Section 0

(2): Preamble (2) !I%e conversiomn, comzsolidat.ion, or sub-division referred t o in sub-section (1) may be into a security s r securities of the same or different classes or of the same or diff ercnt loans. An Act to consolitlate and amend the law relating to Government securities. W HEEEAS it is expedient to consolidate amend the law relating to Government securi- and ties ; It is hereby enacted as follom-s :- I. (I) This Act may be called the Indian Securities Act, 1920 ; (2). It extende to the wllole of Britith India, including British Balucl~istan ; and (3) It shall come into force on the first day of April, 1920. 2. `ID` this Act, unless there is anything repugnant in the subject or context,- (a) " Government security " means promissory notes (iuclud.ing treasury bills), stoc!rcertificates, heal-er bonds aitd all ot l~er securities issued by tho Governor General in Council or by `any` Local Government in respect of any loan cou&ractcd either before or after the passing of this Act, but does not include a currency-note; and , `(6)`[prescribed ][" ][means proscribed by rules ] [pada ] under this Act. 3. (I) Save as otherwise provided in or under this Act, no notioe of arty trust in respect of any Government security shall be receivable by the (2) The (2): Preamble (2) This section shall apply whether ouch death occurred or occurs before or after this Act comes into force. (3.) Nothing herein contained shall affect any c l d a which any representative of a deceased person may have against the survivor or survivors under or in respect of any security to whidh sub-section (1) hp1Jlies. `5.` Notwithstanding anything in seotion `15` of to Indorsemeafs `be` made oa to Indorsemeafs `be` made oa X X V I of `be` made `1851.` the Negotiable Instruments Act, 1881, no indorse- ~scurity ment of a Government pro miss or^ note shall be valid unless made by the signature of 'the holder inscribed on the back of $the security itself. , 6. (1) I n the case of any pu5lic office to which the Governor General ia Council may, by notification ~ecuriti~s `by` in the Gazette of India, dbclare this sub-section too byo$2zice, apply, a Goverllment security may be made or indorsed `I?` 2 ~ ~ ~ indorscd payable to. sr to the order of the holder of the office by the nrtrrie of the officte. (2): Preamble (2) When a Government security is mrde o r indorsed as aforesaid, it shall Ee deemed to be transferred without any or further indorsement from each holder of the office to the succeeding holder of the oflice on and frbm the date on which the latter takes charge of the ofice. $3) When t l ~ e holder of the offic~ indorses fro a third l~art~r a Govertarnerrt security made or indome& tts aforesaid, 11e sl~all s~\)scribe the indo~s9mcnt with his name a ~ d t,11 e name ~f tl) e agce. t,11 e name e name ~f tl) e agce. e name (4) A writing on 8 Government security now or heretofore standing iia the name of the holdcr of a public office, whereby the security has been or was made or indorsed payable to or to the order of the holder of the oEce by the lzairle of the offjce, shall not bc deemed to bg or to have been invalid by reason only of the security having bcen so trlada & indorsed. (5) This section applies as well to a n office of which there are two or more joint holders as to au office of m-hich there is a single holder. 7. Kotwithstmding anything in the Wegotiablc Ilistruments Act, 1881, the Governor Generd in xxvr Council may, in respect of any loan, issue to the1882. ruler of ally State in India Goverlzment securities in sac11 form and subject to such conditions as to negotiability, succession and other mattcrs as may be prescribed. Issue ~f secoritios to rulers of ststcs in India. (2): Preamble `8.` Xstwithstanding anything in the Negotiable Instruments Act, 1881, a person shall not, by reasoii XXVI only of his having indorsed a Governinent security, 1881. be liable to pay any money due, either as principal or as interest, thereunder. lndorser of seruri~.y uot litlljlc for au~onnt thereof. I~llpressioll cf 9. (I). The signature of the person authorised to signature on Gover,lment siin Government securities on behalf of the Government may be printed, engraved or lithogr;tpl~ed, 'or impressed by sucli other mechanical proccss as f he Govt.rnor General in Council may direct on the sicuri t ics. (2) A signatnrd (2) A signature so p~nted, cngravcd, lithoeraphed or otherwise impressed shall be as valid as if it ]lad been inscribed in t.ha propr handwritin ef the person so authorlsed. Issue of duplicate, qlelzewed, conveg~ted, consolidated or su6-divided securities. `10.` (1) When a Government security is allegtd Tssne of 60 have bem lost or destroyed eitllcr wholly or in part,[dnplieate ] and a person claims h be the person to wllsm bat for the loss or destruction it would be payable, he may, on application to tho prescribed officer, and on producing proof to his satisfaction of the loss or cl~estrl.~ctiofz and of the justice of the claim and on payment of the presoribed. fee, if any, oMain from him an order for- secur~t~es. (2): Preamble (a) the payment of interest in respcct of the security said to be lost or destroyed pending tlle issue of a duplicate security ; .and - (8) the issue nf a duplicata security payable to the applicanh. (2) An order shall not be passed under sub-section (1) until after the issue of the prescribed notification of the loss or destruction. (3) A list of the seourit?es in respect of which an order is passed under sub-section ( I ) shall be published in the prescribed manner. `11.` The holder of a bearer bond or other Govern- R e ~ e w ~ l e t anent securitjy rayable to bearer, may, on application bearepbon&se to the prescribed officer, on delivery of the-bearer bond or other security, and on payment of the prescribed fee, if any, obtain from such officer a renowed bearor bond or other security, as the case may be. `12.` Subjeet to the provisions of section 13, a Renewal of person claiming to be entitled to a Government sromibsor~ promissory note; may, on applying to the prescribed [notes. ] officer, and on satisfying him of the justice of his claim and delivering the promissory note receipted in the prescribed manner, and paying the prescribed fee Beneynl of pTOllll88OrJ' notes in case of dispute as to title. fee, if any, obtain from suoh officer a renewed promissory note pajsblc to him : (2): Preamble Provided th@tt, when applicaiion is made for the renewal of a Governmelab promissory note which appears to the prescribed officer 60 stand in ths name of a deceased member of a Hindu nndivided fi~rnily governed by the Xitohshu~a law, s renewed promissory note shall not be issued to the applicant unless he furnishes a certificate signed by such authority and after such inquiry as may be prescribed to the effect that the deceased belonged to a Hindu undivided family governed by the Wtakohara law* that the promissory note formed part of the joi~le property of the family, and t.hat tho applicant is the managing or sole surviving male member of the family. .ExpEa9zation.-The expression " Hindu undivided family governed by the B i t a k s h ~ ~ a law " shJ1, for the purposes of this section, be deemed to include a Malabar tcurzcad. `13.` ( I ) Where there is a dispute as to the title to a Government promissory note in respect of which an application for renewal has been made, the prescribed officer mag- - (&), where any party to ihe dispute has obtained, a final decision from a Court of competsn8 jurisdiction declaring him to be eatii0led to such note, issue a ren~qed note `in` favour of s u ~ h party, og - (21) refuse to renew the note until `suoh` a decision has been obtained, or (2): Preamble ( ) ;after. such isquiry. as is here'imfter, prw. vided and consideration of the,. resulu; thereof, deolwe., by. ord.eri in writing: . which of the parties: is:. in, his opiin.im.:i e~titled to such note and. may, , after. th.e expiration of. three months from!. the!: aa$e of ,swh de.Glaration, issue. a:. re~ewedi ~ . o t e . in favow. of such party in iaccor&-~ stnce with the provisions. of section. 12,. unless , within that. period ; ' he - has: received . received notice that procedi~gs have been instituted by any person in a Court of competent jurisdiction for $he purpose of establishing a title to such mote. Esplmnution.-For the purposes of this sub-section tho expression ' final decision ' means a decisiora. which is not appealable or a decision which isa nppezilrible bat against which no nppesl has been filed within the period sf limitation allowed by law, (2): Preamble `(2)` 2)b~"tlie purpose of the inquiry referred. to i~ [REDACTED]>.n (:I), the prescribrd officer may hiinself record,, or mapy request the District Magistrate to rect~~d! w to have recorded, the 1% hole or ally part of such evidknce `as` the parties may produce. When sue11 request has been made to the District Rlagistsate, such -%&gistrate may himself record or ma.y dire& any Magistrate bf the first-class subordinate to him, or a;ny Msgihtr&e of the second-class subordinate to himb ahd empowered by general or special order of the LoeA1 Government in this behaif, to record Che evidence, and shall forward a copy thereof ti, the prescribed officer. ExpZaaatioa.--For the purposes of this sub-section, the~Distrist~ Mhgibtpate means bI1a District Magistrate kiavi.ing;-r juridiobiari in. the plaoe where interest on the -pram.i~orp: note is payable and, where interest is `pagable-at a.` presidenoy-town,, the Chief Presideu~y Nkg8ishrate, or at a place in a State in India, the Bdithall Agent. (6),2ho ppwribe'dt officer or any Magistrate aciing u n d . s r l E g ~ t i ~ ~ -rYja'y, if he thinks fit, record evidence arm c(2bth (ih~nrnent securities other than those men- 2;waI Cio~ed `ik` sabtions 11 and 12 `may` be renewed-in S U C ~ ' ~ ~ ~ , ~ ~ ~ ~ ~ . oiro~mstanCes and in such manner as may be presuribed: (2): Preamble `16.` ( I ) The prescribed officer may, subject to sudl Lsue 09 sonditions as may be prescribed, on the application converted, ate., securitits. of a person claiming to be entitled to a Government security or securities, on being satisfied of the justice of [ACT `x`