Section 30State of West Bengal Act

Section 30: Limitations as to amount and rate of interest recoverable

The Bengal Money-Lenders Act, 1940

Limitations as to amount and rate of interest recoverable. -

Notwithstanding anything contained in any law for the time being in force, or any agreement,-

(1)

[no borrower other than a borrower of commercial loan] [Words substituted for the words 'no borrower' by W.B. Act 4 of 1981, w.e.f. 2.2.1981.] shall be liable to pay after commencement of this Act-

(a)

any sum in respect of principal and interest which together with any amount already paid or included in any decree in respect of a loan exceeds twice the principal of the original loan,

(b)

on account of interest outstanding on the date up to which such liability is computed, a sum greater than the principal outstanding on such date,

(c)

[ any interest other than simple interest at a rate per annum not exceeding in the case of-] [[Sub-clause (c) substituted by W.B. Act 21 of 1965, which was earlier as under:- '(c) interest at a rate per annum exceeding in the case of-

(i)unsecured loan, ten per centum simple,

(i)unsecured loans- twelve and a half per centum,

(ii)secured loans- ten per centum-whether such loan was advanced or such amount was paid or such decree was passed or such interest accrued before or after the commencement of this Act;

(ii)secured loans, eight per centum simple,'.]]

(2)

[no borrower other than a borrower of commercial loan] [Words substituted for the words 'no borrower' by W.B. Act 4 of 1981, w.e.f. 2.2.1981.] shall after the commencement of this Act, be deemed to have been liable to pay before the date of such commencement in respect of interest paid before such date or included in a decree passed before such date, interest at rates per annum exceeding those specified in sub-clause (c) of clause (1);

(3)

a lender shall be entitled to institute a suit at any time after the commencement of this Act in respect of a transaction to which either or both of the preceding clauses applies or apply.

Sec 30A — [ Limitation as to rate of interest recoverable in case of commercial loan.-] [Section 30A Inserted by W.B. Act 4 of 1981, w.e.f. 2.2.1981.]Notwithstanding anything contained in any law for the time being in force or in any agreement, no borrower of a commercial loan shall be liable to pay any interest other than simple interest at a rate per annum not exceeding in the case of

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