Central Act Amendment, The Usurious Loans Act, 1918

An Act to amend the Usurious Loans Act, 1918,
in its application to th? 3[State of Tamil Nadu],
for certain purposes.
‘e~lts;tl WHEREASit is expedient to amend the Usurious Loans
‘(of Act, 1918, in its application to the ‘[State of Tamil

  1. Nadu], for the purpose hereinafter appearing ;
    ANDWHEREASthe previous sanction of the Governor-
    General has been obtained to the passing of this Act;
    It is hereby enacted as follows :-
  2. (1) This Act may be called the Usurious Loans short title,
    extent and
    (‘[Tamil Naduj Amendment) Act, 1936. –
    (2) It extends to the whole of the 3[State of
    Tamil Nadu].
    (3) The provisio~lsof this Act shall apply to all
    !eatraI suits to which the Usurious Loans Act, 1918 (herein-
    after referred to as the said Act), would apply and
    which are pending on, or are instituted on or after,
    the date ofthe commencement of this Act.
    1 Thew words were substituted for the word ” Madras” by the
    Tamil Nadu Adaptation of Laws Order, 1969, as amended by the
    Tamil Nstdu Adaptation of Laws (Second Amendment) Order, 1969.
    For Statement of Objects and Reasons, see Fort &.George
    Uazene, dated the 4th November 1936,Part IV, pages 360-361.
    a This expression was substituted for the expression “Presi-
    dency of Madras *’ by the Tam11 Nadu Adaptation of Laws Order,
    1970,which was deemed to have come into force onthe 14th January
    506 Usurious Loans [I937:T.N. Act VIU
    (Tmil Nodu et)
    Aw-t of 2. In section 3 of the said Act-
    section 3,
    ActX of
    (i) in sub-section (I), for the words, letters and
    bracketE begi~ingwith ”has reason to believe” and
    ending with “any of the following powers, namely,
    may,” the following shall be substituted, namely:-
    “has reason to believe that the transaction was,
    as between the parties thereto, substantially unfair, the
    Court shall exercise one or more of the followins
    powers, namely,–” ;
    (ii) the Explanntion to the same sub-section shall
    be renumbered as Explanation 11and the following shall
    be inserted as Explanation I, namely :-
    “Explanation I.-If the interest is excessive, the
    Court shall presume that the transaction was subs-
    tantially unfair ;but such presumption may be rebutted
    by proof of special circumstances justifying the rate
    of interest.” ;
    (iii) to cla~ise(b) of sub-section (2), the following
    proviso shall be added, namely :-
    “Provided that in the case of loans to agricul-
    turists, if co~llpoundinterest is charged, the Court
    shall presume that the interest is excessive “; and
    (iv) the Explanation to clause (d) of the same
    sub-section sl~allbe omitted.

DISCLAIMER: This document is being furnished to you for your information by Blinkvisa. The contents of this document have been obtained from sources Blinkvisa believes to be reliable. These contents have not been independently verified, and PRS makes no representation or warranty as to the accuracy, completeness or correctness. In some cases the Principal Act and/or Amendment Act may not be available. Principal Acts may or may not include subsequent amendments. For authoritative text, please contact the relevant state department concerned or refer to the latest government publication or the gazette notification. Any person using this material should take their own professional and legal advice before acting on any information contained in this document. Blinkvisa or any persons connected with it do not accept any liability arising from the use of this document. Blinkvisa or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document.