Disposal of property pledged with money-lender carrying on business of money-lending without valid licence

Disposal of property pledged with money-lender carrying on business of money-lending without valid licence.—

1. (1) If, upon the inspection of records and documents made under section 18, the inspecting officer is satisfied that the money-lender is in possession of property pledged to him by a debtor as security for the loan advanced by the money-lender in the course of his business of money-lending without a valid licence or in violation of sections 14 and 15 of this Act, the inspecting officer shall require the money-lender to deliver forthwith the possession of such property to him.
2. (2) Upon the property being delivered to him, the inspecting officer, if he is not the Registrar, shall entrust it to the Registrar and the Registrar when he is also the inspecting officer shall keep it in his custody for being disposed of as hereinafter provided.
3. (3) On delivery of the property under sub-section
4. (1) or sub-section (2), the Registrar shall, after due verification and identity thereof, return it to the debtor who had pledged it or, where the debtor is dead, to his known heirs.
5. (4) If the debtor or his known heirs cannot be traced, the Registrar shall, within ninety days from the date of taking possession of the property, publish a notice in the prescribed manner inviting claims thereto. If, before the expiry of the said period, a claim is received, whether in answer to the notice or otherwise, he shall adjudicate upon and decide such claim. If the Registrar is satisfied that any claim is valid, he shall deliver the possession of the property to the person claiming it on his giving a receipt therefor; and such delivery of the property to the person claiming it shall discharge the Registrar of his liability in respect of such property against any other person. If the claim is refused, the property shall stand forfeited to the Government.
6. (5) Where the possession of the property pledged by a debtor cannot, for any reason including identity thereof be delivered to him, then the money-lender to whom it was pledged shall be required to pay to the debtor or if he is dead, to his known heir, the value of such property if such debtor or, as the case may be, the heir claims the property. If the money-lender fails to pay the value, it may be recoverable from him as an arrear of land revenue; and on recovery of the value, it shall be delivered to the debtor by whom such property was pledged or, as the case may be, to the heir.
7. (6) If there is difference of opinion between the money-lender and the debtor or, as the case may be, his heir, on the question of value of the property or its identity, the question shall be referred to the Registrar for decision and his decision on the question shall be final.
8. (7) The value of the property may be determined with the assistance of the services of an expert appointed by the Government in that behalf. The expert may be paid such honoraria as the Government or any officer not below the rank of a Mamlatdar appointed by it may by an order in writing from time to time in relation to any area or areas determine.