section 21
Certain contracts not to be void for offences
The Karnataka Pawnbrokers Act, 1961(1) Where a lender or pawnbroker is guilty of an offence against this Act (not being an offence against any provision of this Act relating to licences), any contract of pawn for a loan, the contract of pawn so far as it confers any right on the pawnbroker in respect of the article pawned shall be void and the retention of the article by such pawnbroker shall be wrongful. (2) Where a pawnbroker is guilty of an offence against this Act (not being an offence against any provision of this Act relating to licences), any contract of pawn or other contract made by him, in relation to his business of pawnbroker, shall nevertheless not be void by reason only of that offence, nor shall he by reason only of that offence, loose his lien on or right to the pledge or to the loan and the interest and other charges, if any, payable in respect thereof: Provided that if a pawnbroker fails to deliver to the pawner a pawn-ticket as required by section 7 or fails to give to the pawner or his agent a receipt as required by clause (c) of sub-section (1) of section 10 or to furnish on a requisition made under clause (d) of that sub-section, a statement of account as required therein within one month after such requisition has been made, the pawnbroker shall not be entitled to any interest for the period of his default: Provided further that if in any suit or proceeding relating to a loan the Court finds that a pawnbroker has not maintained accounts as required by clause (a) or clause (b) of sub-section (1) of section 10, he shall not be allowed his costs.
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