Public Debt Act, 1944
No: 18 Dated: Nov, 22 1944
THE PUBLIC DEBT ACT, 1944
ACT No 18 OF 1944
An Act to consolidate and amend the law relating to Government securities and to the management by the Reserve Bank of India of the public debt of the Government.
WHEREAS it is expedient to consolidate and amend the law relating to Government securities and to the management by the Reserve Bank of India of the public debt of the Government.
It is hereby enacted as follows:—
1. Short title and commencement.—(1) This Act may be called the Public Debt Act, 1944
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf.
1A. Securities to which this Act applies.—This Act applies to Government securities created and issued whether before or after the commencement of this Act by the Central Government or a State Government.
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—
(1) “the Bank” means the Reserve Bank of India;
(1A) “the Government”, in relation to any Government security, means the Central or State Government issuing the security;
(2) “Government security” means—
(a) a security, created and issued, 10by the Government for the purpose of raising a public loan, and having one of the following forms, namely :—
(i) stock transferable by registration in the books of the Bank; or
(ii) a promissory note payable to order; or
(iii) a bearer bond payable to bearer; or
(iv) a form prescribed in this behalf;
(b) any other security created and issued by the Government in such form and for such of the purposes of this Act as may be prescribed;
(3) “prescribed” means prescribed by rules made under this Act;
(4) “promissory note” includes a treasury bill.
3. Transfer of Government securities.—(1) Subject to the provisions of section 5, a transfer of a Government security shall be made only in the manner prescribed for the making of transfers of securities of the class to which it belongs, and no transfer of a Government security which—
(i) is made after the 30th April, 1946, in the case of a security issued by the Central Government,
(ii) is made after the 31st March, 1949, in the case of a security issued by the Government of a Part A State,
(iii) is made after the 14th October, 1956, in the case of a security issued by the Government of a Part B State other than Jammu and Kashmir,
(iv) is made on or after the 1st day of November, 1956, in the case of a security issued on or after that day by the Government of any State other than Jammu and Kashmir, and
(v) is made on or after the 1st day of September, 1972, in the case of a security issued on or after that day by the Government of the State of Jammu and Kashmir, shall be valid if—
(a) it does not purport to convey the full title to the security, or
(b) it is of such a nature as to affect the manner in which the security was expressed by the Government to be held.
(2) Nothing in this section shall affect any order made by the Bank under this Act, or any order made by a Court upon the Bank.