OrdinanceNo. 13 of 1942,AdsNos. 2 of 1953,

55 of 1956,11 of 1963,

LawNo. 23 of 1973.

Short title.

Date ofoperation andapplication ofOrdinance.

PAWNBROKERS [Cap. 99

CHAPTER 99

PAWNBROKERS

AN ORDINANCE TO PROVIDE FOR THE REGULATION OF THE BUSINESS OF PAWNBROKERSAND FOR OTHER MATTERS INCIDENTAL TO OR CONNECTED WITH SUCHREGULATION.

PART I

GENERAL

1. This Ordinance may be cited as thePawnbrokers Ordinance.

2. (1) On the appointed date thisOrdinance shall come into operation in theprovinces, districts, towns and placesspecified in the First Schedule.

(2) It shall be lawful for the Minister, byOrder published in the Gazette—

(a) to bring any province, district, townor place not specified in the FirstSchedule within the operation ofthis Ordinance; or

(b) to amend or vary the First Schedule.

PART II

DUTIES OF PAWNBROKERS

2A. On or after the first day of January,1964, no person shall carry on the business

(i) is an individual who is not a citizen of

(ii) is a foreign company; or

(in) is a foreign firm,

and accordingly any licence to carry on suchbusiness which was issued to any suchindividual, foreign company or foreign firm

Certainpersonsprohibited,from carrying of a pawnbroker if such person—on the businessofa , pawnbroker. [§47,11 of Sn Lanka; or1963.]

[24th April. 1942.']

and was in force on the day immediatelyprior to the said first day of January shall,on and after the said first day of January, bedeemed, for all purposes, to be null andvoid.

3. (1) No person shall carry on the Pawnbroker'sbusiness of a pawnbroker unless he is the "licence.holder of a licence issued in that behalf bythe Government Agent,

(2) Every licence issued under this section [§2, Law 23 ofshall be in the Form A set out in the Second 1973-]Schedule.

(3) Every licence shall be dated on theday of which it is issued, and shall expire onthe thirty-first day of July next ensuing.

3A. The holder of a licence issued undersection 3 shall not transfer the business towhich such licence relates to any otherperson without the prior approval inwriting of the Government Agent, and atransfer of such business without such priorapproval shall be for all purposes null andvoid.

4. The Government Agent shall forwarda copy of each licence issued under section 3to the Superintendent of Police of thedistrict within which the business to whichsuch licence relates, is carried on.

5. (1) Every person desirous ofobtaining a licence for carrying on thebusiness of a pawnbroker shall makeapplication in that behalf to theGovernment Agent,

Transfer ofbusinesswithout priorapproval ofGovernmentAgent to bevoid.[§3, Law 23 of1973.J

Copies oflicence to besent toSuperin-tendents ofPolice.[§4, Law 23 of1973.]Application forlicence.

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[§5, Law 23 of1973.]

Personsentitled to alicence.

[§2, 55 of1956.]

Issue oflicences tocertain personsprohibited.[§47, 11 of1963.]

Refusal oflicence.

[§6, Law 23 of1973.]

(2) Every application for a licence shall beaccompanied by a licence fee of onethousand rupees.

6. No person shall be entitled to alicence for carrying on the business of apawnbroker unless he produces to theGovernment Agent satisfactory evidence ofgood character.

7. On or after the first day of January,1964, no licence for carrying on the businessof a pawnbroker shall be issued to anyperson who is prohibited from carrying onsuch business by virtue of the operation ofthe provisions of section 2A, and accordinglyany such licence issued to any such person,whether by inadvertence or otherwise, shallbe deemed, for all purposes, to be null andvoid.

8. (I) No licence for carrying on thebusiness of a pawnbroker shall be issued toany person if—

(a) at any time during the five yearsimmediately preceding the date onwhich he makes his application forsuch licence, he has been foundguilty of any act renderedpunishable under Chapters XI,XIII, XVII or XVIII of the PenalCode, or under the provisions ofthis Ordinance; or

(b) in the opinion of the GovernmentAgent, the shop or place in whichthat person intends to carry on thebusiness of pawnbroker, or anyadjacent house or place possessedby him, is frequented by thieves orpersons of bad character, or is usedfor the sale of intoxicating liquor,opium, or the preparations of thehemp plant commonly known asbhang, hashish or ganja; or

(c) a licence issued to him under thisOrdinance has been cancelled undersection 42.

(2) Where the holder of a licence issuedunder section 3 makes an application for arenewal of such licence, the GovernmentAgent may refuse to renew such licence, ifhe is of the opinion that such holder has,

carrying on the Auctioneersbusiness of a pawnbroker shall be issued to not entitled to

l i c e n c e .any person who is an auctioneer.

Security to befurnishedbefore licenceis issued.E§ 4, 55 of1956.]

Notice ofpawnbroker'sabsence fromSri Lanka.

during any period preceding suchapplication, and in relation to his businessas a pawnbroker, dealt in practices whichare contrary to the spirit and the purposesof the provisions of this Ordinance.

9. No licence for

9A. No licence for carrying on thebusiness of a pawnbroker shall be issued toany person unless he furnishes security incash in the prescribed amount.

10. Every pawnbroker who intends to beabsent from Sri Lanka for any periodexceeding three months shall—

(a) give written notice of his intention tothe Government Agent; and

(b) appoint a person (being a personentitled under this Ordinance to alicence for carrying on the businessof a pawnbroker) to act for him andon his behalf during his absencefrom Sri Lanka, and give to theGovernment Agent written noticeof the name of the person soappointed.

13. Every pawnbroker shall—(a) always keep exhibited in large

characters over the outer door ofhis shop or place of business hisname with the word " Pawnbroker "in Sinhala, Tamil and English ; and

(b) always keep exhibited in aconspicuous part of his shop orplace of business so as to be clearlyvisible to and legible by everyperson resorting thereto a noticecontaining in Sinhala, Tamil andEnglish the particulars set out in theThird Schedule.

It. No pawnbroker shall take any Hours ofarticle on pawn before 8 a.m. or after 8 p.m. business.on any day.

12. No pawnbroker shall act as or carry Pawnbrokeron the business of an auctioneer. not to act asauctioneer.

Notices, &c., tobe exhibited bypawnbrokers.

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PAWNBROKERS [Cap.99

Language to beused inenteringparticulars.

Books to bekept bypawnbrokers.

Pawn tickets.

[§7, Law 23 of1973.]

14. Where any particulars are requiredby this Ordinance to be entered in anybook, form or document, such particularsshall be entered in Sinhala, Tamil orEnglish.

15. Every pawnbroker shall keep anduse in his business a pledge book in theform B and a sale book of pledges in -theform C set out in the Second Schedule, andshall from time to time, as occasiondemands, enter therein in a fair and legiblemanner all the particulars for the recordingof which provision is made in such forms,and shall make all inquiries necessary forthat purpose.

16. (1) Every pawn ticket shall beexecuted in foil and counterfoil in the formD set out in the Second Schedule and inaccordance with the directions contained inthat form.

(2) The particulars in the Third Scheduleshall be printed legibly in Sinhala, Tamiland English on the back of the foil of everypawn ticket.

(3) Where a pledge is pawned forhundred rupees or over, the foil of the pawnticket relating to that pledge shall bear astamp of the value of twenty-five cents. Theexpense for providing such stamp shall beborne by the pawnbroker.

(4) No article shall be or be deemed to betaken in pawn unless and until—

(a) the pawner has signed the counterfoilof the pawn ticket;

(b) the pawnbroker has signed the foil ofthe pawn ticket and has given thefoil to the pawner ; and

(c) the pawner has received and acceptedthe foil of the pawn ticket from thepawnbroker.

Rate of interest. 17. No pawnbroker shall, in respect of a[§7, Law 23 of loan on a pledge, charge interest at a rate1973] exceeding the rates specified in the Third

Schedule:

Provided that where business turnovertax is payable in respect of a loan given on a

pledge, nothing in the preceding provisionsof this section shall be deemed to prohibitthe pawnbrokers from recovering such taxfrom the pawner,

In this section " pledge " includes a pledgewhich has been pawned and which has notbeen redeemed before the appointed date.

PART III

PLEDGES

18. Every pledge shall be redeemablewithin a period of twelve months(hereinafter in this Ordinance referred to asthe " period of redemption ") from the dayof pawning, exclusive of that day.

19. Notwithstanding anything in thisOrdinance to the contrary, every pledgeshall continue to be redeemable until it isdisposed of as in this Ordinance provided,although the period of redemption hasexpired.

20. (1) The pawner shall be entitled toredeem a pledge if he surrenders to thepawnbroker the foil of the pawn ticketrelating to that pledge and signs the foil inthe presence of the pawnbroker or his agentor servant.

(2) A person other than the pawner shallbe entitled to redeem a pledge if such personsurrenders to the pawnbroker the foil of thepawn ticket relating to that pledge dulyendorsed with the signature of the pawnerand if such person signs that foil in thepresence of the pawnbroker or his agent orservant.

(3) Where by reason of the death or legaldisability of the pawner, the holder of thefoil of the pawn ticket relating to thatpledge (hereinafter in this section referred toas the " holder ") claims to be entitled toredeem that pledge but is unable tosurrender to the pawnbroker the foil of thepawn ticket duly endorsed with thesignature of the pawner, the pawnbrokershall permit the pledge to be redeemed ifsuch holder surrenders to him the foil of thepawn ticket relating to that pledge togetherwith a declaration in the form E set out inthe Second Schedule, duly made before aJustice of the Peace by such holder and bythe person identifying him. . :

Pledgesredeemablewithin oneyear.

Pledges tocontinue to beredeemableuntil sale.

Procedure forredemption ofa pledge.

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[§ 9, Law 23 of1973.]

Compensationfordepreciation ofpledge.

Protection ofowners and ofpawners nothaving pawntickets.

(4) Subject to the provisions ofsubsections (I), (2) and (3), the pawnbrokershall, on payment of the loan, the interestdue 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 ofthe pawn ticket relating to that pledge ; andthe pawnbroker is hereby indemnified inrespect of such delivery of the pledge ;

Provided, however, that if the pawnbrokerhas reason to suspect that such holder hassold or otherwise illegally obtainedpossession of the pawn ticket, thepawnbroker may seize and detain the personand the ticket and deliver them as soon asmay be to an officer of police or grama sevaniladhari, who shall forthwith convey theperson and the ticket before a court ofcompetent jurisdiction to be dealt withaccording to law.

21. If a person entitled and offering toredeem a pledge shows to the satisfaction ofa civil court of competent jurisdiction thatthe pledge has become, or has beenrendered, of less value than it was at thetime of the pawning thereof, by or throughthe default, neglect, or wilful misbehaviourof the pawnbroker, the court may, if itthinks fit, award a reasonable satisfaction tothe owner of the pledge, and the amountawarded shall be deducted from the amountpayable to the pawnbroker, or shall be paidby the pawnbroker in such manner as thecourt directs.

22. (1) Any person claiming to be theowner of a pledge, but not holding the foilof the pawn ticket, or any person claimingto be entitled to hold the foil of the pawnticket, but alleging that the foil of suchticket has been lost, stolen, mislaid,destroyed, or fraudulently obtained fromhim, may deliver to the pawnbroker adeclaration in the form F set out in theSecond Schedule, duly made before aJustice of the Peace by himself and by theperson identifying him, and shall thereuponhave, as between himself and thepawnbroker, all the same rights andremedies as if he produced the foil of thepawn ticket:

Provided that for the purpose ofredeeming a pledge he shall sign the

counterfoil of the pawn ticket and not thefoil thereof as required by section 20.

(2) The pawnbroker is hereby indemnifiedfor delivering the pledge or otherwise actingin conformity with the declaration, unless hehas actual or constructive notice that thedeclaration is fraudulent or false in anymaterial particular.

23. (1) Where the foil of a pawn ticketis surrendered to the pawnbroker for thepurpose of redeeming a pledge, thepawnbroker shall retain in his possessionthe foil and counterfoil of that pawn ticketfor a period of twelve months reckonedfrom the date of the redemption of thatpledge.

(2) Where a pledge is redeemed withoutthe surrender of the foil of the pawn ticketrelating to that pledge, a pawnbroker shallretain in his possession for a period oftwelve months reckoned from the date ofthe redemption of that pledge thecounterfoil of the pawn ticket relating tothat pledge and the declaration delivered tohim under section 22 for the purpose ofsuch redemption.

(3) Where a pledge is sold under theprovisions of this Ordinance, thepawnbroker shall retain in his possessionthe counterfoil of the pawn ticket relating tothat pledge for a period of twelve monthsreckoned from the date of sale.

23A. (1) Where in any prescribedcircumstance any pledge is lost while inpawn with any pawnbroker, the securityfurnished by such pawnbroker shall beapplied in the prescribed manner to thepayment of compensation to the pawner orto any other person entitled to redeem suchpledge.

(2) Where a person ceases to carry on thebusiness of a pawnbroker, the amount ofthe security furnished by him less any sumapplied therefrom to the payment of suchcompensation as is referred to in subsection(1) shall be returned to him.

24. (1) Where a pledge is destroyed ordamaged by or in consequence of fire, thepawnbroker shall nevertheless be liable, ondemand, within the period of redemption, topay the value of the pledge, after deducting

Pawn tickets tobe retained bypawnbrokerafterredemption orsale of pledge.

Applicationand return ofsecurityfurnished bypawnbrokers.[§ 5. 55 of1956.]

Liability ofpawnbroker incase of fire.[§ 10, Law 23of 1973.]

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PAWNBROKERS [Cap.99

Receipt ofpawnbroker.[§11, Law 23of 1973.]

Pledges to besold byauction.

[§ 12, Law 23of 1973.]

Notice of sale.

Procedure atsale of pledgefor more thanthe amount ofthe loan,interest andbusinessturnover lax.[§13, Law 23of 1973.]

the amount of the loan and interest, andbusiness turnover tax, if any, payable inrespect of such loan.

(2) Every pawnbroker shall have hisbusiness insured to the full extent of thevalue of the articles pawned with him.

25. Every pawnbroker shall, at the timeof redemption of the pledge, give a receiptfor the amount of loan and interest paid tohim and the business turnover tax, if any,recovered by him and preserve a copy ofsuch receipt with the pledge book. Suchreceipt shall be in the Form G set out in theSecond Schedule and shall not be liable tostamp duty unless the interest and businessturnover tax, if any, amounts to onehundred rupees or more.

26. (1) Every pledge which is notredeemed within the period of redemptionmay be disposed of by sale by publicauction but shall not be disposed ofotherwise, and the regulations in the FourthSchedule shall be observed with reference tothe sale.

(2) Where a pledge is to be sold by publicauction under the preceding provisions ofthis section, the pawnbroker with whomsuch pledge had been pawned, shall give atleast fourteen days' notice in writing to theGovernment Agent, of the date and timefixed for such sale, and the place at whichsuch sale is to be held.

27. The pawnbroker shall give to everypawner whose pledge is to be sold under thisOrdinance at least fourteen days' notice ofthe date fixed for the sale of his pledge bypublic auction and of the place at which thesale is to be held.

28. In every case where a pledge is soldunder this Ordinance for more than theamount of the loan and interest due on thedate of the sale and the business turnovertax, if any, payable in respect of such loan,the pawnbroker shall—

(a) forthwith give to the pawner of thatpledge notice of the amount forwhich the pledge was sold and ofthe amount lying to the credit of thepawner af ter d e d u c t i n g the

Procedure onsale of pledgebefore theappointed datefor more thanthe amountdue andinterest.

necessary costs and charges of thesale ; and

(b) on demand made within one yearfrom the date of such sale pay tothe holder of the pawn ticketrelating to that pledge the amountlying to the credit of the pawner ;and

(c) if no such demand is made within thesaid period of one year, forthwithon the expiry of the said period,deposit the amount lying to thecredit of the pawner in the nearestkachcheri to the credit of thepawner.

29. Where, at any time before theappointed date, any pledge pawned forabove five rupees has been sold under thelaw then in force for more than the amountof the loan and interest due at the time ofthe sale, and no demand for the amountlying to the credit of the pawner is made tothe pawnbroker by the holder of the pawnticket relating to that pledge within one yearafter the date of such sale, then in every casewhere the said period of one year expires onor after the appointed date, the pawnbrokershall, forthwith on the expiry of the saidperiod, deposit such amount in the nearestkachcheri to the credit of the pawner.

30. Every notice under section 27 orsection 28 shall be sent by registered post tothe pawner at the address entered in thepledge book and the cost of registrationshall be borne by the pawner and everynotice under section 26 (2) shall be sent byregistered post.

31. A pawnbroker may bid for andpurchase at a sale by auction made orpurporting to be made under thisOrdinance, a pledge pawned with him ; andon such purchase he shall be deemed to bethe absolute owner of the pledge purchased.

• PART IV

INSPECTION, EXAMINATION AND SEIZURE

32. At any time within two years from Power tothe date on which a pledge is sold under this inspect saleOrdinance, the holder of the pawn ticket may books

Method ofgiving noticeunder sections26, 27 and 28.[§ 14, Law 23of 1973.]

Purchase ofpledges bypawnbroker.

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Proceedingswhere personsoffering articlesin pawn do notgive a goodaccount ofthemselves.

inspect the entry of the sale in thepawnbroker's book and in the filled-upcatalogue of the auction authenticated bythe signature of the auctioneer, or in eitherof them ; and the pawnbroker shall permitthe holder of the pawn ticket to inspect theentry of the sale in such book and catalogueor in either of them.

33. Where any person—

(a) offers to a pawnbroker an article byway of pawn, but refuses or isunable to give a satisfactoryaccount of the means by which hebecame possessed of it; or

(b) wilfully gives false information to apawnbroker as to whether an articleoffered by him in pawn to thepawnbroker is his own property ornot, or as to his name and address,or as to the name and address ofthe owner of the article ; or

(c) attempts or endeavours to redeem apledge, not being entitled toredeem; or

(d) offers to a pawnbroker an article byway of pawn and the pawnbrokerhas reason to suspect that it hasbeen stolen or otherwise illegallyobtained,

the pawnbroker may seize and detain theperson and the article and deliver them, assoon as may be, into the custody of anofficer of police or grama seva niladhari,who shall forthwith convey the person andthe article before a court of competentjurisdiction to be dealt with according tolaw.

Pawnbroker's 34. It shall be lawful for a Magistrate,book subject to by an order served on any pawnbroker, toexamination. . , , , , , crequire such pawnbroker to attend before

him on a day and hour to be specified in theorder, and to produce for examination allbooks and papers relating to his business^and every pawnbroker on whom any orderis served under this section shall complywith the requirements of such order.

35. It shall be lawful for any officer ofpolice not below the rank of Sub-Inspectoror any public officer authorized in writing inthat behalf by the Government Agent or anydivisional Assistant Government Agent toenter any pawnbroker's shop or place ofbusiness or residence at any hour of the dayand examine and take note of any articlepledged with the pawnbroker, or any booksand papers kept by him; andno person shall resist any such officer orsuch divisional Assistant Government Agentin the execution of his duty,

PARTV

OFFENCES AND PENALTIES*

36. Every person who—

(a) offers to a pawnbroker an article byway of pawn but refuses or isunable to give a satisfactoryaccount of the means by which hebecame possessed of it ; or

(b) wilfully gives false information to apawnbroker as to whether an articleoffered by him in pawn to thepawnbroker is his own property ornot, or as to his name and address,or as to the name and address ofthe owner of the article ; or

(c) attempts or endeavours to redeem apledge not being a person entitledto redeem such pledge ; or

(d) without lawful excuse pawns with apawnbroker anything being theproperty of another person ; or

(e) makes a declaration under thisOrdinance either for himself or asidentifying another, knowing suchdeclaration to be false in anymaterial particular ; or

(f) contravenes any provision of thisOrdinance or fails to do anythingwhich he is required to do by thisOrdinance,

shall be guilty of an offence.

Power tosearchpawnbroker'sshop orresidence.[§6,55 of1956.]

[§ 6, 55 of1956.]

Offences bypawners andother persons.

* Primary Court has exclusive jurisdiction in respect of all offences under Part V of this Ordinance under section33 of the Judicature Act read with Gazette Extraordinary No. 43/4 of 1979.07.02.

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PAWNBROKERS [Cap. 99

Offences bypawnbrokers.

[§15. Law 23 of1973.]

37. Every pawnbroker who—

(a) takes an article in pawn from anyperson appearing to be under theage of sixteen years or to beintoxicated; or

(b) takes an article in pawn withoutgiving the pawner the foil of thepawn ticket; or

(c) purchases, or takes in pawn orexchange, the foil of a pawn ticketissued by another pawnbroker; or

(d) employs any servant apparently underthe age of twenty-one years to takearticles in pawn; or

(e) purchases, except at a sale by publicauction under this Ordinance, anypledge while in pawn with him; or

(f) suffers any pledge while in pawn withhim to be redeemed with a view tohis purchasing it; or

(g) agrees with any person, pawning oroffering to pawn any article, topurchase, sell or dispose of sucharticle within the period ofredemption; or

(h) sells or otherwise disposes of anypledge pawned with him, except atsuch time and in such manner as isauthorized by this Ordinance; or

(i) makes any false entry in any bookrequired to be kept by him underthis Ordinance or fails to maketherein any entry which he isrequired to make by thisOrdinance; or

(j) seizes or detains any person under theprovisions of section 20 or section33 without reasonable or probablecause; or

(fc) fails to have his business insured tothe full extent of the value of all thearticles pawned with him; or

(/) contravenes any provision of thisOrdinance or fails to do anythingwhich he is required to do by thisOrdinance,

shall be guilty of an offence.

Prohibition oftaking in pawnlinen, clothing,unfinishedgoods, &c., incertain cases.

Pawnbrokerfailing todeposit inkachcherimoney lying tothe credit of apawner.

38. Every pawnbroker who knowinglytakes in pawn any linen or apparel, orunfinished goods or materials entrusted toany person to wash, scour, iron, mend,manufacture, work up, finish, or make up,shall be guilty of an offence ; and where anycourt convicts any pawnbroker of an.offence under this section the court may, inaddition to any other punishment which itmay impose for that offence, order thepawnbroker to restore the pledge to theowner thereof in the presence of the court oras the court directs.

39. Every pawnbroker who fails todeposit in the kachcheri the amount lying tothe credit of a pawner as required by section28 or section 29 shall be guilty of anoffence; and where any court convicts anypawnbroker of such offence, the court may,in addition to any other punishment whichit may impose for that offence, order a sumequal to such amount to be recovered fromthat pawnbroker as though it were a fineimposed by the court. Every such sum whenrecovered by the court shall be deposited inthe nearest kachcheri to the credit of thepawner.

40. Anything done or omitted to bedone by the servant or agent of apawnbroker in the course of or in relationto the business of a pawnbroker shall bedeemed to be done or omitted, as the casemay be, by the pawnbroker:

Provided that where, in the absence of apawnbroker from his shop or place ofbusiness, anything is done or omitted to bedone by any servant or agent of thepawnbroker in contravention of anyprovision of this Ordinance such servant oragent shall also be guilty of an offence andshall be liable on conviction to the penaltyprescribed for that offence by thisOrdinance,

*'41. Every person who is guilty of an Penalty.

offence under this Ordinance shall be liable [§15. Law 23 to a fine not exceeding one thousand rupeesor to imprisonment of either description fora term not exceeding six months or to bothsuch fine and imprisonment.

Offences byservant oragent ofpawnbroker.

of 1973.]

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Cap. 99] PAWNBROKERS

Cancellation of 42. Where a pawnbroker or, in . hispawnbroker's absence, any agent or servant of the\tff*W*f*S^ -l.licence. pawnbroker is convicted of any offence

under this Ordinance, or of any fraud in hisbusiness, or of receiving stolen goodsknowing them to be stolen, the GovernmentAgent may after the first conviction andshall after the second, cancel the licenceissued to that pawnbroker.

43. Whenever, in any proceeding underthis Ordinance, it is made to appear to acourt that any article is in the unlawfulpossession of any pawnbroker, it shall becompetent to such court to order theproduction of the article and its delivery toany person named by such court, undersuch terms, if any, as it may think proper.

Articles inunlawfulpossession ofpawnbroker.

PART VI

SUPPLEMENTARY

44. A pawner to whose credit any sumof money is deposited in pursuance of theprovisions of section 28, section 29 orsection 39 shall be entitled to receivepayment of such sum on demand made tothe Government Agent within one year fromthe date of such deposit. If no such demandis made within the said period of one year,such sum shall, on the expiry of the saidperiod, be credited to the ConsolidatedFund.

Sums of moneydeposited topawner's creditin kachcheries.

45. Anything by this Ordinance requiredor authorized to be done by a pawnbrokermay be done by his servant or agent.

Agents,servants,&c., of apawnbroker-

Keepers ofcertain shopsto be deemedpawnbrokers.

46. For the purposes of this Ordinancethe following persons shall be deemed to bepersons carrying on business of takinggoods in pawn, that is to say, every personwho keeps a shop for the purchase or sale ofgoods, or for taking in goods by way ofsecurity for money advanced thereon, andwho purchases or receives or takes in goodsand pays or advances or lends thereon anysum of money, with or under an agreementor understanding expressed or implied, or tobe from the nature and character of thedealing reasonably inferred, that thosegoods may be afterwards redeemed orrepurchased on any terms; and every suchtransaction, article, payment, advance, andloan shall be deemed a pawning, pledge, andloan, respectively, within this Ordinance.

46A. (1) The Minister may make Regulations.regulations for giving effect to the [§ 7, 55 ofprovisions of this Ordinance. 1956.]

(2) In particular and without prejudice tothe generality of the powers conferred bysubsection (1), the Minister may makeregulations—

(a) prescribing any matter which isrequired by this Ordinance to beprescribed, and

(b) providing for any matter incidental orsupplemental to the furnishing ofsecurity by pawnbrokers.

(3) No regulation made by the Ministerunder this section shall have effect until it isapproved by Parliament and notification ofsuch approval is published in the Gazette.Every regulation shall, upon notification ofsuch approval in the Gazette, be as validand effectual as if it were herein enacted.

46B. Any power, function or duty of the Delegation ofpowers, &c.,by theGovernmentAgent.[§ 7, 55 of1956.]

Government Agent under this Ordinancemay be exercised or performed by anypublic officer who is authorized so to do bywriting under the hand of the GovernmentAgent.

46C.. For the purposes of the issue to Burden ofproof.[§47,11 of1963.]

any person of any licence for carrying onthe business of a pawnbroker, or of anyprosecution instituted against any personfor any offence under this Ordinance, theburden of proving that such person is acitizen of Sri Lanka, or is not a foreigncompany or foreign firm, shall lie on suchperson.

47. In this Ordinance, unless the context Interpretation.otherwise requires—

" appointed date " means the 24th day ofApril, 1942;

. "citizen of Sri Lanka" means any [§ 47,11 ofindividual who is a citizen of Sri l963-]Lanka under any law for the timebeing in force relating to suchcitizenship;

" district " means administrative district;

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PAWNBROKERS [Cap.99

[§47, 11 of " foreign company " means a company to1963.] which Part XI of the Companies

Ordinance* applies ;

[§47, 11 of " foreign firm " means a firm—1963.]

(a) consisting of two partners oneof whom is not a citizen of SriLanka, or both of whom arenot such citizens ; or

(b) consisting of more than twopartners at least one of whomis not a citizen of Sri Lanka ;

"' month " means a period of thirty daysfor the purpose of charging profitor interest ;

" pawnbroker " includes every personwho carries on the business oftaking goods in pawn ;

" pawner " means a person delivering anarticle for pawn to a pawnbroker ;

" pledge " means an article pawned with apawnbroker ;

shop " includes a dwelling house,warehouse, place of business, andany place where business istransacted •

" sign " with its grammatical variationsand cognate expressions means, inthe case of a person who is unableto write his name, the impression inink or some other suitable mediumof the left thumb of that person ;

" unfinished goods or materials " includesany goods of any manufacture or ofany part or branch of anymanufacture, either mixed orseparate, or any materials whateverplainly intended for the composingor manufacturing of any goods,after such goods or materials areput into a state or course ofmanufacture, or into a state for anyprocess or operation to beperformed thereupon or therewith,and before the same are completedor finished for the purpose of wearor consumption.

FIRST SCHEDULE [Section 2 ]

The Central Province.The Western Province.The Province of Uva.The Galle District.The Hambantota District.The JafTna District.The Kegalla District.The K-urunegala District.The Mannar District.The Matara District.The Puttalam and Chilaw Districts.The Ratnapura District.The area within the administrative limits of the Anuradhapura Urban Council,The area within the administrative limits of the Batticaloa Urban Council.The area within the administrative limits of the Trincomalee Urban Council.The area within the administrative limits of the Weligama Urban Council.The area within the administrative limits of the Eravur Town Council.The area within the administrative limits of the Kalmunai Town Council.The area within the administrative limits of the Mullaillivu Town Council.The area within the administrative limits of the Vavuniya Town Council.

* Repeated and replaced by the Companies Act, No. 17 of 1982.

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Cap. 99] PAWNBROKERS

[Section 20.] FormE

DECLARATION WHERE THE FOIL OF THE PAWN TICKET IS SURRENDERED UNDER SECTION20 WITHOUT THE SIGNATURE OF THE PAWNER ENDORSED THEREON

I, A. B.,.............., of ............... in pursuance of the Pawnbrokers Ordinance, do solemnly andsincerely declare that . . . . . . . . . . . . . . pledged at the shop o f . . . . . . . . . . . . . . . Pawnbroker, the article/s describedbelow and received the foil of a pawn ticket for the same and that for the purpose of redeeming the pledge I amunable to surrender the foil of the pawn ticket to the pawnbroker with the signature of the said . . . . . . . . . . . . . .(pawner) duly endorsed thereon, because the said .............. (pawner) is dead/under a legal disability, to wit. . . . . . . . . . . . . . (nature of legal disability).

The article/s above referred to is/are . . . . . . . . . . . . . . .

I, C. D . , . . . . . . . . . . . in pursuance of the same Ordinance, do solemnly and sincerely declare that I know theperson now making the foregoing declaration to be A. B................ of . . . . . . . . . . . . . . . :

Declared before me this , day of,

Signature of A. B....................................Signature of C. D...................................

Justice of the Peace.

[Section 22.) Form F

DECLARATION WHERE THE FOIL OF THE PAWN TICKET IS LOST, Ac.

Take notice, if this declaration is false the person making it is punishable.

I, A. B.. of

being

person by

............ in pursuance of the Pawnbrokers Ordinance, do solemnly and sincerely declare thatpledged at the shop of . . . . . . . . . . . . . . . . Pawnbroker, the article (or articles) described below,

. . . . . . . property, and received the foil of the pawn ticket for the same, which has since beenby ................ and that the foil of the pawn ticket has not been sold or transferred to any......... or to . . ' . . . . . . . . . . . . . knowledge or belief.

The article (or articles) above referred to is ( or are ) the following:

And I, C. D., of . . . . . . . . . . . . . . . . in pursuance of the same Ordinance do solemnly and sincerely declare that Iknow the person now making the foregoing declaration to be A. B., of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Declared before me this . day of,

Justice of the Peace.

[Section 25.][§17, Law 23of t973.]

Form G

RECEIPT

Date : ................................

Rs. cts.

Received on redemption of Pledge No. .................................................

Amount of loan ...... .........Profit or interest ...... .........Business Turnover Tax ...... ..........

Total ...

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PA WNBROKERS [Cap. 99

THIRD SCHEDULE [Sections 13and 17.][§18, Law 23

A. Rate of Interest, of 1973 ]

The rate of interest on every rupee or a fraction of a rupee lent shall be two cents for every month or part thereof.

B. Business Turnover Tax.

Where the business turnover tax under the Business Turnover Tax Act is payable by the pawnbroker on a loan ona pledge, such tax may be recovered from the pawner.

C.—Restriction on recovery of enhanced interest:.

Where a pawnbroker is entitled to enhanced interest as from any date, such enhanced interest shall not berecoverable if the pawner shows to the satisfaction of a civil court of competent jurisdiction that hefailed to redeem the pledge before such date only because the pawnbroker's shop remained closedbetween 8 a.m. and 8 p.m. on the day preceding that date.

If the pawn to which this ticket relates is not redeemed within a period of twelve months from the day ofpawning, it is liable to be sold by public auction.

If the surplus profits, if any, from the sale are not claimed by the pawner within one year from such sale,the said profits wiil be placed to his credit in the kachcheri for one year. '

FOURTH SCHEDULE [Section 26.)

REGULATIONS RELATING TO AUCTIONS OF PLEDGES

1. The auctioneer shall cause all pledges to be exposed to public view.

2. He shall publish catalogues of the pledges, stating—

(a) the pawnbroker's name and place of business ;(b) the month in which each pledge was pawned ;(c) the number of each pledge as entered at the time of pawning in the pledge book.

3. The pledges of each pawnbroker in the catalogue shall be separate from any pledges of any otherpawnbroker.

4. The auctioneer shall give notice of the sale by advertisements inserted in at least one Sinhala, Tamil and [§ 19, Law 23English newspaper and by notices displayed in places resorted to by the public in the area where the sale is to be 01 1973.]held, and such advertisements and notices shall stale—

(a) the pawnbroker's name and place of business; and

(b) the months m which the pledges were pawned.

5. The advertisement shall be inserted on two several days in the same newspaper, and the secondadvertisement shall be inserted at least ten clear days before the first day of sale.

6. Where a pawnbroker bids at a sale, the auctioneer shall not take the bidding in any other form than that inwhich he lakes the biddings of other persons at the same sale ; and the auctioneer on knocking down any article toa pawnbroker shall forthwith declare audibly the name of the pawnbroker as purchaser.

7. The auctioneer shall, within fourteen days after the sale, deliver to the pawnbroker a copy of the catalogue,or of so much thereof as relates to the pledges of that pawnbroker, filled up with the amount for which the severalpledges of that pawnbroker were sold, and authenticated by the signature of the auctioneer.

8. The pawnbroker shall preserve every such catalogue for two years at least after the auction.

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