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 bette r 
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 th e 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 charged or sought to he recovered speoiftcally 1 
~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 interes t 
.... 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. ~ l nation. -A bond bearing interest executed in 
, ~- · -1 -'f " '" respect of goods ta.ken .oo credit const itutes 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. 
2 
etit~~;tty iari~~ 3. If the loan actually made be less than the 
amnunt In tbo sum entered in the bond or hand note the bood than ac· • 1 
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•ls1ons ft8 to l d b ll b .11 l . f . dofaultiug. money- en er s a e 1 P.ga 1tl • so ar as it 
provides directly or indirectly for tho payment 
of compound interest or for the rate or amoun t 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 In caso or b h t if d f l · ad · h dolault. sue contract t a e au t ts m e mt 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 interes t 
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 charge 1I shall not be 
reckoned for the purposes of this Act as ert of 
the interest charged in respect of the loan . .] ~ 
Prohlb!U oo 5. J\ ny agreement between a money -lender of cnarge lor · • £ h open ses en and a borrower or mtendmg borrower or t e 
\:·d~~ mooe;y- payme nt 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 negot iatio ns for or the granting 
of the loan or proposed loan shall be ill egal, 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 su m shall be recoverable as a debt due to 
the borrower or intend ing borrower, or, in the 
event of the loan being completed, Bhall, if not 
so recovered . be set off against the amo unt 
actually lent and that amount shall be deemed 
to be reduced accordi ngly. 
Exceptioo.-This will not deba.r money- lenders 
from recovering reasonable costs of inspection of 
Revenue or Regi stration records incl uding exami­
nation of title s 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 rei mbursement the re of. 
• 
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•'. I"~~- "-. ,,,..., l ~·• rnn. ~··"· :P.R 4lf i. 
-..w. ,'HU.(l UC' 
3 
!ce:':f.. 01 6. Every money-lender shall keep accounts in 
the form prescribed. 
Obligation of 7 (1) I t f t t f tb mooc1.Jender to • n respec o every con rac or 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 
. ~r~~: 
0
: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 showing-
(") the date on which the loan was made, 
the amount of the principal of the loan, 
and the rate per cent. per annum of 
intere st 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 expense s, 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 intere st, 
and interest shall not be chargeable in respect of 
the period of the default. 
4 
ib!'9:a'~t~f 0c~:. /)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 Loan s Act, Hll8, that lhO' inLerest Att x or ma. 
J_ - """". ·-" -"7 tr" charged is excessive and that the transacLion was, 
~ frl'""""' as between th e parties thereto , sttbstn.11tiailly 
· / r> lf ~ · unfair, but this provi sion 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:· • • 
1 c; coedtng Ibo beforo or after the cvmmenc " moot of t Ins ,\ct, 
..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 sam e, the borrowet• ma.y apply in 
the prescribed manner to the lowe t Ci, U ConrL 
having juri rdictio n over the place whore he 
reside s for poi mission to deposit the aa itl e:nm in 
Court to the account of the money- lender, :~ml 
the Court shall thereupon kc:ep L11111 sum in dopoi;it 
and shall send a notice of the , cfoposit in the 
prescribed manner to the money-lender. 
'&tltrlctlon1 on 
moo•:r·lendiog 
tldnrllsemeou. 
(2) If the money-lender accept s money sent in 
the manner spe1·ified in sub-section (1) by a 
borrower or withdraws money depo sited under 
the said sub-section, he shall not be bound by 
any statem ent made by the borrower in remitting 
or depositing the money. 
11.(1) No person shall knowingly send or 
del iver or cauee to be sent or deli rnrcd to any 
person except in response to his writtt>n request 
any circular or other document :•dvertising t..he 
name or addre ss or a. money-Jender, or 1·ontaining 
an invitation-
(a) to borrow money from a money-lender; or 
,_.-
.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 pers on on his be-
ing borrowol'e h l f h ]) 1 f h must not bo a s a emp oy any agent or canvasser or t e 
employed by f · · · b money·lmilm. purpose o lllYttmg any person to 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 provi sions 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 exceed ing 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 · tran sact ion 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. of any money lent or in respect of any 
secur ity taken for money lent by a money-lender, 
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 debar ring 
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. 
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 accuse d may be sentenced. 
Power ot Local 14. (1) T be Local Go,·ernm ent may make rules O o•ernmeni to . • 
malo rule!. for carryrng out the purposes of this Act. 
Ji 
I:;,-_ 
(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 borrower s 'may 
dema nd statement s of account s under 
sub-section (1 ) of section 7 and the fees 
to be paid for copies of document s sup­
pliec.l under sub-section (Z) of the same 
section; 
(iii) the manner in which a.n-applica tion for 
a deposit is to be made under sub-section 
(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 rula i>-~under:" tbi s Act 
shall be subject to · the conditio n of previou s 
publication. 
~~ n..A.' Jl..~1.x1- J5s?) 
0 
( 
) 
The 12th J/a,rch 1935, 
No. 1099G.J, - In exercis e 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 purpo ses 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 Societie s Act , 1912 (Act I I of 1912), the account shall be 
kept in tho form prescribed by that Act or rnles framed thereund er ". 
2. T he fees to be paid for copies of documents to be supplied under 
sub-section (2) of section 7 of th e Act shall be three annas for enry 300 
vernacular or 150 English wor.ds or part thereof: ProTided that 
where the borrower or hie authori sed agent is allowed tu copy a doou• 
ment, no fM eball be charged. 
8. The applicatio n under sub-section (1) of section 10 for permis­
sion to deposit in th e 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 , particular s :-
(a) the name aud full addres s of the money-lender in whose 
favour the deposit is made ; 
(b) a recita l t hat the debtor has sent the money to the money­
lender by postal money order or by regi ste red poet with 
acknowledg ment 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 furt her 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 thes e rules . 
6. The money-lender may apply for withdrawal of tbe money in 
Form IV annexed to the se rules, and the procedure in connection with 
such wit hdrawal fhall be the same as in the case of withdrawal of other 
civil deposit s. 
1. A copy of the order under sub-section (1) 0£ section 12 of the 
Act shall be serve d on the money-lender in the manner laid down for 
sernoe of summons on defendants. 
... 
""'J : ... Loan Account of 
~---~~--~---
0 pen in g balance (i£ any)­
Principal -
Interest-
Dr. 
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Advance in ~~ures. 
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SOHEDULE. 
FORM I. 
(8ec rule I.) 
- --· ·-~ O&j>te residence -----
Cr. 
I 
--1-.,, 
c I 
:;:; Re~ymonU in 6gutee. 
I 
Appropri ation . 
0 
..a I 
5 I ' I 
00 
.. t ... 
I· 
..a 
Q; -.i ..c 
" .. ltemarb. .. ~ ;;; 
" "' .., 
Q - . a ; <I I ~ ... 0 
! I 
... !'! 0 
;:. I 
.8 .. l 0 I "" a e I 
-ii :i • " - .. ;: -a] e 0 ... i! .. 
I "" 
~ -;; .. ,; ~~ ,a Q ., a " ... ~ :iQ 
~ 
:;a ·;:: a ~ .. ;> p., Q i:..- 0 .... 
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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 
has on deposited in this Court -u-n
7
de_r_s_e -ct~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 intere st) 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 connecl ion with the aforesaid sum while it remains in 
depoeib with the Court. 
Signature of M unsif. 
Address 
Dated the 
1-0 
l•'ORM Ill. 
(&e role 5,) 
Receipt granted hJ Court for depoait of moneJ du e 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 wri ting that the undermentioned amount has been depoaited 
in this Court by 
Nr.me ot Money· 
lender, 
Date· 
Date of 
loon . 
Amoont (If Paymenttowude Poyment towards Total. 
loan. Prlnolpal. lote rtsl. 
,. 
Signature ...... .. . . 
Seal of the Court. 0 
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FORM IV. 
(See rule 6.) 
Fr,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 I 3 
-----------J--- - -------- --- -
Signature of applicant ...... ............. .. 
D11te .. . ... .... ................. .. 
*Examined and found correct. 
Sig natu re 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. 
12 
Pn.T 11.- (To be fHled in by the Court or under its order.) 
Stria) nombor and 
date of 
11ayment order'. 
ronrt'a ohalan onmber 
and ch•lan date of the 
orlglnal dopoelt hoot 
which the pa,m ent 
11 sough~. 
Court'a number and 
date of the original 
deposit. 
T Th Officer in charge of the Treasury at o- e ---~ 
Casb1er of the Court 
• Please pay as above to 
Signature of Court's Accountant-
Amount lo 
dopoelt•. 
At whose 
credit In 
dOJ)Q&lt. • 
8 
or order Rupeest 
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.ol ul.ely lap,es and ceru:ea to bate ell'eot on tho :!lat March nor:t. 
N Ptll 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. 
. . , 
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 Rupee s .. .. ... .. .••.. ..•• 
'l'he 19 . 
Exam ined 1md.ent.ered. 
St amp of one 
aona 1f for more 
than R~ . 20. 
Payee's signature. 
Accountant ... . . . . . . . . . . . . . 
• 
Officer in charge of11Treasury, 
J . A. DAWSO N, 
.. 
Chief SecrPtary to lite Govtrnm eue of .tlmi111. 
4 1, . P. Cl.T.&.J.I ..No. 107-600 - :!0·12·1936. 

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