(1)Where in any suit brought in respect of a loan by a registered money-lender, or in respect of any security taken for a loan by a registered money-lender the Court is of opinion that the registered money-lender has been guilty of fraud, the Court shall make an order recording a finding to that effect and fixing a period not exceeding three years as it thinks fit during which the registration certificate granted to the money-lender shall remain cancelled.(2)Where an order under Sub-section (1) is made by a Court exercising original jurisdiction, an appeal shall lie from it, within such period as may be prescribed, to the Court to which appeals from the decrees passed by such Court ordinarily lie, and the decision of the appellate Court shall be final; but no appeal shall lie from an order made under Sub-section (1) by an appellate Court in an appeal from a decree of a Court exercising original jurisdiction.(3)A copy of every order made under Sub-section (1) or Sub-section(2)shall be sent to the Collector by the Court concerned and the Collector shall, after the order has become final, cancel the registration certificate granted to the money-lender for the period mentioned in the order.(4)When the certificate of a registered money-lender has been cancelled under Sub-section (1) such money-lender shall not be entitled to make any application under Section 5 during the period in which such order of cancellation remains in force, but such cancellation shall not preclude the money-lender from instituting suits in respect of loans advanced by him before the date of the order of such cancellation.
