LexThe Tamil Nadu Pawn Brokers Act, 1943
Tamil Nadu · state statute
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The Tamil Nadu Pawn Brokers Act, 1943
Act 23 of 1943
Keyword(s):
City of Madras, Company, Co-operative Society, Interest, Loan, Pawnbroker,
Pawner, Pledge
Amendments appended: 1 of 1977, 3 of 1977, 2 of 1978, 2 of 1979, 34 of 1979,
35 of 1980, 51 of 1992, 1 of 1994
1943 : T.N. Act ~1111 I] Po,vnbro~ers dg3
THE TAMIL NADU PAWN BROKERS ACT,
/
1943.
!
TABLE OF CONTENTS.
SECTIONS.
I
1 Short title, extent and commence-
I ment.
I 2 Definitiotls.
Pawn broker to obtain licence
annually. -
Grant and refi~sal of licences.
Pawnbrokers to exhibit their name
over shops, etc.
lntcrest and charges allowed to
pawnbrokers.
7 Pawn-ticket to be give11 to pawner.
Conditions relating to redemp-
tion of pledge.
- ! Pilwnbrokers to keep books, give
receipts, ctc.
Pawnbroker to keep pledge i 11 his
shop or placc of business.
I0.B Appointment of lnspectors and thcir powcrs.
11 Redemption of pledge.
Salc of plcdgc and inspcctioil of
sale book.
12-A Interest not to accrue in respect of
certain loans and pledges not to
be disposcd of during the period
of operation of the Tamil
Nadu Tndebtcd Persons (Tcmpo*
rary Rclicf) Act, 1975.
\ i
I
Ply- . -2;w:@bLr *
C SECTIO~S.
13 Liability of pawnbroker in case v f
fire.
14 Compensation for depreciation OJ
pledge.
14-A Power to cancel licences, etc.
14-B Publication of ordcr of cancella-
tion.
14-C So co~np~nhation for cui~ccllution
of licence.
14-1) Auctio~~eers to maintain certain
registers.
15 Pawnbroker advancing snia Ilc.1
amount or receiving higlzc~
i rltcrest than that speci ficd i n
accouuts to be punishable.
16 Ce~tair~ othcr acts of pawnbroker3
to be punishable.
17 Certain act5 of p:lwr~ers to !>c
I3LLll hhblc.
1 X Geiicrnl pcnaltj, Iibt. COI~~I '~VL'I~.
troll uT Act, clc.
19 Jurisdiction to Iry olfellccs.
20 [ Onzittr~cl. I
2 1 Contracts not to bc void on
~ICCOLLII~ of oft"encus b~tt intcrc4
alitl cost\ not to hu ;~llr~ctl ill
ccl tail1 cases.
2 1 -A I'OWCI. to cxc~tlpt colnp.111 t'k r'i*g!\-
tc~d beforc 1st Notc'~llbct 194 t
22 Power to make rulca.
23 Amendment of Tanlii Nsdu ,421
I Vll of 1935.
24 Arnc~dni~nt of T:!rnil Nildl1 Act
111 of 1888.
25 S~vings.
1943: T.N. Act XXllI] Pawnbrokers . 897
'[TAMIL NADU] ACT No. XXlII OF 19432, AS
AMENJ3ED BY MADRAS ACT No. XXVI
, OF 1945*.
(Received the assent OJ the Governor-General on the
1 6th Vovember 1943 ; &st published in the Fort
St. George Gazette on the 23rd November 1943.)
i i
An Act to regulate and control the business of
Pawnbrokers in the a[Stste of Tamil Nadu].
I
WHEREAS it is expedien&o make provision for the
regulation and control of the business of pawnbrokers
in the a[State of Tamil Nadu]; '[It is hereby enacted
as follows :-I
1. (1) This Act may be called the '[Tamil Nadu] Shorttitle,
I Pawnbrokers Act, 1943. extent commen- and
(2) It extends to the whole- of the 5[State orcement.
.Tamil Nadu].
These words were substituted for the word "Madras" by the
Tamil Nadu Adaptat~on of Laws Order, 1969, as amended by tht
Tamil Nadu Adaptation of Laws (Second Amendment) Order, 1964,
2 For Statement of Objects and Reasons, see Fort St. George
Gazette, dated the 13th August 1940, Part 1V-A, pages 65-66.
This Act was extended to the merged State of Pudukkottai hy
section3 of,andthe First Schcdule to, the Tamil Nadu Merged
StateJ (Laws) Act, 1949 (Tamil Nsdu Act XXXV of 1949).
This Act was extended to the Kanya!r:m~ari district and the
Shcncottal~ taluk of the Tifunelveli district by section 3 of, and the
First Schedule to, the Tam11 Nadu (Transferred Territory) Extension
of Laws Act, 1960 (Tamil Nadu Act 23 of 1960), which came intc,
force on the 1st April 1961, repealing the corresponding law in force
in that territory.
a This cupression was substituted for the expression "Province
of Madra," by thc Tamil Nadu Adaptation of Laws Order, 1970,
which wiis deemed to have come into force on the 14th January 1969.
4 These words were substituted for the paragraph containing
"~c enacting formula and the paragraph preced~ng that paragraph
9y section 5 of the Tamil Nadu Re-enact~ng and Repealing (NO. I)
Act, 1948 (Tam11 Nadu Act V1I of 1948).
6 This expression was substituted for thb expxession "State of'
Madras" by the Tamil Nadu Adaptation of Laws Order, 1969, as
amended by thc Tamil Nadu Adaptation of Laws (Second Arucnd-
ment) Order, 1969.
* This Act has now been repealed by Tamil Nadu Act Vl! t f
1948.
- :$'$ ."...,:' . '
1,
B C
I 898 Pawnbrokers 11943: T.N. Act XMII
I
(3) This section shall come into force at once*,
and the state^ Govhent may, from time to time,
by notification in the Fort St. George Gazette, apply
the remaining provisions of this Act to the whole or
any portion of the '[State of Tamil Nadu] from such
date as may be specified in the notification, and may
cancel or modify any such notification.
- I \efiniti~ns. 2. In this Act, unless there is anything repugnant
in the subject or context-
(1) " City of Madras " includes all places within
the local limits of the ordinary original jurisdiction
of the High Court of Judicature at Madras ;
(2) '' company " means a company-
(a) registered under any of the enactments
relating to companies for the time being in force "[in
India or] in the United Kingdom or in any of the
British Dominions, or in any of the Colonies or
Dependencies of the United Kingdom, '[ -1 ; or
(b) incorporated by an Act of Parliament
6[of the United Kingdom] or by Royal Charter or
Letters Patent or by any Orcentral Act] ;
This word was substituted for the word "Provincial " by the
Adaptation Order of 1950.
2 This expression was substituted for the expression "State of
Madras" by the Tarn11 Nadu Adaptation of Laws Order, 1969, as
amended by the Tam11 Nadu Adaptation of Laws (Second Arnend-
ment) Order, 1969.
* These words were substituted by scction 4 of, and the Third
Schedule to, the Tamil Nadu Repealing and Amending Act, 1957
(Tamil Nadu Act XXV of 1957) for the words "in any State or",
which were inserted by the Adaptnt~on (Amendment) Order of 1950.
4 The word, "or in British India, or in any State in India " were
omitted by the Adaptat~on (Amendment) Order of 1950.
These words were inserted by [bid.
a These words were substituted for the words "Act of the In-
Legislature " by lbld
* Section 1 came into force on the 23rd Novenlbcr 1943 and the
renlaining sections applied to certain portions of the State by
notificat~ons issued from time to time.
'A. -&.a-
*> <'"-.' ''
/ .*,~ +
1943: T.N. Act BUlIj ~~wnbrokers 899
(3) " co-operative society " means a society i
Madras registered or deemed to be registered under the Madras
$52y of Co-operative Societies Act, 1932';
[(3-A) Inspector ' meagan Inspector appoin, . b ted under sub-section (1) of section 10-B ;]
(4) " interest " does not include any sum law-
fully charged in accordance with the provisions of
this Act by a pawnbroker for or on account of charges,
but save as aforesaid, includes any amount, by what-
soever name called, in excess of the principal, paid
or payable to a paknbroker in consideration of or
otherwise in respect of a loan ;
(5) " loan" means an advance of money or in
kind at interest, and includes any transaction which
the Court finds in substance to amount to such an
advance, but does not include-
(i) a deposit of money or other property in
a Government Post O5ce Savings Bank or in a company
or with a co-operative society ;
Central (ii) an advance made by a 'panking company
Act of as defined in a(section 5 (1) (c) of the Banking Compa-
1949. nies Act, 1949,)l or a co-operative society ;
(iii) an advance made by Government or
by any person authorized by Government to make
advances in their behalf, or by any local authority.
--
1 This clause was inserted by section 2 (i) of the Tamil Nadu
Pawnbrokers (Amendment) Act, 1961 (Tamil Nadu Act 31 of 1961)
Whese words werc substituted for the word " company " by section'
2 of the Madras Pawnbrokers (Amendment) Act, 1945 (Madras Act
XXVI of 1945). (Section 1 of this Act came into force on the 1st January 1946 and section 2 on the expir of 3 months from the 1st January 1946. The Act was repealed & Tamil Nadu Act VII of
1948.) I
These words, flgurm, brackets and letter werc substituted for the
words, figures and letter "section 277-F of the Indian Companies
1
Act, 1913 " by section 201) of tho Tad Nadu Pawnbrokers (Amend-
ment) Act, 1961 (Tamil Nado Act 31 d. 1961).
* Now tbe Tamil Nadu Co=opcratlva Socioticr Act, 1961 (Tamil . Nadu Act 53 of 1961).
12% 14-57 A 1
- - --
(iv) an advance made by any person bona
fi(le carrying on any business not having for its priulary
object the lending of money, if such loan is advanced
In the regular course of such business ; and
(v) an advance made by a landlord to his tenant,
by a lessor to his lessee, or by one partner in culti-
vation or co-sharer to another for the purpose of
carrying on agriculture ;
(6)" pawnbroker " means a person who carries
on the business of taking goods and chattels in pawn
for a loan ;
Explanation.-Every person who keeps a shop
for the purchase or sale of goods or chattels and who
purchases goods or chattels and pays or advances
thereon any sum of money, with or under an agree-
ment or understanding expressed or implied that the
goods or chattels 9 be afterwards re-purchased
on any terms is a pawnbroker within the meaning
of this clause ;
(7) " pawner " means a person delivering an
article for pawn to a pawnbroker ;
(8) " pledge " means an article pawned with a
pawnbroker ;
(9) "prescribed" means prescribed by rules
made under this Act ;
(10) "principal " in relation to a loan means
the amount actually lent to the pawner ; and
(1 1) " year " means the financial year.
1943: T.N. Act XXm] Pa 961
Expkmati0n.- Where a pawnbroker has more
I
than one shop or place of business, whether in the
same town or village or in different towns and villages,
/ he shall obtain a separate pawnbroker's licence in res-
pect of each such shop or place of business. &
h (2) Every pawnbroker's licdnce granted under
b this Act shall expire on the last day of the year for which it was granted, but may be renewed from year
to year.
I
4. '[(I) Every application for a pawnbroker's licence Grant
shall be in writing and shall be made to the licensing ,, authority prescribed ylder this Act.] licences.
(2) The licence shall not be refused except on
one or both of the following grounds, namely !-
(a) that the applicant is of bad character.
Explanation.- If any evidence of bad character
is adduced against the applicant, he shall be given an
opportunity of rebutting such evidence; and
(b) that the shop or place at which he intends
to carry on the business of a pawnbroker or any ad-
jacent house or shop or place, owned or occupied by
him, is frequented by thieves or persons of bad charac-
ter:
2[Provided that the licence shall not be refused
under this sub-section unless the applicant has had a
reasonable opportunity of making his representa-
tions.]
8[(3) In granting or refusing to grant a licence
under this section, the licensing authority may consult
such authority or officer as may be prescribed.
I
1 This sub-section was substituted for the original sub-section (1)
b section 3(a) of the Tamil Nadu Pawnbrokers (Amendment) Act,
1861 (Tad Nadu Act 31 of 1961). -
a Thls proviso was added by section .3 (b) Ibld.
a Thwe SUWOIU ww 8~bstit~tqd for tba ~dglaal ntbsccti-
(3) by section 3(e), ibid.
Pmdrokers [1943: T.N. Act XXIll
(3-A) Any person aggrieved by an order of the
licensing authority ref- to grant a licence under
this section may, within such time as may be prescribed,
appeal to such authority as the State Government may
specify in this behalf and such authority may make
such order in the cue as it may think fit.]
(4) Every licence shall be granted in such form
and Subject to such conditions as may be prescribed
and on payment of such fee not exceeding l[onc hundred
rupees] as the 2[State] Government may from time to
time, by notification in the Fort St. George Gazertp,
determine.
Pawnbrokers 5. Every pawnbroker shall-
to exhibit their
names over (a) always keep exhibited in large characters over
Shops* the outer door of his shop or place of business his
name with the word pawnbroker, in the chief language
of the locality; and
(b) always keep placed in a conspicuous part of
his shop or place of business so as to be legible to all
persons resorting thereto the information required to
be printed on pawn-tickets by rules made under this
Act, in the chief language of the locality.
Interest and 6. 3[(1) No pawnbroker shall charge interest in
charges allowed to respect of a loan on a pIedge at a rate exceeding twelve
pawnl?roken. per cent per annum simple interest (that is to say, one
naya paisa per rupee per mensem simple interest).]
(2) A pawnbroker may demand alld
take from the pawner such charges and in such
cases as may be prescribed.
i These words were substituted for the words "twenty-five rupees "
b section 2 of the Tamil Nadt) Pawnbrokers (Amendment) Act, 1971
amil Nadu Act 14 of 1972). ci!
a This word was substituted for the word " Provincial" by the Adaptation Ordet of 1950.
P This sub-section was subotltuted for the orlginal sub-section (I )
b section 4 of tho Tamil Nadu Pawnbrokers (Amendment) Act,
lkl (Tamil Nadu Act 31 of 1961).
I
.----
a.
1/-
b.. +
\
-3' *.
1943 : T.N. Act XXIq .
(3) A pawnbroker shaIl not demand or
ttake from the pawner any profit, interest, charge or
sum whatsoever, other than the interest due to him
;and the charges, if any, referred to in sub-section (2).
7. Every pawnbroker shall on tad a pledge in-.&
I pawn give to the pawner a pawn-ticket in the prescri- to be given
bed form, and shall not take a pIedge in pawn unless 'O pawner'
the pawner takes the pawn-ticket.
'[a. (1) In the absence of a decree or an order of conditions
a civil court, or an order of a magistrate or an officer relams to
redemption of of police not below the rank of sub-inspector prohibi-
ting the delivery by the pavbroker, of the pledge, to
the pawner, the pawner shall, on production of the
pawn-ticket and on payment of the sum legally payable
in respect thereof, be entitled to the delivery of the
pledge.
(2) On a declaration in the prescribed
form from the pawner that the right to redeem the
pledge has been transferred to7 or invested in, some
other person and on a declaration from thrtt other
person that he is in possession of the pawn-ticket and
that he is entitled to redeem the pledge, the pawn-
broker shall cause an endorsement to be made on the
pawn-ticket that the holder thereof is such other person,
and shall cause the necessary entry to be made in the
pledge book and thereafter the former person's right
to redeem shall be extinguished and such other person
shall be deemed to be the pawner for the purposes of
this section.
(3) Where a person claiming to be the mes-
senger or agent of the pawner produces the pawn-ticket
and offers to redeem the pledge, the pawnbroker may,
after obtaining from the person so claiming, a declara-
tion in the prescribed form, allow qedemption if the
pawnbroker is satisfied that the person who claims to
be such messenger or agent is in fad such messenger
or agent:
i This section was substituted for the ort wl eection 8 by KCH~
Nadu Act 31 of 1961).
P 5 of the Tamil Nadu Pawnbroker8 (Amen &t) Act, 1961 (Tanail
* ,
904 Pawnbrokers. 11943: TN. Aa
Provided that such pawnbroker shall remain
liable to compensate the pawner if it be found later
that such messenger or agent had not in fact beenduly
authorised by the pawner to redeem the pledge :
Provided hrther that, where a person claiming to
be the messengeror agent of the pawner produces the
pawn-ticket and offers to redeem the pledge, the pawn-
broker may send a notice in the prescribed form by
registered post to the pawner to the address left by
the pawner with the pawnbroker, and if he does not
hear anything from the pawner contrary to the claim
within two weeks after the date on which the notice
would in the usual course of post reach the pawner,
the pawnbroker may allow the person claiming to
be such messenger or agent to redeem the pledge and
shall in that event be exonerated from further liability
to the pawner or any person claiming under him.
(4) (a) Where the pawner is dead and a person
produces the pawn-ticket claiming to be the legal
representative of the pawner and offers to redeem the
pledge, the pawnbroker shall allow such:redemption,
after obtaining from such person-
(i) a declaration in the prescribed form
duly made by such person before any magistrate or
judge ; and
(ii) a bond duly executed by such
person with one or more sureties to the satisfaction
of the pawnbroker or af such authority or person as
may be prescribed in this behalf, agreeing to indem-
nify the pawnbroker in respect of any liability
which may be incurred by him by reason of delivering
the pledge or otherwise acting in conformity with the
declaration :
Provided that no
shall be necessary if such pe
a civil court having jurisdicti
the redemption of the pledge, au
the pledge as the legal repres
pawner and in any such case,
allow redemption.
. - .>." --- -
_*- __. ^ ^ --------
t *
(b) The amount of every bond executed under
clause (a) shall be Axed with due re&rd to the cir-
cumstances of the case 'and shall not be excessivc.
(5) Where a person co* into possession of a
pawn-ticket as the assignee of the pawner, such person I
shall give notice of such assignment to the pawn-
I
I
broker in the prescribed form, but the pawnbroker
shall not be bound to recognize the claim of such per- I
son to redeem rhe pledge unless the pawner intimates
to the pawnbroker the fact of such assignment or I
unless the pawnbroker. after having sert a notice
in rhe prescribed form by registered post to the pawner
to the eddress left by the pawner with the pawnbroker
intimating to him the claim made under the alleged
assignment, does nor hem anything from the pawner
contrary to the claim within two weeks after the date
on which the notice would irl the usual course of post
reach the pawner.
(6) Where the pawner alleges that the pawn-
ticket has been lost or destroyed and claims redemption
of the pledge, the pawrbroke~ shall, after obtaining
from the pawner, a declnration in the prescribed
form allow such rede~nplion crzless the pawnbroker
has received intimatio~~ from ally other pcrson that
he is in possession of tlw pi~wll-tickct and is el~ritled
to redeem the pledge :
Provided that, bCfo~'c :~Ilowi~)g SLLCJI redemption,
the pawnbroker may il~sisr 011 sccuriry to his salis-
faction or to the sarisfaction of such authority or pcsson
as may be prescribed it) this behalf being given by
the pawner against possihle claim by any other persc n.
(7) Where a persol\ claims to be the owncr of a
pledge and alleges that the pledge was pawned with-
out his knowledge or c111 thurity, the pawnbroker
shall take a declaration fivm such person in the prescri-
bed form, and send n notice in the prescribed form by
registered post to the pnwnet: to the address left by
the pawner with the pawnbrokdr, and similarly to every
other person who has made any claim to the pawn-
broker of being entitled to deem the pledge, and if .
I
the pawnbroker does not receive any communication
\ '1
_ ---&-I
in writing from the pawner or any other such person
prohibiting the delivery of the pledge to the claimant,
within two weeks after the date on which the notice or
notices would in the usual course of post reach the
addressee or addressees, the pawnbroker may allow the
1
claimant to redeem the pledge, and the pawnbroker
shall in that event be exonerated from further liability
to the pawner or any person claiming under him J
10. (1) Every pawnbroker shall-
(a) regularly record and maintain or cause to
be recorded and maintained in a pledge book in the
prescribed form, an account showing for each pawner
separately-
(i) the date of the loan, the amount of the
principal of the loan and the rate of interest charged
' onthe loan per cent per annum or per rupee per
mensem or per rupee per annum ;
(ii) the amount of every payment received
by the pawnbroker in respect of the loan, and the date
of such payment ;
(iii) a full and detailed description of tile
article or of each of the articles taken in pawn ;
(jv) the time agreed upon for the redemption
of the pawn ; '[ 1
(v) the name and the address of the pawner,
and where the pawner is not the owner of the article or
of any of the 5rticles pawned, the name and address
of the owner thereof ;
4[(vi) such other particulars rj:, may be pre-
1 Thia Mion was omitted by section 6 of the Tamil Nadu Pawii.
broksn (Amendment) Act, 1961 (Tamil Nadu Act 31 of 1961).
a Tho wad "and" wru, omittod by wctlon 7(1) (a) (9, Old.
Wion 7 (I) (a) (11)' Ibld.
as added by mdon 7 (1) (d) (ifi), ibtd.
-,.- - - ---
.Ae..-. --.,,---...- '.A"..-,- -
I.
I 1943: T.N. Act XXIII], 907
(b) keep and use in his business the followiag
documemts and books (which shall be in the pres-
cribed form) and enter therein from time to time, as
occasion requires, in a fair and legible manner such
particulars dnd in accordance w such directions
as may be prescribed :- d
(i) pawn-ticket ;
(ii) sale book of pledges ;
(iii) declaration where pledge is claimed
by owner ;
(iv) declaration of pawn-ticket lost ; and
(v) receipt on redemption of pledge ;
(c) give to the bamer or his agent a receipt
for evely sum paid by him, duly signed and, if
necessary, stamped at the time of such payment ; and
(d) on requisition in writing made by the
pawner furnish to the pawner or, if he so requires, to
any person mentioned by him in thnt behalf in his
requisition, a statement of account signed by himself
or his agent, showing the particulars referred to in
clause (a) and also the amount which remains out-
standing on account of the pri~lcipl and of interest,
and charge such sum as the [State] Government may
prescribe as fee therefor.
a [Providecl that no such stiltement shall be
required to be furnished to a pawner if he is supplied
by the pawnbroker with n pass book in the pres-
cribed form containing an up-to-date account of the
pawnbroker's transactions wit 11 t hc pawner .]
' [(2) All records or entries made in the books,
accounts and documents referml to in sub-section (1)
shall be either in English w in such language
- .e -
1 This word was substituted for tha word " Provincial " by the , Adaptation Order of 1950.
This proviso was added by section 7 (1) (6) of the Tamil Nntlu
Pawnbrokers (Amendment) Act, 1961 (Ttlmil Nadu Act 31 of 196 1 ).
8 This subaction was substituted faihe orl$nal sub-section ?:
by sactifin 7 (2), ibid.
1943 : T.N. Act XXEiJ Pawnbrokers 909 t
Central Act a~ (2) EVW Xarptdor shall be deemed to be a
ofleao, public servant within the meaning of section 21 of
the Indian Penal Code.
I
9
(3) (a) A Magistrate of the first-class* in the
mufassal or a Presidency Magistrate* in the Presi-
dency-town may, on receiving a report from an Inspec- .
tor or from any police officer not below the rank of
sub-inspector that-
(i) any person carries on business as a
pawnbrokqr without a licence at any place within
the jurisdiction of &ch Magistrate, or
(ii) any pawnbroker carries on business in
contravention of the provisions of this Act or the
rules made thereunder or the conditions of the licence
granted under this Act, at any Place within the j~uisdic-
tion of such Magistrate, issue a warrant empowering
the Inspector or, as the case may be, such police
. officer to enter such place with such assistants as he
considers necessary and Inspect the books, accounts,
records, files, documents, safes, vaults and pledges in
such premises. On receiving such warrant, the
Inspector or the police officer may enter the place and
inspect the books, accounts, records, files, documents,
safes, vaults and pledges la .such premises and may
take to his office for further Investigation such books,
accounts, records, files and documents as he considers
necessary :
provided that if the Inspector or the police
officer removes from the premises any books, accounts,
records, files and documents, he shall give to the
person in chatgo of the place, @ a receipt describing
the books, acoouats, records, files and documents so
1 removed by him !
-.-II_<- !,
*According to clam a) and (4 of sbb-soction 3) of section 3
~f tho cod0 of ~alLun, 197fd~~mrr Gz) any rofcacnce to a Madstrate of tho &.st ass and to a Prcsidmcy
Ma trato shall k aolr8W a nfm@ to 8 Judicial Ma istrate
k d of c ibtdm add W( ot~QPo~tfa Mf~is~te iesmi~~fy.
* I$
', ,
I
I Provided fhther that within tweatpfour hours
I of the removal of the books, accounts, records, fitcs
and documents fiom the premises, the Inspector
.or the police ofIicer shall either return them to the
person from whose custody they were removed or
produce them in the court of the Magistrate who
issued the warrant. Such Magistiate may return the
books, accounts, records, files and documents or any
of them to the person from whose custody they were
removed by the Inspector or the police officer, afte~
taking from such person such security as the Magis-
trate considers necessary for the production of the
books, accounts, records, files and documents when
required whether by the Inspector, the police officer
or the court, or may pass such other orders as to their
disposal as appear just and convenient to the Magis-
trate.
I (b) An Inspector shall have authotity to
require any person whose testimony he may require
regarding any loan or pledge or any other transaction
of a pawnbroker to attend before him or to produce
or cause to be produced any dociunent and to examine
such person on oath.
(4) An Inspector may apply for assistance to
an officer-in-charge of a police station and take police
officers to accompany and assist the Inspector in
performing his duties under this Act.]
I -
Redemption l[ll. (I) Every pledge shall be redeemable within
ofpledge. one year from the date of pawning, exclusive of that
day ; and there shall be added to that year of redemp-
tion seven days of grace within which every pledge
shall continue to be redeemable.
(2) A pledge shall further continue to be redee-
mable until it is disposed of as provided in this Act,
although the period of redemption and days of grace
have expired. I
Exp2anation.--Where tbe contract between the
paties provides a longer period for redemption thn
one year, the rovisions pf this section shall be read
B
I
I
and construe as if refer s to such longer period had been substituted for t e references to the period
of one year therein.
T
12. (1 ) A pledge pawned shdl not be disposed of sa lc
by the pawnbroker otherwise than by sale at a public $~,~;yw;~
auction, conducted in accordance with such rules as
may be presoribed. I I
+ I I 1
(2) Where the highest bid at the sale by auction
is the bid of the pawnbroker, tlzc sale shall not take
effect unless the bid is for a sum exceeding the sum
payable on the pawn inclusive of interest and
prescribed charges.
i
(3) At any time within three years after the
public auction, the holder 01' lllc pawn-ticket may
inspect the entry relating to thc sale either in the
pawnbroker's book or in such catalogue of the
auction as may be prescribed.
(4) (0) Where a pledge has heen sold for Inore
than the amount of the loan ;~ntl the interest and
prescribed charges due at the time of the sale, the
pawnbroker shall pay to the holdcr of the pawn-ticket
on demand made within three ycnrs after the sale,
the surplus after deducting therefrom the necessary
costs and prescribed charges of the sale.
<
(b) If on such demand it rrppears that the sale
of the pledge has resulted in a su~~plus but that within
lwelve months before such. salc, the sale of any other
pledge or pledges of the same pciason has resulted in
defioit, the pawnbroke7 muy set off the deficit
against the surpl~is and s&ll be lic~ble to pay only the.
balance, if any, after such set oiT.3
hh% .g - ~
"-, E $,. a *"$ { l YTQ $'"""" 1
.p .- yL-+\ ,r%,,y: . a * . * **piw,?
912' Pawnbrokers 11943: T.N. lict XXhI
latarost mt to *[12-A. (1) Notwithstanding anything contained
Ir in this 4ct or in any other law, custorp, contract or rcapect OT
certain kens any decree or order of any court or other authority,-
and pMmS not to be dis- (i) no interest shall accrue in respect of a
POwd ofduring loan due to a pawnbroker on the 22nd July 1975, and the period of
Operation of
the Tamit Nadu (ii) no pledge pawned shall be sold in any
Indebted manner whatsoever by the pawnbroker,
Persons eem-
porary &lief) during the period of operation of the Tamil Nadu
*cf~ 197a Illdebted Persons (Temporary Relief) Act, 1975.
(2) Interest shall accrue in respect of a loan
obtained from any pawnbroker after the 22nd July
1975.1
Liability of 13. (1) '[Where a pledge is lost by theft or is
Pawnbroker dehtroyed or damaged by or in conseque~~ce of fil.elj
'in fire. thr pat\nbj ~Acr shali ueverthule,~ be liable or, ;-ppll-
ci~~ion made \\llhin tlte period during which the pledge
would have bee11 redeemable, to pay the value of the
pledge. aftcr deducting the amount of the principal
and in~eresl.
Explo~rrrriurr.--For thc purpose of this hub-
scctlon, the value of the pledge shall be its estimated
v~~lut. (if any) cutercd in the pledge book at the tin;<
of the pawn together with interest on the amount
of the principal and shall in no case be less tlzail thc
asgregatc of the amount of t lle principal and interest
arid twenty-Hvc per cent on the amount of the
principal.
(2) A pawnbroker shall be urliitlcd to instir'
to ~lle extclit PI' the valiie so estimated.
- --
I This section was inserted by section 11 of the Tamil Nadlc
Indebted Persons (Tempora Relief)Act, 1975 (Tamil Nadu Act 48
of 1975) , whicl~ WibP deemgto have been in forn on and froin tl~e
22nd July 1975 up to and inclusive ofthe 15th January 1976.
2 Thesc words werc wbslityted fur tlw words "whcrc: a pledge
is dcsrro ed or damaged by or III consequencu of fire" by section I:)
of the '&mil Nadu Pawnbrokers (Amendment) Act, 1961 (Taul,
Nadu Act 31 of 1961).
\
-
"Sf-
, '* "k ". . s,
1943: T.N. Act XXITI] Pawnbrokers
14. If a person entitled and offering to redeem Conlpensa- 1) / a pledge shows to the satisfaction of a Civil Court tipn.fordePre-
i having jurisdiction to entertain a suit for such redemp- it!:! Of
tion that the pledge has become or has been rendered &
of less value than it was at the time
by or through the default, neglect
viour of the pawnbroker the Court may if it thinks
fit, award reasonable compe~lsation to the I
owner of the pledge in respect of the damage, and the
amount awarded shall be deducted from the amount
payable to the pawnbroker, or shall be paid by the
pawnbroker (as the case requires) in such manner as
I the Court directs. I
+
'144. (I) The licensing authot ity specified in sub- power to I
section (I) of section 4 may, at any time, during the cancellicences,
term of any licence, cancel it by an order in writing-
((1) if the licensee carries on the business in
contravention of any of the provisions of this Act
or the rules made thereunder or of tHe conditions of
. tlie licence, or
(b) if any reason for wlGch such authority
could have refused to grant the licence to the pawn-
broker under sub-section (2) of section 4, is brought
to the noticc of that authority :lftcr the grant of the
licence, or
(c) il' lhc. licc~lscc is convicted for ;III offence
t111dcr. sub-scction (1) of section 15, or
1
I
((1) if the liccnscc maintains false accounts.
I
(2) Before cancelling a licence under sub-seetier?
jl), the licensing authority shall give the licensee a
iiatice in writing stating the grounds on whicli it is
proposed to take action and reqbiring him to show
c:~trstl ~3:linsr it within such time as may be specified
ill Ilie notice
(3) Any person aggrieved by an crder ol' the
:~cencing zuthority cancelling a licecce u11det sub-
section (I), may,within such time as &y be prescribed,
appeal to such authorityas the State Government
may specify in this behalf and such authority may
make such order in the case as it may think fit.
Publication of *14-B. Every order of cancellation of a licence under
order of section 14-A shall be notified in the District Gazette
and also on the notice-board of the office of the
Licensing authority.
No compensa- '14-C. A person whose licence is cancelled under
section 14-A shall not be entitled to any compensa- tion of licence. tion in respect of such cancellation or to the refund
of any fee paid ill respect of such licecce.
Auctioneers
to maintain 14 ( I) Auctioneers collducting sales
certain under this Act of pledges shall nlaintain such registers
registers. containing such particulars as ]nay be prescribed.
(2) At any till= within three years after the
public auction, any police officer not below the rank
of sub-inspector may inspect the registers referred
to in sub-scction (1) at all reasonable times and at
such place as may be prescribed.
Pawnbrohcr 15. (1) Any pawnbroker who actually advances
an amount less than that shown in the pawn-ticket smaller
amount or or in his accounts or registers or who takes or receives
receiving
higher interest or any other charge at a rate higher than that
interest thrl, shown in the pawn-ticket or in his accounts or regis-
that specificti ters shall be punished with fine which may extend in lo to five hundred rupees.
he pun~shnble.
(2) If a pawnbroker is convicted of an offence
under sub-section (1) after having been previously
convicted of such an offence, the Court convicting
him may order his licence as a pawnbroker to be
cancelled.
1943 : T.N. Act XXIU] Pawnbroicers 915 i
1
[16, A pawnbroker, who- Certain other
!, /
acts of
(1) takes an article in pawn from any person f'z'brokers
,'appearing to be under the age of eighteen years, punishable, t
or to bc of unsound mind ; or
(2) purchases or takes in pawn or exchanges
'a pawn-ticket issued by another pawnbroker ; or
(3) employs any person under thc age of eighteen
years to take pledges in pawn ; or
(4) under any pretence purchases, except at
a public auction, any pledge khile in pawn with him ;
or
(5) s~ffers any pledge whilc in pawn with him
to bc rckmed with a view to his purchasing it ; or
(6) mkes any contract or agreernellt with any
Person pawning or offering to pawn any article, or
with the cwner thereof, for the purchase, sale or dis-
position ixreof within thc time of redemption ; or
(7) s:ils or otherwise disposes of any pledgc
pawned u-ti1 him except at such tiille and in such
manner L .s authorised by or undcr illis Act,
shall be iiilahed with i~npri~onmenl for a term whicb
may extsii a) six n~onths or with finc \vIvic11 may
exlend tc ne thoi~sand ruj,ccs or wit11 both.1
17. (: by pcrson \vl10- Certain acts of
{L' 1ffe1.s to 3 l>awnbrokc~ an art iclc by wag pawner9 (1'
of pavn. rc:ng unablc or refusing to give a satisfac- ~;,~.unis"
tory accolnt of the ~tuxlls by which he became
possessed rr' the article ; or I
(i, ~ilfully gives false infor4mnlion to a pawn-
broker s AI wl~ether article ofre~cel by Ilin, in pawn
to the pambroker is his own propcrt:y or not, or :is
-
I nrr substituted for the original bec~ion 16 by section
12 of tlz M Nadu Pawnbrokerr (Amendmtnt) Act, 1961 (Tamil
Nadu kt31 1 1961).
1%%58-~ \
to his name and address, or as to the name and
address of the owner of the article ; or
....-
(c) not being entitled to redeem, and not
having any wlour of title by law to redeem, a pledge,
attempts or endeavours to redeem the same ;
F
1
shall be punished with imprisonment for a term which
may extend to six months or with fine which may
' i
extend to one hundred rupees or w:th both.
/ (2) In every case falling under sub-sstion (11,
,i and also in any case where, on an article being offered
in pawn, for sale, or otherwise, to a pawnbroker he
I
reasol~ably suspects that It has been stolen or otherwise
illegally or clandestinely obtained, the pawnbroker
I
Y shall, in the absence of reasotlable excuse inquire into
the name and address of the pesson concei ned, and
seize and detain such person and the artici?, if any,
and fort h11~;tli con~~nu~licate to the ncares t police
station the facts of the case a~ld shall deliver the
person and the .?rt:cle, if any, seized to the police. *
t
(3) A l~st of properties believer! to Ilnve becll
Rtolellmay be delivered by the police to any pawn-
broker licensed undcr this Act and thereupon it shall
be the duty of such pawnbrokes-
(a) ~f any astlcle ans~r.erii~g the description of
ally of the properties set forth in any such list is
offered to him in pawn, for sale, or othe~wise, to pro-
ceed in accordancc nti t h the ~TOV~S'OBS of sub-section
(b) if any SLLC~I art iclc is ihlready in Ilis posses-
sion, forthwith to colllniullicntc to the ilearcst police
station the facts of the case (ilkchdjlg filll pnrticuIa1.s
as to the name alld address of Lllc perso11 concerlled ifi
the delive~y of the article to t hc pq\Vnbrokcr) also,
ired by the police, to delivcr thc asticIc to
\
917 I 1 1943 : T.N. Act XXIII] Pn~vttbrokers
I
I f
I , f
18. (1) Whoever contravenes any of the provisions G-~I I)
,of this Act or of any rule or of any terms or conditions . I
1' of a iicence made or granted thereunder shall, if no of
??
i
other pelzalty is cisc~vliere provided this Act for ~ct, etc.
,such contravention, be punished with 6 e which may
extend to fifty rupees and, if such person has been
i pl.eviously xnvict ed whet her under this section or I
t any other provision contained in this Act, with fine
which may extcnd to orie hiindretl rupses,
(2) Any person who after having been oonvicted
of the offence of carrying 09 0' con1 nuing to carry
on, the business of paw~lbroker in contravention of
the provisions of section 3 continues to commit the
same off~nce in the same year, shall ic addition to the
fine to whkh hc is liable under subsection (I), be
punished with a further fine which mz:; extend to ten ' rupees for each day after the prcvi()sr Pte of convic- I t ion during which he continues so r o ; Sedcl.
(3) Any Court co~lvicting :L p~wnbroker of a
co~ltrave~ltion of the provisions of cla:.~ (c) or clause
(d) of sub-section (I ) of section 10, ~ui: direct him to
furnish a reoeipt or statement of 3cc\'::: in accordance
with the provi~ions of that clalls:. r;td if the pawn-
broker fails to comply ~vi t 11 t hc dr~t on, the Court
1
may ortler his licence as a pan.llh1 ole- 13 be cancelled.
19. No P1.eside11c.y Magis~ratu* II\\: '?eing a salaried jurisdktio,, .
Presidency Magistrate* and no other C211rt inferior to to try
that of a Magistrate of the second ::ass* shall try
any offencc against 111 is Act
y20. ***(* * .I
1 This section was omitted by section 13 of lb Tamil Nadu Pawn-
brokers (Amendment) Act, 1961 (Tamil Nadu &- 31 of 1961).
*According to clauses (b) and (c) of ~u~n (3) of section 3
of the Code of Crim~nal Procedure, 1973 (hral Act 2 of 1974)
any reference to a Magstrate of the second cl~~zof the third cla~s and to a Presidency Magistrate shall be &rued as a re*.
\ ,. rr,r 4
Once to a Judicial Magistrate of tl~c seco~ld cbs. and to a Metro- . *$\\,
politan Magis}r;~te rcspcctivcly.
sgg by reason only of that offence elor cancellation], nor
allowed in shall he by reason only of that offenoe 210r cancella-
ti&], lose his lien on or right to the pledge or to the
loan and the interest and other charges, if any, payable
in respect thereof '[nor shall that offence or cancella-
tion affect any obligation or liability incurred by the
pawnbroker before that offence or cancellation :]
Provided that if a pawnbroker fails to deliver to
the pawner a pawn-ticket as required by section 7
or fails to give to thc pawner or his agent a receipt
as required by clause (c) of sub-section (I) of section
10 or to furnish on a requisition made under clause
(d) of that sub-section, a statement of account as
required therein within one month after such requisi-
tion has been madt, the pawnbroker shall not be
entitled to any interest for the period of his default :
Provided further that if in any suit or proceeding
relating to a loan, the Court finds that a pawnbroker
has not maintained accounts as required by clause (a)
or clause (b) of sub-section ( 1 ) of scction 10, he shall
not be allo~cd his costs.
- - Ist November 1 Tl~cse words werc substituted for the words and brackets '<Where a pawnbroker is guilty of an offence against (his Act (not being an
olrcnce against any provision of this Act relating to licen~s)~
by scction 14 (i) or the Tamil Nadu Pawnbroken: (An~end~~~~~t)
Act, 1961 (Tamil Nadu Act 31 of 1961).
2 Tlwe words wrrc i~l\c~ red by s~tion 14 (ii), ibi</,
a These words were added by section 14 (iii), ;bid.
5 This word was substiti~ted for the word Adaptation Ordarof 1950.
919 I!
. I 1943 : - ,T.N. Act XMn] ~ti(\wbc~~~~~ *,
1st day of November 1944, Ih\Nl any of the ~rovi- e /'
sions of this Act or direct t)\d\ trnY such ProvlSlOnS .
/ shall apply to such oompany \\\:lh such modrfications
as may he specified in t:ie c,lll(i\Fq.I
3 'I
\ I 22. (1) The '[Statel ~~~ctyrr\\c'flt .'may, '[ * + Power to
* 1, make rules to carry \la purposes of thip make mks*
Act,
(2) In particular and wi~t\\\\lt prejudice 10 the 1
generality of the foregoing \\I\\\Q~', such rules may
provide for- I
<a) all matters eqrea~ I\ (~'l~lired or allowed
by this Act to be prescribed ;
(b) the form of, and \\\+, particulars to be
contained in, an applicatio\\ pawnbroker's
licence under this Act ; and
(c) the form in whic*l\ thb()ks, accounts and
documents specified in this :\r~ hhi'lh be recoi'ded,
. maintained, kept or used.
"(3) All rules made ul\ai;k 'his Act shall be
published in the Fort st. Gpr,r+ (;(lzefte and, ullless
they are expressed to come illla\ i\''c'e on a particular
day, shall come into force (,I, i!; (~'LY on which they
arc so published.
(4) Every rule made i,lrbtt'i lliis Act shall a6
so& as possible after it is n\.o ;* be placed on the
table of both Houses of the 1 ,:! \~i~~LW and if, before
the expiry of the session in \\ t\n t\ it ,is so placed or
he next session, both HOIIR~ h~~i'~ making ally
modification in any such rt,lt6 t\\ b~th Houses agree
that the rule should not be nlt~~h: he rule shall there-
xfter have effect only in suc11 \r,\l;ticd form or bc of
C
1 This word was substituted (Itt \\\'(I by the
Adaptation Order of 1950.
S The words "aftm evious publidth\N ' .'"ere omitted by section
15 (1 of the Tamil pawnb,t\hv\\ (\n'mdment) Act, 1961
(Td N.du *sf 31 of 1961). 1
'8 These aub-sections were substitutrd A\\ @h ~~~fJ~~~ll ~~b-section (3)
,.: 'by section 15 (2), fbld.
'A1' -. V \
no effect, as the case may be, so however, that ,
any such modification or annulment- shall be without
prejudice to the validity of anything prcviously done
under that rule.]
(2) h my nrcn to which the provisions of this
Act have been applied by a notification under sub- 2LTamil
section (3) of section 1, the provisions of the 'mil
Nadu] Debtors' Protection Act, 19Excerpt shown. Open the full act in Lexace.