Act Info:
Inthis Act, unless there is anything repugnant in thesubject or context, -
1 [(1) "bank" means a banking company as defined in the Banking Regulation Act, 1949 (10 of 1949) and includes, -
(i) the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934);
(ii) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(iii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iv) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and
(v) any other banking institution notified by the Central Government under section 51 of the Banking Regulation Act, 1949 (10 of 1949);]
(2) "business of money-lending" means the business of advancing loans2 [whether in cash or kind and] 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;
3 [(4) "company" means a company as defined in the Companies Act, 1956 (I of 1956)];
(5) "co-operative society" means a society registered or deemed to have been registered under the4 [Maharashtra Co-operative Societies Act, 1960] (Mah. XXIV of 1961) or the Co-operative Societies Act, 1912 (II of 1912), or any Act of any other 5 [State] Legislature relating to co-operative societies;
6 [(5A) "inspection fee" means the fee leviable under section 9A in respect of inspection of books of accounts of a money-lender;]
(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 interest7 *** whether of money or in kind but does not include-
(a) a deposit of money or other property in a Government Post Office Bank or in any other bank or in a company or with a co-operative society;
(b) a loan to, or by, or a deposit with any society or association registered under the Societies Registration Act, 1860 (XXI of 1860), or any other enactment relating to a public, religious or charitable object.
(c) A loan advanced by Government or by any local authority authorised by Government.
8 [(cc) a loan advanced to a Government servant from a fund, established for the welfare or assistance of Government servants, and which is sanctioned by the State Government;]
(d) A loan advanced by a co-operative society;
9 [(d1) 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;
(d2) a loan to or by an insurance company as defined in the Insurance Act, 1938 (VI of 1937);]
(e) a loan to, or by10 ** bank;
11 [(ee) loan to, or by, or deposit with, any body (being a body not falling under any of the other provisions of this clause), incorporated by any law for the time being in force in the State;]
(f) an advance12 [of any sum exceeding rupees three thousand] made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881 (XXVI of 1881), other than a promissory note;
13 [(f1) an advance of any sum exceeding rupees three thousand] made on the basis of ahundi (written in English or any Indian language):
(f2) an advance madebona fide by any person carrying on any business, not having for its primary object the lending of money, if such advance is made in the regular course of his business;]
14 [(g) except for the purposes of sections 23 and 25-
15 * * * *
(iii) a loan, by a landlord to his tenant for financing of crops or seasonal finance, of not more than Rs. 50 per acre of land held by the tenant;
16 [(iv) a loan advanced to an agricultural labourer by his employer;]
Explanation.-Theexpression "tenant" shall have the meaning assigned to it in the Bombay Tenancy and Agricultural Lands Act, 1948 (Bom. LXVII of 1948),17 [or any other relevant tenancy law in force relating to tenancy of agricultural lands], and the expressions "financing of crops" and "seasonal finance" shall have the meanings assigned to them in the Bombay Agricultural Debtors Relief Act, 1947] (Bom. XXVII of 1947).
(10) "money-lender" means-
(i) an individual, or
(ii) an undivided Hindu family; or
(iii)18 * * * *
19 [(iiia) a company, or]
(iv) an unincorporated body of individuals, who or which-
(a) carries on the business of money-lending in the20 [State]; or
(b) has his or its principal place of such21 [business in the state; and includes a pawn-broker but does not include-
(i) Government,
(ii) a local authority,
(iii) a bank,
(iv) the Agricultural Refinance Corporation constituted under the Agricultural Refinance Corporation Act, 1963 (10 of 1963); or
(v) any other banking financial or any institution which the State Government may, by notification in theOfficial Gazette, specify in this behalf;]
22 [(10A) "pawn-broker" means a money-lender who in ordinary course of his business advances a loan and takes goods in pawn as security for payment of such loan;]
(11) "prescribed" means prescribed by rules made under this Act;
(12) "principal" means in relation to a loan the amount actually advanced to the debtor;
23 [(12A) "Provident Fund" means a Provident Fund as defined in the Provident Funds Act, 1925 (XIX of 1925), and includes a Government Provident Fund and a Railway Provident Fund as defined in the said Act;]
24 [(13) "State" means the25 [State of Maharashtra];]
(13A)"recognised language" means in Greater Bombay Marathi or Gujarati and elsewhere the language of the Court;
(14) "register" means a register of money-lenders maintained under section 4;
(15) "rules" means rules made under this Act;
26 [* **]
(17) "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;
(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;
(18) "trader" means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, and includes-
a wholesale or retail merchant,
a commission agent,
a broker,
a manufacturer,
a contractor,
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.-Forthe purposes of this clause an "artisan" means a person who does not employ more than ten workers in a manufacturing process on any one day of the twelve months immediately preceding.
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1. Clause (1) was substituted for the original by Mah. 76 of 1975, s.2(a).
2. These words were inserted byMah. 76 of 1975, s.2(b).
3. Clause (4) was substituted for the original, by Mah. 76 of 1975, s.2(c).
4. Substituted by Mah. 76 of 1975, s.2(d).
5. This word was substituted for the word "Provincial" by the Adaptation of Laws Order, 1950.
6. Clause (5A) was inserted byBom. 50 of 1959, s.4(c).
7. The words "by way of credit" were deleted byBom. 13 of 1951, s.2(2)(a).
8. Clause (cc) was inserted byBom. 50 of 1959, s.4(c) (iv).
9. Sub-clauses (d1) and (d2) were inserted byBom. 58 of 1948, s.2(i).
10. The word "scheduled" was deleted byBom. 13 of 1951, s2(2)(b).
11. Sub-clause (ee) was inserted by Mah. 12 of 1968, s.2.
12. These words were inserted byMah. 20 of 1977, s.2(a).
13. Sub-clauses (f1) and (f2) were inserted, by Mah, 20 of 1977, s.2(b).
14. This sub-clause was substituted for the original by Bom. 13 of 1951, s.2(2)(c).
15. Items(i) and (ii) were deleted by Mah. 76 of 1975, s.2(e).
16. Item (iv) was added byBom. 50 of 1953, s.4(c)(iv).
17. These words were inserted , byBom. 50 of 1953, s.4(c)(iv).
18. Paragraph (iii) was deleted byBom. 13 of 1951, s.2(3).
19. This paragraphs was inserted byBom. 58 of 1948, s.2(ii).
20. This word was substituted for the word "Province" by the Adaptation of Laws Order, 1950.
21. Substituted for the words "business in the State" by Mah. 76 of 1975, s.2(f).
22. Clause (10A) was inserted byBom. 50 of 1959, s.4(c)(v).
23. This clause was inserted byBom. 58 of 1948, s.2(iii).
24. Clause (13) was substituted for the original byBom. 50 of 1959, s.4(c)(vi).
25. Substituted. by the Maharashtra Adaptation of Laws (State and Concurrent Subjects) Order, 1960.
26. Clause (16) was deleted byBom. 13 of 1951, s.2(4).