Maintenance of accounts by money-lender and supply of statements thereof to debtors

(1) Every money-lender shall- (a) regularly maintain an account for each debtor separately of all transactions in respect of any loan advanced to that debtor; (b) furnish such debtor every year with a legible statement of accounts signed by the money-lender or his agent or any balance of amount that may be outstanding against such debtor on such date and in such areas as may be prescribed. Such statement of accounts shall include all transactions in respect of the loan entered into during the year to which the statement relates and shall be furnished, in the court language of the district in which the debtor resides, and in such manner, in such form, containing such details and on such date as may be prescribed. (c) furnish to the Sub-Divisional Officer concerned a copy of every statement of account furnished to a debtor under clause (b). (2) The account required under clause (a) of sub-section (1) shall be so maintained that items due by way of interest shall be shown as separate and distinct from the principal sum and separate totals of principal and interest shall be shown. The money-lender shall not, in the absence of agreement, include the interest or any portion of it in the principal sum, and the principal and interest shall be seperately shown in the opening balance of each new annual account: Provided that - (i) if the loan has, since it was originally advance, passed by inheritance or assignment to a widow or a minor, such widow or minor shall not be bound to maintain and furnish the account under sub-section (1) for a period of two years from the date of such passing; (ii) nothing in this section shall be deemed to lay upon any person the duty of maintaining and furnishing the account under sub-section (1) in the case of a loan wherein the title to recover is sub-judice between two or more persons claiming as money-lenders adversely to each other unless and until the title has been finally decided by a court of competent jurisdiction.