Definitions.

§2

Summary

In this Act, unless the context otherwise requires,- (1) "bank" means a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies and includes,- (a) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (b) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (c) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or, as the case may be, under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); and (d) any other banking institution referred to in section 51 of the Banking Regulation Act, 1949 (10 of 1949); (2) "banking company" shall have the same meaning as assigned to it by clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (3) "business of money-lending" means the business of advancing loans whether in cash or kind and whether or not in connection with, or in addition to any other business ; (4) "capital" means a sum of money which a money-lender invests in the business of money-lending ; (5) "company" means a company as defined in the Companies Act, 1956 (1 of 1956); or the Companies Act, 2013 (18 of 2013) (6) "Co-operative Bank", "co-operative society", "multi-state co-operative Bank" and "primary credit society" shall have the same meanings as assigned to them by clause (c) of section 56 of the Banking Regulation Act, 1949 (10 of 1949); (7) "debtor" means a person to whom a loan is advanced whether in cash or kind and includes his successor in interest or surety ; (8) "inspection fee" means the fee leviable under section 12 in respect of inspection of books of accounts of a money-lender ; (9) "interest" includes any sum by whatsoever name called, in excess of the principal paid or payable to a money-lender in consideration of, or otherwise in respect of, a loan, but does not include any sum lawfully charged by a money-lender for, or, on account of costs, charges or expenses in accordance with the provisions of this Act, or any other law for the time being in force ; (10) "investment in business" means total amount invested, from time to time, in business of money-lending by a money-lender ; (11) "licence" means a licence granted under this Act ; (12) "licence fee" means the fee payable in respect of a licence ; (13) "loan" means an advance at interest whether of money or in kind but does not include,- (a) a deposit of money or other property in a Government Post Office bank or in any other bank or in a company or co-operative society ; (b) a loan to, or by, or a deposit with any society or association registered under the Societies Registration Act, 1860 (21 of 1860) or any other enactment relating to a public, religious or charitable object ; (c) a loan advanced by the Government or by any local authority authorized by the Government ; (d) a loan advanced to a Government servant from a fund, established for the welfare or assistance of Government servants, and which is sanctioned by the State Government ; (e) a deposit of money with, or a loan advanced by, a co-operative society ; (f) an advance made to a subscriber to, or a depositor, in a provident fund from the amount standing to his credit in the fund in accordance with the rules of the fund ; (g) a loan to, or by, an insurance company as defined in the Insurance Act, 1938 (4 of 1938); (h) a loan to, or by, a bank ; (i) a loan to, or by, or deposit with, any corporation (being a body not falling under any of the other provisions of this clause), established by or under any law for the time being in force which grants any loan or advance in pursuance of that Act ; (j) an advance of any sum exceeding rupees 1[three lakhs] made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881 (26 of 1881), other than a promissory note ; (k) an advance of any sum exceeding rupees three thousand made on the basis of a hundi (written in English or any Indian language) ; (l) an advance made bonafide by any person carrying on any business, not having for its primary object the lending of money, if such advance is made in the regular course of his business; (m) except for the purposes of sections 29 and 31,- (i) a loan, by a landlord to his tenant for financing of crops or seasonal finance, of not more than Rs. 1,000 per acre of land held by the tenant ; (ii) a loan advanced to an agricultural labourer by his employer ; Explanation.- The expression "tenant" shall have the meaning assigned to it in the Maharashtra Tenancy and Agricultural Lands Act (LXVII of 1948), or any other relevant tenancy law in force relating to tenancy of agricultural lands, and the expressions financing of crops" and "seasonal finance" shall have the meanings assigned to them in the Maharashtra Agricultural Debtors Relief Act (XXVIII of 1947) ; (14) "money-lender" means,- (i) an individual ; or (ii) an undivided Hindu family ; or (iii) a company other than a non-banking financial company regulated under Chapter III B of the Reserve Bank of India Act, 1934 (20 of 1934); (iv) an unincorporated body of individuals, who or which,- (a) carries on the business of money-lending in the State ; or (b) has his or its principal place of such business in the State; and includes a pawn-broker, but does not include,- (i) Government ; (ii) a local authority ; (iii) a Bank ; (iv) a Co-operative Bank ; (v) a multi-state Co-operative Bank ; (vi) a Non- Banking Financial Company ; (vii) a primary credit society ; (viii) a Regional Rural Bank ; (ix) the Reserve Bank of India ; (x) the Agricultural Refinance Corporation constituted under the Agricultural Refinance Corporation Act, 1963 (10 of 1963); or (xi) any other banking or financial institution which the State Government may, by notification in the Official Gazette specify in this behalf ; (15) "pawn-broker" means a money-lender who in ordinary course of his business advances a loan and takes goods in pawn as security for payment of such loan ; (16) "prescribed" means prescribed by rules made under this Act ; (17) "principal", in relation to a loan, means the advance actually made to a debtor whether in cash or in kind ; (18) "Regional Rural Bank" means a bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976); 2[(19) "recognized language", means Marathi, Gujarati, Hindi or any other language recognized by the Government ;] (20) "register" means a register of money-lenders maintained under section 7 ; (21) "Registrar General" means the Registrar General of Money-Lending appointed under section 3 ; (22) "rules" means the rules made under this Act ; (23) "State" means the State of Maharashtra ; (24) "suit to which this Act applies" means any suit between a money-lender and a debtor or his successor arising out of a loan advanced whether before or after the commencement of this Act ; (25) "trader" means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, and includes,- (i) a wholesale or retail merchant, (ii) a commission agent, (iii) a broker, (iv) a manufacturer, (v) a contractor, (vi) a factory owner, but does not include an artisan or a person who sells his agricultural produce or cattle or buys agricultural produce or cattle for his use. Explanation.- For the purposes of this clause, an "artisan" means a person who does not employ more than ten workers in a manufacturing process on any one day of the twelve months immediately preceding.

In this Act, unless the context otherwise requires,- (1) "bank" means a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies and includes,- (a) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (b) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (c) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or, as the case may be, under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); and (d) any other banking institution referred to in section 51 of the Banking Regulation Act, 1949 (10 of 1949); (2) "banking company" shall have the same meaning as assigned to it by clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (3) "business of money-lending" means the business of advancing loans whether in cash or kind and whether or not in connection with, or in addition to any other business ; (4) "capital" means a sum of money which a money-lender invests in the business of money-lending ; (5) "company" means a company as defined in the Companies Act, 1956 (1 of 1956); or the Companies Act, 2013 (18 of 2013) (6) "Co-operative Bank", "co-operative society", "multi-state co-operative Bank" and "primary credit society" shall have the same meanings as assigned to them by clause (c) of section 56 of the Banking Regulation Act, 1949 (10 of 1949); (7) "debtor" means a person to whom a loan is advanced whether in cash or kind and includes his successor in interest or surety ; (8) "inspection fee" means the fee leviable under section 12 in respect of inspection of books of accounts of a money-lender ; (9) "interest" includes any sum by whatsoever name called, in excess of the principal paid or payable to a money-lender in consideration of, or otherwise in respect of, a loan, but does not include any sum lawfully charged by a money-lender for, or, on account of costs, charges or expenses in accordance with the provisions of this Act, or any other law for the time being in force ; (10) "investment in business" means total amount invested, from time to time, in business of money-lending by a money-lender ; (11) "licence" means a licence granted under this Act ; (12) "licence fee" means the fee payable in respect of a licence ; (13) "loan" means an advance at interest whether of money or in kind but does not include,- (a) a deposit of money or other property in a Government Post Office bank or in any other bank or in a company or co-operative society ; (b) a loan to, or by, or a deposit with any society or association registered under the Societies Registration Act, 1860 (21 of 1860) or any other enactment relating to a public, religious or charitable object ; (c) a loan advanced by the Government or by any local authority authorized by the Government ; (d) a loan advanced to a Government servant from a fund, established for the welfare or assistance of Government servants, and which is sanctioned by the State Government ; (e) a deposit of money with, or a loan advanced by, a co-operative society ; (f) an advance made to a subscriber to, or a depositor, in a provident fund from the amount standing to his credit in the fund in accordance with the rules of the fund ; (g) a loan to, or by, an insurance company as defined in the Insurance Act, 1938 (4 of 1938); (h) a loan to, or by, a bank ; (i) a loan to, or by, or deposit with, any corporation (being a body not falling under any of the other provisions of this clause), established by or under any law for the time being in force which grants any loan or advance in pursuance of that Act ; (j) an advance of any sum exceeding rupees 1[three lakhs] made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881 (26 of 1881), other than a promissory note ; (k) an advance of any sum exceeding rupees three thousand made on the basis of a hundi (written in English or any Indian language) ; (l) an advance made bonafide by any person carrying on any business, not having for its primary object the lending of money, if such advance is made in the regular course of his business; (m) except for the purposes of sections 29 and 31,- (i) a loan, by a landlord to his tenant for financing of crops or seasonal finance, of not more than Rs. 1,000 per acre of land held by the tenant ; (ii) a loan advanced to an agricultural labourer by his employer ; Explanation.- The expression "tenant" shall have the meaning assigned to it in the Maharashtra Tenancy and Agricultural Lands Act (LXVII of 1948), or any other relevant tenancy law in force relating to tenancy of agricultural lands, and the expressions financing of crops" and "seasonal finance" shall have the meanings assigned to them in the Maharashtra Agricultural Debtors Relief Act (XXVIII of 1947) ; (14) "money-lender" means,- (i) an individual ; or (ii) an undivided Hindu family ; or (iii) a company other than a non-banking financial company regulated under Chapter III B of the Reserve Bank of India Act, 1934 (20 of 1934); (iv) an unincorporated body of individuals, who or which,- (a) carries on the business of money-lending in the State ; or (b) has his or its principal place of such business in the State; and includes a pawn-broker, but does not include,- (i) Government ; (ii) a local authority ; (iii) a Bank ; (iv) a Co-operative Bank ; (v) a multi-state Co-operative Bank ; (vi) a Non- Banking Financial Company ; (vii) a primary credit society ; (viii) a Regional Rural Bank ; (ix) the Reserve Bank of India ; (x) the Agricultural Refinance Corporation constituted under the Agricultural Refinance Corporation Act, 1963 (10 of 1963); or (xi) any other banking or financial institution which the State Government may, by notification in the Official Gazette specify in this behalf ; (15) "pawn-broker" means a money-lender who in ordinary course of his business advances a loan and takes goods in pawn as security for payment of such loan ; (16) "prescribed" means prescribed by rules made under this Act ; (17) "principal", in relation to a loan, means the advance actually made to a debtor whether in cash or in kind ; (18) "Regional Rural Bank" means a bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976); 2[(19) "recognized language", means Marathi, Gujarati, Hindi or any other language recognized by the Government ;] (20) "register" means a register of money-lenders maintained under section 7 ; (21) "Registrar General" means the Registrar General of Money-Lending appointed under section 3 ; (22) "rules" means the rules made under this Act ; (23) "State" means the State of Maharashtra ; (24) "suit to which this Act applies" means any suit between a money-lender and a debtor or his successor arising out of a loan advanced whether before or after the commencement of this Act ; (25) "trader" means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, and includes,- (i) a wholesale or retail merchant, (ii) a commission agent, (iii) a broker, (iv) a manufacturer, (v) a contractor, (vi) a factory owner, but does not include an artisan or a person who sells his agricultural produce or cattle or buys agricultural produce or cattle for his use. Explanation.- For the purposes of this clause, an "artisan" means a person who does not employ more than ten workers in a manufacturing process on any one day of the twelve months immediately preceding.

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