THE BENGAL MONEY-LENDERS ACT, 1933 [Act, No. 7 of 1933] [26th October, 1933] An Act to provide more effectual control of
money-lending in Bengal. WHEREAS it is expedient to make better provision
for the control of money-lending and to give additional powers to Courts to
deal with money-lending in Bengal ; AND WHEREAS the previous sanction of the Governor
General has been obtained under sub-section (3) of section 80A of the
Government of India Act to the passing of this Act ; It is hereby enacted as follows :-- (1) This Act may be called the Bengal Money-lenders
Act, 1933. (2) It extends to the whole of West Bengal: Provided that nothing in this Act shall apply to
any loan made within the limits of the Ordinary Original Jurisdiction of the
High Court or under a contract made within those limits. (3) It shall come into force on such date as the State
Government may, by notification in the Official Gazette, appoint. In this Act, unless there is anything repugnant in
the subject or context-- (1) "money-lender" means any person who
grants a loan of money ; and (2) "prescribed" means prescribed by rules
made under this Act. Where any suit in respect of any money lent by a
money-lender after the commencement of the Usurious Loans Act, 1918, (X of
1918) it is found that the interest charged exceeds the rate of fifteen per
cent. per annun in the case of a secured loan or twenty-five per cent. per
annum in the case of an unsecured loan or that there is a stipulation for rests
at intervals of less than six months, the Court shall, until the contrary is
proved, presume for the purpose of section 3 of the Usurious Loans Act, 1918, that
the interest charged is excessive and that the transaction was harsh and
unconscionable and was substantially unfair, but this provision shall be
without prejudice to the powers of the Court under the said section where the
Court is satisfied that the interest charged, though not exceeding fifteen per
cent. per annum or twenty-five per cent. per annum, as the case may be, is
excessive. Notwithstanding anything in any other Act, where in
any suit in respect of any money lent by a money-lender before the commencement
of this Act it is found that the arrears of interest amount to a sum greater
than the principal of the loan, the Court, unless it is satisfied that the
money-lender had reasonable grounds for not enforcing his claim earlier, shall
limit the amount of such interest recoverable in the suit to an amount equal to
the principal of the loan. No money-lender shall recover by suit interest of
any kind at a rate exceeding ten per cent. per annum in respect of any loan
made after the commencement of this Act under a contract which provides for the
payment of compound interest. No Court shall, in respect of any loan made after
the commencement of this Act, decree on account of arrears of interest a sum
greater than the principal of the loan. (1) Every money-lender, on demand made in the
prescribed form by a debtor by registered post, shall supply such debtor with
such particulars as may be prescribed concerning any loan made by him to the
debtor on account of which any sum is due from the debtor. (2) A money-lender who sends by registered post to the
debtor at the address mentioned in the form of demand the particulars referred
to in sub-section (1) shall be persumed to have complied with the demand made
under that sub-section. (3) Where a money-lender has complied with a demand
made by a debtor under sub-section (1) the debtor shall not be entitled to make
a further demand under the said sub-section in respect of the same loan within
a period of six months from the date of such compliance. If a moneylender to whom a demand has been made in
accordance with the provisions of sub-section (1) of section 7 fails without
reasonable excuse to comply therewith a month from the date of the service of
the demand, interest shall not be chargeable in respect of the loan concerning
which the demand was made for so long as the default continues. (1) Where a debtor has sent to a money-lender by postal
money-order any sum of money due from him to the money-lender in respect of a
loan and the money-lender has refused to accept the same the debtor may apply
in the prescribed manner to the lowest Civil Court having jurisdiction over the
place where he resides for permission to deposit the said sum in Court to the
account of the money-lender and the Court on receiving the prescribed fee from
the debtor shall keep the said sum in deposit and shall send a notice of the
deposit in the prescribed manner to the money-lender. (2) If a money-lender accepts money sent in the manner
specified in sub-section (1) by a debtor or withdraws money deposited under the
said sub-section he shall not be bound by any statement made by the debtor in
remitting or depositing the money. (1) The State Government may 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 all or any of the
following matters, namely :-- (i) the form of a demand by a debtor and the
particulars to be supplied by a money-lender under sub-section (1) of section
7; and
BENGAL MONEY-LENDERS ACT, 1933
Preamble 1 - BENGAL MONEY-LENDER ACT,
1933PREAMBLE