The ASSAM MONEY LENDERS' (AMENDMENT) ACT, 1943

ASSAM ACT VI OF 1943 
THE ~SSAM MONEY LENDERS' (AMENDMENT) ACT, 1943 
/'- (Pas sed by the Assa1n Legislatur e.) 
(Received the assent of the Governor-General on the 25th June 1943.) 
LPublished in the Assam Ga;:.ette of the 14th July 1943] 
Preamble. 
Short Title. 
Commence-
ment. 
Extent. 
An Act to amend the Assam Money Lemurs' Act, 193 
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 :-
1. (1) This Act may be called the Assam 
Money Lenders' (Amendment) Act, 1943. 
(2) It shall come into force at once and it 
shall apply to pending suits and appeals. 
(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 
Proper ty 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 provis ions of this A~~08 •v aoo~ 
Act, be deemed to have been repealed or modi- 1908. 
fied 
Amen~ment 2. {1) That afte r 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
operative Societies Act, 1912, or the Indian Com­
panies Act, 1913" be inserted. 
(2) That in sub-section (3) of section 2 of the 
principa l 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 li ne 5 in 
sub-sectio n (3) of section 2 of the principaJ Act, 
the foiJowing words be inserted, name ly:-
" 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 conside red 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 princ i­
pal Act be deleted. 
Amendment 4. That for sectio n 8 of the prin cipal Act, the 
of section R. following shall be subst ituted, namely:-
,, 8. Where in any suit in respect of an y 
money lent or any security taken for 
money lent by a money-lender afte r the 
Act II of 
1912. 
Act VH of 
1913. 
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 
2 
Explanation.-" Secured Loans " means mort· 
gage debts as well as bonds, for the satisfaction of 
the interest whereof land has been deliver ed 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 substit u ted, namely:-
"9. (1) No money-lende r shall, in respect 
of any loan made before or after the 
commencement of this Act, recover, on 
account of interest and principal, whe­
ther th rough Court or otherwise or by 
way ofusufruct of lands in usufructuary 
mortgages, a sum grea ter in aggregate 
than double the principal of the loan : 
Provided that nothing in this sub-section shall 
affect:-
(i, A Bank adva ncing money at interest not 
exceeding 6 per cent. per ann um 
or 
(ii) Subscribers to a loan made to or deben­
tur<•s or other securiti es of any descrip­
tion issued by Government, a public 
body, a Bank, or a Company. 
Explanation.- The term 'aggregate' means 
and includ es 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 
exp iration of nine years from the date 
of such executio n . 
(3) In th e case of a bond or any o~her instru­
ment execute d for past lia bilitie~ the original sum 
actually advance d shall be considered as the 
principal of the loan for the purpose of sub-sect ion 
(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 subseq uent ly to 
the original instrument any property has been 
substituted for the property mortgaged by the 
original instrument, the provisions of this section 
sha ll apply to the property so substituted as if it 
were the property mortgaged by the origina l 
instrume nt." 
A. G. P. (L.C.) No.69-SSO + Sl0- l2-8 1943. 
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