LexThe Tamil Nadu Money lenders Act, 1957
Tamil Nadu · state statute
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PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. The Tamil Nadu Money-Lenders Act, 1957 Act 26 of 1957 Keyword(s): Bank, Co-Operative Society, Interest, Loan, Money-Lender, Principal Amendment appended: 51 of 1982 [I957 : T.N. Act XXVI 38 .+ Money-Lndfrs ~ecr ;ON s. I ' 16. No compensation for cancellatio n of licence. 17. Penalty fog carrying on business sitlxout licence. 18. Penalties. 18-A. Non-citizens not to carry or, bushess of money-lending. 19. Transfe~ of licence tc Imelr* 20. Jwisdiction to t~y offences. 20-A. Power of court to :hit intenzst ~eco~erabfe in certain cases, 20-5. Power of court to direct payment of decretnl amount by ins t alment s. 20-0. Re-opening of tmansact ion. 20-D. Inquiry fop taking accounts and declaring the amount due. 21 . Gontracts not to be void on account of offence. 21-A. Savings. 22. Powep to make rules. L ~ > -- - ,-0 - -- --. '3 ""c - % 740 Mottejbkndeus [I957 : T;N. Act XXVI 2, In this Act, uuicss t;~b L~\~~~~L~L ~f.'~oiwise requires- Defintiions. [( 1) 'bank' means- (a) a banking company to which the Bankirig Regulation Act, I949 (Gentral Act X of 1949) applies; (6) tho Slate Bank of i~~clia constituted under the State Bank of India Act, LO55 (Gentml Act 23 of 1955) ; (c) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of I~~dia (Subsidiary Banks) I ~ Act, 1959 (Cent] a1 Act 38 of 1959) ; (d) a corresponding new bank cons ti tuted under section 3 of the banking Colnpanies (Acquisition and Transfer of Uncrcrtakings) Act, 1970 (Gentral Act 5 of 1970) ; (e) a Regional Rural Bank established under the Regional Rural Banks Act, 1976 (Central .4ct 21 of 1976); - (/ ) the Industrial Dekelopment Bank of India establ;+ed under the Industrial Development Bank of hdia Acr, 1964 (Central Act 18 of 1964); (g) the Agricultural Refinance and Development Corporation established under the Agricu?tural Refinance and Development Cornoration Act, 1963 (Central Act 10 of 1963) ; (h) the Lifc Insurance Corporation of India established under the Life Il~wrance Corporation Act, 1956 (Central Act 3 1 of 1956) ; (i) the Industrial Finance Corporation of India established under the Industrial Finance Corporation Act, 1948 (Central Act XV of 1948) ; (j) the Tamil Nadu Industrial Investment Corporation Limited ; and - I (k) any 0th~ fin.d.ncial or banking instftutioa notified in this bshalf by the Government in the Tamil Nad~ Govec"mze it Gazette. - clauses $1) ai!d (2) wen substituted for original clauses (1) I and (2) by sectron ?(I) of ihc Tamil Nadu Money-lenders (bend- pp~Pt, &, 1979 (Tarail Nadu Act 41 of 1979). * - -- - C - C 2 CPr [1957: T.N. Act XXYI (vi) st1 :rdvance made ol~ tlu basis of s clegotiable 9 instrument as defined in the Negot iablo Instruments Act, H 1881 (Central Act XXVI of 1881), exceeding '[rupees ten thousand] ; *[(vi-a) an advance made by any coinpax%y or corporation owned or controlled by the Central Govern- ment or any State Government] ; (vii) an advance made to its i~~cinbers by ally Nidhi or Pcrmancnt Fund rcgistcred under any law in force ; 11 India ; (viii) an advance made un~der any Chit Fund Scheme (ix) ao ativancc made by an agriculturist to his tenant ; (7) atperson shall be deemed to 'molest' another person if he- (a) obstrwts or uses violence to, or intimidates, such other person, or (6) Persistently follows such other person from place to place or interferes with any property owned or used by him or deprives him of, or lzindets him in the use of, any such property, or (c) loiters at or near a house such other person resides, or works ne'ss, or happen 9 to be, or I , (d) does any act calculated to annoy or intimidate the members of' thc family of such other person, or (e) moves or ads in a manner whiclt c;urses or is calculated to cause alarm or dangr to tla persol1 property of such other person ; 8 --- -- I* The~., words acre substituted for the words "wpees three by section Wi) (a) of the Tamil Nadu Moncy-lnlden (Amendment) Act, 1979 (Tamil Nadu Act 41 of 1979). ' This itW.3 Was iwrted by section 2(ii) (h) of the Tnm;l ~~d~ Mone~-lenders (AmendAllent) Act, 1979 (Tamil Nadu r\ct 41 of 1979) . .-,. - 744 Mol~ey-lend? [1957: T.N. Jet XX~~ Grant and 4. (1) Every n;uplication for a alonoy-lc~lder's licence refusal of shall be la writing and shall be made to the licensing licence* authority presa-ibcd under this Act : Provided that a person under the age of eighteen years shall be eligible to apply for n iicclxe oi~ly through a guardian : Provided rurther that if any parson acting as a guardian on behnlf of a minor applies for, and obtains, a licence under this Act, such guardian shall be subject to all the provisions of this Act as if the liccnce has bee11 granted to hiinsel!' (2) Every licence shall bq g~antcd in such form and subject to such conditions as rnay bt. prescribed including conditions as to payment of licence fees not exceeding one hundred rupees. (3) The licensing authority may by ordcr in writing refuse to grant a licence if such authority is satisfied- (a) that the applicant has not conlplied with the provisions of this Act or the ruIes made thereunder in respect of an ajlplication for the grant of a licence; or (b) that thc applicant has ~nade wilful default in complying with or knowingly actcd in contravention of any requirement of this Act ; or . , (c) that the applicant has- (i) knowingly participated in or connived at any fraud or dishonesty in the wnduct of or in connexion with the business of money-lending ; or, (ii) been found guilty of an offence under Chapter XVII or Chapter. XVIII of the Indian Penal - Code (Central Act XLV of 1860) ; or (iii) been found guilty of an oEt?ncc [under section 10-A or section I I] or section 13 ci~ t~vo or more occasions ; or (d) that thc applicant hn.; 1 hi.; licence can- celled within sir rnollths before tjiz dati: or application -.-- .-" - - - ----- -^ -1 * ---. ---.--. '$is expression wits substituted for ihe enpression "under se tio n 11" by section 3 of the Tamil Nadu Money-lenders (Amend- mcent) Act, 1979 (T mi: Nadu Act 41 of 1970). 746 Mun y-tevders 11957: T.N, Act XXVI (2) A muncy-lsndcr may deinand altd take from the debtor such charges and in such cases, as may be pres- (3) A money-lsnder shall not dclnand or take from 'the debtor any interest, profit or other sum what SO- ever in excess of that payable under sut-section (1). ewer to 8. (1) Where a money-lender refuses to accept the in whole or any portion of the money or other property due ey in respect of his loan, the debtor may deposit the said Oan' money or property into the Court having jurisdiction o entertain a suii for recovery of such loan and apply o the Court to record full or part-satisfaction of the loan s the case may be. - (2) Where any such application is made, the Court shall, after due inquiry, pass orders recording full or part- satisfactian oi the loan, as the case may be. , (3) The procedure laid down in the Code of Civil <, - % a Procedure, 1908 (Central Act V of 1908), for the trial of , -. suits shall, as far as may be, apply to applications under - this section. (4) An appeal shall lie from an order passed by a Court under sub-section (2) as if such an order relates to the execution, discharge or satisfaction of a decree within the meaning of section 47 of the Code of Civil Procedure, 1908 (Cenirnl Act V of' 1908). Money- 9. (1) Every money-lender shall-+ lender to (a) regularly I ecorct and mai!~taii~ or cause to be keep books, recorded and main tainetl , an .G--,, .... 1 ..hov-in2 for each give debtor separately- receipts, e tc . (i) the date of the loan, the oinount of the principal of the loan, the rate oS interest chargtbd c~n the loan and the nature of security taken, if any ; :mtl (ii) the amount of every payment received by the money-lender in rcspcct uf the loan, and ;l~c dirte of such payment ; (b) give to tbc dtbtor or his agent cz receipt hr every rqm writ paid !ni hiin, dul:t signed at d if necessary, stamped at the time ol auch payment ; 748 Money-lenders 11957: T.N. Act XXVI (7) Notwithstan cliilg any agrmlneat between the parties or any law for the time being in force, when a statement is furnished to a debtor under this section 011 any day during amonth, the interest due shall be calculated as payable for the entire month irrespective of the fact that such state- ment is furnished on any such day. :'$ *- *Pi> . ." I. >-+J T. *. ;+'- . . . ~ppoint- 10. (1) The Govarnlnent or any authority or officer ern- ? - merit of powered by them may, by notification, appoint one or more '. - ~~sp~o*s persons to be Inspectb~rs for the purposes of this Act and ?. - '- and powers, their specify in such notification the local limits of their jurisidic- I . tion. (2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 ofthe I~lidian Penal Code (Central Act XIJV of 1860). (3) (ci) '[A District Magistrate, nil Additional District Magistrate or a Sub-Divisional Mag is tratelm %y,on receiving a report from an Inspector that a person carries on without a licence or that a money-lender carries on in. contravention of the provisions of this Act or the conditicn': of the licence granted thereunder tho business of mo~ey-lending at any place within the jurisdiction of such Magistrate, issue a warrant empowering the Illspector to enter such place with such assistants as 1le considers nec.c::s;trqr :i ~d it~spect the books, accounts,recortiq, files, documcn:~, "securi tic.;, ~ai'cs and Vqults] in c,c:h pretnises. On receiving such warrant, the Inspector may Lnter the place al:d inspect the books, accounts, records, file 5, documents, zrsccsir ities, safes and vaults] in such premiscs and may tnLc to his office for further investigation such books, accounts, records, files 3[r'ocuineo ts an* 1 scc usj ties], as he cr:llsiders necessary : Provided that i S t he Inspector removes froin the premises any books, account c, record 5, files 3[document~ I m __-____ "- 1 -- .-.. -..-11-. *These words were substituted for tile words " A Magistrate of the first class in the Mufassal or a Presidency Mazistrate in the Presidency town " by section S(i) of the Tamil Nadu Money-lenders (Amendment) Act, 1079 iTnn7iI Nadu Act 4l of 1979). 2These words were substituted for thc wards " ssfes, vaults and pledges " by section 5(2) of the Tamil Nadu h'Iconty-lenders (Amend- ment) Act, 1979 (Tamii Nadu Act 41 of 1979). - srhw \LL.rL+~ .j,,~~::i~:~d f;7r i? 2 bv _?r\l'- " ;..3 +- - dcamz~tfi " by =tion 5jlii t c.f 13: fsnaif ImL-i .' : : :.:, -, ::JUCI j (Amendment) Act, 1979 =-'1 XdJu .-w 41 of 1979). -5.- " I - I - - A: 1957 f T.N. Act XXVI] one^-lenders 749 - t \ - and securities] he shall give to the person in charge of the : - - place, a receipt describing the bookc, account!, records, files =[documents and securities] so removed by h~m : , ' Provided further f hat within t wentql-four hour of the ' removalof the books,accounts,reoords,flIf :s 2[documents and ..* _ . +,:% A ,+, * > , * ;.:.-:q . +-* securities]from the premises, the Inspector shall either return - . . . .. . if. them to the person from whose custotiy they were removed - . . + - ..%,- .' ..I , 2 or produce thein in tk Ci~i: of the Magistrate who issued "; +"'I&;' e the warrant. SuchMagistrate may return the books accounts , .?ps .ilk -gq q. records, filesl[documents and sec:uritieslor any of them to . , ..$ . . ;,hs.h a>: 2% the person from whose custody they were removed by the . h . ti *:: e . Inspector, after taking from such person such security irs . . A$a*- . ";%:I; the Magistrate oonsiders necessary for the production of the - - .., ,.. 4 B, . . . books, account;, records, files a[doc~ when required whether by the Inspe or.& pass such other orders as to their just and convenient to the Magistrate. , " . - (b) An inspector shall have autlto - person whose testimony he-may require or any 'money lending businegs, to atten pr6duce or cause to be produced any-document and. t examine'such person on oath, * I. . < .. .I & -. ' (4) : ~n inspector may apply fol assi in-~hi~~@ of a police station and ta , accospany and assist the- Inspector in perfor duties under this Act. % ** , . . 1[10-~ No money-lender, whether licence . shall take from a debtor or an intending borrowe promib. to pay,acknowledgment, power of attor security or other document ' which does not stat am;O~fit 4f the loan, the, rate of interest time, if any, within which the'principal i repaid in full, or which states any of incorrectly, nor shall he take fro intending borrowcr any doc~ment left blank for compretion at a later date. -I iThese wards were substituted for the words "and documentsw i ., by section 5[iii] of the Tamil Nadu Money-lenders (Amendment) ., AC~, 1979 (Tamil Nadu Act 4 1 of 14791. t This sect ion was inserted 'by section 6 of the Tamil Nadu / ~oney-lenders (Amendment) Act, 1979 Uamil Nads Act ,4 1 of - 191 3)- 5.: -. *3,' .v p ". '! , .: .+. -* I'i" & - . 5. 40 Motrcy-lct2der.v 11957 : Th. !'it XXW I t $.a: R;." gkf: *. . . *:+r~ii%:- , (2) Whoever csutravenes the provisions of sub-section $d,. t (1) shall be punished with imprisonmeiit which may extend r to six months or wi th fine which m:ty cxt sd to one thou- sand rupees or with borb. (3) Notwithstai-dik~g anythi~zg cn~~t~ti~zcd in section 21 or in any other law Tor thc time beills in forcc, ally note, promise to pay, ncknc n~lodgemeat, p3wer of .rttornep, bond, security, or other dcnlment referred. io in sirb-szction (1) shall be void and rn~c~~fi-lrceable.] ~~n~y&nd~r 11. '[(I) 11 oy raojtcy-leixder whet har licensed or not- advancing omaller amount (a) who actually adxfances an amount less than the , securing amount show11 in his e.cco tints or 1.EBL'ilCI.S: OY (.if wc document .- higher interest re;ating to the loan, or 'than that specified in (b) wh6 take s or rcceives iliteres t or a.ny other charge at the accounts a rate h~gher ihall tl~c ratz shown in tile accou:lts, registers etc. to be or documents aforesitid or allowed under this Act, punishab'eo shall be punished wi .h imprisonnr':nt Icr r. term not exceeding six ~norlthfi ltul not less i.h:~x ;hrce monti~~: Provided tlut the C:lurt may, it1 addition to such impri- sonment, i mposc /i !XL w/lich mz:? c.t k~li! i.0 one thousand rupees. (I-A) Nottvi rll.; .:r~iJiq arlytiiii~p co~ltair~ed in the Indian Evidence Act, is72 (Central Act f of 1872)? or in ' any other law for the he being in force, in any su~t by or against a motley-len~er, whether lict:i~sed. or net, or in any ' -1 . . . prosecutio~l or other arocecding in a Court, the burden of . . proving that the money-lender had :tct ull y irdvanced to the . . debtor thc amount t pecified in- (a) any documeilt rclating to the lorn ; or (6) the accouil~s or register!; oC such molley-lender, shall be 011 th.2 mim .y-lander.] ; .I) (2) If a rn.>nej -lender is coihvicrcd of an offence "under sectiotl 10-h or under this sestio~l], thc Court convicting him may c~ncel his licznct: ns n ~no~ley-lender. _-_ ____ _. I ..-U -- - - - - - --- - ____ __ i Sub-Scctions (i) a \! (1 --:..I wcxe ~t~bh:it!rt~ti tor original sub.. sccticin 7(1) by secti;..~ ;' iij,rf hc rialif if N:ICIC~ Itft;rwy-iendcrs (Amendmc;tt) Act I974 f i t:l~~il PJPIT~~~U lA?c:, 4 1 (I! liZfra). a This exprcssicm w: wbstituted for i!lc ca.prcssi011 @' under su§ion (1) " by 7Cl .j tit' the '1 :mil P hlo~iey-lencf~r~ Amenuent Act, 1979 f l irl.la!i Nid~~ Act d%i ijf' iij7;)jf) 3 52 Money-lrtldcrs 11957: 'E.;", i.,ct XXVI (3) Ally persou aggrieved by an order of ihc licensing authority canc:lling a lic:nce may, wittxin one month 4" ,. of the date of co~lrmunica:ion 2. . .. !I cxrJer !c him, appeal to the prescribeo a:~tl~ority. Publication of 15. Every ord:r of canc~llation or n licence under this mder Act shall be notified in the District Gazette and also on the ~ancellatfon- notice board of the ofFics of the liccil~ing authority. Nocompzn- 16. A person whose licence is cancelled under saticn for section 14 '[or is deemed to have been cancelled under cancellailon of licence. sub-section (2) of szctinn 18-A] shall not be entitled to . . any compensation in respect of such cnncellation or to I the refund of any fee paid in respect of such licence. penalty for 17. Whoever carries on tho business of money-lending carrying an without a licence or otherwise than in conformity with the business terms and conditionr: of a licence shall bc plmishcd with fine which rn%y extend to one thous:t~d rupees : licence. Provided that a person shall not be deetlled to carry on the business of moneylending without a licence, if he had ceased to cnrry on the business of money-lending but was taking steps to recover any ioan advnrrced by him. Pcnal~ies* 18. (1) Whoevcr contravenes any of the provisions of this Act b, of any rule made thereunder or of any terms . or conditions of a licence gran'ed Or deemed to be granted thereunder or makes a claim or a st:ttelncnt which is false or which he does not believe it to be true shall, if no other penalty is elsewhere provided for in this Act for such contravention, be pi~nish~d with fine which may extend to one thousa~~d tupees. Explanuti~n.-~~he cancellation o!' a licence under section 14 sh~ll ]lot be deemed to be :-L peinrrlty for the purpose of this sub-section. (2) Where a cnntravention of any of the provisions of this act or of any rule made therel~tlcler of which a I -person is convicted consists of an omission to do a thing, . . the Magistrate may, when convicting the offender; direct . him to do the thing before ari appciuted dily and wy on the failure of the o$bnder to do the thing before the said day, pass an order, whether the offellder appears in Court L-r not on that c!ay cancelling his 1-cence. - --- - - --- , . . . Them words, blqa~kbts, figures and letter were lnser - sectii~n 11 of the Taail Nadu Money-lenders (Amenci~~t) 1979 (Tamil Nadu Act 41 of 1979)" - - -.I - - - c-' + 7 54 1- 1 1 957 : T. N, Act &VI (3) T'hz li-:cniing authority may, if he is satisfied that the applicant is in fact the Lr:gnl representative of the deceased oilti ti1:lt IW is othci*winc eligible to a licence u~zdcr this Act, tr~tnsfer th; licc~~cl: in rhc name of the appl ica~zt aftur obt ;lining fic~~tz t lze applicant a declaration I in the prescrib.;cl form. \ (4) Ally 1 ic~nce t rallsfer rcd 11 ndec sub-section (3) shall be deemeri to l~ave bee11 granted to the applicant hi~ns:-X and shall be valid for the period for which it would have been valid if the licence had not been zransCerri~1; and the provisions of this Act shall apply a.ccordingly. ~ilrisdictia-I to '120. N3 CJLLII inl'erior t~ that of it Metropolitan try tlff:flces* Magistrate or of a Judicial Magistrate of the first class sh;~ll try ally cl l;l:~lc;c punislzitbl c ~~~zcier this Act, PO\, wi, of cour. 20-A. Not rvit hstanding allything contained in ' any to limit interest agreemeltt or allby law for the time being in force, no'court recoverable in certain cases. shall, in respect of any loan whel1zt.r advanced before or after the date of thf: publication oft he Tamil Nadu Money- lenders (A~aoudruunt) Act, 1979, in the Turnjl Ngdr Governi,~crit G~zi)t tc>, decrce on :LGC~ \I 11 t of' intefest a sum greater than tho prill~ip%l OC I~?.C Io;:~ due 011 the date of the decree. Power af 20-8. Nol;viticsti\nding :in;ithi~ig contained in the court to direct Code oC Civil Prozddure, 1908 (Central Act V of 1908),. payment of the court may, a: iuny timz, oil application of cr judgment - dccretal amount debtor and after no the to tllc decree-holder, direct that by instalrnents. the amoullt of any decree passed sgains t liinl, whether before 01. after Llle date of LIrc p~lblic~~ticill 3f the Tamil Nadu Money-lenders (Amendment) ,\ct, 1979, in the , Tamil Nudu Goverrame~zt Gazette, in respect of a loan, shall be paid in such r~umber of instalnlents ai1d subject to such conditions and payable on such datcs, as having regard to the circumsta:lces of judgment-debt or and the amount of the decree, it considers fit. Reapenin$ of 20-C. N ~t vvi ths tanding any thiug contained in any I 'ra*sacti~ns. lavr for the time being in force, the court sl~all, in any suit to which this Act applies, whether heard ex-p~rte or otherwise- (a) reopen any transaction, or any account alreadr .. taken between the Pprties ; - -__I --- __I_ ---.---_I-- _ -__a"LIC Sections 20, 20-A, 20-B, 2Q-C and 20- the original section 20 by Stion 13 of Tamil (~~~~dmetlt) Act, 1979 (TR mil Nadu Act 4 1 of 13791, 6 *, -- , - . . - I (b) take an accoui~t betweenthc l?ariies ; (c) reduce the amount charged to the debtor in spek of any zxcessive interest ; (d) if on i aking accounts it i s f~ani, ;jj kt the money- ' erhas received more than what js duo t I him, pass a ee in favour of the debtor m respect such excess to by the parties or any person at a date more than six years o the date cf the suit ; anyihing which affects r\ny decree df a court. as not become payable, for taking acoou wing the amount due to the money-lender. 756 h41~n~.y-k~,i~ltrs 1 1957 : T,N. ~ct XXVi Sav;ngs. l[21-A. (I) N~thing in thi\ Act shall affict, or shall be deemed to affect any of the benefits coderred on any perso: hv any of ihc provisons of the Tnlnil Nadu Agri- olllturists Relief Act, 1938 (Tamil Nadu Act IV of 1938) or the Tamil Nad~r Debt Relief' Act, 1972 Tamil Nadu n Act 38 of 1372) or the Tamil Nadu lildz'ated griculturists (Temporary Relief Act, 1976 (P~.eaidcnt's Act 15 of 1976 or tlre Tamil Nad ik imlebted Pel son. (Ten~porary Relief) Act, 1976 (Pr~jidc~~t's Act 16 of 1976) or the Tamil Nadu Indebted Agricalt ~irist s and I ndsbtcd Perso~ts (Special Provisions) Act, 1976 (Presitlcnt'h Act 17 of 1976) or the Tamil Nadu Deb1 1Cclief Act, 1976 (President's Act 31 of 1976) or the Tamil Nado Debt Relief Act, 1978 (Tamil .- Nadu Act 40 of 1978), notwithstanding anything to the contrary contai~~ed in this AG~. (2) Save as otherwise provided in sub-section (I), the provisions of this Act shall 5e iin addition to, and not in derogation of, any of the Acts specified in sub-section (11, or any other law for the time being in force.] C' '0 make 22. (I) Ths State Govzri~mel~t m;ty, :tfter previous '*les* publication, I: ke rulcs to carry out tjtc purposes of this AG~, \ (2) In particu1a.r and without prejudice to tho generality of the foregoing power, such rules may ptovide I for- (a) all matters expressly required or allowed by this Act to be prescribed ; (b) the form and ths particulars to be Contained in an application for a licence under this Act ; (c) the terms and conditions stlbject to which a licence inay be gritntcd ; (d) the forin in which books, accoullts and docu. ments specified in this Act shall bi: recortfed, maintained, kept or used ; (e) the prowiure which should bc followed and the powers which lnny be exercircd by the authorities exercising functions, holding inquiries nit i: !war ing appeals uader this Act. - . - _ - -- - - - - _ --- --- .- >- - - -----.w* 1 This set-ion W.L~ n A by JPC ioo 15 tllC Tamil ~~d~ Money-lenders (Amc ~dr~~i~i) Act, l~t!, i . $1~4 1 N:rt:ll ~cldl of 1 mg). * *- -- f 66 -- --- -- -- -- - - --. " ....- -+ -. - - -- 1982 9, N. Act 511 Money-lend ers 897 (Amendment) TARllL NADU ACT NO. 51 OF 1982." THE TAMIL NADU MONEY-LENDERS (AMENDMENT) ACI ,1982. [Received the assent of the Governor on the 1st October 19e3, first published in the Tami 1 ~adu Government Gazette on the 5th October 1982 (Purattasi 19, Thun- thubi, Thiruvallzrvar Aandu-2013).] An Act further to amend the Tamil Nadu Money-Lenders Act, 1957. BE it enacted by the Legislature of the State of Tamil Nadu in the Thirty-third Year of the Repnblic of India as 1. (1) This Act may be callad the Tamil Nadu Mon~y- Short title sad 1 en&rs (Amendment) Act, 1982. commencement. (2) It shall come into force on such date as the State Government may, by notification, appoint. 2. In section 14 of the Tamil Nadu Money-lenders Amendment 01 Act, 1957 (Tamil Nadu Act XXVI of 1357) (hereinafter section 14s referred to as the principal Act),-- Tami 1 Nadu Act XXVI of 1957, (4) in the marginal heading, for the words " caqcel 1 licences " ,the words " cancel or suspend licences " shall be substituted ; (b) after snb-sectioll (2), the followin 2 sub-section shall be inserted, namely :- " (2-A) Notwithstailding anything co~tained in sub-section (1) or sub-section (2), where in ihe opinion of the licensing authority any licence grant~d urlder this Act is liable to be cancelled under sub-section (I), tbe licensingauthoritj ma), 2~2Ci:,~ sancellat ion of :he 1 ioence under sub-section (1) and for reasons to be recorded in writing, suspend itny licence granted under this Act and in such a case, nc show cause notice is necessary.". --- * For Statement of Objects and Reasons, see Tamil Nnrlu Government Gaz~rte Extraordinary, dated he 6th September 1982, Part IV-Seclion 1, page 432. 125-1257 [I982 : T.N. Act S -@f 30 In section 15 of the principal Act: - wioa 15, Tamil Nadu Act XmI of 1957. (I) in the marginal heading, after tile word c6 cau~lla- 6 6 :ion "3 the w@rds Or suspension " shall be added ; (c) after the word " cancdation ", th words c6 or S~sPension " shall 'be inserted. \mendmen t 4. h section 16 of the principal ~ct,- f section 16, *mil Nadu Ct XXVl of 157. (1 in the marginal heading, for the word 6b cancella- tion "2 the words "~~ncellation or "sppclaion 9y sllall be st~sbtitui ed ; (b) for the expression " cancelled uuder section 14 "9 the expression " canelied or suspended under section 14 " shall be substituted ; ; c cc) the lvords " Such canceliation ", the words 9uch mncellation Or sllspension " shall be substituted. :ndment 5. In section 18 of the principal Act, in sub-section aim (I), in me , for the wrd l6 caaIItion 99, .il Nadu XXVI ci the words " cance~ation or suspension 93 shall be sub. stituted .