Section 2 in The Karnataka Money-Lenders Act, 1961
2. Definitions.—
In this Act, unless the context otherwise requires,—(1)“bank” means,-(i)a banking company to which the Banking Regulation Act, 1949 (Central Act 10 of 1949) applies;(ii)the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955);(iii)a subsidiary bank defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959);(iv)a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970);(v)a regional rural bank established under the Regional Rural Banks Act, 1976 (Central Act 21 of 1976);(vi)a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Central Act 40 of 1980);(vii)the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (Central Act 18 of 1964);(viii)the National Bank for Agriculture and Rural Development established under the National Bank for Agriculture and Rural Development Act, 1981 (Central Act 61 of 1981);(ix)the Export Import Bank of India established under the Export Import Bank of India Act, 1981 (Central Act 11 of 1959);”.(x)the Industrial Finance Corporation of India established under the Industrial Finance Corporation of India Act, 1948 (Central Act 15 of 1948);(xi)State Financial Corporations established under the State Financial Corporation, Act, 1951 (Central Act 63 of 1951);(xii)the Industrial Reconstruction Bank of India established under the Industrial Reconstruction Bank of India Act, 1984 (Central Act 62 of 1984);(xiii)the Industrial Credit and Investment Corporation of India Limited, a company incorporated under the Indian Companies Act, 1913 (Central Act 7 of 1913).(xiv)the Agricultural Finance Corporation Limited a company incorporated under the Companies Act, 1956;(2)“business of money-lending” means the business of advancing loans whether or not in connection with or in addition to any other business;(3)“capital” means a sum of money which a money-lender invests in the business of money-lending;(4)“company” means a company as defined in the Companies Act, 1956 (Central Act 1 of 1956);(5)“co-operative society” means a society registered or deemed to have been registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka1 Act 11 of 1959);(6)“interest” includes the return to be made over and above what was actually lent, whether the same is charged or sought to be recovered specifically by way of interest or otherwise, but does not include any sum lawfully charged by a money-lender for or on account of costs, charges or expenses in accordance with the provisions of this Act, or any other law for the time being in force;(7)“licence” means a licence granted under this Act;(8)“licence fee” means the fee payable in respect of a licence;(9)“loan” means an advance at interest whether of money or in kind, and includes any transaction which the Court finds in substance to amount to such an advance, but does not include,-(a)a deposit of money or other property in a Government Post Office Bank or in a Karnataka Government Savings Bank or in any other bank or in a company or with a co-operative society;(b)a loan to, or by, or a deposit with, any society or association registered under the Karnataka Societies Registration Act, 1960 (Karnataka1 Act 17 of 1960);(c)a loan advanced by Government or by any local authority authorised by Government;(d)a loan advanced by a co-operative society;(e)an advance made to a subscriber to, or a depositor in, a Provident Fund from the amount standing to his credit in the fund in accordance with the rules of the fund;(f)a loan to or by an insurance company as defined in the Insurance Act, 1938 (Central Act IV of 1938);(g)a loan to or by a bank;(h)an advance of not less than three thousand rupees made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881 (Central Act XXVI of 1881) other than on the basis of a promissory note;(i)except for the purposes of sections 26 and 28,—(i)a loan to a trader;(ii)a loan to a money-lender who holds a valid licence; or(iii)a loan by a landlord to his tenant for financing of crops or seasonal finance of not more than fifty rupees per acre of land held by the tenant;(10)“money-lender” means,-(i)an individual; or(ii)an undivided Hindu family; or(iii)a company; or(iv)an unincorporated body of individuals; who or which,-(a)carries on the business of money-lending in the State; or(b)has his or its principal place of such business in the State, but shall not include a bank or any other financial institution which the State Government may, by notification specify in this behalf;(11)“notification” means a notification published in the official Gazette;(12)“prescribed” means prescribed by rules made under this Act;(13)“principal” means in relation to a loan, the advance actually made to the debtor;(14)“Provident Fund” means a Provident Fund as defined in the Provident Funds Act, 1925 (Central Act XIX of 1925), and includes a Government Provident Fund and a Railway Provident Fund as defined in the said Act;(15)“recognised language” means the language of the Court;(16)“register” means a register of money-lenders maintained under section 4;(17)“rules” means rules made under this Act;(18)“State” means the State of Karnataka;(19)“suit to which this Act applies” means any suit or proceeding,-(a)for the recovery of a loan made after the date on which this Act comes into force;(b)for the enforcement of any security taken, or any agreement made after the date on which this Act comes into force in respect of any loan made either before or after the said date; or(c)for the redemption of any security given after the date on which this Act comes into force in respect of any loan made either before or after the said date;(20)“trader” means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, and includes,-a wholesale or retail merchant,a commission agent,a broker,a manufacturer,a contractor,a factory owner,-but does not include an artisan or a person who sells his agricultural produce or cattle or buys agricultural produce or cattle for his use.Explanation.— For the purposes of this clause an “artisan” means a person who does not employ more than ten workers in a manufacturing process on any one day of the twelve months immediately preceding.(21)‘Year’ means the year commencing on the first day of April;
