The Public Debt Act, 1944

(1) This Act may be called the Public Debt 1***Act, 1944. 2* * * * * (3) It shall come into force on such date3as the Central Government may, by notification in theOfficial Gazette, appoint in this behalf.

1[1A. Securities to which this Act applies.--This Act applies to Government securitiescreated and issued whether before or after the commencement of this Act by the CentralGovernment or a State Government 2***.]

In this Act, unless there is anything repugnant in the subject or context,-- (1) "the Bank" means the Reserve Bank of India; 1[(1A) "the Government", in relation to any Government security, means the Central or StateGovernment issuing the security;] (2) "Government security" means-- (a) a security, created and issued, 2[by the Government] for the purpose of raising a publicloan, 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 3[the Government] in such form andfor 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.

(1)1[Subject to the provisions of section 5, atransfer of a Government security shall be made only in the manner prescribed for the makingof transfers of securities of the class to which it belongs, and no transfer of a Governmentsecurity 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 theGovernment of a Part A State, (iii) is made after the 14th October, 1956, in the case of a security issued by theGovernment of a Part B State other than Jammu and Kashmir, 2*** (iv) is made on or after the 1st day of November, 1956, in the case of a security issuedon or after that day by the Government of any State other than Jammu and Kashmir*,3[and] 4[(v) is made on or after the 1st day of September, 1972, in the case of a securit yissued 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 5[theGovernment] to be held. (2) Nothing in this section shall affect any order made by the Bank under this Act, or any order madeby a Court upon the Bank.

Notwithstandinganything contained in the Negotiable Instruments Act, 1881 (26 of 1881), a person shall not, byreason only of his having transferred a Government security, be liable to pay any money dueeither as principal or as interest thereunder.