Vol. 17, Part I · pages 286–290

261A BILL............MONEY-LENDING Bill No. of 1938. A Bill to Control and Regulate Money-Lending Table of Contents CHAPTER I Preliminary Sec. 1 Short Title, Extent and Commencement. Sec. 2 Definitions Sec. 3 Provisions of the Act not affected by laws, customs or contracts. CHAPTER II Licensing of Money-lenders Sec. 4 Prohibition of Money-lending without license. Sec. 5 Name in which license to be taken out. Sec. 6 Particulars to be stated in the license. Sec. 7 Necessity for certificate for license. Sec. 8 Particulars to be stated in the certificate. Sec. 9 Authority competent to grant certificate. Sec. 10 Ground for refusing certificate Sec. 11 Recording of reasons for refusal. Sec. 12 Appeal against order of refusal. Sec. 13 Authority competent to grant licence. Sec. 14 Duration of license. Sec. 15 Fee for license. Sec. 16 Penalty for breaches of provisions regarding license. CHAPTER III Suspension and Revocation of License Sec. 17 Suspension etc. of license on conviction. Sec. 18 Appeal against order of suspension and revocation. Sec. 19 Production of license when directed by Court. This is the text of the Bill which gives details about money-lending. The Bill was prepared in the year 1938— Editors

262 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES CHAPTER IV Mode of Carrying on Business Sec. 20 Prohibition of advertisements etc. in respect of Money-lending. Sec. 21 Prohibition against employment of agents. Sec. 22 Penalty for breach of Section 20 and 21. Sec. 23 Agreement for payment by borrower of costs, charges etc. void. CHAPTER V Duties of Money-lender Sec. 24 Transaction to be reduced to writing. Sec. 25 Copy of Memo to be supplied to debtor. Sec. 26 Transactions in contravention of Sec. 24 or 25 void. Sec. 27 Agreement to pay compound interest void. CHAPTER VI Method of keeping accounts Sec. 28 Money-lender to give Pass-Book to debtor. Sec. 29 Money-lender to supply annually a statement of debtor’s account. Sec. 30 Money-lender not entitled to sue during default. Sec. 31 Penalty for default. Sec. 32 Accounts to be kept in books obtained from Government. Sec. 33 Production of Books of Account used during the year for authentication. Sec. 34 Entries in Books not in accordance with Section 32 and 33 inadmissible in evidence. CHAPTER VII Suits and Proceedings Sec. 35 Jurisdiction of Small Causes Court excluded. Sec. 36 Particulars of license to be given in the Plaint. Sec. 37 Interrogatories to be delivered to money-lender. Sec. 38 Power of Court to re-open certain transactions.

263A BILL............MONEY-LENDING Sec. 39 Certain transactions not to be re-opened. Sec. 40 Rate of interest when deemed to be excessive. Sec. 41 Mode of taking account Sec. 42 Power to direct payment of amount due on mortgage decree by instalments. Sec. 43 Decree may direct payment of amount due on mortgage by instalments. Sec. 44 Court to estimate the value of judgement-debtor’s property. Sec. 45 Only sufficient portion of judgement-debtor’s property to be sold. Sec. 46 Saving of Powers of Court under Usurious Loans Act. Sec. 47 Contract for payment outside the Province void. Sec. 48 Agreement to pay arrears of interest void. CHAPTER VIII Proceedings in Respect of Offences. Sec. 49 All offences cognizable. Sec. 50 Appeals from convictions or acquittals. CHAPTER IX Supplemental Sec. 51 Power to make rules.

264 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES Bill No. of 1938 A Bill to Control and Regulate Money-Lending Whereas it is expedient to prescribe by law the duties and obligations of persons carrying on business as money-lenders and to control and regulate the same. It is hereby enacted as follows :— Chapter I. Preliminary Short title, extent and commencement 1.(1) The Act may be called the Bombay Money-lenders Act, 1938. (2) It shall apply to the whole of the Province of Bombay and shall come into force on a date not being later than one year after the passing of this Act as the Government may by notification in the Official Gazette appoint. Definitions 2. In this Act unless there is anything repugnant to the subject or context— (i) “Authorised name” and “Authorised address” means respectively the name under which and the address at which a money-lender is authorised by a license granted under this Act to carry on the business of moneylender. (ii) “Business name” means the name or style under which any business of money-lending is carried on whether in partnership or otherwise. (iii) “Debtor” means any person against whom a moneylender has a claim in respect of a loan. (iv) “Interest” means and includes any amount in kind, cash, service or in any other form and by whatsoever name called, in excess of the principal, paid or rendered, or payable or renderable to a money-lender in consideration of, or otherwise in respect of a loan.

265A BILL............MONEY-LENDING (v) “Loan” means an advance made whether of money or in kind at interest and shall include an undertaking given in respect of past liability and any transaction which in substance is a loan. (vi) “Money-lender” includes every person who carries on the business of lending money or who advertises or announces himself or holds himself out in any way as carrying on that business and shall include a pawnbroker; but it shall not include— (a) any society registered under the Co-operative Societies Act, 1912, and the Provident Insurance Societies Act, 1912, (b) any corporate body, incorporated by a special enactment to lend money in accordance with such special enactment, (c) Government or any person authorised by it to lend money on its behalf and (d) any person, who merely because in the course of and for the purpose of his business lends money if he is bona fide carrying on (i) the business of banking or insurance, or (ii) any other business the primary object of which is not money-lending. (vii) “Payment” or “Re-payment” means and includes any amount paid or re-paid in kind, cash or service rendered. (viii) “Person” includes a company and a firm. Explanation I. For the purpose of duties and liabilities of a money-lender, “Company” shall include the managing agents or managing directors and in the case of a Firm all partners of the Firm. Explanation II. Where in a money-lending business a minor or a person not competent to contract has an interest the word “person” includes the person responsible for the management of the business.