sinserted by Ada tation of Tuws (Third Amendment) Order, 199 ti — THE PUNJAB REGULATION OF ACCOUNTS ACT

1 sinserted by Ada tation of Tuws (Third Amendment) Order, 199 ti nd XXI ot 1me8. XXXVI of 1881 XXXVI of 1881 . (4) "Court" includes a court acting in the exercise insolvency includes of insolvency jurisdiction. (5) "Creditor" means a person who in the regular e of business advances a loan as defined in this Act (5) "Creditor" means a person who in the regular course of business advances a loan as defined in this Act and shall include subject to the provisions of section 3 the lega_xl representatives and the successor-in-interest whether by inheritance, assignment or otherwise of the person who advanced the loan. (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. (7) "Loan" means an advance whether of money or nd at interest and shall include any transaction which (7) "Loan" means an advance whether of money or in kind at interest and shall include any transaction which the court finds to be in substance a loan, but it shall not include— (i) a deposit of money or other property in a Government Post Office, Bank or any other Bank or in a company or with a co-operative society ; (ii) aloan to or by or a deposit with any society or association registered under the Societies Registration Act, 1860, or under any other enactment ; (iii) aloan advanced by *[the Central or any *[State Government]] or by any local body authorised by [the Central or any *[State] Government]; (iv) a loan advanced by a bank, a co-operative society or a company whose accounts ares subject to audit by a certificated auditor under the Companies Act ; (v) a loan advanced to a trader ; (vi) an advance made on the basis of a negotiable the Negotiable Instruan advance made on the basis of a negotiable instrument as defined in the Negotiable Instru- ments Act, 1881, other than a promissory note; instrument as defined in the Negotiable ments Act, 1881, other than a promissory note; (vii) a transaction which is, in substance, a mortgage or a sale of immoveable property. 1Substituted for lhed'worid' "Goveol:'tdmertl';;;;:}re—v(}t;;ex;l;\ent' of a (Adeptation of Indian Lzws) er, . 1S dia *S bstituted for lhed'wori (Adeptation of Indian abstitputed for the word "Gov Lzws) tdme er, ; . Ao Ord a (Adeptation of Indian Lzws) er, . *S\(abstitputed for the word "Provincia\"'by the Adaptation of Laws r, 1950, Ao *S\(abstitp Order, 1950, "Preseribed" means prescribed by rules made under this Act. 4 s ho in the or ;)lt}}er] 4 ho in the regyly "T'rader" means a person w business buys and sells goods or ;)lt}}er] Property, person w s goods " 4 ho in the regyly "T'rader" means a person w couriog Z)f business buys and sells goods or ;)lt}}er] Property, her moveable or immoveable, and shall include— couriog Z)f business whether moveable or immoveable, and shall include— a wholesale or a retail merchant, a commission agent, a broker, a manufacturer, a contractor, a factory owner, but shall not include a person who sells his own agricultural produce or cattle, or buys agricultural produce or l not include a person who sells his own agricultural produce or cattle, or buys agricultural produce or cattle for his own use. his own use. Duty of ered3 (1) A creditor shall in order to comply with the visions of this Act— 3 (1) A creditor gd t?m—;{":.'.fim:g:provisions of this Act— ts. Souny gd t?m ts. Souny (a) regularly record each debtor and maintain an account for ately, of all transactions r rly record and maintain an account for each debtor separately, of all transactions relat- ing to any loan advanced to that debtor, i debtor separately, of all transactions relat- ing to any loan advanced to that debtor, in such manner as the [Central Government] to any loan advanced manner as the [Central prescribe ; ebtor, in such Government] may ner as prescribe ; (b) furnish each debtor every six months with a legible statement of account signed by the furnish each debtor every six months with a legible statement of account signed by the creditor or his agent of any balance or amo statement of account signed by the creditor or his agent of any balance or amount that may be outstanding against such deb r or his agent of any balance or amount that may be outstanding against such debtor on the 30th day of June, or 15th Har and may be outstanding against such debtor on the 30th day of June, or 15th Har and the 31st day of December, or 15th Poh e day of June, or 15th Har and the 31st day of December, or 15th Poh each year. This statement of account shall includ day of December, or 15th Poh each year. This statement of account shall include all transactions relating to the loan entered statement of account shall include all transactions relating to the loan entered into during the six months to which the statemen sactions relating to the loan entered into during the six months to which the statement relates, and shall be sent, in such manne the six months to which the statement relates, and shall be sent, in such manner and in such form and containing such detail es, and shall be sent, in such manner and in such form and containing such details as the '[Central Government] may prescribe, o uch form and containing such details as the '[Central Government] may prescribe, on or before the 31st day of August or 15th Bhado e '[Central Government] may prescribe, on or before the 31st day of August or 15th Bhadon in the case of any balance outstanding on th before the 31st day of August or 15th Bhadon in the case of any balance outstanding on the 30th day of June, or 15th Har and on or before case of any balance outstanding on the 30th day of June, or 15th Har and on or before *Substituted for the words ganisation (Chandigarh) ( *Substituted for the words ''State Government" Reorganisation (Chandigarh) (Adaptetion of Laws on for the word (Chandigarh) ) by the Punjab State and Con(Chandiga current Subjects) Order, ''State Government" by the Punjab (Adaptetion of Laws on State and Con1068, | case the 28th day of February or 15th Phagan in the of any balance outstanding on the 31st d oh, Eg:planatmn.——(i) The '[Central Government] Prescribe the forms required and numerals in which the acc case e 2 of h day of February or 15th of any balance outstanding cember or 15th Poh, se of any b of December hagan in the alance outstanding on the 31st day or 15th Poh, anatmn.——(i the forms by this pr ghall ounts rescribe the required by maintained ) The '[Central Government] forms ghall and numerals in which the accounts this provision of this sub-section and furnished, are to be and required by merals in which t this provision of this sub-section maintained and furnished, and the creditor s he accounts of this sub-section are to be and the creditor shall at his his sub-section are to be the creditor shall at his (ii) the prescribed accounts shall be so due by way of interest shall be shown items (i kept epa that an the prescribed accounts shall be so kept that due by way of interest shall be shown as separate and principal and interest shall be maintained. shall not in the absence of agreement, includ principal and interest shall be maintained. The creditor shall not in the absence of agreement, include the interest or any d interest shall be maintained. The creditor the absence of agreement, include the interest on of it in the principal sum ; and the princ not in the absence of agreement, include the interest or any portion of it in the principal sum ; and the principal and interest shall be separately shown in the opening or any portion of it in the principal sum ; and the principal and interest shall be separately shown in the opening balance of each new six-monthly account : interest shall be separately shown in balance of each new six-monthly account : Provided that— (i) if the loan has, since it was originally advanced, passed by inheritance or assignment to months from the date of such passing ; (ii) nothing in this section shall be deemed to lay upon any person the duty of mainta as, since it was originally advanced, passed by inheritance or assignment to a widow or minor, such widow or minor shall no d by inheritance or assignment to a widow or minor, such widow or minor shall not be bound to maintain and furnish the acco , such widow or minor shall not be bound to maintain and furnish the account pre- scribed by this section for a period of to maintain and furnish the account pre- scribed by this section for a period of six months from the date of such passing ; ibed by this section for a period months from the date of such passing ; nothing in this section shall be deeme this section shall be deemed to lay upon any person the duty of maintaining and furnishing the prescribed account in the ca any person the duty of maintaining and furnishing the prescribed account in the case of a loan wherein the title to recover 1s subnishing the prescribed account in the case of a loan wherein the title to recover 1s sub- judice between two or more persons cla oan wherein the title to recover 1s sub- judice between two or more persons claiming as creditors adversely to each other unless and ice between two or more persons claiming as creditors adversely to each other unless and until the title has been finally decided by ditors adversely to each other unless and until the title has been finally decided by a court of competent jurisdiction. has been finally court of competent jurisdiction. Entries in the account prescribed under clause ies in the account prescribed under clause (u) to sub-section (1) shall be deemed to be regularly *Substituted for the ganisetion (C words "State h) (Ada Government" by the o® Laws on Sta Punjab Co bstituted for the wor Reorganisetion (Chandigarh) current Subjects Order, 1968 ate Government" by the Punjab (Adaptation o® Laws on State and Conigarh) current Subjects) Order, 1968. . the course of business for the purposes of section es of such entrieg . '.'::pih:ginn Evidence Act, 1872, and copies certified in such manner as may be presc oses of section of such entrieg shall he '.'::pih:ginn Evidence Act, 1872, and copies of such certified in such manner as may be prescribed shall he for any purpose in the same manaer certified in such manner as may be prescribed sh admissible in evidence for any purpose in the same to the same extent as the original entries. all he manaer admissible in evidence for any purpose and to the same extent as the original entries. Explanation.—A person to whom a statement of ac. as been sent under clause (b) of sub-section (1) Explanation.—A person to whom count has been sent under clause (b) of sub-section (1) hall not be bound to acknowledge or deny its correctness count has been sent under clause (b) of sub-section (1) shall not be bound to acknowledge or deny its correctness and his failure to protest shall not, by itself, be deemed tq shall not be bound to acknowledge or deny its correc and his failure to protest shall not, by itself, be deemed tq e an admission of correctness of the account. and his failure to protest shall not, by itself, be be an admission of correctness of the account. Penalty non-compliance the provinon-comp with the ions of s ance provi-

Section 1