Company, Co-Operative Society, Interest, Loan, Pawn-Broker, Pawner, Pledge
STATEMENT OF OBJECTS AND REASONS
Act 13 of 1962.—The Madras Pawnbrokers Act, 1943 is in force in the Madras
Area, Pawnbrokers in other areas are regulated by the existing Money-Lenders Acts
in force in the respective areas. After a careful consideration, it was, however,
noticed that provisions to be made for pawnbrokers are not the same as those for
money-lenders and hence, it has been considered desirable to enact a separate
legislation for regulation and control of pawnbrokers in this State.
Hence this Bill.
(Obtained from L.C. No. 3221 dated 21st March, 1959. Published in PART IV—2-
A at page 141.)
Amending Act 29 of 1979.—The Karnataka Pawnbrokers Act 1961, which was
brought into force from 29th day of March, 1962 has revealed in the course of
working that certain Pawnbrokers are in the habit of pledging with Commercial Banks
the articles pledged with them for securing monetary accommodation and that the
money so taken is being utilised by them in their money lending transactions for
which high rate of interest are being charged. It has become, therefore necessary to
amend the relevant provision of the Act, so that the said practice adopted by the
Pawnbrokers could be brought within the purview of the provisions of the Act.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 3rd
February 1979 at page. 5.)
Amending Act 40 of 1985.—Persons who obtain credit from the licensed Pawn
Brokers, pledge costly gold ornaments and other articles. It is considered necessary
to insist security deposit from such licensed Pawn Brokers to safeguard the interests
of the Pawners.
In order to meet the increasing cost of administration of the Act, it is also proposed
to increase the license fee.
As the matter was very urgent, the Karnataka Pawn Brokers (Amendment
Ordinance, 1985 (Karnataka Ordinance No. 12 of 1985) was issued.
This Bill seeks to replace the said Ordinance.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 25th July
1985 as No. 398 at page 6.)
Amending Act 9 of 1998.—It is considered necessary to amend the Karnataka
pawn Brokers Act, 1961 (Karnataka Act 13 of 1962), for the following reasons,
(i) To enhance the duration of licence from one year to five years;
(ii) To provide for calculating the amount of security deposit on the amounts
invested and not on the amounts lent. 3
(iii) Since, the Karnataka High Court in writ petition No. 8912/85 and other
connected matters directed the Government to pay interest on security
deposit, as there is no specific provision prohibiting payment of interest,
appropriate provisions are made to remove the lacuna retrospectively from
31st May 1985 and to validate the section.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 2nd
September 1997 as No. 990 at page. 4.)
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