Definitions

In this Act, unless there is anything repugnant in the subject or context,—

1. (1) “Bank” means a company carrying on the business of banking and registered under any of the enactments relating to companies for the time being in force in the United Kingdom, or in any of the Colonies or Dependencies thereof, or in any Part A State or Part C State, or incorporated by an Act of Parliament of the United Kingdom, or by Royal Charter or Letters Patent or by any Act of Parliament.
2. (2) “Company” means a company registered under any of the enactments relating to companies for the time being in force in the United Kingdom or in any of the Colonies or Dependencies thereof, or in any Part A State or Part C State, or incorporated by an Act of Parliament of the United Kingdom, or by Royal Charter or Letters Patent, and includes Life Assurance Companies to which the Indian Life Assurance Companies Act, 1912, applies.
3. (3) “Co-operative Society” means a society registered under the provisions of Co-operative Societies Act, 1912.
4. (4) “Court” includes a court acting in the exercise of insolvency jurisdiction.
5. (5) “Interest” includes the return to be made, over and above what was actually lent, whether the same is charged or sought to be recovered, specifically by way of interest, or otherwise.
6. (6) “Loan” means an advance whether of money or in kind at interest and shall include any transaction which the court finds to be in substance a loan, but it shall not include :—
   • (i) a deposit of money or other property in a Post Office Savings Bank or any other bank, or in a company or with a co-operative society ;
   • (ii) a loan to or by, or a deposit with any society or association registered under the Societies Registration Act, 1860, or under any other enactment for the time being in force ;
   • (iii) a loan advanced by the State Government or by any local body authorised by the State Government.
   • (iv) a loan advanced by a bank, a co-operative society or a company whose accounts are subject to audit by a certificated auditor under the Indian Companies Act, 1913 ;
   • (v) a loan advanced to a trader ;
   • (vi) an advance made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881, other than a promissory note ;
   • (vii) a transaction which is, in substance, a mortgage or a sale of immovable property.
7. (7) “Money-lender” means a person who, in the regular course of business, advances a loan as defined in this Act and shall include the legal representatives and the successors-in-interest, whether by inheritance, assignment or otherwise, of the person who advanced the loan.
8. (8) “Trader” means a person who in the regular course of business buys and sells goods or, other property, whether movable or immovable and shall include—
   • (i) a wholesale or a retail merchant,
   • (ii) a commission agent,
   • (iii) a broker,
   • (iv) a manufacturer,
   • (v) a contractor,
   • (vi) a factory owner, but shall not include a person who sells his own agricultural produce or cattle, or buys agricultural produce or cattle for his own use.