7. Duty of registered money-lender to maintain accounts and to give receipts and inspection of accounts.
(1)Every registered money-lender shall in respect of every loan advanced by him after the commencement of the [Bihar Money-Lenders Act, 1938 (Bihar Act III of 1938) and every transaction made by him after the commencement'] [The said Act has been repeated and re-enacted by the Bihar Money-Lenders Act, 1974 (Bihar Act 22 of 1975) and any reference to the former Act should be construed to refer to be the latter Act.] of the said Act relating to any loan advanced by him before or after the commencement of the said Act-(a)regularly record and maintain or cause to be recorded or maintained an account showing for each debtor-(i)the date of the loan, the amount of the principal of the loan and rate per centum per annum of interest charged on the loan;(ii)the amount of every payment received by the money-lenders in respect of the loan and the date of such payment, and(iii)any other terms which may be agreed upon between the moneylender and the debtor;(b)give to the debtor or his agent, a receipt for every sum paid by, or on behalf of the debtor duly signed, and if necessary, stamped at the time of such payment.(c)deliver or send by registered post to the debtor or his agent, within fifteen days of advancing the loan, a copy of the entries recorded under sub-clause (i) and (iii) of clause (a);(d)deliver or send by registered post to the debtor or his agent, at least once in every calender year, statement of account signed by himself or his agent, showing the balance of amount that may be outstanding against such debtor on account of the principal and interest at the time of delivering or sending by registered post the said statement of account, the amount of every payment received by the money-lender in respect of the loan and the date of such payment during the period to which the statement relates; and(e)give to the debtor a signed receipt for every pawned article with its general description, immediately after it is pawned, mentioning the amount for which it is pawned.(2)A person to whom a copy of entries in the account has been delivered or sent under clause (c) of sub-section (1) or a statement of account has been delivered or sent under clause (d) of sub-section (1) and who fails to object to the correctness of the account or the statement of account shall not, by reason of such failure alone, be deemed to have admitted the correctness of such account or such statement of account.(3)The registers maintained by the Anchal Adhikari or the prescribed officer under Section 4, all accounts maintained by a money-lender under this Act, all documents in respect of loans advanced by a money-lender of which he may be in possession and his registration certificate shall be liable to be inspected and examined by such authority as may be prescribed by the State Government by notification published in the Official Gazette in this behalf and such authority shall have the same powers in making enquiries with respect to correct maintenance of account and registers under this Act as are vested in a Court under the Code of Civil Procedure, 1908 (Act V of 1908) in trying a suit, namely:(a)admission of evidence by affidavits;(b)summoning and enforcing the attendance of any person and examining him on oath;(c)compelling production of documents; and(d)award of costs.(4)all inquiries and proceedings under this Section before the prescribed authority, shall be deemed to be judicial proceeding for the purpose of Sections 193, 196 and 228 of the Indian Penal Code, 1860 (Act 45 of 1860).(5)A money lender shall in a suit for recovery of money advanced by him as loan file a copy of the relevant extracts from his register of accounts relating to the said loan and he shall not be entitled to maintain any claim beyond the entries made in his register of accounts.(6)The State Government after the commencement of this Act may by notification published in the Official Gazette require every money-lender to declare within such period and to such authority, as may be specified therein, the date and amount of loan advanced by him to any member of Scheduled Caste and Scheduled Tribe along with the details, of interest, repayments of loan, if any, particulars of the debtor and other terms and conditions of the loan.(7)If any money-lender fails to declare the particulars of the loan advanced by him within the period specified in the notification as required under sub section (6) or within such extended period, as may be allowed by the State Government, it shall be presumed that he has not advanced any loan to such member and any claim to such loan or the interest due thereon shall notwithstanding anything to the contrary contained in any other law for the time being in force, not be entertained in any court or Conciliation Board.
