LexThe Telangana Pawn Brokers Act, 2002.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA PAWN BROKERS ACT, 2002.
(ACT NO. 6 OF 2002)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
3. Pawn broker to obtain licence.
4. Granting and refusal of licence.
5. Pawn brokers to exhibit their names.
6. Change of place of business by pawn broker.
7. Interest chargeable by pawn broker.
8. Pawn ticket to be given to pawner.
9. Pawner entitled to redeem pledge.
10. Protection of pawners not having pawn tickets.
11. Pawn broker to keep books, give receipts, etc.
12. Redemption of pledge.
13. Sale of pledge and inspection of sale books.
14. Liability of pawn broker in case of fire.
15. Compensation for depreciation of pledge.
16. Appointment of Inspectors and their powers.
17. Powers to order production of accounts and powers of
entry and inspection.
18. Power to summon witnesses and cause production of
documents.
19. Assistance of Police Officers.
20. Power to cancel licence, etc.,
21. Publication of order of cancellation.
2 [Act No. 6 of 2002]
22. No refund of licence fee.
23. Appeals.
24. Pawn broker advancing smaller amount or receiving
higher interest than that specified in the accounts to be
punishable.
25. Certain other acts of pawn brokers to be punishable.
26. Certain acts of pawners and others to be punishable.
27. Duties of the pawn broker.
28. General penalty for contravention of Act, etc.,
29. Penalty for carrying on business without licence or in
violation of the conditions of the licence.
30. Liability of the pawn broker for the acts committed by
his agents or employees.
31. Transfer of licence to heirs.
32. Contracts not to be void on account of offences but
interest and costs not to be allowed in certain cases.
33. Power of revision by the Government.
34. Bar of certain proceedings.
35. Power to make rules.
36. Act not to effect or alter the law relating to relief of
agricultural and other indebtedness.
37. Repeal and savings.
THE TELANGANA PAWN BROKERS ACT, 2002.1
ACT No.6 OF 2002.
1. (1) This Act may be called the 2Telangana Pawn
Brokers Act, 2002.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date and in such
areas as the Government may by notification, appoint and
they may appoint different dates for different areas.
2. In this Act, unless the context otherwise requires,–
(1) “Appellate authority” means any officer or authority
appointed by the Government to exercise the powers of an
appellate authority under this Act.
(2) “Company” means a body corporate and includes
a firm, association of persons or body of individuals whether
incorporated or not.
(3) “Co-operative Society ” means a society registered
or deemed to have been registered under the 3Telangana
1. The Andhra Pradesh Pawn Brokers Act, 2002 received the assent of
the President on the 4 th March, 2002. The said Act in force in the
combined State, as on 02.06.2014, has been adapted to the State of
Telangana, under section 101 of the Andhra Pradesh Reorganisation
Act, 2014 (Central Act 6 of 2014) vide. the Telangana Adaptation of Laws
Order, 2016, issued in G.O.Ms.No.45, Law (F) Department, dated
01.06.2016.
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
3. Adapted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.II)
Department, dated 20.05.2016.
Short title, extent
and
commencement.
Definitions.
2 [Act No.6 of 2002]
Co-operative Societies Act, 1964 or the 4Telangana Mutually
Aided Co-operative Societies Act, 1995.
(4) “Government” means the State Government of
5Telangana.
(5) “Interest” does not include any sum lawfully
charged in accordance with the provisions of this Act by a
Pawn Broker for or on account of costs, charges or
expenses, but save as aforesaid, includes any amount by
whatsoever name called, in excess of the principal, pai d or
payable to a Pawn Broker in consideration of or otherwise in
respect of a loan.
(6) “Licence” means a Pawn Broker’s licence granted
under section 4.
(7) “Licensing Authority ” means an officer or authority
appointed by the Government to perform the functions of a
licensing authority under this Act.
(8) “Loan” means an advance whether of money or in
kind at interest and includes any transaction which the Court
finds in substan ce to amount to such an advance but does
not include,-
(a) a deposit of money or other property in a
Government Post Office Savings Bank or in a Bank or in a
Company as defined in the 6Companies Act, 1956 or with a
Co-operative Society;
4. Adapted by G.O.Ms.No.28, Agriculture & Co-operation (Coop.II)
Department, dated 19.04.2016.
5. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
6. See now the related provisions of the Companies Act, 2013 ( Central
Act 18 of 2013).
Act 7 of 1964.
Act 30 of 1995.
Central Act 1 of 1956.
[Act No.6 of 2002] 3
(b) an advance made to any loan floated by the
Government of India or the Government of any State;
(c) an advance ma de by a Bank or a Co -operative
Society or an advance made from a provident fund to which
the Provident Funds Act, 1925 applies;
(d) an advance made by the Government or by any
person authorised by the Government to make advances on
their behalf or by any local authority;
(e) an advance made by any authority specified by
the Government by notification;
(f) an advance made by a trader bonafide carrying on
any business, other than Pawn -Broking, if such loan is
advanced in the regular course of such business;
(g) an advance made to its members by any Nidhi or
Permanent Fund registered under Chit Fund scheme or
Chit.
(9) “Members of weaker sections ” means any
individual whose total income from all sources put together
does not exceed rupees eleven thousands per annum.
(10) “Notification” means a notification published in the
7Telangana Gazette and the word “ notified” shall be
construed accordingly.
(11) “Pawn Broker” 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
purpose of sale of goods or chattels and who purchases
7. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Central Act 19 of 1925.
4 [Act No.6 of 2002]
goods or chattels and pays or advances thereon any sum of
money, with or under an agreement or understanding
expressed or implied that the goods or chattels may be
afterwards repurchased on any term is a Pawn Broker within
the meaning of this clause.
(12) “Pawner” means a person deli vering an article for
pawn to a Pawn Broker.
(13) “Pledge” means an article pawned with a Pawn
Broker.
(14) “Prescribed” means prescribed by rules made
under this Act.
(15) “Principal” in relation to a loan means the amount
actually lent to the pawner, and
(16) “Year” means the financial year.
3. (1) No person shall commence or carry on or continue
business as a Pawn Broker at any place to which this Act
applies without a licence obtained under this Act or in
contravention of the terms thereof:
Provided that nothing in this section shall be deemed
to prohibit a licensee under 8[the Andhra Pradesh (Andhra
Area) Pawn Broker s Act, 1943 ] or 8[the Andhra Pradesh
(Telangana Area) Money Lenders Act , 1349F] who has
applied for a licence within three months from the
commencement of this Act to carry on or to continue
business as a Pawn Broker pending order on his
application.
8. Repealed by this Act No.6 of 2002.
Pawn broker to
obtain licence.
Act XXIII of 1943.
Act 5 of 1349 F.
[Act No.6 of 2002] 5
(2) Where a Pawn Brok er has more than one shop or
place of business, whether in the same town or village or in
different towns or villages, he shall obtain a separate licence
in respect of each such shop or place of business.
(3) (a) Where a Pawn Broker is a registered firm, the
licence shall be obtained in the firm’s name;
(b) Where a Pawn Broker is an undivided joint family,
the licence shall be obtained in the name of the manager or
the Kartha, as the case may be, d escribed as such in the
licence;
(c) Where a Pawn Broker is any other association of
individuals, not required, to be registered under the Indian
Companies Act, 1956, a separate licence shall be obtained
by each such individual in his name describing himself as a
member of the association:
Provided that nothing contained in this sub -section
shall affect the operation of section 69 of the Indian
Partnership Act, 1932.
4. (1) Every application for a Pawn Broker’ s licence shall
be in writing and shall be made to the licensing authority in
such manner and accompanied by such licence fee as may
be prescribed.
(2) Every licence shall be granted in such form and
subject to such conditions as may be prescribed.
(3) T he Licensing Authority may by order in writing
refuse to grant a licence, if such authority is satisfied,-
(a) that the applicant has not complied with the
provisions of this Act or the rules made thereunder in
respect of an application for the grant of licence; or
Granting and
refusal of licence.
Central Act 1 of 1956.
Central Act 9 of 1932.
6 [Act No.6 of 2002]
(b) that the applicant has made wilful default in
complying with or knowingly acted 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 conduct of or in connection with
the business of Pawn Broking; or
(ii) is found guilty of an offence punishable under
this Act or any other law for the time being in force in
respect of or in connection with the business of Pawn
Broking; or
(d) that the application is made within six months of
the cancellation of the previous licence of the applicant.
(4) Every order of the Licensing Authority under sub -
section (3) shall be communicated to the applicant in such
manner as may be prescribed.
(5) The Licensing Authority may, if it is satisfied that an
applicant coming under the purview of the proviso to sub -
section (1) of section 3 could not apply for a licence under
this Act, within the period referred to therein for reasons
beyond his contro l, condone the delay upto a maximum
period of ninety days subject to payment of a penalty equal
to the prescribed licence fee.
(6) Every licence granted under this Act shall, subject
to the provisions of sub -section (8), be for a period of three
years.
(7) A licence granted under sub -section (2) may be
renewed on an application which shall be made atleast two
months before the expiry of the period of licence and the
[Act No.6 of 2002] 7
provisions of sub-sections (1) to (6) shall apply in relation to
the renewal of licence as they apply in relation to the grant
of a licence.
(8) If orders refusing to renew a licence are not
communicated to a Pawn Broker by the Licensing Authority
before the expiry of his current licence, the Pawn Broker
shall, notwithstanding such expiry, be deemed to have a
valid licence till the orders are received by him on his
application for renewal.
(9) Nothing in this section shall be deemed to disentitle
a Pawn Broker whose licence has expired or has not been
renewed from taking steps to recover a ny loan advanced
during the period when the licence was in force.
5. Every Pawn Broker shall always exhibit over his shop
or place of business his name with the word “Pawn Broker”
and its equivalent in the regional language.
6. No Pawn Broker shall change his place of business
without previous notice to the Licensing Authority and
without having the address of the new place of business
duly endorsed on his licence.
7. (1) No Pawn Broker shall charge interest on any loan at
a rate exceeding by more than two per cent the rate
charged by commercial banks on similar loans granted by
them.
(2) No Pawn Broker shall dem and or take any gifts,
articles, commission, charges or amounts under any n ame
whatsoever from the pawner while advancing a loan in
terms of this Act, other than the interest.
(3) The total interest payable on a loan shall not exceed
the quantum of the principal.
Pawn brokers to
exhibit their
names.
Change of place
of business by
pawn broker.
Interest
chargeable by
pawn broker.
8 [Act No.6 of 2002]
8. Every Pawn Broker shall on taking a pledge in pawn,
give to the pawner, a pawn -ticket in the prescribed form,
and shall not take a pledge in pawn unless the pawner takes
the pawn-ticket.
9. (1) Subject to the provisions of this Act, every Pawn
Broker shall on payment of the principal and intere st, deliver
the pledge to the pawner.
(2) Except as otherwis e expressly provided in this Act,
a Pawn Broker shall not be bound to deliver back a pledge
unless the pawn-ticket, is delivered to him.
10. (1) (a) A pawner alleging that the pawn ticket has been
lost, mislaid, destroyed or stolen or fraudulently obtained
from him, may apply to the Pawn Broker for the pres cribed
declaration form which the Pawn Broker shall deliver to him;
(b) If the pawner delivers back to the Pawn Broker the
declaration duly made before any Magistrate or Notary by
the pawner and by a person identifying him, the pawner
shall have, as bet ween himself and the Pawn Broker, all the
same rights and remedies as if he had produced the pawn -
ticket:
Provided that such a declaration shall not be effectual
for that purpose, unless the declaration is duly made and
delivered back to the Pawn Broker within such period after
the delivery of the form to the applicant, as may be
prescribed.
(2) A pawner making a declaration under sub -section
(1), knowing the same to be false in any material particular,
shall be punished with imprisonment for a term which may
extend to one year or with fine which may extend to rupees
five thousand or with both.
Pawn ticket to be
given to pawner.
Pawner entitled to
redeem pledge.
Protection of
pawners not
having pawn
tickets.
[Act No.6 of 2002] 9
(3) A pe rson falsely identifying the pawner under sub -
section (1) knowing that he is not the real pawner making
such declaration shall be punished with imprisonment for a
term which may extend to one year or with fine which may
extend to rupees five thousand or with both.
11. (1) Every Pawn Broker 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 debtor
separately,-
(i) the name and address of the Pawner;
(ii) a full and detailed description of the article or
each of the articles taken in pawn;
(iii) the date of the loan, the amount of the principal
of the loan and the rate of interest charged on the loan;
(iv) the time agreed upon for the redemption of the
pawn; and
(v) the amount of every payment received by the
Pawn Broker in respect of the loan, and the date of such
payment;
(b) keep and use in his business, the following
documents and books as may be prescribed and enter
therein from time to time, as occasion requires, in a fair and
legible manner, such particulars and in accordance with
such directions, as may be prescribed,-
(i) pawn-ticket;
(ii) sale book of pledges;
Pawn broker to
keep books, give
receipts, etc.
10 [Act No.6 of 2002]
(iii) declaration of pawn-ticket lost; and
(iv) receipt on redemption of pledge;
(c) give to the pawner or his agent a receipt for every
sum paid by him, duly signed and, if necessary, stamped at
the time of such payment; and
(d) on a requisiti on in writing made by the pawner,
furnish to him or to any person mentioned by him, a
statement of account signed by himself or his agent,
showing the particulars referred to in clause (a) and also the
amount which remains outstanding on account of the
principal and of interest, and may charge such sum as the
State Government may prescribe as fee therefor.
(2) All records or entr ies made in the books, accounts
and documents referred to in sub -section (1) shall be either
in English or in such language of t he locality as may be
prescribed and all such books, accounts and documents
and all pledges taken by the Pawn Broker shall be open to
inspection by the Licensing Authority or an Inspector
appointed under section 16 or any Police Officer not below
the rank of Sub -Inspector or by any Revenue Officer not
below the rank of a Mandal Revenue Officer.
(3) Notwithstanding anything contained in the Indian
Evidence Act, 1872, a copy of the account referred to in
clause (a) of sub -section (1), certified in such manner as
may be prescribed, shall be admissible in evidence in the
same manner and to the same extent as the original
account.
(4) A pawner to whom a statement of account has
been furnished under clause (d) of sub -section (1) and who
fails to object to the correctness of the account shall not, by
Central Act 1 of 1872.
[Act No.6 of 2002] 11
such failure alone, be deemed to have admitted the
correctness of such account.
(5) In the pawn -ticket furnished to the pawner under
section 8, in the receipt given under clause (c) of sub-
section (1) and in the stat ement of account furnished under
clause (d) of that sub -section, the figures shall be entered
only in Arabic numerals.
(6) If any Pawn Broker fails to give to the pawner or his
agent a receipt under clause (c) or a statement under clause
(d) of sub -section (1) he shall be liable to a fine not
exceeding rupees five thousand.
12. Every pledge shall be redeemable within two years
from the day of pawning, exclusive of that day.
Explanation:- Where the contract between the parties
provides a longer period for redemption than two years, the
provisions of this section shall be read and construed as if
the references to such longer period had been substituted
for the references to the period of two years therein.
13. (1) A pledge may be disposed of by the Pawn Broker
by p ublic auction and not otherwise and the sale shall be
conducted in such manner as may be prescribed.
(2) A Pawn Broker shall not bid for and purchase at a
sale by public auction conducted under sub -section (1), a
pledge pawned with him.
(3) Where in a public auction, the pledge has been sold
for more than the amount of the loan and interest thereon
and charges due at the time of sale, the Pawn Broker shall
pay to the Pawner or his agent, the surplus amount within
one month from the date of sale after deducting there from
the necessary costs and charges of the sale and the Pawner
Redemption of
pledge.
Sale of pledge
and inspection of
sale books.
12 [Act No.6 of 2002]
or his agent may inspect the entry relating to the sale either
in the Pawn Broker’ s book or in such catalogue of the
auction, as may be prescribed, at any time within one month
from such payment.
(4) Where the surplus amount is not paid to the pawner
within one month of the sale under sub -section (3), the
same shall be deposited with the licensing authority, within
seven days thereafter.
14. (1) Where a pledge is destroyed or damaged by or in
consequence of fire, the Pawn Broker shall nevertheless be
liable on application made within the period during which
the pledge would have been redeemable, to pay the value
of the pledge, after deducting the amount of the principal
and interest.
Explanation:- For the purpose of this sub -section, the
value of the pledge sh all be its estimated value entered in
the pledge book at the time of the pawn together with
interest on the amount of the principal and shall in no case
be less than the aggregate of the amount of the principal
and interest and twenty -five per cent on the amount of
principal.
(2) A Pawn Broker shall be entitled t o insure to the
extent of value so estimated.
15. If a person entitled to redeem a Pledge shows to the
satisfaction of a Civil Court having jurisdiction to entertain a
suit for such redemption that the pledge has become or has
been rendered of less value than it was at the time of
pawning thereof by or th rough the default, neglect or wilful
misbehavior of the Pawn Broker, the Court may if it thinks fit,
award reasonable compensation to the owner of the pledge
in respect of the damage, and the amount awarded shall be
deducted from the amount payable to the Pawn Broker, or
Liability of
pawnbroker in
case of fire.
Compensation for
depreciation of
pledge.
[Act No.6 of 2002] 13
shall be paid by the Pawn Broker (as the case requires) in
such manner as the Court directs.
16. (1) The Government or any authority or officer
empowered by them in this behalf may, by notific ation,
appoint one or more persons possessing such qualifications
as may be prescribed to be the Inspectors for the purpose
of this Act and specify in such notification the local limits of
their jurisdiction.
(2) Every Inspector shall be deemed to be a public
servant within the meaning of section 21 of the Indian Penal
Code, 1860.
17. (1) Any Licensing Authority or appellate authority, may,
for the purposes of this Act, by no tice require any Pawn
Broker,-
(a) to produc e or cause to be produced before him
any accounts, registers, records or other documents; or
(b) to furnish or cause to be furnished any other
information relating to his business within such time as may
be specified in such notice and such Pawn Broker shall
comply with such requisition.
(2) Any Inspector or Licensing Authority may, at any
reasonable time, with or without the assistance of Police
Officers or other Officer s ente r any place of business or
office of the Pawn Broker and inspec t any cash , accounts,
registers, records, safes , vaults or other documents in such
premises.
(3) If any officer referred to in this section, has reason
to believe, that the Pawn Broker has violat ed any of the
provisions of this Act or the rules made thereunder, he may,
for reasons to be recorded in wr iting, enter and search the
Appointment of
Inspectors and
their powers.
Powers to order
production of
accounts and
powers of entry
and inspection.
Central Act 45 of 1860.
14 [Act No.6 of 2002]
place of business of the Pawn Broker or any other place
which includes any godown, building, vessels, vehicle, box
or receptacle, where the Pawn Broker keeps or is
reasonably believed to be keeping any accounts, registers,
other records, documents or pledges relating to his
business:
Provided that no residential building or premises shall
be entered or searched u nless such officer is specifically
authorised in writing by an Officer not below the rank of
Mandal Revenue Officer.
(4) All searches under this section shall, so far as may
be, made in accordance with the provisions of the Code of
Criminal Procedure, 1973.
(5) The Officer making the inspection or search may
seize such accounts, registers, records or other documents
as he considers necessary and on such seizure shall grant
the Pawn Broker a receipt of the things so seized.
(6) The accounts, registers, records other documents
seized under sub -section (5) shall not be retained by the
officer seizing them, beyond a period of thirty days from the
date of the seizure except with the permission of the next
higher authority, unless they are required for any
prosecution under this Act.
(7) The power conferred by sub -sections (3) and (5)
shall include,-
(a) the power to break open any box or receptacle,
safe, vault or door of any pre mises in which any accounts,
registers, records, or pledges of the Pawn Broker are kept
or reasonably suspected to be kept:
Central Act 2 of 1974.
[Act No.6 of 2002] 15
Provided that the power to break open the door shall
be exercised only after the owner or any other person in
occupation of the premises fails or refuses to open the same
on being called upon to do so;
(b) the power to seal any box, receptacle, room or
building where any accounts, registers or other documents
are kept or reasonably believed to be kept and if the owner
or any other person in occupation leaves the premises or
refuses to open the box, recep tacle, room or building or is
not available, then to break open such box, receptacle,
room or building on authorisation in writing by the officer
referred to in sub-section (3) of this section;
(c) the power to search any person who has got out of
or is about to get into or is in any place referred to in sub -
section (2) of this section, if the officer has reason to
suspect that such person has secreted about his person,
any accounts, registers, records or other documents.
18. (1) The licensing authority or the appellate authority
shall for the purposes of this Act, have all the powers
conferred on a Civil Court by the Code of Civil Procedure,
1908, in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any
person and examining him on oath or affirmation;
(b) compelling the production of any documents;
(c) impounding of any documents, accounts or other
records produced for reasons to be recorded in writing; and
(d) any other matter as may be prescribed.
Power to summon
witnesses and
cause production
of documents.
Central Act 5 of 1908.
16 [Act No.6 of 2002]
(2) The officer who impounds the documents, accounts
or registers of the Pawn Broker shall grant a receipt of the
things so impounded to the person concerned.
19. Any officer authorised to inspect or search under
section 17 may seek the assistance of the Officer incharge
of the Police Station having jurisdiction over the area to be
inspected or searched and thereupon, such officer of the
police station shall render all assist ance necessary to the
officer for the conduct of such inspection or search.
20. (1) The Licensing Authority may, at any time, during the
term of any licence, cancel it by an order, in writing,-
(a) 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 the licence; or
(b) if, it is brought to the notice of the authority after
the gr ant of the licence, that for any reason the licensing
authority could have refused to grant the licence to the
Pawn Broker under sub-section (3) of section 4; or
(c) if the licensee is convicted for an offence under
section 11 or section 24; or
(d) if the licensee maintains false accounts.
(2) Before cancelling a licence under sub -section (1),
the Licensing Authority shall give the licensee a notice in
writing stating the grounds on which it is proposed to take
action and requiring him to show caus e against the
proposed action within such time as may be specified in the
notice.
Power to cancel
licence, etc.,
Assistance of
Police Officers.
[Act No.6 of 2002] 17
(3) Every order of the Licensing Authority under this
section shall be communicated to the licensee in such
manner as may be prescribed.
21. Every order of cancellation of a licence under this Act,
shall be notified in the district Gazette and also affixed on
the notice board of the office of the licensing authority.
22. A person whose licence is cancelled under section 20
shall not be entitled to the refund of any fee paid in respect
of such li cence or for any compensation for such
cancellation.
23. (1) Any person aggrieved by an order of the Licensing
Authority under sub -section (3) of section 4 or sub -section
(1) of section 20, may within thirty days from the date of
communication of such order, appeal in such manner as
may be prescribed to the appellate authority having
jurisdiction over the area.
(2) The appellate authority may admit an appeal
preferred after the period of thirty days aforesaid, if it is
satisfied t hat the appellant had sufficient cause for not
preferring an appeal within the said period.
(3) The appellat e authority may, after giving the
appellant an opportunity of being heard pass such orders
on the appeal as it may deem fit.
(4) Every order passed by the appellate authority shall
be communicated to the appellant and to t he Licensing
Authority in such manner as may be prescribed.
24. (1) Any Pawn Broker, who actually advances an
amount less than that shown in pawn -ticket or in his
accounts or registers or who takes or receives interest or
any other charge at a rate higher than that shown in the
No refund of
licence fee.
Publication of
order of
cancellation.
Appeals.
Pawnbroker
advancing smaller
amount or
receiving higher
interest than that
specified in the
accounts to be
punishable.
18 [Act No.6 of 2002]
pawn-ticket or in his accounts or registe rs or allowed under
this Act, shall be punished with imprisonment for a term
which shall not be les s than one year but which may extend
to three years and with fine which may extend to rupees fifty
thousand.
(2) If a Pawn Broker is convicted of offence u nder sub-
section (1) after having been previously convicted of such
offence, the Court convicting him may order his licence as a
pawn Broker to be cancelled.
25. A Pawn Broker who,-
(1) takes an article in pawn from any person appearing
to be under the age of eighteen years, or to be intoxicated
or of unsound mind shall be punished with imprisonment for
a term which may extend to one year or fine which may
extend to five thousand rupees or with both.
(2) (a) purchases or takes in pawn or exchanges a
pawn-ticket issued by another Pawn Broker; or
(b) employs any person under the age of eighteen
years to take pledges in pawn; or
(c) under any pretence purchases any pledge while
in pawn with him; or
(d) suffers any pledge while in pawn with him to be
redeemed with a view to his purchasing it; or
(e) makes any contract or agreement with any person
pawning or offering to pawn any article, for the purchase,
sale, or disposition thereof within the time of redemption; or
(f) sells or otherwise disposes of any pledge pawned
with him except at such time and in such manner as is
Certain other acts
of pawnbrokers to
be punishable.
[Act No.6 of 2002] 19
authorised by or under this Act; shall be punished with
imprisonment for a term which shall not be less than one
year but which may extend to three years and with fine
which may extend to rupees fifty thousand.
26. Any person who,-
(a) offers to a Pawn Broker an article by way of pawn,
being unable or refusing to give a satisfactory account of the
means by which he became possessed of the article; or
(b) wilfully gives false information to a Pawn Broker as
to whether an article offered by him in pawn to the Pawn
Broker in his own property or not, or as 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
colour of title bylaw to redeem, a pledge, attempts or
endeavours to redeem the same, shall be punished with
imprisonment for a term which shall not be less than one
year but which may extend to three years and with fine
which may extend to rupees fifty thousand.
27. (1) In every case falling under section 26, and also in
any case where, on an article being offered in pawn, for
sale, or otherwise, to a Pawn Broker, he reasonably
suspects that it has been stolen or otherwise illegally or
clandestinely obtained, the Pawn Broker shall, in the
absence of reasonable excuse, inquire into the name and
address of the person concerned, and seize and detain
such person and the article, if any, and forthwith
communicate to the nearest police station the facts of the
case and shall deliver the person and the article, if any
seized to the police.
Certain acts of
pawners and
others to be
punishable.
Duties of the
pawn broker.
20 [Act No.6 of 2002]
(2) A list of properties believed to have been stolen
may be delivered by the police to any Pawn Broker licensed
under this Act and thereupon it shall b e the duty of such
Pawn Broker,-
(a) if any article answering the description of any of
the properties set forth in any such list is offered to him in
pawn, for sale, or otherwise, to proceed in accordance with
the provisions of sub-section (1); and
(b) if any such article is already in his possession,
forthwith to communicate to the nearest police station the
facts of the case (including full particulars as to the name
and address of the person concerned in the deli very of the
article to the Pawn Broker) and also, if so r equired by the
police, to deliver the article to them.
28. (1) Whoever contravenes any of the provisions of this
Act or of any rule made or of any terms and conditions of a
licence granted thereunder shall, if no other penalty is
elsewhere provided in this Act for such contravention, be
punished with imprisonment for a term which shall not be
less than one year but which may extend to three years and
with fine which may extend to rupees fifty thousand.
(2) Any Court convicti ng a Pawn Broker of a
contravention of the provisions of clause (c) or clause (d) of
sub-section (1) of section 11, may direct him to furnish a
receipt or statement of account in accordance with the
provisions of that clause, and if the Pawn Broker fails t o
comply with the direction, the Court may order his licence
as a Pawn Broker to be cancelled.
29. Whoever carries on the business of pawn b roking
without a licence or in violation of the conditions of the
licence or otherwise than in confirmity with the terms and
conditions of the licence shall be punished with
General penalty
for contravention
of Act, etc.,
Penalty for
carrying on
business without
licence or in
violation of the
conditions of the
licence.
[Act No.6 of 2002] 21
imprisonment a term which shall not be less than one year
but which may extend to three years and with fine which
may extend to rupees fifty thousand.
30. Where any agent or employe e of the Pawn Broker
contravenes any of the provisions of this Act or of any rule
made thereunder or of the terms and conditions of a licence
granted or deemed to be granted whether with or without
the knowledge of the Pawn Broker, the Pawn Broker shall
without pr ejudice to the liability of the agent or the
employee, be liable for the penalty provided under this Act,
as if the Pawn Broker himself has committed such
contravention.
31. (1) Where a license e under this Act dies, any pe rson
claiming to be his legal representative may apply to the
Licensing Authority for transferring in his name, the licence
standing in the name of the deceased.
(2) Every such application shall be in such form and
shall contain such particulars as may be prescribed.
(3) The Licensing Authority may, if he is satisfied that
the applicant is in fact the legal representative of the
deceased and that he is otherwise eligible for a licence
under this Act, transfer the licence in the name of the
applicant after obtaining from the applicant a declaration in
the prescribed form.
(4) Any licence transferred under sub -section (3) shall
be deemed to have been granted to the applicant himself
and shall be valid for the period for which it would have
been valid if the licence had not been transferred and the
provisions of this Act shall apply accordingly.
Liability of the
pawnbroker for
the acts
committed by his
agents or
employees.
Transfer of licence
to heirs.
22 [Act No.6 of 2002]
32. Where a Pawn Broker is gui lty of an offence other than
an offence of carrying in business of Pawn Broking without a
licence punishable under this Act, any contract made by
him, in relation to his business of Pawn Broking, shall not be
void by reason only of that offence, nor shall he by reason
only of that offence, loose his lien on or right to the pledge
or to the loan and the interest and other charges, if any,
payable in respect thereof:
Provided that if a Pawn Broker fails to deliver to the
Pawner a pawn -ticket as required by section 8 or fails to
give to the pawner o r his agent a receipt as require d by
clause (c) of sub -section (1) of section 11 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 requisition has been made, the Pawn Broker 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 Pawn Broker has not
maintained accounts as required by clause (a) or clause (b)
of sub-section (1) of section 11, he shall not be allowed his
costs.
33. (1) The Government may either suo -motu or on
application, call for and examine the record of any order
passed by an Inspector, Licensing Authority or Appellate
Authority to satisfy themselves as to the legality, regularity or
correctness of such order and in any case it appears to
them, that such order should be modified, annulled or
reversed or remitted for reconsideration, they may pass
orders accordingly:
Provided that no order under this section adverse ly
affecting a person shall be passed unless that person has
had an opportunity of being heard.
Contracts not to
be void on
account of
offences but
interest and costs
not to be allowed
in certain cases.
Power of revision
by the
Government.
[Act No.6 of 2002] 23
(2) No licens ee shall make an application under sub -
section (1) unless he has paid the penalty against which
such revision is sought.
(3) No licensee shall make an application under sub -
section (1) unless he has exhausted the appellate remedy
available under this Act.
(4) No application seeking a revision of an appellate
order under this section shall be made after the expiry of
period of ninety days from the date of such order.
(5) No order of suo-motu revision shall be made by the
Government under this section after the expiry of three years
from the date of the order which is sought to be revised.
34. (1) No suit, prosecution or other proc eedings shall lie
against any officer or employee of the Government or any
act done or purporting to be done under this Act, without
the previous sanction of the Government.
(2) No suit, prosecution or other legal proceedings
shall be instituted against any person for anything which is,
in good faith, done or intended to be done under this Act or
the rules made thereunder.
35. (1) The Government may, by notification, make rules
for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality
of the foregoing power, such rules may provide for,-
(a) the authority to whom a n appeal shall lie against
an order of the licensing authority;
(b) the form and the particulars to be contained in an
application for a licence under this Act;
Bar of certain
proceedings.
Power to make
rules.
24 [Act No.6 of 2002]
(c) the terms and conditions subject to which a
licence may be granted;
(d) the form in which books, accounts and other
documents specified in this Act shall be recorded,
maintained, kept or used;
(e) the procedure which should be followed and the
powers which may be exercise d by the authorities
exercising functions, holding inqui ries and hearing appeals
under this Act;
(f) the charges and expenses which the Pawn Broker
may demand from the pawner;
(g) any other matter which is required to be or may
be prescribed.
(3) Every rule made under this Act, shall immediately
after it is made, be laid before the Legislature of the State, if
it is in session and if it is not in session, in the session
immediately following for a total period of fourteen days,
which may be comprised in one session or in two
successive sessions, and if, before the expiration of the
session in which it is so laid or the session immediately
following, the Legislature agrees in making any modification
in the rule or in the annulment of the rule, the rule shall, from
the date on which the modification or ann ulment is notified,
have effect only in such modified form or shall stand
annulled, as the case may be, so however, that any such
modification or annulment shall be without prejudice to th e
validity of anything previously done under that rule.
36. The provisions of this Act, shall be in addition to and
not, save as otherwise expressly provided in this Act, in
derogation of any other law for the time being in force, in the
State, relating to the relief of indebtedness including
Act not to effect or
alter the law
relating to relief of
agricultural and
other
indebtedness.
[Act No.6 of 2002] 25
indebtedness amongst agriculturists, members of weaker
sections and members of Scheduled Castes and Scheduled
Tribes.
37. The following enactment s are hereby repealed,
namely,-
(i) The Andhra Pradesh (Andhra Area) Pawn Brokers
Act. 1943;
(ii) The provisions relating to pawn Broking contained
in the Andhra Pradesh (Telangana Area) Money Lenders
Act, 1349 F:
Provided that section 8 of the 9Telangana General
Clauses Act, 1891 shall be applicable in respect of the
repeal of the said enactments and sections 8 and 18 of the
said Act shall be applic able as if the said enactments had
been repealed and re-enacted by a 9Telangana Act.
* * *
9. Adapted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Repeal and
savings.
Act XXIII of 1943.
Act 5 of 1349 F.
Act 1 of 1891.