The Tamil Nadu Debtors' Protection Act, 1934
The Tamil Nadu Debtors' Protection Act, 1934
The Tamil Nadu Debtors' Protection Act, 1934, is a regulatory statute designed to bring transparency and fairness to the money-lending sector. It mandates that creditors maintain accurate, written records of all loans, issue receipts for every payment received, and provide detailed statements of account upon a debtor's request. The Act protects citizens from predatory lending by penalizing creditors who fail to keep proper records—specifically by stripping them of their right to claim interest or legal costs during disputes. Furthermore, it establishes legal benchmarks to help courts identify and curb excessive interest rates, ensuring that loan transactions remain equitable.
- 1. Short title, extent and commencement
- 2. Definitions
- 3. Duty of creditor to maintain accounts and give receipts
- 4. Additional accounts to be maintained by pawnbroker
- 5. Figures in accounts and receipts to be in Arabic numerals
- 6. Penalty for non-compliance with sections 3 and 4
- 6A. Presumption in the case of certain loans
- 7. Savings
- 8. Power of State Government to make rules
- 9. Saving
PDF: pending for this language.