LexThe Himachal Pradesh Registration of Money-lenders Act, 1976
Himachal Pradesh · state statute
Open in Lexace · Ask the AI about this actTHE HIMACHAL PRADESH REGISTRATION OF MONEY
LENDERS’ ACT, 1976
ARRANGEMENT OF SECTIONS
Sections:
1. Short title, extent and commencement.
2. Definitions.
3. Suits and applications by money-lenders barred, unless
money-lender is registered and licensed.
4. Registration of money-lenders.
5. Licensing of money-lenders.
6. Cancellation of licence.
7. When Collector may act.
8. Effect of cancellation of licence.
9. Further registration and licensing of money-lender after
expiry of period for which licence was cancelled.
10. Appeals, reviews and certificates.
11. Exemption.
12. Rulemaking power.
13. Repeal and savings.
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THE HIMACHAL PRADESH REGISTRATION OF MONEY
LENDERS’ ACT, 1976
(ACT No. 19 OF 1976)1
(Received the assent of the Governor on the 30th April, 1976 and was
published in the Rajpatra, Himachal Pradesh (Extra-ordinary), dated the 4th
May, 1976, pp. 1204-1209).
An Act to register money-lenders and to regulate their business in
Himachal Pradesh.
BE it enacted by the Legislative Assembly of Himachal Pradesh in the
Twenty-seventh Year of the Republic of India as follows:-
1. Short title, extent and commencement.- (1) This Act may be
called the Himachal Pradesh Registration of Money-lenders’ Act, 1976.
(2) It extends to the whole of the State of Himachal Pradesh.
1. For Statement of Object and Reasons, see the Rajpatra, Himachal Pradesh
(Extra-ordinary), dated 17th March 1976, p. 908.
2 THE HIMACHAL PRADESH REGISTRATION OF MONEY LENDERS, ACT, 1976
(3) It shall come into force at once.
2. Definitions.- In this Act, unless the context otherwise requires,-
(1) “bank” means a banking company as defined in section 5 of
the Banking Regulation Act, 1919 (10 of 1949), and includes
the Reserve Bank of India, the State Bank of India and its
subsidiary banks, any corresponding new bank constituted
under section 3 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (5 of 1970) and any
other banking institution notified by the Central Government
under section 51 of the Banking Regulation Act, 1949 (10 of
1949);
(2) “Collector” means a Collector of the district or such other
officer not below the rank of an Assistant Collector first grade
as may be specially empowered by the State Government to
discharge the functions of a Collector for the purposes of this
Act;
(3) “Commissioner” means the Commissioner appointed by the
State Government for the purposes of this Act;
(4) “company” means a company as defined in section 3 of the
Companies Act, 1956 (1 of 1956);
(5) “Co-operative society” means a society registered or deemed
to be registered under the provisions of the Himachal Pradesh
Co-operative Societies Act, 1968 (3 of 1969);
(6) “court” includes a court acting in the exercise of its
insolvency jurisdiction;
(7) “interest” includes the return to be made over and above
what was actually lent, whether the same is charged or sought
to be recovered specially by way of interest or otherwise;
(8) “loan” means an advance whether secured or unsecured of
money or in kind at interest and shall include any transaction
which the court finds to be in substance a loan, but shall not
include-
(a) an advance in kind made by a landlord to his tenant
for the purposes of husbandry :
Provided that the market value of the return
does not exceed the market value of the advance as
estimated at the time of advance;
(b) a deposit of money or other property in a Post Office
Savings Bank, or any other Bank, or with a company,
or with a co-operative society, or with any employer,
as security from his employees;
(c) a loan to or by, or a deposit with, any society or
THE HIMACHAL PRADESH REGISTRATION OF MONEY LENDERS, ACT, 1976 3
association registered under the Societies Registration
Act, 1860 (21 of 1860), or under any other
enactment;
(d) a loan advanced by or to the Central Government or
any State Government or by or to any local body or
panchayat under the authority of the Central
Government or any State Government;
(e) a loan advanced by a bank, a co-operative society or a
company, whose accounts are subject to audit by a
certified auditor under the Companies Act, 1956 (1 of
1956), or under any other law for the time being in
force;
(f) a loan advanced by a trader to a trader, in the regular
course of business, in accordance with trade usage;
(g) an advance made on the basis of a negotiable
instrument as defined in the Negotiable Instruments
Act, 1881 (26 of 1881), other than a promissory note;
(9) “money-lender” means a person, or a firm, carrying on the
business or advancing loans and includes the legal
representatives and the successors-in-interest whether by
inheritance, assignment or otherwise, of such person or
firm, provided that nothing in this definition shall apply to-
(a) a person who is the legal representative or is by
inheritance the successor-in-interest of the estate of a
deceased money-lender together with all his rights and
liabilities of such person-
(i) winds up the estate of such money-lender;
(ii) realises outstanding loans;
(iii) does not renew any existing loan, or advance any
fresh loan;
(b) a bona fide assignment by a money-lender of a single
loan to anyone other than the wife or husband of such
assignor, as the case may be, or any person, who is
descended from a common grand-father of the
assignor;
(10) "notification" means a notification published under proper
authority in the Rajpatra, Himachal Pradesh;
(11) "prescribed" means prescribed by rules made under this
Act;
(12) "State Government" means the Government of Himachal
Pradesh;
4 THE HIMACHAL PRADESH REGISTRATION OF MONEY LENDERS, ACT, 1976
(13) "trader" means a person who, in the regular course of
business, buys and sells goods or other property, whether
moveable, or immoveable and shall include-
(a) a wholesale or retail merchant,
(b) a commission agent,
(c) a broker,
(d) a manufacturer,
(e) a contractor, and
(f) a factory owner,
but shall not include a person who sells only his own agricultural produce or
cattle; or buys agricultural produce or cattle for his own use.
3. Suits and applications by money-lenders barred, unless money-
lender is registered and licensed.- Notwithstanding anything contained in
any other enactment for the time being in force a suit by a money-lender for
the recovery of a loan, or an application by money-lender for the execution of
a decree relating to a loan, shall, after the commencement of this Act, be
dismissed, unless the money-lender, at the time of the institution of the suit or
presentation of the application for execution or at the time of decreeing the
suit or deciding the application for execution,-
(a) is registered; and
(i) holds a valid licence, in such form and in such manner as
may be prescribed; or
(ii) holds a certificate from a Commissioner granted under
section 10, specifying the loan in respect of which the suit
is instituted, or the decree in respect of which the
application for execution is presented; or
(b) if he is not already a registered and licensed money-lender,
satisfies the court that he has applied to the Collector to be
registered and licensed and that such application is pending:
Provided that in such a case, the suit or application shall not be finally
disposed of until the application of the money-lender for registration and grant
of licence pending before the Collector is finally disposed of.
4. Registration of money-lenders.- Every money-lender may apply
for registration of his name at the office of the Collector and his name shall be
registered on furnishing such particulars as may be prescribed and on payment
of a fee of Rs. 10.
5. Licensing of money-lenders.- Every money-lender may apply to
the Collector for a licence which shall be granted for such period, in such
form and on such conditions, and on payment of such fee, as may be
prescribed.
THE HIMACHAL PRADESH REGISTRATION OF MONEY LENDERS, ACT, 1976 5
Explanation.- When an application for the renewal of a licence has
been received from a licensed money-lender before the expiry of his licence,
the existing licence shall be deemed to continue in force until orders on the
application have been issued.
6. Cancellation of licence.- A licence may be cancelled by the
Collector and shall be renewed for such period as may be specified by him, if
after the commencement of this Act, a money-lender commits an act or is
guilty of an omission with reference to which he-
(i) has been found guilty by a court in recording in any
document the sum advanced to be in excess of that actually
advanced.
(ii) has been found guilty of non-compliance with the provisions
relating to the maintenance of accounts under the Himachal
Pradesh Debt Reduction Act, 1953 (10 of 1953);
(iii) has/had his snit dismissed with a finding that he has made
dishonestly or fraudulently a material alteration in any
document relating to a loan;
(iv) has/had his suit dismissed with a finding that it is fraudulent;
(v) has been found by a court to have charged higher rates of
interest than those prescribed under the Himachal Pradesh
Debt Reduction Act, 1953 (10 of 1953) in more than one suit;
(vi) has been found guilty by a court of forgery or cheating in
respect of a money transaction.
Provided that the Collector shall not cancel a licence until the
prescribed period of appeal, or review, as the case may be, has expired; or in
the case of appeal or review the appeal or review has been finally decided.
7. When Col1ector may act.- (1) The Collector may, either of his
own motion or on the application of any person interested, take proceedings
for the cancellation of a money-lender’s licence:
Provided that no such licence shall be cancelled unless the holder
thereof has been given a reasonable opportunity of showing cause against the
proposed action.
(2) The Collector may during the period of limitation for an appeal,
either of his own motion or on the application of a party interested, review his
own order, provided no appeal is pending with the Commissioner.
8. Effect or cancellation or licence.- The name of a money-lender
whose licence has been cancelled under section 6, shall be struck off the
register maintained at the office of the Collector for the registration of money-
lenders:
Provided that a licence shall not be deemed to be cancelled nor the
name of the money-lender deemed to be struck off the register during the
period an appeal, or an application for review, or an application under section
6 THE HIMACHAL PRADESH REGISTRATION OF MONEY LENDERS, ACT, 1976
10 is pending.
9. Further registration and licensing or money-lender after expiry
of period for which licence was cancelled.- A money-lender may, after the
termination of the period for which his licence has been cancelled, apply for
registration and for the grant of a licence, to the Collector who shall, on his
furnishing such particulars as may be prescribed, register his name on
payment of a fee of Rs. 10/-; and shall grant him a licence for such period, in
such form and subject to such conditions and on payment of such fees, as may
be prescribed. .
10. Appeals, reviews and certificates.- (1) An appeal shall lie to the
Commissioner against the order of the Collector under section 6 cancelling a
licence provided that the appeal is instituted within 30 days from the order
appealed against, not including the period requisite for obtaining copies of
such order.
(2) If the money-lender or the appellant is not present at the time of
announcement of the original or the appellate order; the order shall be
communicated to him in such manner as may be prescribed.
(3) The Commissioner may, in dismissing an appeal, grant to the
moneylender a certificate specifying the loans in respect of which a suit may
be instituted by him or the decrees in respect of which an application for
execution may be presented.
(4) A money-lender without appealing against an order of the
Collector under section 6, may within 30 days from the Collector’s order
cancelling his licence, apply to the Commissioner for a certificate of the
nature specified in sub-section (3).
(5) The commissioner may, either on his own motion, or on the
application of a party interested, review his own order at any time within 30
days from the communication of his appellate order to the money-lender
concerned.
11. Exemption.- The State Government may, by notification, exempt
any person or class of persons from the operation of this Act or from any of
the provisions thereof.
12. Rule making power.- (1) The State Government may, subject to
the condition of previous publication, make rules for carrying into effect the
provisions of this Act.
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the following
matters, namely:-
(a) the place where a money-lender shall apply for registration
for obtaining a licence, the district or districts in which a
money-lender who operates in more than one district shall be
required to register, and the area in which a licence shall be
valid;
THE HIMACHAL PRADESH REGISTRATION OF MONEY LENDERS, ACT, 1976 7
(b) the scale of fees payable for the issue or renewal of a licence
of a money lender;
(c) the form of a licence, and the conditions under which a
licence shall be issued;
(d) the particulars which a money-lender shall supply at the time
of being registered; and
(e) any other matter required to be prescribed by this Act.
(3) Every rule made under this section shall be laid, as soon as may be
after is made, before the State Legislature while it is in session for a total
period of ten days which may be comprised in one session or two successive
sessions, and if, before the expiry of the session in which it is so laid or the
session, immediately following, the Legislature requires any modification in
the rule or desires that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, 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.
13. Repeal and savings.- (1) The Punjab Registration of Money
Lenders’ Act, 1938, ((3 of 1938), as in force in the areas added to Himachal
Pradesh under section 5 of the Punjab Re-organisation Act, 1966, (31 of 1966)
is thereby repealed.
(2) Notwithstanding such repeal anything done or any action taken,
rule made or notification issued under the Act hereby repealed and in force
immediately before the commencement of this Act shall be deemed to have
been taken, made or issued under this Act and shall, in so far as it is not incon-
sistent with the provisions of this Act, continue in force and accordingly any
appointment made, licence granted or direction issued under the Act hereby
repealed and in force immediately before such commencement shall continue
in force until and unless it is superseded by any appointment made, licence
granted or direction issued under this Act.
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