State Act

26

Section 26. Procedure of court in suits regarding loans.

THE RAJASTHAN MONEY-LENDERS ACT, 1963

Act no. 1 of 19641964In forceRajasthan (State Act)

26. Procedure of court in suits regarding loans.—Notwithstanding anything contained in any law for the time being in force, in any suit to which this Act applies— (a) a court shall, before deciding the claim on merits, frame and decide the issue whether the money-lender has complied with the provisions of section 22 and section 23; 4[(b) if the court finds that the provisions of section 22 and section 23 have not been complied with by the money-lender in respect of the whole or any part of the claim, it shall dismiss — (i) the whole suit with costs where such contravention has been in respect of the entire claim in the suit; or (ii) so much of the claim costs proportionate thereto in respect of which the said provisions have not been complied with by the moneylender.] Explanation.—A money-lender who has given the receipt or furnished a statement of accounts or a pass book in the prescribed form and manner, shall be held to have complied with the provisions of section 22 or section 23, as the case may be, in spite of any errors and omissions, if the court finds that such errors and omissions, are not material or not made fraudulently.