Pawnbrokers (Amendment)
A LAW TO AMEND THE PAWNBROKERS ORDINANCE.
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BE it enacted by the National State Assembly of the Republic of Sri Lanka as follows: –
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Short title.
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1. This Law may be cited as the Pawnbrokers (Amendment) Law, No. 23 of 1973.
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Amendment of section 3 of Chapter 90.
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2. Section 3 of the Pawnbrokers Ordinance, hereinafter referred to as the ” principal enactment “, is hereby amended by the repeal of subsection (2) of that section, and by the substitution therefor, of the following new subsection: –
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” (2) Every licence issued under this section shall be in the Form A set out in the Second Schedule.”.
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Insertion of new section 3A in the principal enactment.
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3. The following new section, is hereby inserted immediately after section 3, and shall have effect as section 3A. of the principal enactment: –
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” Transfer of business without prior approval of Government Agent to be void.
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3A. The holder of a licence issued under section 3 shall not transfer the business to which such licence relates to any other person without the prior approval in writing of the Government Agent, and a transfer of such business without such prior approval shall be for all purposes null and void.”.
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Replacement of section 4 of the principal enactment.
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4. Section 4 of the principal enactment is hereby repealed and the following new section is substituted therefor: –
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“Copies of licence to be sent to superintendents Police.
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4. The Government Agent shall forward a copy of each licence issued under section 3 to the Superintendent of Police of the district within which the business to which such licence relates, is carried on.”.
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Amendment of section 5 of the principal enactment.
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5. Section 5 of the principal enactment is hereby amended as follows:-
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(a) by the renumbering of that section as subsection (1) of that section; and
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(b) by the insertion, immediately after the renumbered subsection (1) of that section, of the following new subsection: –
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” (2) Every application for a licence shall be accompanied by a licence fee of one thousand rupees.”.
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Amendment of section 8 of the principal enactment.
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6. Section 8 of the principal enactment is hereby amended as follows: –
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(a) by the renumbering of that section as subsection (1) of that section; and
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(b) by the insertion, immediately after the renumbered subsection (1) of that section, of the following new subsection: –
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” (2) Where the holder of a licence issued under section 3 makes an application for a renewal of such licence, the Government Agent may refuse to renew such licence, if he is of the opinion that such holder has, during any period preceding such application, and in relation to his business as a pawnbroker, dealt in practices which are contrary to the spirit and purposes of the provisions of this Ordinance.”.
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Amendment of section 16 of the principal enactment.
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7. Section 16 of the principal enactment is hereby amended by the repeal of subsection (2) of that section, and by the substitution therefor, of the following new subsection: –
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” (2) The particulars in the Third Schedule shall be printed legibly in Sinhala, Tamil and English on the back of the foil of every pawn ticket.”.
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Replacement of section 17 of the principal enactment.
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8. Section 17 of the principal enactment is hereby repealed and the following new section substituted therefor: –
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Rate of interest.
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17. No pawnbroker shall, in respect of a loan on a pledge, charge interest at a rate exceeding the rates specified in the Third Schedule:
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Provided that where business turnover tax is payable in respect of a loan given on a pledge, nothing in the preceding provisions of this section shall be deemed to prohibit the pawnbrokers from recovering such tax from the pawner.
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In this section ” pledge ” includes a pledge which has been pawned and which has not been redeemed before the appointed date.”.
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Amendment of section 20 of the principal enactment.
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9. Section 20 of the principal enactment is hereby amended by the repeal of subsection (4) of that section, and by the substitution therefor, of the following new subsection: –
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“(4) Subject to the provisions of subsections (1), (2) and (3), the pawnbroker shall, on payment of the loan, the interest due thereon, and the business turnover tax, if any, payable in respect of such loan, deliver the pledge to the pawner or holder, as the case may be, who produces the foil of the pawn ticket relating to that pledge; and the pawnbroker is hereby indemnified in respect of such delivery of the pledge:
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Provided, however, that if the pawnbroker has reason to suspect that such holder has sold or otherwise illegally obtained possession of the pawn ticket, the pawnbroker may seize and detain the person and the ticket and deliver them as soon as may be to an officer of police or Grama Sevaka, who shall forthwith convey the person and the ticket before a court of competent jurisdiction to be dealt with according to law.”.
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Replacement of section 24 of the principal enactment
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10. Section 24 of the principal enactment is hereby repealed, and the following new section substituted therefor: –
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Liability of pawnbroker in case of fire
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24.
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(1) Where a pledge is destroyed or damaged by or in consequence of fire, the pawnbroker shall nevertheless be liable, on demand, within the period of redemption, to pay the value of the pledge, after deducting the amount of the loan and interest, and business turnover tax, if any, payable in respect of such loan.
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(2) Every pawnbroker shall have his business insured to the full extent of the value of the articles pawned with him.”
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Replacement of the section 25 of the principal enactment.
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11. Section 25 of the principal enactment is hereby repealed and the following new section substituted therefor: –
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“Receipt of pawnbroker.
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25. Every pawnbroker shall, at the time of redemption of the pledge, give a receipt for the amount of loan and interest paid to him and the business turnover tax, if any, recovered by him and preserve a copy of such receipt with the pledge book. Such receipt shall be in the Form G set out in the Second Schedule and shall not be liable to stamp duty unless the interest and business turnover tax, if any, amount to twenty rupees or more.”.
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Amendment of the section 26 of the principal enactment.
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12. Section 26 of the principal enactment is hereby amended as follows: –
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(a) by the renumbering of that section as subsection (1) of that section; and
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(b) by the insertion, immediately after the renumbered subsection (1) of that section, of the following new subsection: –
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(2) Where a pledge is to be sold by public auction under the preceding provisions of this section, the pawnbroker with whom such pledge had been pawned, shall give at least fourteen days’ notice in writing to the Government Agent, of the date and time fixed for such sale, and the place at which such sale is to be held. ‘.
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Replacement of the section 28 of the principal enactment
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13. Section 28 of the principal enactment is hereby repealed and the following new section substitute therefor:-
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“Procedure at sale of pledge for more than the amount of the loan, interest and business turnover tax.
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28. In every case where a pledge is sold under this Ordinance for more than the amount of the loan and interest due on the date of the sale and the business turnover tax, if any, payable in respect of such loan, the pawnbroker shall-
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(a) forthwith give to the pawner of that pledge notice of the amount for which the pledge was sold and of the amount lying to the credit of the pawner after deducting the necessary costs and charges of the sale; and
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(b) on demand made within one year from the date of such sale pay to the holder of the pawn ticket relating to that pledge the amount lying to the credit of the pawner; and
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(c) if no such demand is made within the said period of one year, forthwith on the expiry of the said period, deposit the amount lying to the credit of the pawner in the nearest Kachcheri to the credit of the pawner.”.
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Replacement of section 30 of the principal enactment.
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14. Section 30 of the principal enactment is hereby repealed and the following new section substituted therefor:-
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” Method of giving notice under sections 26, 27 and 28.
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30. Every notice under section 27 or section 28 shall be sent by registered post to the pawner at the address entered in the pledge book and the cost of registration shall be borne by the pawner and every notice under section 26 (2) shall be sent by registered post.”.
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Amendment of section 37 of the principal enactment.
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15. Section 37 of the principal enactment Is hereby amended as follows:-
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(a) by the relettering of paragraph (k) of that section, as paragraph (l) of that section; and
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(b) by the insertion, Immediately after paragraph (j) of that section, of the following new paragraph: –
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” (k) fails to have his business insured to the full extent of the value of all the articles pawned with him, or “.
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Replacement of section 41 of the principal enactment.
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16. Section 41 of the principal enactment is hereby repealed and the following new section substituted therefor: –
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” Penalty
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41. Every person who is guilty of an offence under this Ordinance shall be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment.”
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Amendment of the Second Schedule to the principal enactment.
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17. The Second Schedule to the principal enactment is hereby amended as follows: –
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Amendment of the Third Schedule to the principal enactment.
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18. The Third Schedule to the principal enactment is hereby amended as follows: –
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(a) by the omission of the heading ” Rates of Interest Chargeable by Pawnbroker “; and
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(b) by the substitution, for paragraphs A and B of that Schedule, of the following paragraphs: –
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The rate of interest on every rupee or a fraction of a rupee lent shall be two cents for every month or part thereof.
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B. Business Turnover Tax.
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Where the business turnover tax under the Finance Act, No. 11 of 1963, is payable by the pawnbroker on a loan on a pledge, such tax may be recovered from the pawner.”.
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Amendment of the Fourth Schedule to the principal enactment.
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19. The Fourth Schedule to the principal enactment is hereby amended by the substitution, for regulation 4 of that Schedule, of the following new regulation: –
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” 4. The auctioneer shall give notice of the sale by advertisements inserted in at least one Sinhala, Tamil and English newspaper and by notices displayed in places resorted to by the public in the area where the sale is to be held, and such advertisements and notices shall state-
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(a) the pawnbroker’s name and place of business; and
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(b) the months in which the pledges were pawned.”.
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