THE MADRAS PAWNBROKERS ACT, 1943 (As extended to the Union territory of Puducherry)

AN ACT to regulate and control the business of pawnbrokers in the State of Madras. Whereas it is expedient to make provision for the regulation and control of the business of pawnbrokers in the State of Madras; It is hereby enacted as follows : - 1. Short title, extent and commencement. – (1) This Act may be called the Madras Pawnbrokers Act, 1943. (2) It extends to the whole of the State of Madras. (3) [Omitted.] 2. Definitions. – In this Act, unless there is anything repugnant in the subject or context --- (1) (Omitted) (2) ‘Company’ means the Company --- (a) registered under any of the enactments relating to companies for the time being in force in India or in the United Kingdom or in any of the British Dominion or in any of the Colonies of the United Kingdom; or (b) incorporated by an Act of Parliament of the United Kingdom or by Royal Charter of Letters Patent or by any Central Act. (3) “Co-operative Society” means a society registered or deemed to be registered under the Puducherry Co-operative Societies Act, 1965 (Act No. 11 of 1965); (3-A) “Inspector” means an Inspector appointed under sub-section (1) of section 10-B; (4) “interest” does not include any sum lawfully charged in accordance with the provisions of this Act by a pawnbroker for or on account of charges, but save as aforesaid includes any amount, by whatsoever name called, in excess of the principal, paid or payable to a pawnbroker in consideration of or otherwise in respect of a loan; (5) “loan” means an advance of money or in kind at interest, and includes any transaction which the court finds in substance to amount to such an advance, but does not include --- (i) a deposit of money or other property in a Government Post Office Savings Bank or in a company or with a co-operative society; (ii) an advance made by a Banking Company as defined in section 5 (c) of the Banking Regulation Act, 1949 (Central Act X of 1949) or by the State Bank of India or by any other banking institution notified under section 51 of the said Act or a co-operative society; (iii) an advance made by Government or by any person authorised by Government to make advances in their behalf, or by any local authority; (iv) an advance made by any person bona fide carrying on any business not having for its primary object the lending of money, if such loan is advanced in the regular course of such business; and (v) an advance made by a landlord to his tenant, by a lessor to his lessee, or by one partner in cultivation or co-sharer to another for the purpose of carrying on agriculture; (6) “pawnbroker” means a person who carries on the business of taking goods and chattels in pawn for a loan; Explanation. – Every person who keeps a shop for the purchase or sale of goods or chattels and who purchases goods or chattels and pays or advances thereon any sum of money with or under an agreement or understanding expressed or implied that the goods or chattels may be afterwards re-purchased on any terms is a pawnbroker within the meaning of this clause; (7) “pawner” means a person delivering an article for pawn to a pawnbroker; (8) “pledge” means an article pawned with a pawn broker; (9) “prescribed” means prescribed by rules made under this Act; (10) “principal” in relation to a loan means the amount actually lent to the pawner; and