State Act

THE RAJASTHAN MONEY-LENDERS ACT, 1963

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context; (1) 'bank’ means a banking company as defined in the Banking Companies Act, 1949 (Central Act X of 1949), and includes the State Bank of India and any other banking institution notified by the Central Government under sec. 51 of the said Act; (2) 'business of money-lending’ means the business of advancing loans whether or not in connection with or in addition to any other business; (3) 'capital’ means a sum of money which a money-lender invests in the business of money -lending; (4) 'company’ means a company as defined in sec. 3 of the Companies Act, 1956 (Central Act I of 1956); (5) 'co-operative society’ means a society registered or deemed to have been registered under the Rajasthan Co-operative Societies Act, 1953 (Rajasthan Act IV of 1953) or under the Co-operative Societies Act, 1912 (Central Act II of 1912) or under any Act of any other State Legislature relating to co-operative societies; (6) 'interest’ includes any sum, by whatsoever name called, in excess of the principal paid or payable to a money-lender in consideration of or otherwise in respect of a loan, but does not include any sum lawfully charged by a money- lender for or on account of costs charges or expenses in accordance with the provisions of this Act or any other law for the time being in force; (7) 'licence’ means a licence granted under this Act; (8) 'licence-fee' means the fee payable in respect of a licence; (9) 'loan means an advance at interest, whether of money or in kind, but does not include: — (a) a deposit of money or other property in a Government Post Office Savings Bank or in any other bank or in a company or with co-operative society; (b) a loan to or by, or a deposit with, any society or association registered or deemed to be registered under the Rajasthan Societies Registration Act, 1958 or any other enactment, relating to a public, religious or charitable objects; (c) a loan advanced by Government or by any local authority authorized by Govt.; (d) a loan advanced to a Government servant from a fund established for the welfare and assistance of Govt. servants and which is sanctioned by the State Govt; (e) a loan advanced by a co-operative society; (f) an advance made to a subscriber to, or a depositor in, a Provident Fund from the amount standing to his credit in the fund in accordance with the rules of the fund; (g) a loan to or by an insurance company as defined in the Insurance Act, 1938 (Central Act IV of 1938); (h) a loan to, or by a bank; (i) an advance made on the basis of a negotiable instrument as defined ju the Negotiable Instruments Act, 1881 (Central Act XXVI of 1881) other than a promissory note: (j) except for the purposes of sections 27 and 29. (i) a loan to a trader, or (ii) a loan to a money-lender who holds a valid licence; (10) "money-lender'" means:-— (i) an individual or (ii) an individual Hindu family, or 1(iii) a company (not being a banking company as defined in section 5 of the Banking Regulation Act, 1949;, body or institution other than such of them as may, by notification in the Official Gazette, be exempted from the provision's of this Act by the Stale Government on being satisfied that it is necessary or expedient so to do in public interest, or] (iv) an un incorporated body of individuals, who or which— (a) carries on the business of money-lending in the State; or (b) has his or its principal place of such business in the State. (11) "principal” means in relation to a loan, the amount actually advanced to the debtor; (12) "Provident Fund” means a Provident Fund as defined in the Provident Funds Act, 1925 (Central Act X of 1925) and includes a Government Fund and a Railway Provident Food as defined in the said Act; (13) 'recognized language’ means— (i) Hindi written in the Devnagri script, or (ii) English, if the debtor so desires in writing, or (iii) where both the parties speak the same language, that language; (14) ‘register’ means a register of money-lenders maintained under sec. 4 (15) 'suit to which this Act applies’ means any suit or proceeding— (a) for the recovery of a loan made after the date on which this Act comes into force; or (b) for the enforcement of any security taken or any agreement made after the date on which this Act comes into force in respect of any loan made either before or after the said date; or (c) for the redemption of any security given after the date on which this Act comes into force in respect of any loan made either before or after the said date; (16) 'trader’ means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, & includes— (a) a whole-sale or retail merchant, (b) a commission agent, (c) a broker, (d) a manufacturer, (e) a contractor, and (f) a factory owner, but does not include an artisan or a person who sells his agricultural produce or cattle or buys agricultural produce or cattle for his use. Explanation.—For the purposes of clause (16) an 'artisan' means a person who does not employ more than ten workers in manufacturing process on any one day of the twelve months immediately preceding.