Assignment of loans - Maharashtra Money-Lending (Regulation) Ordinance, 2014


(1) Whether a loan advanced, whether before or after the date on which this Ordinance comes into force, or any interest of such loan or the benefit of any agreement made or security taken in respect of such loan or interest is assigned to any assignee, the assignor (whether he is the money- lender by whom the money was lent or any person to whom the debt has been previously assigned) shall, before the assignment is made,—

(a) give the assignee a notice in writing that the loan, interest, agreement or security is affected by the operation of this Ordinance ;

(b) supply to the assignee all information necessary to enable him to comply with the provisions of this Ordinance; and

(c) give the debtor notice in writing of the assignment supplying the name and address of the assignee.

(2) Any person acting in contravention of the provisions of sub-section (1), shall be liable to indemnify any other person who is prejudiced by such contravention.

34. (1) Save as hereinafter provided, where any debt due to a money- lender in respect of money lent by him, whether before or after the date on which this Ordinance comes into force, or of interest on money so lent or of the benefit of any agreement made or security taken in respect of any such debt or interest, has been assigned, the assignee shall be deemed to be the money-lender and all the provisions of this Ordinance shall apply to such assignee as if he was themoney-lender.

(2) Notwithstanding anything contained in this Ordinance or in any other law for the time being in force, where for any reason any such assignment is invalid and the debtor has made any payment of money or transfer of property on account of any loan which has been so assigned, the assignee shall in respect of such payment or transfer be deemed to be the agent of the money- lender for all the purposes of this Ordinance.

35. Notwithstanding anything contained in any law for the time being in force, the Court shall, in any suit to which this Ordinance applies, between themoney-lender and the debtor, whether heard ex-parte or otherwise,—

(a) re-open any transaction, or any account already taken between the parties ;

(b) take an account between the parties ;

(c) reduce the amount charged to the debtor in respect of any excessive interest ;

(d) if on taking accounts it is found that the money-lender has received more than what is due to him, pass a decree in favour of the debtor in respect of such amount :

Provided that, in the exercise of these powers, the Court shall not,—

(i) re-open any adjustment or agreement purporting to close previous dealings and to create new obligations which have been entered into by the parties or any person through whom they claim at a date more than six years from the date of the suit to which this Ordinance applies ;

(ii) do anything which affects any decree of a Court.

Explanation.—For the purposes of this section, “excessive interest” means interest at a rate which contravenes any of the provisions of section

Ozg Business Resource Center 
Website:  moneylender.co.in
Email: ask@moneylender.co.in