Section 5 in The Punjab Relief of Indebtedness Act, 1934
5. Amendment of section 3 of the Usurious Loans Act, 1918.
- In section 3 of the Usurious Loans Act, 1918 -(i)for the word "and" in clause (a) of sub-section (1) the word "or" shall be substituted :(ii)for the word "may" where it appears for the first time in sub- section (1) the word "shall" shall be substituted;(iii)for the word "may" after the word "namely" in sub-section (1) of the word "shall" shall be substituted;(iv)[ to sub-section (2) the following clause shall be added, namely :- [Substituted for the old clause by Punjab Act 12 of 1940, section 3.](e)The Court shall deem interest to be excessive if it exceeds seven and-a half per centum per annum simple interest or is more than two per centum over the Bank rate, which ever is higher at the time of taking the loan, in the case of secured loans, or twelve and-a half per centum per annum simple interest in the case of unsecured loans : Provided that the court shall not deem interest in excess of the above rates to be excessive if the loan has been advanced by the Imperial Bank of India or any bank included in the Second Schedule to the Reserve Bank of India Act, 1934, or any banking company registered under the Indian Companies Act, 1913, prior to the first day of April, 1937, or any co-operative society registered under the Co-operative Societies Act, 1912.]
