KML Act
KML Act
KML Act
(Act 35 of 1958)
An
ACT
1. Short title, extent and commencement.―(1) This Act may be called the Kerala
Money-lenders Act, 1958.
(3) It shall come into force in any area on such date as the Government
may specify by notification, the date being not earlier than one month from the date of
the notification and the Government may cancel or modify such notification.
[2] [“(1) “appellate authority” means any officer or authority appointed by the
Government to exercise the powers of an appellate authority under this Act;”];
(ii) The State Bank of India constituted under the State Bank of
India Act, 1955 (Central Act 23 of 1955);
(viii) the Export Import Bank of India established under the Export
Import bank of India Act, 1981 (Central Act 28 of 1981);
(3) “Interest” includes the return to be made over and above what was
actually lent, whether the same is charged or sought to be recovered specifically by way
of interest or otherwise, but does not include any sum charged by a lender in accordance
with the provisions of this Act or any other law for the time being in force, for or on
account of costs, charges or expenses;
[8].[(vii) *****************************]
(ix) an advance made under any chit fund scheme or kuri or chitty;
Explanation I.― Where a person, who carries on in the State of Kerala the
Business of advancing and realising loans is resident outside the State, the agent of such
person resident in the State shall be deemed to be the money-lender in respect of that
business for the purposes of this Act.
Explanation II.― For the purposes of this Clause (7A), proviso to sub-section (1)
of section 3, clause (a) of sub-section (3) of section10, [14] [section 16B] and section 17,
the word “person” shall include “a firm or a joint family;”
Explanation. ― Every person who keeps a shop for the purchase or sale of goods
or chattels and who purchases goods or chattels and pays or advances thereon any sum of
money, with or under any agreement or understanding expressed or implied that the
goods or chattels may be afterwards repurchased on any terms is a pawnbroker within the
meaning of this clause;
(9) “principal” in relation to a loan means the amount actually lent to the
debtor [16]. [“or the pawner”];
[17].[“(9A) “trader” means a person who in the regular course of business buys
and sells goods or other property, whether movable or immovable, and includes-
(d) a manufacturer;”]
3. Money-lender to obtain licence.― (1) From the date on which the provisions
of this Act are brought into force in any area, no person, firm or joint family [18].[“or
unincorporated association of individuals shall commence or”] carry on or continue
business as a money-lender at any place in such area without a licence obtained under
this Act or in contravention of the terms thereof:
Provided that nothing in this section shall be deemed to prohibit a person who
has applied for a licence to carry on or to continue business as a money-lender pending
orders on his application.
(2) Where a money-lender has more than one shop or place of business,
whether in the same town or village or in different towns or, villages he shall obtain a
separate licence in respect of each shop or place of business.
Provided that a person under the age of eighteen years or a lunatic as defined
in section 3 (5) of the Indian Lunacy Act, 1912 (Central Act IV of 1912) shall be eligible
to apply for a licence only through a guardian:
[21] [“(iii) that deposits shall be accepted only in accordance with the
provisions of the Reserve Bank of India Act, 1934 (Central Act 2 of 1934), and at such
rates of interest not exceeding the rates fixed by the Reserve bank of India under the Non-
banking Financial Companies (Reserve Bank) Directions, 1977.”]
(2A) Every licensee specified in column (1) of the Table below shall,
within such time and in such manner as may be prescribed, deposit in the Government
Treasury in respect of each licence held by him, the amount specified in the
corresponding entry in column (2) of the said Table, by way of security for the due
observance of the conditions of the licence.
TABLE
(1) (2)
1. A licensee who lends less than one lakh rupees in Five thousand rupees
an year
2. A licensee who lends one lakh rupees or above but Ten thousand rupees
less than five lakh rupees in an year
3. A licensee who lends five lakh rupees or above but Fifty thousand rupees
less than ten lakh rupees in an year
4. A licensee who lends ten lakh rupees or above, but One lakh rupees
less than twenty-five lakh rupees in an year
5. A licensee who lends twenty-five lakh rupees or One lakh and fifty
above, but less than fifty lakh rupees in an year thousand rupees
6. A licensee who lends fifty lakh rupees or above, in Two lakh rupees”].
an year
[23]. [“(2B) For the purposes of sub-section (2A), the amount lent by a
licensee for the year for which the security is to be paid shall be deemed to be―
(a) that the applicant has not complied with the provisions of this
Act or the rules made thereunder in respect of an application for the grant of a licence; or
(b) that the applicant has made willful default in complying with or
knowingly acted in contravention of any requirement of this Act; or
[25] [“(4) Every order of the licensing authority under sub-section (3) shall be
communicated to the applicant in such manner as may be prescribed”.]
(5) Every licence granted under this Act shall, subject to the provisions of
sub-section (7), expire on the last day of the year in which it was granted.
(6) A licence granted under sub-section (2) may be renewed from year to
year and the provisions of sub-sections (1) to (5) shall apply in relation to the renewal of
a licence as they apply in relation to the grant of a licence.
[27]. [“6. Money-lenders to exhibit their names over shops.― Every money lender other
than a pawnbroker shall always keep exhibited over his shop or place of business his
name with the word “money lender” and its equivalent in the regional language and every
pawnbroker shall always keep exhibited over his shop or place or business his name with
the word “pawnbroker” and its equivalent regional language.”]
(2) A money-lender may demand and take from the debtor such charges
and in such cases, as may be prescribed.
(3) A money-lender shall not demand or take from the debtor any interest,
in excess of that payable under sub-section (1)
[30]. [“(4) No money-lender shall give any presents, gifts, commission or any amount
other than the interest provided in sub-section (2) of section 4 to any depositor in
connection with the deposits received by such money-lender or receive any presents,
gifts, commission or any amount other than the interest and other charges specified in this
section from any person to whom money is advanced.”]
(2) Where any such application is made, the Court shall, after due inquiry,
pass orders recording full or part-satisfaction of the loan as the case may be.
(3) The procedure laid down in the Code of Civil Procedure 1908 (Central
Act V of 1908), for the trial of suits shall, as far as may be, apply to applications under
this section.
(4) An appeal shall lie from an order passed by a Court under sub-section
(2) within thirty days excluding the time for obtaining a certified copy of the order as if
such an order relates to the execution, discharge or satisfaction of a decree within the
meaning of section 47 of the Code of Civil Procedure, 1908 (Central Act V of1908)
(i) the date of the loan, the amount of the principal of the loan and
the rate of interest charged on the loan; and
(d) submit to the Inspector concerned such returns relating to the loans
advanced by him, in such form and at such times as may be prescribed.
(2) All records or entries made in the books, accounts and documents
referred to in sub-section (1) shall be in such language or languages as may be prescribed
in respect of any area.
(4) In the receipt to be given under clause (b) of sub-section (1) or in the
statement of account to be furnished under clause (c) of that sub-section the figures shall
be entered only in Arabic numerals.
(5) In any suit or proceeding relating to a loan if the court finds that a
money-lender has not maintained an account as required by clause (a) of sub-section (1),
he shall not be allowed his costs.
(7) Notwithstanding any agreement between the parties or any law for the
time being in force, when a statement is furnished to a debtor under this section on any
day during a month, the interest due shall be calculated as payable for the entire month
irrespective of the fact that such statement is furnished on any such day.
[33]. [“9A. Pawn –ticket to be given to the pawner.― Every pawnbroker shall, on
taking a pledge in pawn, give to the pawner a pawn-ticket in the prescribed form and
shall not take a pledge in pawn unless the pawner takes the pawn-ticket.
9C. Protection of owners and of pawners not having pawn-tickets.― (1) The
following provisions shall have effect for the protection of owners of articles pawned,
and of pawners not having their pawn-tickets to produce:―
(a) Any person claiming to be the owner of a pledge but not having the
pawn-ticket, or any person claiming to be entitled to hold a pawn-ticket, but alleging that
the same has been lost, mislaid, destroyed or stolen or fraudulently obtained from him,
may apply to the pawn-broker for a printed form of declaration (which shall be in the
prescribed form), which the pawnbroker shall deliver to him:
Provided that an application shall not be made under this clause where the loan
exceeds two hundred and fifty rupees unless the applicant has caused a public notice of
his claim, containing such particulars as may be prescribed to be published in the
prescribed manner for not less than the prescribed number of days before the date of the
application.
(b) If the applicant delivers back to the pawnbroker the declaration duly
made before the Magistrate or Judge by the applicant and by a person identifying him, the
applicant shall have, as between himself and the pawnbroker, all the rights and remedies
as if he had produced the pawn-ticket:
Provided that such a declaration shall not be effectual for that purpose―
(i) in cases where the loan exceeds two hundred and fifty
rupees, unless the applicant executes a bond with two sureties, to the satisfaction of the
pawnbroker or of such authority or person as may be prescribed in this behalf, agreeing to
indemnify the pawnbroker in respect of any liability which may be incurred by him by
reason of delivering the pledge or otherwise acting in conformity with the declaration;
and
(c) The pawnbroker is hereby indemnified for not delivering the pledge
to any person until expiration of the period aforesaid.
9D. Pawnbrokers to keep books, give receipts, etc.― (1) Every pawnbroker
shall―
(i) the date of the loan, the amount of the principal of the loan and
the rate of interest charged on the loan per cent per annum, per rupee per mensem and per
rupee per annum;
(iv) the time agreed upon for the redemption of the pawn; and
(v) the name and address of the pawner, and where the pawner is
not the owner of the article or of any of the articles pawned, the name and address of the
owner thereof;
(b) keep and use in his business the following documents and books
(which shall be in the prescribed form) and enter therein from time to time, as occasion
requires, in a fair and legible manner such particulars and in accordance with such
directions as may be prescribed:―
(i) pawn-ticket;
[34] [“(e) submit to the Inspector concerned such returns relating to the
deposits accepted and the loans advanced by him, in such form and at such times, as may
be prescribed”.]
(2) All records or entries made in the books, accounts and documents
referred to in sub-section (1) shall be in such language or languages as may be prescribed
in respect of any area; and all such books, accounts and documents and all pledges taken
by the pawnbroker shall be open to inspection at any time by the licensing authority or by
the Inspectors appointed under section 10 or by any officer authorised in this behalf by
the Government.
(5) In the pawn-ticket furnished to the pawner, in the receipt given under
clause (c) of sub-section (1) and in the statement of accounts furnished under clause (d)
of that sub-section, the figures shall be entered only in Arabic numerals.
(6) If any pawnbroker fails to give to the pawner or his agent a receipt
under clause (c) of sub-section (1), he shall be liable to a fine not exceeding two hundred
and fifty rupees.
9E. Redemption of pledge.― (1) Every pledge shall be redeemable within one
year from the day of pawning, exclusive of that day; and there shall be added to that year
of redemption seven days of grace within which every pledge (if not redeemed within the
period of redemption) shall continue to be redeemable.
9F. Sale of pledge and inspection of sale book.― (1) A pledge may be disposed
of by the pawnbroker, after the expiry of one year and the days of grace provided in sub-
section (1) of section 9E by sale by auction and not otherwise, and the sale shall be
conducted in accordance with such rules as may be prescribed.
(2) A pawnbroker may bid for and purchase at a sale by public auction
conducted under sub-section (1), a pledge pawned with him; and on such purchase, he
shall become the absolute owner of the pledge.
(3) At any time within three years after the public auction, the holder of
the pawn-ticket may inspect the entry relating to the sale either in the pawnbroker’s book
or in such catalogue of the auction as may be prescribed.
(4) (a) Where on such inspection or otherwise the pledge appears to have
been sold for more than the amount of the loan and the interest and charges due at the
time of the sale, the pawnbroker shall pay to the holder of the pawn-ticket, on demand
made within three years after the sale, the surplus after deducting therefrom the necessary
costs and charges of the sale.
(b) If on such demand it appears that the sale of the pledge has
resulted in a surplus but that within twelve months before or after such sale, the sale of
another pledge or pledges of the same person has resulted in a deficit, the pawnbroker
may set off the deficit, against the surplus and shall be liable to pay only the balance, if
any, after such set off.
[36]. [“(2) Every pawn broker shall, on taking a pledge in pawn, insure the
pledge with him with any company or corporation which is authorised by law for such
insurance, for an amount not less than the market value of such pledge.”]
Explanation.― For the purposes of this sub-section, the value of the pledge shall
be its estimated value, if any, entered in the pledge book at the time of the pawn together
with interest on the amount of the principal and shall in no case be less than the aggregate
of the amount of the principal and interest and twenty-five per cent on the amount of the
principal.
9H. Compensation for depreciation of pledge.― If a person entitled and offering
to redeem a pledge shows to the satisfaction of a Civil Court having jurisdiction to
entertain a suit for such redemption that the pledge has become or has been rendered of
less value than it was at the time of pawning thereof by or through the default, neglect or
willful misbehaviour of the pawnbroker, the Court may, if it thinks fit, award reasonable
compensation to the owner of the pledge in respect of the damage, and the amount
awarded shall be deducted from the amount payable to the pawnbroker, or shall be paid
by the pawnbroker, as the case requires, in such manner as the Court directs”.
[37]. [“9 I. Audit of accounts of money-lender.― (1) The accounts of every money-
lender shall be audited at least once in every year by a person who is a chartered
accountant within the meaning of the Chartered Accountants Act, 1949 (Central Act 38
of 1949), and the audit report shall be submitted to such officer or authority and before
such date as may be specified by the Government in this behalf.
(2) If the audit report under sub-section (1) discloses any irregularity or
any contravention or non-compliance of the provisions of this Act or the rules made
thereunder or of any of the conditions of the licence, the officer or authority to whom
such audit report is submitted may, without prejudice to any other action that may be
taken under any other provision of this Act, by order in writing direct the money lender to
take such action as may be specified in the order within the time mentioned therein to
remedy the irregularity or to take such steps necessary to comply with the provisions of
this Act or the rules made thereunder or of the conditions of the licence.”.
10. Appointment of Inspectors and their powers.― (1) The Government or any
authority or officer empowered by them may, by notification inn the Gazette, appoint one
or more persons possessing such qualifications as may be prescribed to be Inspectors for
the purposes of this Act and specify in such notification the local limits of their
jurisdiction.
[38] [*****************************************]
(a) to produce or cause to be produced before him any accounts, registers, records
or other documents; or
(b) inspect any cash, accounts, registers, records, safes, vaults, pledges or other
documents in such premises.
(3) If any officer referred to in this section has reason to believe that the
money-lender has violated any of the provisions of this Act or the rules made thereunder,
he may, for reasons to be recorded in writing, enter and search the place of business of
the money-lender or any other place which includes any godown, buildings, vessel,
vehicle, box or receptacle where the money-lender keeps or is reasonably believed to be
keeping any accounts, registers, other records, documents or pledges relating to his
business:
(4) All searches under this section shall, so far as may be, made in accordance
with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).
(5) The officer making the inspection or search may seize such accounts,
registers, records, or other documents as he considers necessary and on such seizure shall,
grant the money-lender a receipt of the things seized.
(6) The accounts, registers, records or other documents seized under sub-
section (5) shall not be retained by the officer seizing them beyond a period of thirty days
from the date of the seizure, except with the permission of the next higher authority,
unless they are required for any prosecution under this Act.
(7) The power conferred by sub-sections (3) and (5) shall include,―
(a) the power to break-open any box or receptacle, safes, vaults or the
door of any premises in which any accounts, registers, records or pledges of the money-
lender are kept or reasonably suspected to be kept;
(b) the power to seal any box, receptacle, room or building where any
accounts, registers or other documents are kept or reasonably believed to be kept, and if
the owner or any other person in occupation leaves the premises or refuses to open the
box, receptacle room or building or is not available, then to break open such box,
receptacle, room or building on authorization in writing by the officer referred to in sub-
section (3) of this section;
(c) the power to search any person who has got out of or is about to get
into or is in any place referred to in clause (a) or clause (b) of sub-section (2) of this
section if the officer has reason to suspect that such person has secreted about his person
0.
(d) 0.
(e) .
(2) The officer who impounds the documents, accounts or registers of the
money-lender shall grant a receipt of the things so impounded to the person who
produced the same.
(a) who actually advances an amount less than the amount shown in his
accounts or registers or other documents relating to the loan, or
(b) who takes or receives interest or any other charge at a rate higher
than the rate shown in the accounts, registers or documents aforesaid or allowed under
this Act shall be punished with imprisonment which may extended to six months or with
fine which may extend to one thousand rupees or with both.
Provided that, while determining the excess of liabilities over assets, the
security furnished by the money-lender under sub-section (2A) of section 4 of this Act
shall be treated as assets of the money-lender:
(d) by guarantee from a bank approved in this behalf by such authority agreeing to
pay to the State Government on demand, the amount, of such additional security; or
(e) by surety bonds from sureties acceptable to such authority, for the amount of
such additional security.
(4) The additional security furnished by the money-lender shall be retained till,
in the opinion of the Licensing Authority, there exists excess of liabilities over the assets
of the money-lender.
(5) The additional security retained under sub-section (4) shall be utilized for
the payment of the liabilities of the money-lender in connection with his business as
money-lender, at the time of the winding up of the business or cancellation of the license,
as the case may be.
(6) Any money-lender from whom additional security is demanded under this
section and who carries on business without furnishing such security within thirty days of
such demand, shall be punishable with imprisonment which may extend to six months or
with fine which may extend to two thousand rupees or with both”.
(2) No court inferior to that of a Judicial Magistrate of the First Class shall
try any offence punishable under this Act.”.]
14. Power to cancel licence, etc.― (1) The licensing authority may, at any time,
during the term of any licence, cancel it by an order in writing―
(b) if any reason for which the licensing authority could have refused to
grant the licence to the money-lender under sub-section (3) of section 4, is brought to the
notice of that authority after the grant of the licence, or
[42] .[“(cc) if the licensee carries on business without furnishing the security
or additional security as provided in this Act; or”.]
[43]. [“(3) Every order of the licensing authority under this section shall be
communicated to the licensee in such manner as may be prescribed.”]
15. Publication of order of cancellation.― Every order of cancellation of a
licence under this Act shall be noticed in the Gazette and also on the notice board of the
office of the licensing authority.
16. No refund of licence fee when licence cancelled.― A person whose licence is
cancelled under section 14 shall not be entitled to the refund of any fee paid in respect of
such licence [44]. [“or for any compensation for such cancellation”]
[45]. [“16A. Forfeiture of security.― (1) The licensing authority may, at any time, by
order in writing, forfeit to the Government the whole or any portion of the security
furnished under sub-section (2A) of section 4,
(2) Before forfeiting to the Government the whole or any portion of the security
under sub-section (1), the licensing authority shall give the licensee a notice in writing
stating the grounds on which it is proposed to take action and requiring him to show
cause against it within such time as may be specified in the notice.
(3) Every order of the licensing authority under this section shall be
communicated to the licensee in such manner as may be prescribed.”.]
[46]. [“16B. Appeals.― [47]. [“(1) Any person aggrieved by an order of the Licensing
Authority under sub-section (3) of section 4 or sub-section (1) of section 14 or sub-
section (1) of section 16A or by an order of the Inspector or the Licensing Authority
under secstion11A or section 18C or section 18D may, within thirty days from the date of
communication of such order,appeal in such manner as may be prescribed, to the
Appellate Authority having jurisdiction over the area.”.
[48]. [“(1A) Every appeal under sub-section (1) shall be accompanied by a fee
of [49] [three hundred rupees.”;]
(2) The appellate authority may admit an appeal preferred after the period
of thirty days aforesaid if it is satisfied that the appellant had sufficient cause for not
preferring the appeal within the said period.
(3) The appellate authority may, after giving the appellant an opportunity
of being heard, pass such orders on the appeal as it may deem fit.
(4) Every order passed by the appellate authority shall be communicated
to the appellant and to the licensing authority in such manner as may be prescribed”.]
(a) before any Appellate Authority― one hundred and fifty rupees;
(b) before any Revisional Authority― One hundred and fifty rupees.”;]
[51]. [“17. Penalty for carrying on business without licence or in violation of the
conditions of licence.― Whoever carries on the business of money lending without a
licence or in violation of the conditions of the licence or otherwise than in conformity
with the terms and conditions of the licence shall be punished with imprisonment for a
term which, in the absence of special reasons to be recorded in the judgement of the
court, shall not be less than three months but which may extend to three years and with
fine which may extend to fifty thousand rupees.”.]
18. Penalties.― (1) Whoever contravence any of the provisions of this Act or of
any rule made thereunder or of any terms or conditions of a licence granted or deemed to
be granted thereunder or makes a claim or a statement which is false or which he does not
believe to be true shall, if no other penalty is elsewhere provided for in this Act for such
contravention, be punished with fine which may extend to one thousand rupees.
(1) takes an article in pawn from any person appearing to be under the age of
eighteen years, or to be intoxicated; or
(3) employs any person under the age of eighteen years to take pledges in pawn;
or
(4) under any pretence purchases, except at a public auction any pledge while in
pawn with him; or
(5) suffers any pledge while in pawn with him to be redeemed with a view to his
purchasing it; or
(6) makes any contract or agreement with any person pawning or offering to
pawn any article, or with the owner thereof, for the purchase, sale, or
disposition thereof within the time of redemption; or
[53][“(6A)takes from the pawner any power of attorney or any othe document with
blank entries; or”]
(7) sells or otherwise disposes of any pledge pawned with him except at such
time and in such manner as is authorised by or under this Act,shall be
punishable with imprisonment for a term which may extend to six months or
with fine which may extend to five hundred rupees or with both.
(c) not being entitled to redeem, and not having any colour of title by law to
redeem a pledge, attempts or endeavours to redeem the same,shall be
punishable with imprisonment for a term which may extend to six
months or with fine which may extend to five hundred rupees or with both.
(2) In every case falling under sub-section (1) and also in any case where, on
an article being offered in a pawn, for sale or otherwise, to a pawnbroker
he reasonably suspects that is has been stolen or otherwise illegally or
clandestinely obtained, the pawnbroker shall, in the absence of reasonable
excuse, inquire into the name and address of the person concerned, and
seize and detain such person and the article, if any, and forthwith
communicate to the nearest police station the facts of the case and shall
deliver the person and the article, if any, seized to the police.
(3) A list of properties believed to have been stolen may be delivered by the
police to any pawnbroker licensed under this Act and thereupon it shall be
the duty of such pawnbroker―
(a) if any article answering the description of any of the properties set
forth in any such list is offered to him in pawn, for sale, or otherwise,
to proceed in accordance with the provisions of sub- section (2) ; and
[54] [“18C. Imposition of penalty by Officers and Authorities.― (1) If the Inspector or
the Licensing authority is satisfied that any person,―
(a) being a person liable to take himself a licence under this Act, carries on the
business of money-lending without taking such licence; or
(b) has failed to keep true and complete accounts of the business; or
(c) has failed to submit any return or statement as required by the provisions of
this Act or the rules made thereunder; or
(e) has acted in contravention of any of the provisions of this Act or the rules
made thereunder, for the contravention of which, no express provision for
payment of penalty or for punishment is made by this Act:
Such Inspector or Authority may direct that such person shall pay, by way of penalty
an amount not exceeding [55] [twenty-five thousand rupees].
Explanation.― The burden of proving that any person is not liable to the
penalty under this section shall be on such person.
(2) No order under sub-section (1) shall be passed unless the person on
whom the penalty proposed to be imposed is given an opportunity of being heard in the
matter.
18D. Penalty for collection of interest in excess of the rate prescribed under
section 7.― (1) If the Inspector or the Licensing Authority is satisfied that any money-
lender has received interest in excess of the rate of interest specified in section 7 or any
other charge in excess of the rate fixed by the rules made under this Act, [56]. [“he may
order forfeiture of the amount collected in excess and”] direct that such money-lender
shall pay by way of penalty and amount not exceeding thrice the amount of interest or
other charges so received:
Provided that in the case of interest or other charge collected at excess rate,
[57]. [“no penalty shall be imposed or forfeiture ordered”;] under this section, if the
Inspector or the Licensing authority is satisfied that the sum so collected has been
refunded to the person from whom it was collected.
[58]. [“(1A) The excess amount forfeited under sub-section (1) shall be
refunded to the debtor in such manner may be prescribed.”;]
(a) a sum of money equal to the maximum amount prescribed a fine under
this Act, if the offence is committed for the first time; and
(b) in other cases, thrice such amount of fine prescribed under the
respective sections.
18F. Payment and recovery of penalty.― (1) The amount of penalty demanded
under this Act shall be paid in such manner and within such time as may be specified in
the notice of demand;
(a) deposit of the amount in any treasury, nationalised bank, post office or
co-operative bank; or
(b) Government securities or National Savings Certificates, or
Provided that if any security has already been received by the money lender
from any of his employees in any form other than those enumerated above, such security
shall be converted into any of the forms under items (a) to (d), within three months from
the date of commencement the Kerala Money-Lenders (Amendment) Ordinance, 1987.”]
19. Transfer of licence to heir.―(1) Where a licensee under this Act dies, any
person claiming to be his legal representative may apply to the licensing authority for
transferring in his name the licence standing in the name of the deceased.
(2) Every such application shall be in such form and shall contain such
particulars as may be prescribed.
(4) Any licence transferred under sub-section (3) shall be deemed to have
been granted to the applicant himself and shall be valid for the period for which it would
have been valid if the licence had not been transferred, and the provisions of this Act
shall apply accordingly.
[60]. [“20A. Power of revision by the Government.― (1) The [61]. [“Commissioner”]
may suo motu or otherwise, call for and examine any order passed by an Inspector,
Licensing Authority or the Appellate Authority and may make such enquiry or cause
such enquiry to be made and subject to the provisions of this Act, may pass such order
thereon [62]. [“as the Commissioner thinks fit”:]
Provided that no order under this section adversely affecting a person shall be
passed unless that person has had a reasonable opportunity of being heard.
The [63]. [“Commissioner”] shall not pass any order under sub-section (1) if―
(a) the time for appeal against the order has not expired; or
(b) the order has been made the subject of an appeal to the Appellate
Authority; or
(c) more than one year has expired after the passing of the order referred
to therein.
[64]. [“(1A) Every application for revision under sub-section (1) shall be in the
prescribed form and shall be accompanied by a fee of [65] [“seven hundred rupees”]
which shall, in no case, be refunded.”.]
20B. Court not to set aside or modify orders.― No suit or other proceedings
shall, except as expressly provided under this Act be instituted in any court to ser aside or
modify any order made under this Act or the rules made thereunder.
21. Power to make rules.― (1) The Government may make rules to carry out all
or any of the purposes of this Act.
(c) the terms and conditions subject to which a licence may be granted;
(d) the form in which books, accounts and documents specified inthis
Act shall be recorded, maintained, kept or used;
(e) the procedure which should be followed and the powers which may
be exercised by the authorities exercising functions, holding
inquiries and hearing appeals under this Act.
(3) All rules made under this Act shall, as soon as possible after they are
made be placed before the Legislative Assembly and shall be subjects to such
modifications by way of amendments or repeal as the Assembly may make within
fourteen days on which the Assembly actually sits either in the same session or in more
than one session.
[67] [“22. Repeal.― The madras Pawnbrokers Act, 1943 (Madras Act XXIII of
1943) as in force in the Malabar District referred to in sub-section (2) of section 5 of the
States Reorganisation Act, 1956 (Central Act 37 of 1956), is hereby repealed.”.]
[68] [“Provided that any licence issued before the 1st day of March, 1964, under
the Madras Pawn Brokers Act, 1943 (Madras Act, XXIII of 1943), shall be deemed to be
a licence validly issued under the provisions of this Act.”]