TAMIL NADU MONEY-LENDERS RULES, 1959

 

PREAMBLE

In exercise of the powers conferred by section 22 of the Tamil Nadu Money-lenders Act, 1957 (Tamil Nadu Act XXVI of 1957), the Governor of Tamil Nadu hereby makes the following rules, the same having been previously published as required by sub-section (1) of the said section.

Rule - 1. Short title.

These rules may be called the Tamil Nadu Money-lenders Rules, 1959.

Rule - 2. Definitions.

In these rules,

(a)      "Act" means the Tamil Nadu Money-lenders Act, 1957 (Tamil Nadu Act XXVI of 1957);

(b)      "Form" means a Form appended to these rules;

(c)      "Inspector" means an Inspector appointed under section 10;

(d)      "section" means a section of the Act.

Rule - 3. Application for licence.

Every application for a money lender's licence shall be made to the Tahsildar of the Taluk or Independent Deputy Tahsildar, as the case may be, having jurisdiction over the place of business of the money-lender. Such application shall be in Form-A.

Rule - 4. Form of licence and fees therefor and for renewal.

(1)     Every licence granted under sub-section (2) of section 4 shall be in Form-B and shall be subject to the conditions specified therein.

(2)     For every application for a licence or renewal thereof, a fee of Rs. 100 (Rupees one hundred only) shall be paid into a Government treasury and the treasury receipt thereof shall accompany the application.

(3)     Notwithstanding anything contained in sub-rule (2), for a period of three months commencing on the date of coming into force of the Act in any area, a fee of Rs. 10 (Rupees ten only) shall be payable for every application for a licence in that area.

Rule - 4A. Issue of duplicate licences.

(1)     If a licence is lost or destroyed or spoiled, the money-lender shall forthwith report the matter to the authority by whom the licence was granted or last renewed and shall apply to him with a treasury receipt for the payment of a fee of Rs. 30 (Rupees thirty only) for the issue of a duplicate licence.
(Amended by G.O. Ms. No. 347, Revenue, dated the 7th February 1981).

(2)     On receipt of an application with the treasury receipt referred to in sub-rule (1), the authority shall furnish the applicant with a duplicate copy of the licence duly stamped "duplicate" in red ink.

Rule - 4B. Refund of fee in certain circumstances.

(1)     Where the licensing authority refuses to grant a licence under sub-section (3) of section 4, the application for the refund of licence fee shall be made within a period of two months from the date of receipt of the order refusing to grant licence or from the date of receipt of order on appeal to the Tahsildar of the taluk or the Independent Deputy Tahsildar, as the case may be, having jurisdiction over the place of business of the money-lender.

(2)     If after obtaining a licence, the licensee does not carry on the money-lending business even on a single day during the period of the licence, the licensee may, within a period of two months from the date of expiry of the licence, apply to the licensing authority for the refund of the fee paid by him. On receipt of the application, the licensing authority shall verify its correctness and may order the refund of the fee paid.

Rule - 5. Charges allowed to money-lenders.

A money-lender may, in addition to the cost of revenue stamp, demand and take from the debtor a sum not exceeding 25 paise on loans upto and inclusive of Rs. 250 and 50 paise on loans above Rs. 250 for incidental expenses connected with the advancement of such loan.

Rule - 6. Form of account book.

The account specified in section 9(1)(a) shall be in Form-C.

Rule - 7. Form of receipt.

The receipt to be issued by the money-lender to the debtor or his agent for every sum paid by him shall be in Form-D.

Rule - 8. Statement of account.

The statement of account to be furnished by the money-lender under section 9(1)(c) shall be in Form-E.

Rule - 9. Fees.

The fee which may be charged by a money-lender for a statement of account furnished by him under rule 8 shall be as follows:

Explanation. The fee shall be charged separately in respect of each loan for each requisition.

Illustration.

(a)      The fee relating to two separate loans of Rs. 120 and Rs. 350 will be 44 naye paise.

(b)      If the statement of account is furnished by post, the money-lender may also charge such additional expenses as are actually incurred by him for furnishing it by post.

(c)      The fee and the postal charges, if any, shall, on demand by the money-lender, be payable in advance or shall be recoverable by the money-lender as if it were included in the loan, but no interest shall be charged on such fee or charges.

Rule - 10. Pass-book.

The pass-book which the money-lender may supply to the debtor under the provision of section 9(1)(c) shall be in Form-F. A sum of 10 naye paise may be charged by the moneylender for every pass-book so supplied.

Rule – [10-A.

The receipt and other instruments issued by a moneylender shall contain his licence number and date.][1]

Rule - 11. Language in which records, etc., should be maintained.

(1)     All records or entries made in the books, accounts and documents referred to in sub-section (1) of section 9 shall be either in Tamil or in English or in both:

Provided that where the majority of the persons in any area speak a language other than Tamil, the records shall be maintained in English or in the language spoken by the majority of such persons.

(2)     Nothing contained in these rules shall prevent the moneylender from maintaining the accounts of a particular debtor in any language which the debtor may understand and read.

Rule - 12. Manner of furnishing statement of accounts.

(1)     The statement of accounts referred to in rule 8 shall be sent to the debtor by registered post acknowledgement due to the address given in the requisition by the debtor.

(2)     Notwithstanding anything contained in sub-rule (1), where the debtor agrees in writing to the statement being delivered personally, it shall not be necessary to send it by registered post.

(3)     When a debtor takes personal delivery of the statement of accounts, he shall acknowledge the receipt of the same in writing. The debtor shall sign the acknowledgement or if he is not literate, affix his thumb-impression thereto.

Rule - 12A. Time-limit for commencement of action after suspension of a licence.

[2][The licensing authority shall commence further action under sub-section (1) of section 14 within a period of fifteen days from the date of suspension of the licence under subsection (2-A) of section 14 of the Act.]

Rule - 13. Appellate authority.

(1)     The appellate authority for the purpose of sub-section (4) of section 4 and sub-section (3) of section 14 shall be the Revenue Divisional Officer, Assistant Collector or Sub-Collector, as the case may be, having jurisdiction over the place of business of the money-lender. Where there is no Revenue Divisional Officer, Assistant Collector or Sub-Collector, the Gazetted Assistant to the District Collector shall be the appellate authority. Where there is no Revenue Divisional Officer, Assistant Collector or Sub-Collector or a Gazetted Assistant to the District Collector, the District Collector shall be the appellate authority.

(2)     If the appellate authority considers further enquiry to be necessary before final orders are passed on the appeal, he may either hold the enquiry himself or have it made by one of his subordinates and such witnesses as are, in his opinion, necessary shall be examined during the enquiry. The appellate authority shall also hear the licensee or his advocate before disposing of the appeal.

Rule - 14. Prescribed authority for the purpose of section 12.

The authority for the purpose of section 12, shall be an officer of the Revenue Department not below the rank of a Tahsildar or an Independent Deputy Tahsildar, as the case may be, and having jurisdiction over the place of business of the money-lender.

Rule - 15. Procedure for effecting transfer of a licence when a licensee dies.

(1)     Any person claiming to be legal representative of a deceased licensee may apply to the licensing authority in Form-G for transferring in his name the licence standing in the name of the deceased.

(2)     A certificate of death issued by the village headman[3] of the locality or the Registered Medical Practitioner, who attended on the deceased shall ordinarily accompany the application in Form-G.

(3)     The declaration to be obtained from the legal representative under sub-section (3) of section 19 shall be in Form-G.

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TAMIL NADU MONEY-LENDERS RULES, 1959

 

PREAMBLE

In exercise of the powers conferred by section 22 of the Tamil Nadu Money-lenders Act, 1957 (Tamil Nadu Act XXVI of 1957), the Governor of Tamil Nadu hereby makes the following rules, the same having been previously published as required by sub-section (1) of the said section.

Rule - 1. Short title.

These rules may be called the Tamil Nadu Money-lenders Rules, 1959.

Rule - 2. Definitions.

In these rules,

(a)      "Act" means the Tamil Nadu Money-lenders Act, 1957 (Tamil Nadu Act XXVI of 1957);

(b)      "Form" means a Form appended to these rules;

(c)      "Inspector" means an Inspector appointed under section 10;

(d)      "section" means a section of the Act.

Rule - 3. Application for licence.

Every application for a money lender's licence shall be made to the Tahsildar of the Taluk or Independent Deputy Tahsildar, as the case may be, having jurisdiction over the place of business of the money-lender. Such application shall be in Form-A.

Rule - 4. Form of licence and fees therefor and for renewal.

(1)     Every licence granted under sub-section (2) of section 4 shall be in Form-B and shall be subject to the conditions specified therein.

(2)     For every application for a licence or renewal thereof, a fee of Rs. 100 (Rupees one hundred only) shall be paid into a Government treasury and the treasury receipt thereof shall accompany the application.

(3)     Notwithstanding anything contained in sub-rule (2), for a period of three months commencing on the date of coming into force of the Act in any area, a fee of Rs. 10 (Rupees ten only) shall be payable for every application for a licence in that area.

Rule - 4A. Issue of duplicate licences.

(1)     If a licence is lost or destroyed or spoiled, the money-lender shall forthwith report the matter to the authority by whom the licence was granted or last renewed and shall apply to him with a treasury receipt for the payment of a fee of Rs. 30 (Rupees thirty only) for the issue of a duplicate licence.
(Amended by G.O. Ms. No. 347, Revenue, dated the 7th February 1981).

(2)     On receipt of an application with the treasury receipt referred to in sub-rule (1), the authority shall furnish the applicant with a duplicate copy of the licence duly stamped "duplicate" in red ink.

Rule - 4B. Refund of fee in certain circumstances.

(1)     Where the licensing authority refuses to grant a licence under sub-section (3) of section 4, the application for the refund of licence fee shall be made within a period of two months from the date of receipt of the order refusing to grant licence or from the date of receipt of order on appeal to the Tahsildar of the taluk or the Independent Deputy Tahsildar, as the case may be, having jurisdiction over the place of business of the money-lender.

(2)     If after obtaining a licence, the licensee does not carry on the money-lending business even on a single day during the period of the licence, the licensee may, within a period of two months from the date of expiry of the licence, apply to the licensing authority for the refund of the fee paid by him. On receipt of the application, the licensing authority shall verify its correctness and may order the refund of the fee paid.

Rule - 5. Charges allowed to money-lenders.

A money-lender may, in addition to the cost of revenue stamp, demand and take from the debtor a sum not exceeding 25 paise on loans upto and inclusive of Rs. 250 and 50 paise on loans above Rs. 250 for incidental expenses connected with the advancement of such loan.

Rule - 6. Form of account book.

The account specified in section 9(1)(a) shall be in Form-C.

Rule - 7. Form of receipt.

The receipt to be issued by the money-lender to the debtor or his agent for every sum paid by him shall be in Form-D.

Rule - 8. Statement of account.

The statement of account to be furnished by the money-lender under section 9(1)(c) shall be in Form-E.

Rule - 9. Fees.

The fee which may be charged by a money-lender for a statement of account furnished by him under rule 8 shall be as follows:

Explanation. The fee shall be charged separately in respect of each loan for each requisition.

Illustration.

(a)      The fee relating to two separate loans of Rs. 120 and Rs. 350 will be 44 naye paise.

(b)      If the statement of account is furnished by post, the money-lender may also charge such additional expenses as are actually incurred by him for furnishing it by post.

(c)      The fee and the postal charges, if any, shall, on demand by the money-lender, be payable in advance or shall be recoverable by the money-lender as if it were included in the loan, but no interest shall be charged on such fee or charges.

Rule - 10. Pass-book.

The pass-book which the money-lender may supply to the debtor under the provision of section 9(1)(c) shall be in Form-F. A sum of 10 naye paise may be charged by the moneylender for every pass-book so supplied.

Rule – [10-A.

The receipt and other instruments issued by a moneylender shall contain his licence number and date.][1]

Rule - 11. Language in which records, etc., should be maintained.

(1)     All records or entries made in the books, accounts and documents referred to in sub-section (1) of section 9 shall be either in Tamil or in English or in both:

Provided that where the majority of the persons in any area speak a language other than Tamil, the records shall be maintained in English or in the language spoken by the majority of such persons.

(2)     Nothing contained in these rules shall prevent the moneylender from maintaining the accounts of a particular debtor in any language which the debtor may understand and read.

Rule - 12. Manner of furnishing statement of accounts.

(1)     The statement of accounts referred to in rule 8 shall be sent to the debtor by registered post acknowledgement due to the address given in the requisition by the debtor.

(2)     Notwithstanding anything contained in sub-rule (1), where the debtor agrees in writing to the statement being delivered personally, it shall not be necessary to send it by registered post.

(3)     When a debtor takes personal delivery of the statement of accounts, he shall acknowledge the receipt of the same in writing. The debtor shall sign the acknowledgement or if he is not literate, affix his thumb-impression thereto.

Rule - 12A. Time-limit for commencement of action after suspension of a licence.

[2][The licensing authority shall commence further action under sub-section (1) of section 14 within a period of fifteen days from the date of suspension of the licence under subsection (2-A) of section 14 of the Act.]

Rule - 13. Appellate authority.

(1)     The appellate authority for the purpose of sub-section (4) of section 4 and sub-section (3) of section 14 shall be the Revenue Divisional Officer, Assistant Collector or Sub-Collector, as the case may be, having jurisdiction over the place of business of the money-lender. Where there is no Revenue Divisional Officer, Assistant Collector or Sub-Collector, the Gazetted Assistant to the District Collector shall be the appellate authority. Where there is no Revenue Divisional Officer, Assistant Collector or Sub-Collector or a Gazetted Assistant to the District Collector, the District Collector shall be the appellate authority.

(2)     If the appellate authority considers further enquiry to be necessary before final orders are passed on the appeal, he may either hold the enquiry himself or have it made by one of his subordinates and such witnesses as are, in his opinion, necessary shall be examined during the enquiry. The appellate authority shall also hear the licensee or his advocate before disposing of the appeal.

Rule - 14. Prescribed authority for the purpose of section 12.

The authority for the purpose of section 12, shall be an officer of the Revenue Department not below the rank of a Tahsildar or an Independent Deputy Tahsildar, as the case may be, and having jurisdiction over the place of business of the money-lender.

Rule - 15. Procedure for effecting transfer of a licence when a licensee dies.

(1)     Any person claiming to be legal representative of a deceased licensee may apply to the licensing authority in Form-G for transferring in his name the licence standing in the name of the deceased.

(2)     A certificate of death issued by the village headman[3] of the locality or the Registered Medical Practitioner, who attended on the deceased shall ordinarily accompany the application in Form-G.

(3)     The declaration to be obtained from the legal representative under sub-section (3) of section 19 shall be in Form-G.