10. Stay of suits by money-lenders not holding licence.
(1)After the expiry of six months from the date on which this Act comes into force, no Court shall pass a decree in favour of a money-lender in any suit filed by a money-lender to which this Act applies unless the Court is satisfied that at the time which the loan or any part thereof to which the suit relates was advanced, the money-lender held a valid licence.(2)If during the trial of any such suit, the Court finds that the money-lender had not held such licence, the Court may, on the application of the money-lender, stay the hearing of the suit and require him to produce within a period of three months a licence on payment to the Registrar of all the arrears of the licence fees [and the inspection fees] [These words were inserted by Bombay of 50 of 1959, section 4 (i).] payable by him under this Act for the period commencing from the date on which he started the business of money-lending or the expiry of six months from the date on which this Act comes into force, whichever is later, together with such penalty, not exceeding Rs. 500, as the Court may direct:Provided that when the Court is satisfied that the failure of the money-lender to obtain a licence was due to any reasonable cause, the Court may direct that no penalty as aforesaid or part of such penalty shall be paid by the money-lender.(3)The Court may, on sufficient cause being shown, from time to time extend the period during which the money-lender shall be required to produce a licence.(4)If the money-lender fails to produce the licence required under subsection (2) within the period specified therein or within such period as may be extended under subsection (3), the Court shall dismiss the suit. If the money-lender produces such licence within the aforesaid period, the Court shall proceed to hear the suit.(5)Nothing in this section shall affect-(a)suits in respect of loans advanced by a money-lender before the date on which this Act comes into force;(b)[ the powers of a Court of Wards, or an Official Assignee, a receiver, an administrator or a Court under the provisions of the Presidency Towns Insolvency Act, 1909 (III of 1909), or the Provincial Insolvency Act, 1920 (V of 1920) or any other law in force corresponding to that Act, or of a liquidator under the Companies Act, 1956 (I of 1956), to realise the property of a money-lender.] [Clause (b) was substituted for the original by Bombay of 50 of 1959, section 4 (i).]
