Vol. 17, Part I · pages 291–295

266 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES (ix) “Prescribed” means prescribed by rules made under this Act. (x) “Principal” means in relation to a loan the amount actually advanced or lent to the debtor. (xi) “Secured debt” means a loan for which the moneylender holds a mortgage, charge or lien on the property of the debtor or any part thereof as a security for that loan. (xii) “Unsecured debt” means any loan other than a secured loan. Provisions of this Act not affected by laws, customs or contracts. 3. The provisions of this Act shall apply notwithstanding anything contained in any other law or custom or usage having the force of law or any contract to the contrary. Chapter II. Licensing of Money-lenders. 4. No person whether individually or otherwise or whether for himself or for another or for himself and another shall carry on the business of money-lending unless he takes out annually a “Money-lender’s License” (in this Act referred to as the Licensee) in respect of every address at which such business is being carried on. Name in which license to be taken out. 5. A money-lender’s license shall be taken out by a moneylender in his own name and shall be void if taken out in any other name : Provided that where a person is carrying on the business of money-lending not in his own name but under a business name the license shall also show such business name and the authorised address at which such business is carried on; Provided further that where the business of money lending is earned on by a firm or by a company the license shall be taken out

267A BILL............MONEY-LENDING in the name of the firm or in the name of the company and where it is carried on in the name of a minor or a person who is otherwise incompetent to contract in the name of such person. Particulars to be stated in license. 6. (1) The license shall disclose in the case of a firm the names of its partners, in the case of a company the names of the managing agents or managing directors and in the case of a minor or a person incompetent to contract the name of the person or persons responsible for or appointed to carry on the business. (2) The license shall also state the authorised address in respect of which the license is granted. Necessity of certificate for license. 7. (1) No person shall be deemed to be entitled for a license unless he holds a certificate (in the Act referred to as certificate) and a license shall not be granted except to a person who holds a certificate granted in accordance with provisions of this Act. (2) A separate certificate shall be required in respect of every separate license. Particulars to be stated in certificate. 8. Every certificate granted to a person shall show his true name and the address at which he intends to carry on money-lender’s business irrespective of the question whether he intends to use the certificate for securing a license for himself, or for another, or for himself and another or for a firm or for a company. Authority competent to grant certificate. (1) Any Magistrate or other Officer especially invested by Government in this behalf with jurisdiction in the area in which the money-lender’s business is to be carried on, may, on application made in the prescribed form, grant to a person a certificate of eligibility.

268 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES (2) On receipt of an application for the grant of certificate, the Officer shall post up a complete copy of the application in a conspicuous place in his office and shall take no proceedings thereon for fifteen days from the date of such exhibition. (3) Any person shall be entitled to oppose the grant of a certificate to the applicant and in case the application is opposed, the Officer shall be bound to hold an inquiry and either grant or reject it. (4) Nothing in this section shall limit the power of the Officer to reject the application even though it is not opposed. Grounds for refusing certificate. 10. A certificate shall not be refused except on one or more of the following grounds- (i) that satisfactory evidence has not been produced of the good character of the applicant, (ii) that satisfactory evidence has been produced that the applicant, or any person responsible or proposed to be responsible for the management of his business as a money-lender is not a fit and proper person to hold a certificate, (iii) that the applicant, or any person responsible or proposed to be responsible for the management of his business as a money-lender, is by order of a Court disqualified for holding the license, (iv) that the applicant has not complied with the provisions of any rules made under this Act with respect to an application for a certificate. Recording of reasons for refusal. 11. When any authority who has power to grant a certificate refuses to do so it shall record its reasons in writing for such refusal.

269A BILL............MONEY-LENDING Appeal against order of refusal. 12. Any person aggrieved by an order of refusal to grant a certificate may appeal to the Sessions Judge and the decision of the Sessions Judge in this respect shall be final. Authority competent to grant license 13. Subject to the provisions of this Act any Officer authorised by Government in this behalf may, on application made in the prescribed form and on payment of the prescribed fee, grant to the holder of a certificate, a license. Duration of license. 14. Every license shall expire on the 31st December in every year. Fee for license. 15. There shall be charged on every money-lender’s license a fee of Rs. 50/- or if the license be taken out not more than six months before the expiration thereof, Rs. 30/-. Penalty for breach of provisions regarding license. 16. Whoever— (a) takes out a money-lender’s license in any name other than his own name, or (b) carries on business as a money-lender without having a proper license authorising him to so do, or (c) being licensed as a money-lender, carried on business as such in any name other than his authorised name, or at any place other than his authorised address, or (d) enters into an agreement in the course of his business as a money-lender with respect to the advance or repayment of money, or takes any security for money, in the course of his business as a money-lender, otherwise than in his authorised name, shall be punishable with fine of not less than Rs. 100/-. Provided that on a second or subsequent conviction of any person for an offence under this sub-section the court may, in lieu

270 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES of or in addition to ordering the offender to pay the penalty aforesaid, sentence him to imprisonment of either kind for a term not exceeding three months. Chapter III Suspension and Revocation of license. Suspension etc. of license on conviction 17. Where any person, being the holder of a license is convicted of any offence under this Act, the court (i) (a) shall order that the license held by that person be either suspended for such time as the court thinks fit or revoked, and (b) shall also declare any such person to be disqualified for obtaining a license for such time as the court thinks fit, (ii) shall cause particulars of the conviction and of the order made under sub-clause (i) of this section to be endorsed on every license held by the person convicted or by any other person affected by the order, and (iii) shall cause copies of these particulars to be sent to the authority by whom the certificate was granted and also to the officer by whom the license was granted. Appeal against order of suspension and revocation 18. Whether by order of a court a license held by any person is suspended or revoked or any person is disqualified for obtaining license, he may, whether or not he is the person convicted, appeal against the order of his conviction, and the appellate court may, if it thinks fit, pending the appeal, defer the operation of the order. Production of license when directed by court 19. (1) Any lincense, required by a court for endorsement in accordance with the foregoing provisions of this Act, shall be produced by the holder in such manner and within such time as may be directed by the court.