

Signature of Presiding Officer ........... .

            - The signature below the words             - Examined and found correct             - must of

course be held to indicate that the officer signiogthe certificate hae sati1fied himeelf

           - that the applicant is the proper party to receive pa_yment of the amount claimed",
i.nd that t he particuLu-a stated are correct, while th6 Judge in charge will be Pea•
pontible that the amount claimed is iD deposit, that there is no bar to payment, ano

that the name of the .claimant corresponds with I.hat of t'he P•lYee entered i11 hi1

Regi1ter.


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###### 12

 Pn.T 11.- (To be fHled in by the Court or under its order.)

ronrt'a ohalan onmber

Stria) nombor and and ch•lan date of the Court'a number and At whose

date of orlglnal dopoelt hoot date of the original Amount lo credit In

11ayment order'. which the pa,ment deposit. dopoelt•. dOJ)Q&lt. •

11 sough~. . , .

8

###### T o- Th e ---~ [Officer ] [in ][charge ] [of ][the Treasury ] [at ] Casb1er of the Court

 • or order Rupeest Please pay as above to

 Signature of Court's Accountant-

 Sign:tture of Judge in charge-

                     - At per Coart'll Roihler of DeJ>O'lh Rll(:eived.
t W'>M and &guru,
NOTS 1,-Tbis order Ii not p:1yable more th•o ono month alter date wtthool a uoewal onfaoe-

mont by tb~ Co1111 ood It i. ab.olul.ely lap,es and ceru:ea to bate ell'eot on tho :!lat March nor:t.

NPtll 2,-Payee la hereby'° Cake notice that alter tender and p~yineut ol thh order, tbo Troamry•

Qft\ce will admit oo rurlhor lilapooslbi:tty. lt ta th& duty of tbe ,p:>yeq t-•              - to tl\o proper ooet;ody or

thla document until ll i. c111b8d.


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###### 18

P.aaT 111.-[to bo filled in a.t Treasury {or at Court if payable

there)).

Roceived contents, Rupees .. . .... ... ' ...... .

###### ..

Signature of Disbursing Ca.$hier ...... ........ .

###### Treasury No ... •••

~ Pay Rupees .. .. ... .. .••.. ..••

Stamp of one
aona 1f for more

than R ~ . 20.

Payee's signature.

###### 'l'he 19 .

Examined 1md.ent.ered.

Accountant. .. . . . . . . . . . . . . .

###### •

Officer in charge of11Treasury,

###### J. A. DAWSON,
 Chief SecrPtary to lite Govtrnmeue of .tlmi111.

4 1, . P. Cl.T.&.J.I ..No. 107-600- :!0·12·1936.


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