The Karnataka Pawnbrokers Act, 1961

In force 23 sections Karnataka

Act 13 of 1962

Preamble

GOVERN THE KARNATAKA PAWNBROKERS ACT, 1961 ARRANGEMENT OF SECTIONS Statement of Object and Reasons Sections : 1. Short title, extent and commencement. 2. Definitions. 3. Pawn-broker to obtain licence. 4. Grant and renewal of licences. 4A. Conditions of licence. 4B. Forfeiture of security. torest allo wed to payshop God 5. Pawnbrokers to exhibit their names over shops, etc. 7. Pawn-ticket to be given to pawner. 8. Person producing pawn-ticket presumed to be entitled to redeem the pledge. 9. Protection of owners and of pawners not having pawn-tickets. 10. Pawnbrokers to keep books, give receipts, etc. 11. Redemption of pledge. 12. Sale of pledge and inspection of sale book. 13. Liability of pawnbroker in case of fire. 14. Compensation for depreciation of pledge. 15. Pawn-broker advancing smaller amount or receiving higher interest than that specified in accounts to be punishable. 16. Certain other acts of pawn-brokers to be punishable. 16A. Pawnbroker to redeem pledges. 17. Certain acts of pawners to be punishable. IMENT OF KARN RNATAKA 18. General penalty for contravention of Act, etc. 18A. Settlement of disputes by Ombudsperson 18B. Grievances redressal forum 18C. Authorized Officer 19. Jurisdiction to try offences. 19A. Offences by Hindu undivided Family, Companies etc. 20. Certain offence to be cognizable. 21. Contract of pawn to be void in certain cases and not to be void in certain other cases 22. Power to make rules. 23. Savings. 24. Repeal. IndiaCode STATEMENT OF OBJECTS AND REASONS I Act 13 of 1962 .- The Madras Pawnbrokers Act, 1943 is in force in the Madras Area, Pawnbrokers in other areas are regulated by the existing Money-Lenders Acts in force in the respective areas. After a careful consideration, it was, however, noticed that provisions to be made for pawnbrokers are not the same as those for money-lenders and hence, it has been considered desirable to enact a separate legislation for regulation and control of pawnbrokers in this State. Hence this Bill. (Obtained from L.C. No. 3221 dated 21st March, 1959. Published in PART IV-2-A at page 141.) Amending Act 29 of 1979 .- The Karnataka Pawnbrokers Act 1961, which was brought into force from 29th day of March, 1962 has revealed in the course of IMENT OF KARN RNATAKA working that certain Pawnbrokers are in the habit of pledging with Commercial Banks the articles pledged with them for securing monetary accommodation and that the money so taken is being utilised by them in their money lending transactions for which high rate of interest are being charged. It has become, therefore necessary to amend the relevant provision of the Act, so that the said practice adopted by the Pawnbrokers could be brought within the purview of the provisions of the Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 3rd February 1979 at page. 5.) Amending Act 40 of 1985 .- Persons who obtain credit from the licensed Pawn Brokers, pledge costly gold ornaments and other articles. It is considered necessary to insist security deposit from such licensed Pawn Brokers to safeguard the interests of the Pawners. In order to meet the increasing cost of administration of the Act, it is also proposed to increase the license fee. As the matter was very urgent, the Karnataka Pawn Brokers (Amendment Ordinance, 1985 (Karnataka Ordinance No. 12 of 1985) was issued. This Bill seeks to replace the said Ordinance. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 25th July 1985 as No. 398 at page 6.) IV Amending Act 9 of 1998 .- It is considered necessary to amend the Karnataka pawn Brokers Act, 1961 (Karnataka Act 13 of 1962), for the following reasons, namely :- (i) To enhance the duration of licence from one year to five years; (ii) To provide for calculating the amount of security deposit on the amounts invested and not on the amounts lent. (iii) Since, the Karnataka High Court in writ petition No. 8912/85 and other connected matters directed the

Sections

Type to filter. 23 sections.

Provenance. Read from the Government's own scanned gazette with Azure Document Intelligence, then split into sections by their numbering. India Code publishes no text for this Act. The scan itself is mirrored into our own storage and served at /scan/06f30e9a-8195-4f50-aca8-254e10a0aa60.pdf, so the reading here can be checked against the page it came from without depending on India Code's own copy staying where it is (it was at https://indiacode.gov.in/server/api/core/bitstreams/b055abc5-eb7f-41e7-82fb-c5c1eec8c10c/content).

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 23 sections of this Act has its own page. This page is not a substitute for legal advice.