State Act

THE KARNATAKA MONEY-LENDERS ACT, 1961

11. 2[x x x] suits by money-lenders not holding licence.— (1) After the expiry of six months from the date on which this Act comes into force, no Court shall pass a decree in favour of a money-lender in any suit to which this Act applies, filed by a money-lender, unless the Court is satisfied that at the time when the loan or any part thereof to which the suit relates was advanced, 1[and on the date such suit was filed]1 the money-lender held a valid licence. 1[(2) x x x (3) x x x (4) x x x ]1 (5) Nothing in this section shall affect— (a) suits in respect of loans advanced by a money-lender before the date on which this Act comes into force; (b) the powers of an official receiver, an administrator or a Court under the provisions of the Mysore Insolvency Act, 1925, or other corresponding law in force in any area of the State, or of a liquidator under the Companies Act, 1956, to realise the property of a money-lender.