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MADRAS DEBTORS' PROTECTION ACT, 1934 (7 OF 1935)
MADRAS DEBTORS' PROTECTION ACT, 1934
(7 OF 1935)
An Act for the protection of certain classes of debtors in the Presidency of Madras. WHEREAS it is expedient to make provision for the protection of certain classes of debtors in the Presidency of Madras, and for that purpose to regulate the keeping of accounts by certain classes of creditors; AND WHEREAS the previous sanction of the Governor-General has been obtained to the passing of this Act; It is hereby enacted as follows:-
SECTION 1: Short title, extent and commencement
(1) This Act may be called the Madras Debtors' Protection Act, 1934. (2) It extends to the whole of the Presidency of Madras. (3) It shall come into force on such 3 (1) 1. Came Into force on the 15th January 1936.[date as the 3 (2) 2. The words "Provincial Government" were substituted for the words "Local Government" by the Adaptation Order of 1937 and the word "State" was substituted for "Provincial" by the Adaptation Order of 1950.[State Government] may, by notification in the 3 (3) 3. These words were substituted for the words "Fort St. George Gazette" by the Adaptation Order of 1937. [Official Gazette], appoint.
SECTION 3: Duty of creditor to maintain accounts and to give receipts
(1) Every creditor shall- (a) regularly record and maintain or cause to be recorded and maintained, an account showing for each debtor separately- (i) the date of the loan, the amount of the principal of the loan, and the rate per cent per annum of interest charged on the loan; and (ii) the amount of every payment received by the creditor in respect of the loan; and the date of such payment; (b) give to the debtor or his agent, a receipt for every sum paid by him, duly signed and if necessary, stamped at the time of such payment; and (c) on requisition in writing made by the debtor, furnish to the debtor or, if he so requires, to any person mentioned by him in that behalf in his requisition, a statement of account signed by himself or his agent showing the particulars referred to in clause (a) and also the amount which remains outstanding on account of the principal and of interest and charge such sum as the 3 (1) 1. The words "Provincial Government" were substituted for the words "Local Government" by the Adaptation Order of 1937 and the word "State" was substituted for "Provincial" by the Adaptation Order of 1950.[State Government] may prescribe as fee therefor. (2) Notwithstanding anything contained in the Indian Evidence Act, 1872, a copy of the account referred to in clause (a) of sub-section (1) certified in such manner as may be prescribed, shall be admissible in evidence in the same manner and to the same extent as the original account. (3) A person to whom a statement of account has been furnished under clause (c) of sub-section (1) and who fails to object to the correctness of the account shall not by such failure alone be deemed to have admitted the correctness of such account.
SECTION 4: 3 (1) 1. This section omitted by the Madras Pawnbrokers Act, 1943.[x x x x]
SECTION 5: Figure in accounts and receipts to be in Arabic numerals
In the receipt to be given under clause (b) of sub-section (1) of section 3, 3 (1) 1. Inserted by ibid.[and] in the statement of account to be furnished under clause (c) of that sub-section, 4[x x x] the figures shall be entered only in the Arabic numerals.
SECTION 6: Penalty for non-compliance with sections 3 and 4
(1) In any suit or proceeding relating to a loan, of the Court finds that a creditor has not maintained an account as required by clause (a) of sub-section (1) of section 3, 3 (1) 1. Omitted by ibid.3 (1) 1. Omitted by ibid.[x x x] he shall not be allowed his costs. (2) If a creditor fails to give to the debtor or his agent a receipt as required by clause (b) of sub-section (1) of section 3 or to furnish, on a requisition made under clause (c) of that sub-section, a statement of account as required therein within one month after such requisition has been made, 3 (2) 2. This word was inserted by section 23 (2) (vii) of the Madras Pawnbrokers Act, 1943.[x x x] he shall not be entitled to any interest for the period of the default.
SECTION 6A: Presumption in the case of certain loans
3 (1) 1. Inserted by the Madras Debtors' Protection (Amendment) Act, 1935 (Madras Act IV of 1936).[ (1) If in any suit or proceeding relating to a loan advanced after the commencement of the Madras Debtors' Protection (Amendment) Act, 1935, it is found that the interest charged exceeds, in the case of a secured loan, nine percent per annum simple interest and in the case of an unsecured loan, fifteen per cent per annum simple interest, the Court shall, until the contrary is proved, presume for the purposes of section 3 and 4 of the Usurious Loans Act, 1918, that the interest charged is excessive and that the transaction was, as between the parties thereto, substantially unfair. Explanation.- In the case of any loan so advanced if compound interest is charged and the amount claimed by the creditor by way of such interest until the date of the institution of the suit or proceeding for the recovery of the loan exceeds the amount of simple interest calculated at the rate of nine per cent per annum or fifteen per cent per annum, as the case may be, the Court shall draw the presumption referred to in this sub-section until the contrary is proved. (2) The provisions contained in sub-section (1) shall be without prejudice to the powers of the Court under sections 3 and 4 of the Usurious Loans Act, 1918, in cases where the Court has reason to believe that the interest charged, though not exceeding nine per cent per annum simple interest or fifteen per cent per annum simple interest, as the case may be, is excessive and that the transaction was, as between the parties thereto, substantially unfair.]
SECTION 7: Sayings
Nothing contained in this Act shall apply to any loan advanced before the commencement of this Act.
SECTION 8: Rules
(1) The 3 (1) 1. The words "Provincial Government" were substituted for the words "Local Government" by the Adaptation Order of 1937 and the word "State" was substituted for "Provincial" by the Adaptation Order of 1950.[State Government] may make rules not inconsistent with this Act for the purpose of carrying out all or any of its purposes. (2) In particular and without prejudice to the generality of the foregoing power the 3 (1) 1. The words "Provincial Government" were substituted for the words "Local Government" by the Adaptation Order of 1937 and the word "State" was substituted for "Provincial" by the Adaptation Order of 1950.[State Government] may make rules prescribing- (a) the sum which may be charged as fee for a statement of account, furnished under clause (c) of sub-section (1) of section 3 3 (2) 2. This word was inserted by section 23 (2) (vii) of the Madras Pawnbrokers Act, 1943.[and], (b) the manner in which a copy of the account shall be certified for the purpose of sub-section (2) of section 3 3 (3) 3. The word "and" was omitted by ibid.[x x x], 3 (4) 4. This clause was omitted by section 23 (2) (viii), ibid.[(c) x x x x].
SECTION 9: Saving
3 (1) 1. This section was added by section 23 (2) (ix), ibid.[Nothing contained in this Act shall be deemed to apply to pawnbrokers, that is to say, to persons who carry on the business of taking goods and chattels in pawn for a loan.]
