Section 40State of West Bengal Act
Section 40: Entry of ah amount in a bond, etc., different to the amount actually lent to be an offence
Entry of ah amount in a bond, etc., different to the amount actually lent to be an offence. -
(1)
No lender shall take from a borrower or intending borrower any note, promise to pay, power of attorney, bond or security which does not state [the address of the borrower, the date and place of the transaction,] [Words Inserted by W.B. Act 21 of 1965.] the actual amount of the loan, the rate of interest charged and the time, if any, within which the principal is stipulated to be repaid in full, or which states any of such particulars incorrectly, nor shall he take from any borrower or intending borrower any instrument in which any entry is left blank for completion at a later date.(2)
Whoever intentionally contravenes the provisions of sub-section (1) shall, on conviction, be punishable with simple imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.(3)
No money-lender shall take from any borrower or intending borrower any note, promise to pay, power of attorney, bond or security which describes or refers to as a commercial loan any loan which is not a commercial loan.(4)
Notwithstanding anything contained in any law for the time being in force, any note, promise to pay, power of attorney, bond, security or document referred to in sub-section (1) or sub-section (3) shall be void and unenforceable.(5)
Notwithstanding anything contained in any law for the time being in force, in any suit, or proceeding the burden of proving that a loan is a commercial loan shall be on the money-lender who advanced the loan.(6)
[ Notwithstanding anything contained in the Indian Evidence Act, 1872, evidence adduced by a borrower in a suit to which this Act applies or a suit brought by a borrower for relief under section 36 or in any criminal proceedings under section 41 or section 42, of any oral agreement or statement contradicting, varying, adding to or subtracting from the terms of any document creating or witnessing a loan shall be admitted.] [Sub-section (6) Inserted by W.B. Act 21 of 1965.]Disclaimer: This section is reproduced for general informational and reference purposes only. Always verify against the latest official gazette and consult a qualified advocate before relying on any provision.