The Money-Lenders Act, 1940 (Bengal Act)

( ACT NO. X Of 1940 )

An Act further to regulate transactions of money-lending in Bangladesh.1

 
WHEREAS it is expedient to make further and better provision for the control of money-lenders and for the regulation and control of money-lending;
 
 
 
 
It is hereby enacted as follows:-
 
 
 
 
 

CONTENTS

SECTIONS

1. Short title, extent and commencement

2. Definitions

3. Notified bank

4. Competent Courts under this Act

5. Procedure in Competent Courts

6. Appointment of Provincial and other Registrars

7. Register of money-lenders

8. Money-lending business not to be carried on except under licence

9. Licences

10. Licence fee

11. Application for licences

12. Entry in register and grant of licences

13. Stay of suit when money-lender does not hold licence

14. Disqualification of persons for holding a licence

15. Proof of conviction or order for disqualification

16. Refusal to grant licence

17. Cancellation of licence by a Sub-Registrar

18. Power to Registrar and Sub-Registrar to examine any person on oath

19. Application for cancellation of licence

20. Court’s power to cancel a licence

21. No compensation for cancellation of licence

22. Licence fees and penalties recoverable as public demands

23. Offences in respect of licences

24. Duty of money-lender to keep accounts

25. Money-lenders to furnish statements of accounts

26. Borrower not bound by money-lender’s statement of accounts

27. Procedure in suits relating to loans by money-lenders

28. Notice and information to be given on assignment of loans by lenders

29. Application of Act as respects assignees

30. Limitations as to the amount and rate of interest recoverable

31. Prohibition of interest on decretal amount

32. Computation of interest on loans in kind

33. Prohibition of charges for expenses on loans

34. Power of Court to direct payment by instalments

35. Sale of property in execution of decrees in respect of loans

36. Re-opening of transactions

37. Prohibition of execution of decrees by arrest and detention in prison

38. Inquiry for taking accounts and declaring the amount due

39. Deposit in Court of money due to lender

40. Entry of an amount in a bond, etc., different to the amount actually lent to be an offence

41. Penalty for molestation

42. General provisions regarding penalties

43. Protection to persons acting under this Act

44. Power to make rules

45. Bengal Act VII of 1933 not to apply to loans to which this Act applies

Schedule

SCHEDULE