CHAPTER
340
MONEY LENDING |
ARRANGEMENT OF
SECTIONS |
SECTION |
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(2) Proceedings by borrower against lender. |
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(4) Application to all money lending. |
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(6) Existing powers of court. |
CHAPTER 340 |
MONEY LENDING |
An Act
relating to money lending. | 20 of 1913 |
[Commencement 7th
July, 1913] |
1. This Act may be cited as the Money Lending Act. | Short title. |
2. In this Act, unless the context otherwise requires- | Interpretation. |
"court"
means the Supreme Court or any magisterial court to the extent to which it has
civil jurisdiction under any Act. |
3. (1) If proceedings are taken in any court by any
person for the recovery of any money lent after the commencement of this Act or
for the enforcement of any agreement or security made or taken after the
commencement of this Act in respect of money lent, and if there is evidence
which satisfies the court that that interest charged in respect of the sum
actually lent is excessive, or that the amounts charged for expenses,
inquiries, fines, bonus, premiums, renewals or any other charges, are
excessive, and that, in either case, the transaction is harsh and
unconscionable, or is otherwise such that a court of equity would give relief,
the court may- | Powers of the court. |
(a) re-open the
transaction and take an account between the lender and the person sued; |
(b) notwithstanding
any statement or settlement of account or any agreement purporting to close
previous dealings and create a new obligation re-open any account, already
taken between them, and relieve the person sued from payment of any sum in
excess of the sum adjudged by the court to be fairly due in respect of such
principal, interest and charges, as the court, having regard to the risk and
all the circumstances, may adjudge to be reasonable; |
(c) if any such
excess has been paid, or allowed in account, by the debtor, order the creditor
to repay it; |
(d) set aside,
either wholly or in part, or revise, or alter, any security given or agreement
made in respect of money lent; |
(e) if the
lender has parted with the security, order him to indemnify the borrower or
other person sued. |
(2) Any court in
which proceedings might be taken for the recovery of money lent by any person
shall have and may, at the insistence of the borrower or surety or other person
liable, exercise the like powers as may be exercised under this section, where
proceedings are taken for the recovery of money lent, and the court shall have
power, notwithstanding any provision or agreement to the contrary, to entertain
any application under this Act by the borrower or surety, or other person
liable, notwithstanding that the time for repayment of the loan, or any
instalment thereof, may not have arrived. | Proceedings by borrower against lender. |
(3) On any
application relating to the admission or amount of a proof by a person who has
lent money in any bankruptcy proceedings, the court may exercise the like
powers as may be exercised under this section when proceedings are taken for
the recovery of money. | Bankruptcy. |
(4) The foregoing
provisions of this section shall apply to any transaction which, whatever its
form may be, is substantially one of money lending. | Application to all money lending. |
(5) Nothing in the
foregoing provisions of this section shall affect the rights of any bona
fide assignee or holder for value without notice. | Bona fide
assignee. |
(6) Nothing in
this section shall be construed as derogating from the existing powers or
jurisdiction of any court. | Existing powers of court. |