Money Lending Court Act, 2003

(Act No. 6 of 2003)

[March 10, 2003]

Laws enacted to further amend and consolidate existing laws for recovery of loans by
financial institutions.

   
Since further amendment and consolidation of the existing law is required for recovery of
loans provided by financial institutions;
   
 Therefore, the following laws were enacted: -
   

CHAPTER 1
Early

Short title, 1 (1) This Act may be called the Debt Court Act, 2003
application    (2) It shall be applied in the whole of Bangladesh
and    (3) The provisions of Sections 46 and 48 of this Act shall come into force
introduction
at the time specified in the said sections and the remaining provisions
shall come into force from 1st May, 2003.

Definition 2 In this Act, unless there is anything contrary to the subject or context, -
   (A) "financial institution" means-
   (1) Bangladesh Bank established under the Bangladesh Bank Order,
1972 (PO No. 127 of 1972);
   (2) Banks constituted under the Bangladesh Banks (Nationalization)
Order, 1972 (PO No. 26 of 1972);
   (3) a banking company established or operated under the Banking
Companies Act, 1991 (Act No. 14 of 1991);
   (4) Housing Lending Corporation established under Bangladesh House
Building Finance Corporation Order, 1973 (PO No. 7 of 1973);
   (5) Investment Corporation of Bangladesh established under the
Investment Corporation of Bangladesh Ordinance, 1976 (Ordinance No.
XL of 1976);
  (6) The Bangladesh Shilpa Rin Sangstha Order, 1972 ( 1 [PO No. 128] of
1972) established the Bangladesh Industrial Credit Society;
   (6) The Bangladesh Shilpa Bank Order, 2 [1972] (PO No. 129 of 1972)
established Bangladesh Shilpa Bank;
   
 (6) Bangladesh Krishi Bank established under The Bangladesh Krishi
Bank Order, 1973 (PO No. 27 of 1973);
   (9) The Rajshahi Krishi Unnayan Bank Ordinance, 1986 (Ordinance No.
LVIII of 1986) established Rajshahi Krishi Unnayan Bank;
  
 (10) The Bangladesh Small and Cottage Industries Corporation
established under the Bangladesh Small and Cottage Industries
Corporation Act (EP Act XVII of 1959);
  
 (11) Financial institutions established under the Financial Institutions Act,
1993 (Act No. 28 of 1993);
   (১২) International Finance Corporation (IFC);
  
 (১৩) Commonwealth Development Corporation (CDC);
  
 (১৪) Islamic Development Bank (IDB);
  
 (১৫) Asian Development Bank (ADB);
   (১৬) International Bank for Reconstruction and Development (IBRD);
   (১৭) International Development Association (IDA);
 3  
[(17) any bank established under any law.]
   (B) "court" or "money loan court" means any court established or declared
under section 4 for the purpose of this Act or a court of a joint-district
judge to the effect that it shall be deemed to be a money loan court.
 (  C) "Debt" means-
   (1) advances, loans, cash loans, overdrafts, banking credits, discounted
or purchased bills, money invested by financial institutions operating in
accordance with Islamic Shariah or any other financial favors or facilities,
whatever the name may be;
   (Ii) guarantee, indemnity, debenture or any other financial settlement
which a financial institution makes or issues on behalf of the borrower or
accepts as liability;
  
 (3) any loan given by a financial institution to any of its officers or
employees; And
   (4) a loan referred to in (3) from the preceding sequence (1), or, as the
case may be, interest, penalty interest or profit or rent legally imposed on
money invested by a financial institution operated in accordance with
Islamic Shariah;
   (D) "Government" means the Government of the People's Republic of
Bangladesh

The rule of 3 6 Notwithstanding anything contained in any other law for the time being
law in force, the provisions of this Act shall apply.
   
CHAPTER 2
 Establishment of court

Establishment 4 6 (1) The Government may, subject to the provisions of sub-sections (2)
of court and (3), by notification in the Official Gazette, establish one or more
money lending courts in each district for the purpose of judging cases by
financial institutions and other matters relating to this Act.
   (2) The Government may, if it deems it convenient, establish a money
lending court for two or more districts.
   (3) If no money loan court has been established or declared under sub-
section (1) or (2), a case relating to recovery of debt of the financial
institution shall be filed in the Joint-District Judge's Court of the concerned
local jurisdiction; And the provisions of this Act shall be followed in all
proceedings in the hearing, issuance, appeal, etc. of all such cases as if
the said Joint-District Judge's Court is a court established or declared
under this Act and for the purpose of this Act the said Joint-District
Judge's Court owes money under this Act. 6 shall be treated as a court
  (4) For the purposes of this section, the Government may, by notification
in the Official Gazette, declare any court of the present Joint-District
Judge, where applicable , in accordance with the provisions of the Civil
Courts Act, 1887 , to transfer or redefine its local jurisdiction as a court of
money. , And upon similar declaration, the proceedings of that court as a
joint-district judge's court shall be terminated or suspended, and the
district judge shall direct the transfer of all other cases pending in that
joint-district judge's court to another joint-district judge's court under his
jurisdiction.
   (5) The Government, in consultation with the Supreme Court, shall
appoint a judge of the Money Lending Court from among the Joint-District
Judges, and no such appointed Joint-District Judge shall adjudicate any
civil or criminal case except in connection with a money loan case.
  
 (6) The Government may, if it deems it necessary, appoint a judge of the
Money Lending Court, in addition to its own responsibilities, as a judge of
the Money Lending Court.
  
 (6) In case of leave, illness or any other reason established, declared or
deemed under this section, the judge appointed in the court of law is
temporarily unable to perform his duties, the District Judge temporarily or
in addition to any joint-District Judge appointed under his local jurisdiction
and administrative control. You can appoint the said money in the charge
of the loan court for the period
  
 (6) The Government may, by notification in the Official Gazette, at any
time, abolish any debt to the Court.
  
 (9) If the Government abolishes any money loan under sub-section (6),
the same order shall also make provision for specific arrangements in
respect of cases pending in that court.
  
 
 (10) Dissolved money court under sub-section (6), if the court has been
declared in accordance with sub-section (4), the terminated or suspended
proceedings of the Joint-District Judge's Court shall be revived due to
such declaration and the District Judge shall proceed to that court. 6 will
arrange for the transfer of the case
  
 (11) The Money Lending Court shall be located at the District
Headquarters, and if a Money Lending Court has been established for two
or more districts, the Government shall, by notification in the Official
Gazette, determine the District Headquarters of that Court.
  
 (12) A judge of a money-lending court established or declared by a joint-
district judge under this section shall be referred to as a "judge, money-
lending court".
  
CHAPTER 3
Powers and jurisdiction of the court

The sole 5 6 (1) Notwithstanding anything contained in any other law, subject to the
jurisdiction provisions of sub-sections (5) and (6), all cases relating to the recovery of
of the court debt of a financial institution established, declared or deemed under
section 4 shall be filed in the debt court and They will be disposed of in
that court
   (2) A section of the Transfer of Property Act, 1882 (Act No. IV of 1882) for
the purpose of sale or foreclosure of the mortgaged real estate against
the loan given by the financial institution under this Act as collateral for
the immovable property . 67 and if any mortgage suit is to be filed under
the provisions of Order XXXIV of The Code of Civil Procedure, 1908 (Act
No. V of 1908), such case shall also be filed in the Money Debt Court
established under this Act; And in such cases the provisions of The Code
of Civil Procedure, 1908 shall apply, as far as possible, in coordination
with the provisions of this Act.
  
 (3) If a case filed by a financial institution under sub-section (2) is a
mortgage suit for the purpose of foreclosure, the decree issued by the
court shall be a preliminary decree only in that case and in all other cases
the debt shall be recovered. The decree issued by the court in the case
filed will be the final decree.
   (4) Notwithstanding anything contrary to the Transfer of Property Act,
1882 or any other law currently in force, except in the case of a mortgage
under sub-section (3), in any case filed under this Act, a decree issued by
the court in favor of the plaintiff financial institution. Foreclosure shall be
deemed to be the initial decree; And the initial decree shall be deemed to
be the final decree as soon as the auction is held in the continuation of
the mortgage immovable property decree in favor of the plaintiff against
the loan, and the sale final and purchase shall be deemed valid and
hence no right to redeem the said property.
  
 
 (5) Notwithstanding anything contained in the provisions of The Public
Demands Recovery Act, 1913 (Act No. III of 1913), a debt under this Act,
even if the debt is a “government debt” to be recovered by a debt court,
must be filed in a court of law under this Act. :
  
 Provided that the Bangladesh Krishi Bank, Rajshahi Agriculture
Development Bank and other financial institutions by the state-owned U- 4
[500,000 rupees (five lakhs)] did not file a claim with the court cases to
borrow money to The Public Demands Recovery, Act, According to the
provisions of 1913 , a certificate can also be filed as a case
   (6) If there is any special provision in a particular law for the recovery of
debt by a financial institution established by a particular law, the
provisions of this Act shall be deemed to be in addition to the provisions
of that Act; And the provisions of this Act shall apply if a debt collection
case is filed in a court under this Act by a similar financial institution.
  
 (6) Notwithstanding the provisions of sub-section (1), nothing in this
section may be used by any financial institution for sub-sections (12),
(13), (14), (15), (16) of clause (a) of section 2. ) Shall not be effective in
the recovery of loans made to the Government by financial institutions
under (17).
  
 (6) A case filed under this Act shall be registered as a "money loan case".
  
 (9) If there is more than one money loan court in a district, their local
jurisdiction for filing a case shall be determined by the district judge.
  
 (10) The District Judge may, voluntarily or in the light of the application of
any party to the case, deem it necessary in the interest of justice, to
transfer any money pending in the Credit Court to any other Credit Court
located in his jurisdiction, if any.
   (11) The Money Debt Court shall be deemed to be a civil court and,
subject to non-inconsistency with the provisions of this Act, shall have all
the powers and jurisdiction of the civil court.
  
CHAPTER 4
Case filing, court procedure and procedure

Judicial 6. (1) The relevant provisions of the Code of Civil Procedure, 1908, shall
system apply in the proceedings relating to the trial or disposal of any case filed in
the Money Lending Court under this Act, provided it is not inconsistent
with the provisions of this Act .
  (2) A case under this Act shall be filed by the financial institution by filing
an RG, an affidavit shall be attached with the RG in support of the RJ's
statement and relevant documentary evidence, the court fee payable with
the RG shall be paid If the RG is appropriate, it shall be included in the
prescribed register of the court in chronological order.
 (  3) A suit filed by a financial institution under this Act may be challenged
by the respondent by filing a written reply, an affidavit must be attached to
 the written reply and a written reply in support of the relevant
documentary evidence 5 [****] and the submitted written The reply will be
included in the case document.
 (  4) An affidavit attached to the provisions of sub-sections (2) and (3) shall
be deemed to be substantive evidence in the case of disposal of money
under this Act in the court of debt, and the court shall not consider any
case in case of unilateral or immediate disposal of a case The judge shall,
without examination, give a judgment or order only after analyzing such
affidavit or written reply and the relevant documentary evidence.
  (5) When a financial institution files a case against the principal debtor, if
the third party mortgagor or third party guarantor is involved in the loan,
they will be the party to the defendant; And the judgment, order or decree
issued by the court shall apply jointly and severally against all the
defendants and the case for issuance of decree shall be conducted
against all the defendants simultaneously:
  rovided, however, that in the event of a claim being issued by decree,
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the court shall first, as far as possible, attract the property of the principal
debtor-defendant and then of the third party mortgagor and third party
guarantor, respectively:
  It is further stipulated that if the claim of the decree issued in favor of the
plaintiff has been paid by a third party mortgagor or a third party
guarantor, the decree shall be transferred in their favor and they may
apply or enforce it against the principal debtor. You can do it

Provisions . (1) Notwithstanding anything contained in any other law for the time
relating to being in force, the plaintiff shall, for the purpose of sending by registered
issuance of post by the issuer of the court and acknowledgment of receipt, submit the
summons summons to the court for issuance of summons with RG If it is not
returned within 15 (fifteen) days, or returned without prior notice, then the
court shall, within the next 15 (fifteen) days, at the expense of the plaintiff
in any widely circulated Bengali national daily newspaper, and also in a
local newspaper, if any. , And if the court deems it necessary in the
interest of justice, the summons shall be issued by the publication of the
advertisement, and similar issuance shall be deemed to be lawful.
  (2) In addition to the provisions of sub-section (1), if the plaintiff wishes to
issue a summons and notice to the defendant at his own expense, the
court shall also enforce this provision in addition to the first provision of
issuance of summons by the court issuer in the preceding sub-section.
 (  3) The plaintiff shall submit a sample advertisement with the petition to
the court at the time of filing the RG as a precautionary measure by
issuing advertisement in the national daily newspaper, and if the court is
to act in accordance with the provisions of the previous sub-section, Will
arrange.

RG 8. (1) The financial institution shall file a suit by filing an RG and the RG
shall, among other things, mention the following matters, namely: -
   (A) the name, address, place of work, etc. of the plaintiff;
   (B) the name, address, place of work, residence, etc. of the defendant;
  
 (C) all events relating to the claim;
   (D) the cause of the case, the event, place and date of origin;
   (E) endorsement of cases for the purpose of payment of court fees;
  
 (F) a statement to the effect that the court has jurisdiction; And
   (G) Remedy sought 6
   (2) In addition to the matters mentioned in the preceding sub-section, the
plaintiff shall include further in the petition-
   (A) a schedule in which shall be displayed-
   (Ii) the principal loan paid to the defendant or, as the case may be, the
amount invested;
   (Ii) the amount charged as normal interest or, as the case may be, profit
or rent;
   (E) the amount of money charged as penalty interest;
  
 (6) the amount of money imposed on the defendant for other matters;
  
 (A) the amount of money deposited by the defendant to the plaintiff's
financial institution for repayment of the loan or dues as per the final
account prepared before the filing of the suit; And
   (N) the relative position of the total amount paid and assessed by the
plaintiff and the total amount paid by the defendant;
   (B) a schedule, in which, all the movable and immovable property which
has been borrowed by the defendant with a mortgage or collateral, a
detailed identification, details, and financial assessment of them and the
relevant mortgage or security documents, shall be displayed.
   (3) If the plaintiff mentions any document as evidence in support of his
claim and the document is in his possession, he shall submit the said
document along with the application or its attested copy or photocopy.
   (4) If the plaintiff relies on any document which is not in his possession as
evidence in support of his claim, he shall submit with the petition a list of
such documents stating who has the said document.
   (5) Except in the provisions of sub-sections (2) and (3), if the plaintiff
subsequently submits any document, the court shall not accept it without
giving reasonable cause and cost; And the expenses payable shall be
credited to the designated sector as public revenue
  
 (6) At one point in the RG, the plaintiff shall state who will act as the
executor.
  (6) If the plaintiff is unable to provide any details of the property of the
defendant in any case, the court shall, on the application of the plaintiff,
direct the respondent to submit an account of his movable and immovable
 property with a written affidavit and if such instruction is obtained Will
submit to the court with written affidavit
   (6) At the time of filing suit under this section, the financial institution shall
submit to the court as many copies of the RG and attached papers as
may be the total number of defendants.

Written 9 6 (1) The respondent shall appear before the court on the date fixed by
reply the summons issued by the court and shall submit the written reply if
there is a reply to the claim of the plaintiff.
  
 (2) If the respondent relies on a document in support of his statement and
the document is in his possession, he shall include the document or its
attested photocopy in a list and submit it along with the written reply.
   (3) If the respondent relies on any document which is not in his
possession or in his possession as evidence in support of his reply, he
shall submit a list of such documents or documents, in whose possession
they are, mentioning the name and address, along with the written reply.
   (4) Except in the provisions of sub-sections (2) and (3), the court, if
subsequent submission of any document by the respondent, shall not
accept it without giving reasonable cause and cost; And the expenses
payable shall be credited to the designated sector as public revenue
   (5) If the plaintiff has admitted the plaintiff's claim or any part thereof, the
respondent shall clearly include the details of such acknowledgment in a
clause of the written reply.
   (6) If the plaintiff denies the claim or any part of the claim, the respondent
shall clearly state the amount thereof in a written reply and the reasons or
arguments in support of the denial.
   (6) A clause of the written reply shall specify who will act as the
respondent or the respondent on behalf of the respondent.
   (6) At the time of submission of written reply by the respondent under this
section, a copy of the written reply and attached papers shall be
submitted to the court for the plaintiff.

Deadline 10 (1) Subject to the provisions of sub-section (2), the Money Lending
for Court shall not accept any written reply filed by the respondent after 40
submission (forty) days of the appearance of the respondent, and in such case the
of written court shall immediately dispose of the case unilaterally.
reply    (2) Notwithstanding the provisions of sub-section (1), the court may
extend the said period up to a further 20 (twenty) days subject to the
precondition of payment of expenses up to Rs. 2000 (two thousand) and
up to Rs. 5,000 (five thousand).
  
 (3) Expenses payable under this section shall be deposited in the
designated sector as public revenue and its invoice shall be submitted to
the court as proof.
Additional 11 If the plaintiff seeks to provide any additional reply or statement to the
reply RG in response to the written reply submitted by the respondent, subject
against to the permission of the court, he shall file the written reply within 15
written (fifteen) days after the submission of the reply.
reply

Sale of 12 (1) Subject to the provisions of sub-section (2), any financial institution,
certain any property of the defendant in its own possession or control which has
securities been lent by mortgage or pledge, and which the plaintiff has the legal right
by financial to sell or The plaintiff shall not file any suit in the Money Debt Court
institutions without having sold it and adjusting the proceeds of the sale.
  (2) Notwithstanding the provisions of sub-section (1), if any financial
institution files a suit without selling the mortgage or mortgaged property
in its possession or control, it shall immediately sell the property as stated
above and reconcile the proceeds with the loan and the matter to the
court in writing. Will inform 6
  (3) The ability of a financial institution to mortgage any immovable
property from the defendant or to provide a loan with a hypothecated
mortgage and to sell the mortgaged or liable property at the time of
mortgage or liability. 6 [*****] If it has been paid to a financial institution, it
will not file a lawsuit in the Money Lending Court without selling it and
without adjusting for the repayment of the loan proceeds, or failing to try
to sell.
  (4) In the case of sale referred to in sub-section (3), the financial
institution shall, as far as possible, follow the provisions of sub-sections
(1), (2) and (3) of section 33 of this Act.
   [(5) any financial institution, if in its favor, before or after the sale of
7

possession and control of similar immovable or movable property for the

convenience of activities under this section for sale of any immovable or
movable property mortgaged or liable under sub-section (3) or If the
borrower deems it necessary to surrender to its own possession or control
or, as the case may be, to surrender in favor of the buyer, the financial
institution or, as the case may be, immediately grants such possession to
the financial institution or, as the case may be, to the buyer.
  (5a) if, in spite of a written request under sub-section (5), the respondent
or the borrower has not surrendered possession and control of the
property referred to in that sub-section to the financial institution or, as the
case may be, to the purchaser, May request the District Magistrate to
surrender possession and control of such property from the respondent or
the borrower in his favor or, as the case may be, in favor of the buyer;
And similarly, if requested, the District Magistrate or any magistrate of his
designated first class, subject to the satisfaction of the mortgage or
liability of the said property against the loan given in favor of the financial
institution, recovering its possession and control from the defendant or
borrower. Surrender on behalf of the organization in favor of the buyer.]
 
 (  6) If a financial institution does not comply with the provisions of sub-
sections (2) and (3), the court, on its own initiative or on the written
application of the respondent, sues the financial institution for the
assessment of the said property at the time of issuing the decree. The
court shall issue a decree excluding the claim and if there is no displayed
value, the court shall, after receiving the report of the sub-registrar of the
local jurisdiction of the property, fix the value and issue the decree
deducting the amount equal to the fixed value.
  (6) The ownership of the property under which the prescribed value of the
property under sub-section (6) shall be de-deducted from the claim of the
suit shall be vested in favor of the financial institution in a manner similar
to the provisions of sub-section (6) of section 33.
  (6) Notwithstanding anything to the contrary in any other law for the time
being in force, if any financial immovable or movable property is sold by a
financial institution under this section under the powers obtained under
lien, pledge, hypothecation or mortgage, the sale shall create a legal right
in favor of the buyer. And the buyer's purchase cannot be disputed in any
way:
  Provided that, if there is any irregularity or procedural irregularity in the
sale activities by the financial institution, the guarantor-borrower may
claim compensation against the financial institution.

Formation 13 (1) On a date fixed after the submission of the written reply by the
and defendant, the court shall, if present, hear both parties and, after
disposal of reviewing the RG and the written statement, constitute the subject matter
the case of the case, if any; And if there is no matter to be judged, the court shall
immediately give judgment or order
  
 (2) On the date prescribed in sub-section (1), if either or both parties are
absent, the court shall, after reviewing the RG and the written statement,
constitute the subject matter of the case, if any; And, if there is no matter
to be judged, the court shall immediately give judgment or order
   (3) At any stage of the case, if the plaintiff's statement has been accepted
by the defendant in the written statement or in any other way, and on the
basis of such recognition the plaintiff has applied to the court seeking
such judgment or order, the court, the plaintiff and The adjudicator shall
give an appropriate judgment or order without waiting for the settlement of
other existing matters.
   (4) If on the first date fixed for the hearing of the case or at any stage of
the case, it appears to the court that there is no dispute between the
parties over facts or legal matters, the court shall immediately dispose of
the case and give final verdict.

The hearing 14 (1) Subject to the provisions relating to the time limit for disposal of
of the case cases under section 18, the date fixed for the final hearing of a case in the
has been Money Lending Court may not be adjourned more than once on the
adjourned application of either party.
   
 (2) Notwithstanding the provisions of sub-section (1), the court, without
deviating from the time limit fixed for the disposal of the judgment in this
section, on the application of any party, at least 1,000 / - (one thousand)
and not less than 3,000 / - by that party. Expenses up to (three thousand)
rupees can be granted more than once, subject to the precondition of
payment before the due date.
  (3) The amount of deferred expenditure payable under the provisions of
sub-section (2) shall be deposited in the designated sector as public
revenue and a receipt shall be submitted to the court as proof; And in the
event of a breach of this condition, the court shall immediately dispose of
the case unilaterally.
   (4) After the commencement of the hearing of the case, it shall continue
continuously and the partial hearing of such case may be adjourned only
till the next working day of the court.

Provisions 15 (1) It shall not be necessary for a judge of a debt court to hear oral
relating to arguments before giving a verdict in a case filed under this Act.
oral or    (2) Subject to the provisions of sub-section (3), if any party or parties so
written desire, to submit written arguments within 5 (five) days immediately after
arguments
the conclusion of the case, informing the court in writing and providing a
copy to the other party or parties. Yes, but there will be no opportunity to
give a written answer against the written argument
   (3) Notwithstanding the provisions of sub-section (2), the court may, if it
deems necessary, order either party or parties to present additional oral
arguments in addition to the written arguments.

Provisions 16 (1) The court shall give judgment within 10 (ten) days after the
relating to completion of the testimony of the case, provided, however, that the party
judgment or parties have submitted written arguments under sub-section (2) of
section 15 or the court under sub-section (3). Upon hearing the oral
argument, the court shall give judgment within 10 (ten) days from the date
of submission of such written argument or hearing of the oral argument.
   (2) The court, in its judgment or order, shall, unless it has fixed a longer
time limit for the payment of the declared amount in installments, fix any
one time limit of not less than 60 (sixty) days and instruct the respondent
to pay the declared money within that time.

Provisions 16 (1) A case filed under this Act, if the respondent does not appear
relating to despite the issuance of summons, within 30 (thirty) days from the date of
time limit issue of summons, and if the respondent appears and submits a written
for disposal reply, subject to the provisions of sub-section (2), written reply Must be
of cases completed within 90 (ninety) days from the date of submission.
  (2) Notwithstanding the provisions of sub-section (1), if the court is unable
to settle the case within the prescribed time limit of 90 (ninety) days, the
appropriate reasons may be recorded.
Special 16 (1) No money embezzled by any officer or employee of any financial
provisions institution shall be recoverable as a debt by a court under this Act.
for filing    (2) No borrower may file a suit against any financial institution in a court
and hearing under this Act, in any matter arising out of the relevant debt, seeking any
cases remedy, and by filing a written reply in the case filed by the borrower-
defendant, plaintiff-financial institution, The written reply may not include a
set-off or counter-claim.
   (3) If the borrower-defendant has filed a case in any other court as a
plaintiff in the matter arising out of the respective debt, the case shall not
be heard together with the case filed in the court established under this
Act, or the case pending in the court established under this Act. - The
case pending in the other court mentioned shall not be heard together in
that other court; And a case filed under this Act may not be stayed for any
similar reason

Provisions 19 (1) If the respondent is absent from the court on the date fixed for the
relating to hearing of the case, or if the respondent is not present after being
unilateral summoned for the hearing, the court shall dispose of the case unilaterally.
decrees    (2) If a case is decreed unilaterally, the respondent may, within 30 (thirty)
days from the date of notification of the unilateral decree or notice of the
unilateral decree, subject to the provisions of sub-section (3), apply for
revocation of the unilateral decree.
   (3) In the case of submission of application under sub-section (2), within
15 (fifteen) days after the date of submission of the application, the
respondent shall be paid cash amount equal to 10% of the amount
declared by the plaintiff to the concerned financial institution, or bank draft
as security. Pay-order or any other type of Negotiable Instrument must be
submitted to the court as security.
  (4) With the deposit of 10% of the amount decreed under sub-section (3),
the application shall be granted, the unilateral decree shall be quashed
and the original case shall be revived in its previous number and
document, and the court shall record an order to that effect; And
thereafter the case shall proceed from the immediate preceding stage to
the stage at which it was settled unilaterally.
   (5) The amount of 10% of the amount decreed under the provisions of
sub-section (3) of the respondent is in cash with the concerned financial
institution in recognition of the plaintiff's claim, or in the form of bank draft,
pay-order or any other type of negotiable instrument as collateral. Failure
to submit to the court as security, the application shall be dismissed
outright; And the court shall record an order to that effect
   (6) No case pending in the Money Lending Court shall be dismissed on
account of absence or failure of the plaintiff, and in such case the Court
shall, after examining the papers presented in the documents, dispose of
the case on merit analysis.
The 20 Except for the provisions of this Act, no question may be raised in
finances of respect of any proceedings or any order, judgment or decree pending in
the money the court of money lending to any court or authority, and any remedy
loan court claim or petition by appealing to any court or authority disregarding the
order provisions of this Act. If so, such application will not be accepted by any
court or authority
   
CHAPTER 5
Dispute settlement in alternative ways

[Extinct] 8
[***]

Mediation 9
[22. (1) Notwithstanding the provisions relating to the trial or hearing of
the case in the ordinary manner described in Chapter IV, after the
submission of written reply by the respondent in any case filed under this
Act, the court, subject to the provisions of section 24 Or if the lawyer is
not appointed, he will send it to the parties.
 (2) The lawyers appointed in a case sent under sub-section (1), in
consultation with the parties to the case, by mutual consent of another
lawyer, who is not employed by either party, or a retired judge, retired
officer of a bank or financial institution, or any other suitable The person
can be appointed as an arbitrator for the purpose of settling the case:
 Provided, however, that any person appointed to a lucrative position in the
service of the Republic shall be ineligible to be appointed mediator under
this section.
 (3) The court shall not prescribe the remuneration of lawyers and
arbitrators and the procedure of arbitration when referring a case for
arbitration; Concerned lawyers, parties and arbitrators shall determine the
remuneration and arbitration procedure on the basis of mutual consent.
 (4) The arbitrator shall submit a report to the court after the conclusion of
the arbitration proceedings, preserving the confidentiality of the
information of the parties, and the signature of the parties as the executor
of that report, or, as the case may be, the fingerprints of the left hand,
However, if the dispute has been settled through mediation, the terms of
such settlement must be recorded in writing in the form of an agreement.
 (5) The arbitration proceedings shall be completed within 60 (sixty) days
from the date on which the court shall order the settlement of the dispute
through arbitration, unless the court has requested a written application
from both the parties, or on its own initiative stating the reasons. That
period is not extended for more than 30 (thirty) days.
  The parties shall inform the court in writing the name of the arbitrator
(6)
within 10 (ten) days of the order of arbitration under sub-section (1) and if
the parties fail to appoint an arbitrator within this period, the court shall
appoint an arbitrator.
 
 (6) The court shall issue the necessary order or decree on the basis of the
report referred to in sub-section (4) and subject to the provisions of
section 24.
 (6) The arbitration proceedings under this section shall be confidential
and any discussion or consultation between the parties, their appointed
lawyers, representatives and arbitrators, any evidence presented, any
confession given, statement or comment shall be deemed confidential
and at any subsequent hearing Or they may not be mentioned in any
other activity or it will not be admissible as evidence.
  Notwithstanding anything contained in the Court Fees Act, 1870 (Act
(9)
No. VII of 1870), if a dispute under this section is settled by arbitration, the
court may, for the purpose of refunding all court fees paid on application
from the Collector. Will issue a certificate in favor of the plaintiff and on
the basis of which the plaintiff will be entitled to a refund of the court fee
paid.
 (10) An order for the settlement of a case through arbitration under this
section shall be deemed final and no appeal or revision may be filed in
the High Court against such order.
 (11) If the attempt to settle the dispute through arbitration fails, the court
shall commence the hearing of the case from the preceding position of
the arbitration proceedings.]

Efforts to 10
[23. (1) If the dispute is not settled in an alternative manner through
resolve arbitration under section 22, sub-section (2), (3) and (4) of section 22,
disputes in with the permission of both parties at any stage of the case before the
an court issues a judgment or order as per the provisions of Chapter 4. ) May
alternative settle the case in an alternative manner in accordance with the provisions
manner mentioned above.
 (2) The opportunity to settle a case through arbitration provided under
sub-section (1) shall not deviate from the time limit for disposal of the
case referred to in section 16 of this Act.]

Mediation 11 24. 12 [(1) In order to carry out the objective of settling a case in an
[***] alternative manner through mediation under this Act, the financial
Empowering institution may, by its Board of Directors or similar appropriate level, make
officials at a resolution or decision for that purpose, appointing an appropriate
the local manager at central, regional and local level. Issue orders or circulars
level to play giving appropriate powers to the officer.]
an effective    (2) The financial institution shall, in the order or circular issued under sub-
role in section (1), clearly state the limits of the powers conferred and the powers
meetings conferred and the manner and principle of exercise of such powers.
  
 (3) The financial institution shall send a copy of the order or circular
issued under sub-section (1) to the money loan of the area concerned.
 13
   [(4) The court shall, before issuing a decree or order in accordance
with the compromise reached by alternative method of mediation under
 this Act, ensure that the said settlement has been made within the limits
prescribed by sub-section (2) and, as the case may be, the managing
director or head of the financial institution. It has been approved by the
executive officer.]

Approval of 14
[25. Any case of a financial institution with a claim of more than Rs. 5
the report crore shall be approved by the Managing Director or the Chief Executive
on the of the financial institution concerned, by whatever name it may be called,
settlement for the report prepared for alternative disposal through mediation under
of disputes this Act.]
related to
higher
claims in an
alternative
manner

CHAPTER 6
Issued

Enforcement 26 The provisions relating to the issuance of money decrees under the
of Civil Code of Civil Procedure, 1908, shall apply to the issuance of decrees
Procedure under this Act, provided they are not inconsistent with the provisions of
Code this Act.

Court of 26 (1) Any order or decree issued by the money loan court shall be issued
Issue by that court, or by any other court to which such court sends it for
issuance.
   (2) If a single money loan court has been established for two or more
districts under this Act and such money must be applied in a district
arising out of a judgment or order issued by the loan court in a district
where the loan court is located. Unlike the district, the court shall, through
the district judge of the district in which the money loan court is located,
refer the case to the district judge of the above district for execution.
   (3) The case acquired under the provisions of sub-section (2) shall be
referred by the District Judge to a court of competent and competent
jurisdiction under his administrative control and in the case of such
disposal the provisions of this Act shall apply as if that court was an
institution established under this Act. Money loan court 7

Deadline 26. (1) Notwithstanding any provision other than The Limitation Act, 1908
for and the Code of Civil Procedure, 1908 , if the decreeder wishes to
submission execute the decree or order in court, within 15 [1 (one) year) of the
of case for issuance of the decree or order ] Subject to the provisions of section 29,
issuance the case will be filed by filing an application in the court.
 (  2) Except as provided in sub-section (1), any case filed for issuance after
the lapse of 16 [1 (one) year) from the issuance of the decree or order
 shall be barred and the case barred by similar limitation shall be
dismissed outright by the court. .
  (3) If a second or subsequent case for issuance is filed after the expiry of
one year after the dismissal or disposal of the first or previous issue, the
said case shall be dismissed; And a similar case barred by limitation shall
be dismissed outright by the court without taking action
  (4) If any new suit for submission is filed after the lapse of 6 (six) years
after the filing of the first suit, the suit shall be dismissed; And a similar
case barred by limitation shall be dismissed outright by the court without
taking action

Special 29 If the court has fixed a time limit for repayment of the decryed money
provisions in lump sum or in installments at the time of delivery of judgment, the time
regarding limit mentioned in section 26 (1) shall come into force after the expiry of
deadlines such period.

Provisions 30 17 [(1)] Notwithstanding anything contained in any other law for the
regarding time being in force, the decreeder shall, for the purpose of sending by
issuance of registered post by the issuer of the court and acknowledgment of receipt,
notice submit the entire summons to the court for issuance of notice along with
the application for issuance. And if the summons is not issued and
returned within 15 (fifteen) days of issue, or returned without issuance
before then, then the court, within the next 15 (fifteen) days, at the
expense of the plaintiff in any widely circulated Bengali national daily, and
so on. If it deems it necessary in the interest of the trial to issue a notice in
a local newspaper, if any, by publishing an advertisement, and similar
issuance shall be deemed to have been issued in accordance with the
law.
   [(2) In the case of issuing a notice through a newspaper under sub-
18

section (1), the court shall issue a notice to the newspaper according to
the name of the newspaper to which the deceder informs the court in
writing.]

Suspension 31 6 If an appeal or revision is filed in the High Court against any order or
of decree issued by the Money Lending Court, it shall not automatically
proceedings suspend the proceedings; Proceedings of the proceedings shall be
adjourned only if the High Court explicitly grants a stay order to that
effect.

Objection 32. (1) In a case arising out of a decree or order of a money loan court, if
against the a third party submits a claim under the provisions of the Civil Procedure
issuance Code, if the court does not dismiss the claim outright in the preliminary
consideration, the decreeer shall file a written objection against it within
30 (thirty) days Can do
   [(2) In making a claim in accordance with the above, the applicant shall
19

submit a security or bond equal to 10% of the unpaid portion of the

 declared amount, or part of the decreed amount, if it has already been
recovered, and such claim shall be dismissed if no such security or bond
is submitted. .]
  (3) The Money Lending Court, if it accepts a claim under sub-section (1)
for consideration, shall settle it within 30 (thirty) days of the submission of
20
[written objections] on the matter concerned and for any reason within
30 (thirty) days. Failure to do so, as recorded, may extend the period by
not more than 30 (thirty) days.
   [(4) If the court, after concluding a written objection filed under sub-
21

section (3), finds that the application containing the claim under sub-
section (1) was filed for the nefarious purpose of delaying or resisting the
debtor's dues, At the time of dismissal of the application, the court shall
forfeit the deposit or bond filed under sub-section (2) by the same order
and the court shall recover the money under the forfeited security or bond
in the same manner in which the declared money is recovered. ]

Auction 33 (1) In case of sale of any property at the time of issuance of decree or
sale order, the court shall call for sealed tender at least 15 (fifteen) days from
the date of publication of the notice at the expense of the plaintiff, such
notice is required in at least one widely circulated Bengali national daily. If
you think, publish in a local newspaper, if any; The notice will also be
posted on the notice board of the court and locally with the addition of
drums.
 22
  [(2) Each bidder, 20% of the quoted quote is less than Rs. 10,00,000
(one million), quote is more than Rs. 10,00,000 (one million) and less than
Rs. 50,00,000 (fifty lakhs) ) 15% of the amount and if the quoted rate
exceeds Rs. 50,00,000 (fifty lakhs), the amount equal to 10% of it, as
security, bank draft or pay-order will be submitted with tender in favor of
the court.
  (2a) Tenders shall be submitted directly in the specified tender box or by
registered post by sending them to the prescribed authority within the
prescribed time.
  (2b) Within 30 (thirty) days after acceptance of quotation of up to
Rs.10,00,000 (one million), more than Rs.10,000,000 (one million) and up
to Rs.50,000,000 (fifty lakhs) Within 60 (sixty) days after acceptance of
the quoted quote and within 90 (ninety) days after acceptance of the
quoted quote above Rs.
  Provided that the court may extend the time limit under this sub-section
up to 60 (sixty) days if the concerned decreeder-financial institution
submits a written application and requests for extension of the time limit
for the convenience of the debtor.
  (2c) If the court is informed in writing on behalf of the decree holder that
the value of the property proposed in the tender submitted under sub-
section (2) is abnormally insufficient or less and the court agrees to it, the
court, by recording the reason, quotes The offer can be ignored.]
  (3) 23 [under sub-section (2b)] if the security is forfeited, the money shall
be paid to the decreeder, the money shall be reconciled with the decreed
claim, and then the court, the bid quoted by the second highest bidder
and the previously confiscated security together the highest bidder If not
less than the price quoted by, the second highest bidder will be invited to
purchase the property at auction; And the second highest bidder shall pay
24
[the full value within the time limit prescribed in sub-section (2b) after
being summoned] and if he fails to do so his security shall be forfeited
and the said amount of security shall be paid to the decreed to reconcile
with the decree claim.
  (4) If any property cannot be sold at auction under the provisions of sub-
sections 25 (sub-sections (1), (2), (2a), (2b), (2c) and (3)], the court shall
reopen at least (Ii) in two Bengali national dailies, in addition to a local
newspaper, if deemed necessary in the interest of justice, by issuing a
notice in a manner similar to that of sub-section (1) and inviting sealed
tenders by hanging a notice on the notice board of the court and locally
drumming; And in matters relating to sale and confiscation shall follow 26
[the provisions referred to in sub-sections (2), (2a), (2b), (2c) and (3)].
   [(4a) In the case of issuing a notice through a newspaper under sub-
27

sections (1) and (4), the court shall publish the notice in the newspaper
according to the name of the newspaper the plaintiff informs the court in
writing.]
  (5) A property of 28 [sub-section (1), (ii), (ii i), (ii b), (ii c), (3) and (4) in
accordance with the provisions] be sold is not possible, the property, Until
the decreed claim is fully settled, the right of possession and enjoyment
shall be vested in the decreeder, and the decreeder shall have 29 [sub-
sections (1), (2), (2a), (2b), (2c), (3) and ( 4) Pursuant to its provisions]
may claim the unclaimed decree by selling the said property, and the
court shall issue a certificate to that effect.
  (6) If the excess money of the decreed amount is recovered for the sale,
the excess money shall be refunded to the debtor, and if the amount sold
is less than the demand of the decree, the remaining money, subject to
the provisions of section 26, shall be admissible.
   [(৬ a) notwithstanding anything contained in sub-sections (5) and (6), in
30

the event that a deeder fails to sell the property at a public auction at a
reasonable price despite vesting it in favor of the deeder, including the
right to possession and enjoyment. Subject to the provisions of section
26, a suit may be filed, excluding the fixed value or reasonable estimated
value of the said property.
 (  6b) Notwithstanding anything contained in this section, in the case of
vesting any property, right of possession and enjoyment under sub-
section (5) in favor of the decreeder, within 6 (six) years of such vesting,
sub-section (6) Ownership of the said property may be acquired by
making a written application to the court on behalf of the sub-decreeder
and if it is not done, the ownership of the said property shall automatically
 be transferred to that property after 6 (six) years have elapsed and
declaration or certificate accordingly may be obtained from the concerned
court.]
  (6) Notwithstanding the provisions of sub-sections (4) and (5), if the
decreeder applies in writing to the court that he is interested in acquiring
ownership of the said property, the court shall, 31 [sub-section (1), (2),
(2a), (2b), (2c) and (3) without causing any harm], refrain from following
the activities of sub-sections (4) and (5); And shall issue a certificate to
the effect that the title to the property mentioned in the petitioner's petition
is vested in the decedent's favor; And the court shall send a copy thereof
to the office of the concerned local sub-registrar for registration.
 32
  [(৭ a) If the possession of the property under sub-section (5) or (6)
must be obtained by the court, the court may, on the written application of
the decreeder, grant possession of the said property to the decreeder.
  (6b) Before granting possession of the property to the decreeder under
sub-section (6a), the court must re-assert that the property was legally
mortgaged by its rightful owner against the debt of the decree or the
rightful possession of the property as intended for execution of the
decree. That property was confiscated.]
 (  6) Notwithstanding anything contained in any other law in force at
present, no tax or registration fee shall be levied on a certificate issued
under sub-section (6).
 (  9) If the right of possession and enjoyment of property under sub-section
(5) or the right of property under sub-section (6) is vested in favor of the
decree holder, subject to the provisions of section 26, the decree shall be
the final settlement of the issue.

Civil 34 6 (1) Subject to the provisions of sub-section (12), the money lending
detention court may, in response to an application filed by the decreeder, detain the
plaintiff in civil imprisonment for up to six (six) months in an attempt to
force him to pay the decree money.
   (2) The provisions of sub-section (1) shall not apply to the heirs-heirs in
accordance with the law of family inheritance due to the death of the
original borrower.
   (3) In order to execute a lawsuit against a company, a firm or any other
corporate body, the defendant must be held in a civil prison, the company,
the joint venture or the corporation law. Or, as per the rules, all persons
who are deemed to be composed of natural persons shall be liable for
detention in civil prisons individually and collectively.
   (4) The provisions of sub-section (3) shall not apply to any person who
has taken the place of any of the persons or persons mentioned above by
inheritance after taking the loan in accordance with the decree.
   (5) Any person detained in a civil prison under sub-section (1) or (3) shall
be released from the civil prison until the claim of the decree has been
paid in full, or the period of 6 (six) months has elapsed, whichever is
 earlier. Will not, and the court will order his release from civil prison upon
payment of the full amount of the decree.
   (6) Notwithstanding the provisions of sub-section (5), if a person detained
in a civil prison pays a bond equal to 25% of the undecided debtor's debts
in cash to the effect that he will pay the remaining debt within the next 90
(ninety) days. In that case, the court will release the accused
   (6) If he fails to pay the remaining dues as per the terms of the bond
referred to in sub-section (6), he shall be liable to re-arrest and detention
in the civil prison, and if re-detained in such civil prison, he shall be liable
to new detention up to six months. Will be treated as 7
  (6) The maintenance costs of a person detained in a civil prison under this
Act shall be borne by the Government as the same as that of the accused
in trial, and the Government may subsequently recover the cost from the
Deaconer as a Government Debt. Can do 6
   (9) Under this section, the court shall not order the detention of a plaintiff
in a civil prison unless at least one auction sale has been held before and
the dues of the decedent have been fully recovered thereby.
   (10) If for any reason it is not possible to conduct any auction sale under
sub-section (9), the defendant may be directly arrested and remanded in
civil custody.
  
 (11) No person under the age of 18 (eighteen) shall be arrested or
detained in a civil prison for the purpose of enforcing a decree under this
section.
   (12) In a case issued for the purpose of enforcing a decree or order under
this Act, even if the number of cases issued is more than one, the
accused may not be re-arrested and detained in the civil jail once he has
been detained for a full term.
   (13) A plaintiff under this section shall not be deemed to be free from
liability for detention of a prisoner for a partial or full term, and a new case
may be filed against him if he is not barred by the limitation prescribed
under this Act.

Provision 35 While conducting proceedings under this Act, the court shall be
to be deemed to be a first class magistrate for the purpose of issuing arrest
considered warrants and detention in civil prisons, and until appropriate forms are
a prepared under this Act, the court may make necessary amendments to
Magistrate the Code of Criminal Procedure (Mutatis Mutandis), will use 6

Collection 36 (1) If the decedent informs the court by application that a person owes
of decree money to the court, then the court, if it deems the person justified at the
money from end of the hearing, pays to the court the amount of money due from him.
third Make a written order for the deposit and the court shall, after receipt of
parties the said money, issue a receipt for the same; And by that receipt, the
person will be legally free from debt to the debtor for that amount.
 
   (2) Notwithstanding any different provision in any other law in force, if any
money is due from any post office, bank, financial institution or insurer as
mentioned in the provisions of sub-section (1), the court shall order the
said post office, bank, If he is satisfied with the hearing to satisfy the
decree from the financial institution or insurer, he can seize the money
and recover it; And in this case no pass book, deposit receipt, policy
paper, any other type of document, entry, endorsement or any other
similar instrument will have to be submitted by the court.
   (3) In case of disobedience of an order issued by a court under sub-
sections (1) and (2), the same amount shall be recoverable from the
person responsible for the disobedience or the institution, and the same
court shall be deemed to be a first class magistrate Will realize 6

Deadline 36 (1) Subject to the provisions of sub-section (2), the Money Lending
for Court shall dispose of the proceedings of the case within 90 (ninety) days
issuance of after the filing of the application and in case of failure, the court may
issued extend the said period not exceeding 60 (sixty) days.
activities    (2) If the court, at any time, has spent under section 32 of this Act for the
disposal of any claim of a party not a party to the case, or has at any time
granted the respondent under section 49 for payment of money decreed
in installments, that time is specified in sub-section (1). 6 will be
associated with time

Dispute 33
[36. (1) The Money Lending Court under this Act may at any stage of
settlement the continuation of the proceedings issued in the course of the decree
through given in the case, the parties may, through mediation, dispose of the
mediation contents of the case and inform the court.
at the  
(2) In the case of arbitration under sub-section (1), the provisions
issuance mentioned in sub-sections (2), (3) and (4) of section 22 shall be followed.
stage   The court, if informed under sub-section (1) and satisfied with the
(3)
decision, shall make the final decision and issue the order.]]

Formulation 39 The Government may, by notification in the Official Gazette, make

of rules such necessary rules as may be necessary, subject to non-compliance
regarding with the provisions of this Act.
issue   
  
CHAPTER 8
Appeals and revisions

Enforcement 40 The relevant provisions of the Civil Procedure Act shall apply to the
of Civil appeal and revision proceedings under this section, provided they are not
Procedure inconsistent with the provisions of this Act.
Code
Special 41. (1) If any party to the case, any money, is aggrieved by a court order
provisions or decree, if the amount of money decreed exceeds Rs. 50 (fifty) lakhs,
relating to then subject to the provisions of sub-section (2), 34 [next 60 (sixty) (Day)
filing and in the High Court Division, and if the amount of money declared is 50
disposal of (fifty) lakh rupees or less, 35 [then the District Judge may appeal to the
appeals court within the next 30 (thirty) days.]
 (  2) The appellant, in part, acknowledges the plaintiff's claim in cash
amounting to 50% of the amount of the decreed, or if the plaintiff does not
accept the plaintiff's claim, submit it to the decree-issuing court as
collateral. No appeal under section (1) shall be entertained
  (3) Notwithstanding the provisions of sub-section (2), if the respondent
has already deposited 10% (ten per cent) amount in cash or security as
per the provisions of section 19 (3), the said 10% in case of filing an
appeal under this section ( Ten per cent) will be deducted from the
aforesaid 50% (fifty per cent) Rs
  (4) Notwithstanding the aforesaid provisions, if the plaintiff-financial
institution files an appeal under this section, it shall not be required to
deposit any money or security as stated above.
  (5) Upon receipt of an appeal, the District Judge shall state in writing
whether he will personally hear the appeal, and if he himself decides not
to hear the appeal, he shall immediately refer the matter to an additional
District Judge under his jurisdiction for hearing. , If any, will send; And in
the absence of an additional District Judge, the District Judge himself
shall hear the appeal
  (6) The Court of Appeal shall dispose of the appeal within 90 (ninety)
days from the date of receipt of the appeal, and if it fails to dispose of the
appeal within 90 (ninety) days, the court shall, by giving reasons in
writing, extend the said period not more than 30 (thirty) days. Can 6

Provisions 42 6 (1) No court shall accept an application for revision against a

relating to judgment or decree given on appeal, unless the petitioner has paid an
filing and amount equal to 75% of the amount of decree issued or enforced by the
disposal of appellate court, including 50% of the amount filed at the time of appeal. If
revisions the plaintiff's claim is not accepted by the concerned financial institution,
the decree in the form of bank draft, pay-order or any other negotiable
instrument can be submitted to the court along with the application for
proof of such deposit.
  
 (2) Notwithstanding the provisions of sub-section (1), if the plaintiff-
financial institution files a revision under this section, it shall not be
required to deposit or deposit any money or security as mentioned above.
   (3) The High Court shall dispose of the revision application within 60
(sixty) days after its receipt, and if it fails to dispose of the revision within
60 (sixty) days, the court shall, by giving reasons in writing, extend that
period not exceeding 30 (thirty) days. Can do 6
Appeal to 43 6 If the Appellate Division allows the borrower-defendant to file an
the appeal in the Appellate Division against any judgment, decree or order
Appellate given by the High Court Division on appeal or revision under this Act, the
Division of Appellate Division deems it appropriate, The plaintiff may order the
the amount to be deposited in the cash-financial institution or in the court
Supreme issuing the decree as security.
Court

Interim 44 6 (1) The money loan court may issue such interim order as it deems
order fit for the need of proper and complete trial and justice of the case and to
prevent the misuse of judicial proceedings.
   (2) Subject to the provisions of sub-section (3), no interim order passed
by any court under this Act may be disputed in the form of appeal or
revision in any higher court.
 (  3) Notwithstanding the provisions of sub-section (2), a party may accept
as an argument in an appeal filed under section 41 which cannot be
disputed due to the aforesaid provisions, and Can issue any order
suitable for the interest

Mediation 36
[44a. (1) At any stage of the continuation of the appeal or revision
at the stage proceedings under Chapter VIII, the parties may, through mediation,
of appeal or dispose of the contents of the appeal or revision case and inform the
revision court.
  In the case of arbitration under sub-section (1), the provisions of sub-
(2)
sections (2), (3) and (4) of section 22 shall be followed.
  If the court is informed under sub-section (1) and is satisfied with the
(3)
settlement, it shall make an order after final disposal of the said appeal or
revision case.]

CHAPTER 8
Miscellaneous

Compromise 45 (1) 37 [***] Nothing in this Act, at any later stage of the judicial process,
settlement shall prevent the parties from settling a case amicably.
in the case    (2) The opportunity for amicable settlement of a case given under sub-
section (1) shall not result in loss or deviation of other methods provided
for disposal of the case under this Act and the prescribed time limit.

Special 46 6 (1) Notwithstanding any different provisions in The Limitation Act,

provisions 1908 (Act No. IX of 1908), any financial institution shall, after the
and time commencement of repayment of the loan as per the repayment schedule
limit for from the borrower as per the contract or terms of the agreement
filing suit executed. -
   (A) At least 10% of the amount due in the first year, or
   (B) at least 15% of the amount due in the first two years, or
    (C) At least 25% of the amount due in the first three years.
   If the amount is not recovered, subject to the provisions of sub-section
(2), the suit shall be filed within one year thereafter.
   (2) If the financial institution reschedules the loan repayment schedule
within the period specified in sub-section (1), the provisions of the said
sub-section (1), subject to necessary changes thereto (Mutatis Mutandis),
shall come into force anew.
   (3) In case the total repayment period of the loan repayment schedule is
less than 3 (three) years as per the repayment schedule mentioned in
sub-section (1), if the repayment amount is less than 20% within the said
repayment schedule, Subject to the provisions of section (4), the suit shall
be filed within the next 1 (one) year.
  (4) If the financial institution reschedules the loan repayment schedule
within the period specified in sub-section (3), the provisions of the said
sub-section (3), subject to the necessary changes accordingly (Mutatis
Mutandis), shall come into force anew.
   (5) If a case is filed within the period specified in sub-sections (1) or, as
the case may be, (2) and (3) or, as the case may be (4), the court shall
immediately notify the chief executive of the financial institution concerned
in writing; And if the case is not filed within the time limit due to failure of
an officer to perform his duties, the appropriate authority shall take
disciplinary action against such responsible officer and inform the
Government and the court of the action taken within 90 (ninety) days of
being notified under this sub-section.
  
 (6) The provisions of this section shall come into force one year after the
coming into force of this Act:
   Provided, however, that any financial institution may enforce the
provisions of this section even before the provisions of this section come
into force.

Limitations 47 6 (1) Notwithstanding anything contained in any other existing law or in

on claims the agreement entered into between the parties, in the case of filing a suit
under this Act, no financial institution shall sue any borrower in such a
manner as to impose liability on the original loan given to the borrower.
The total claim is 200% (100 + 200 = Rs. 300) more than the actual loan.
   (2) A similar claim of more than 200% of the original loan as stated in sub-
section (1) shall not be admissible by the court.
  
 (3) The provisions of this section shall come into force one year after the
coming into force of this Act:
  
 Provided, however, that any financial institution may, if it so desires,
comply with the provisions of this section before it comes into force.
Counting 46 6 In the case of calculation of days under this Act, only the working
the days day of the judge shall be counted and the working day of the temporarily
appointed judge shall be included in the same calculation.

Loan 49 6 (1) Subject to the provisions of sub-section (3), the Money Lending
installments Court may, in the light of the application of the respondent or on its own
initiative, allow the debtor to repay the declared money in 4 (four) equal
installments in 1 (one) year.
  (2) If the plaintiff-decree agrees, subject to the provisions of sub-section
(3), the court may grant the respondent the opportunity to pay the
decreed money in 12 (times) equivalents in 3 (three) years.
   (3) As soon as any one of the installments mentioned in sub-section (1) or
(2) is due, all the arrears shall be paid and the proceedings issued for that
purpose shall be duly followed.

Provisions 50. (1) Subject to the provisions of section 46, no court under this Act may
relating to waive or waive the interest, or, as the case may be, the reduction of profit
interest, or rent as may be prescribed by the financial institution on any loan from
profit the day of lending to the day of filing of suit.
  (Ii) finance debt issued by the court decree against the defendant-
responsible party no appeal, revision, appeal the appeal or any other
application of any higher court, unless the case was filed the day from the
decree of earning money as a day for a period of a decree on the money
38
[ 12% (twelve percent)] at an annual simple rate, if an appeal, revision
or other application is filed in a higher court, at an annual simple rate of 39
[16% (sixteen percent)] for the aforesaid period , and an appeal or an
appeal against a decree or order of a higher court Upon appeal to the
Department, interest, or, as the case may be, profit shall be levied at a
simple annual rate of 18% (eighteen per cent) for the aforesaid period,
subject to the provisions of sub-section (3).
  (3) Notwithstanding the provisions of sub-section (2), if the higher court
issues an order or decree appealing, revising, appealing to the appellate
division or any other application, the qualifying change of the appellant or
disputed decree or order, the said court, the aforesaid increased interest.
Or may order that the rate of profit shall not be applicable to the appellant
or the applicant.
   [(4) Notwithstanding anything contained in the preceding sub-sections
40

of this section, if there is an opportunity to file an appeal or revision in the

High Court by depositing the amount fixed by the respondent as per the
provisions of sections 41 and 42 A Defendant files a writ petition in the
High Court Division directly or indirectly challenging the order or decree of
the lower court without depositing the prescribed amount of money or, as
the case may be, bail and the writ petition is dismissed by the High Court
Division or the Appellate Division. (2) Interest or, as the case may be,
 profit shall be charged at the simple rate of 25% per annum for the period
specified.]

Judicial 51 6 The proceedings of the Money Lending Court shall be deemed to be

activities judicial proceedings in accordance with Sections 193 and 226 of the
Penal Code, 1860 .

Contempt 52 6 (1) A person shall be liable for contempt of court, if he, without a
of money legitimate excuse-
loan court   
 (A) shows any contempt of court;
   (B) disrupt the proceedings of the court;
   (C) refuses to answer any question ordered by the court, which he is
legally obliged to answer; Or
  
 (D) refuses to state any true facts by taking oath as ordered by the court.
   (2) If a person is found guilty of contempt of court under sub-section (1),
the court may immediately impose a fine of not less than Rs.

District 53 6 If a Money Lending Court has been established for two or more
Judge in districts, the District Judge of the district in which the court is located shall
special be deemed to be the District Judge for the purpose of this Act.
cases

The seal of 54 6 The Money Lending Court consisting of the Joint District Judge shall
the court use the seal prescribed and directed by the District Judge.

Control of 55 6 The Money Lending Court comprising of Joint District Judges shall
the court be under the direct administrative control of the District Judge and under
the indirect supervision and control of the High Court Division.

Use of 56 6 (1) Following the disposal of the case, the court shall, as far as
security possible, use the security deposit given by the respondent under section
means, 19 (3), 41 (2) or 42 in the form of bank draft, pay-order or cash-for-
return, etc. exchange document to meet the decree claim, and If there is any money
left after fulfilling the demand of the decree, it will refund the debtor
   (2) If the decision of the High Court is in favor of the defendant, the court,
in the form of a bank draft, pay-order or collateral exchangeable
document under sub-section (1), must return the money to the defendant.
Will do
   (3) If the respondent, due to a judgment or order of the High Court, is
already legally entitled to recover the money already paid by him to the
financial institution or the money deposited in favor of the financial
institution under section 19 (3), 41 (2) or 42, or part thereof. The High
Court, likewise, shall make an order to the effect that the defendant can
get it back within 60 (sixty) days.
The innate 56 6 The instinctual power of the court to make any supplementary order
power of necessary for the purpose of justice intended under this Act or to prevent
the court abuse of court proceedings shall not be deemed to have been limited by
anything.

Ability to 56 6 The Government may, by notification in the Official Gazette, make

make rules necessary rules for the implementation of the provisions of this Act.

English 59 7 (1) After the enactment of this Act, the Government shall, by
lessons in notification in the Official Gazette, publish a text of this Act translated into
law English, which shall be called the Authentic English Text of this Act.
  
 (2) In the event of a dispute between the English text mentioned in sub-
section (1) and this Act, this Act shall prevail.

Repeal, 60 (1) The Money Debt Court Act, 1990 (Act No. 4 of 1990) is hereby
custody repealed.
and    (2) Prior to the enactment of this Act, all appeals pending under the Act
transitional
repealed by sub-section (1) in the High Court Division, the money which
provisions was brought against the order or decree of the Debt Court, shall be
disposed of as before, as the said Act has not been repealed. The
provisions of this Act shall, as far as possible, apply to their disposal as if
they had been filed under this Act.
   (3) Notwithstanding the repeal of the Money Lending Court Act, 1990, all
cases pending in the Money Lending Court under the repealed Act shall
be transferred to the same court established or declared under this Act as
a case pending before them The provisions of this Act shall, as far as
possible, apply to all such cases as if such cases had been filed under
this Act.
  

1
Letters, Signs, Words and Numbers "PONo. 128" Substituted for "PONo. 28" Letters, Signs, Words and Numbers are
substituted in Section 2 of the Court of Credit (Amendment) Act, 2004 (Act No. 11 of 2004).

2
The number "1972" has been substituted for the number "1973" in section 2 of the Money Lending Court (Amendment)
Act, 2004 (Act No. 11 of 2004).

3
Serial No. (18) is attached to Section 2 of the Debt Court (Amendment) Act, 2004 (Act No. 11 of 2004).

4
Numbers, commas, words and parentheses of "Rs. 500,000.00 (Five Lakh Rupees)" "Money, Commas, Words and
parentheses" of Rs. 50,000 (fifty thousand rupees) " Substituted under Section 3 of (Act No. 11 of 2004)

5
The commas and words "court fees payable shall be paid" are abolished under section 2 of the Debt Courts
(Amendment) Act, 2010 (Act No. 18 of 2010).

6
"(Power of Attorney)" parentheses and words are abolished under Section 3 of the Debt Court (Amendment) Act, 2010
(Act No. 18 of 2010).
7
Sub-sections (5) and (5a) substitute the previous sub-section (5) for section 3 of the Money Lending Court
(Amendment) Act, 2004 (Act No. 11 of 2004).

8
Section 21 Money is abolished under Section 4 of the Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

9
Section 22 is substituted under Section 5 of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

10
Section 23 is substituted under Section 6 of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

11
The terms "or settlement" are abolished under section 6 (a) of the Debt Courts (Amendment) Act, 2010 (Act No. 18 of
2010).

12
Sub-section (1) Substituted under section 6 (b) of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

13
Sub-section (4) Substituted under Section 6 (c) of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of
2010).

14
Section 25 is substituted under Section 7 of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

15
In accordance with section 9 (a) of the Debt Court (Amendment) Act, 2010 (Act No. 16 of 2010), the number,
parentheses and words "within 1 (one) year" instead of "numbers, parentheses and words within 180 (one hundred and
eighty) days" Replaced.

16
The number "160 (one hundred and eighty) days", parentheses and words instead of "1 (one) year" number,
parentheses and words have been substituted under Section 9 (b) of the Debt Courts (Amendment) Act, 2010 (Act No. 18
of 2010).

17
The existing provisions are numbered as sub-section (1) in section 10 of the Money Lending Court (Amendment) Act,
2010 (Act No. 18 of 2010).

18
Sub-section (2) is attached to section 10 of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

19
Sub-section (2) Substituted under Section 11 (a) of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of
2010).

20
The words "written objection" instead of the word "application" have been substituted under Section 11 (b) of the Debt
Courts (Amendment) Act, 2010 (Act No. 18 of 2010).

21
Sub-section (4) is attached to section 11 (c) of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

22
Sub-sections (2), (2a), (2b) and (2c) have been substituted under section 12 (a) of the Money Lending Court
(Amendment) Act, 2010 (Act No. 18 of 2010).

23
Words, parentheses and numbers under "Sub-section (2b)" instead of "words, parentheses and numbers" under sub-
section (2) means 12 (12) of the Debt Court (Amendment) Act, 2010 (Act No. 16 of 2010). B) Substituted in series.

24
"Full value within 10 (ten) days after being summoned" words, numbers and parentheses instead of "full value within
the time limit prescribed in sub-section (2b) after the summons" Substituted under Section 12 (b) of (Act No. 18 of 2010).

25
Subsection (1), (2), (2a), (2b), (2c) and (in accordance with the provisions of subsection (1), (2) and (3) " 3) In
accordance with the provisions of "Words, parentheses and numbers have been substituted under Section 12 (c) of the
Debt Courts (Amendment) Act, 2010 (Act No. 18 of 2010).

26
The words "provisions in sub-sections (2) and (3)", instead of "parentheses (2), (2a), (2b), (2c) and (3)" The
parentheses and numbers are substituted under Section 12 (c) of the Debt Court (Amendment) Act, 2010 (Act No. 18 of
2010).

27
Sub-section (4a) is inserted under section 12 (d) of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of
2010).
28
Subject to the provisions of sub-sections (1), (2), (3) and (4) "Sub-sections (1), (2), (2a), (2b), (instead of words,
parentheses and numbers" 2c), as per the provisions of (3) and (4), the words, parentheses and numbers have been
substituted under Section 12 (e) of the Debt Courts (Amendment) Act, 2010 (Act No. 18 of 2010).

29
Subject to the provisions of sub-sections (1), (2), (3) and (4) "Sub-sections (1), (2), (2a), (2b), (instead of words,
parentheses and numbers" 2c), as per the provisions of (3) and (4), the words, parentheses and numbers have been
substituted under Section 12 (e) of the Debt Courts (Amendment) Act, 2010 (Act No. 18 of 2010).

30
Sub-sections (6a) and (6b) are inserted in section 12 (f) of the Money Lending Court (Amendment) Act, 2010 (Act No.
18 of 2010).

31
Substitutes (1), (2), (2a), (2b), (2c) ) And (3) without causing any harm to the words, parentheses and numbers are
substituted under Section 12 (g) of the Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

32
Sub-sections (6a) and (6b) are inserted in section 12 (h) of the Money Lending Court (Amendment) Act, 2010 (Act
No. 18 of 2010).

33
Section 37 is substituted under Section 13 of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

34
The words, numbers and parentheses of "next 60 (sixty) days" have been substituted under section 14 of the Debt
Court (Amendment) Act, 2010 (Act No. 16 of 2010) instead of the words, numbers and parentheses of the next 30 (thirty)
days.

35
Instead of the words "then the district judge can appeal to the court", the words, numbers and parentheses, "then the
district judge can appeal to the court within the next 30 (thirty) days" "means 14 of the Debt Court (Amendment) Act, 2010
(Act No. 16 of 2010). Substituted in series.

36
Section 44A is inserted in Section 15 of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

37
"Notwithstanding the provisions of section 21 or 22, the words, numbers and commas are abolished under section 16
of the Debt Courts (Amendment) Act, 2010 (Act No. 18 of 2010).

38
"07% (eight per cent)" instead of numbers, symbols, parentheses and words "12% (twelve per cent)" Numbers,
symbols, parentheses and words mean 18 (of the Debt Court (Amendment) Act, 2010 (Act No. 16 of 2010). A)
Substituted in the section.

39
"12% (twelve percent)" instead of numbers, symbols, parentheses and words "16% (sixteen percent)" Numbers,
symbols, parentheses and words mean 16 (of the Debt Court (Amendment) Act, 2010 A) Substituted in the section.

40
Sub-section (4) is attached to section 16 (b) of the Money Debt Court (Amendment) Act, 2010 (Act No. 18 of 2010).

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