The Government Securities Act, 1330 Fasli.

THE GOVERNMENT SECURITIES ACT, 1330 F. 
(ACT NO. II OF 1330 F.) 
ARRANGEMENT OF SECTIONS 
Sections 
1. Short title, commencement and extent. 
2. Definition of Government securities. 
3. Notice of trust not receivable. 
4. Rights of survivors of joint payees. 
5. Prohibition to make endorsement except on 
Government promissory note. 
6. Transfer of Government securities to any person in 
his ex-officio capacity. 
7. Endorser of Government security not liable for 
amount thereof. 
8. Signature or impression of signature on 
Government securities. 
9. Issue of duplicate Government securities. 
10. Renewal of promissory notes. 
11. Renewal of promissory notes in case of dispute as 
to title. 
12. Renewal of other securities. 
13. Issue of converted securities. 
14. Liability in respect of renewed promissory notes. 
15. Discharge of Government from liability. 
16. Procedure on death of the person holding 
securities of the value of five thousand rupees. 
17. Payment in case of securities in the name of minor 
or lunatic. 
2  [Act No. II of 1330 F.] 
18. Indemnity bond. 
19. Inspection of documents. 
20. Penalties. 
21. Power to make rules. 
 
THE GOVERNMENT SECURITIES ACT, 1330 F.1 
 
ACT No.II OF 1330 F. 
 
1. This Act may be called the Government Securities Act, 
1330 F. and shall come into force in the whole of 2[the State 
of Telangana] from the date of publication in the Official 
Gazette. 
 
2. (1) In this Act “Government Securities ” means 
promissory notes, stock -certificates and other securities  
issued by the Government e ither before or after the 
commencement of this Act in respect of any loan contracted 
by it, but does not include currency notes; 
 
 (2) “prescribed” means prescribed by rules made 
under this Act. 
 
3. Save as otherwise provided in this Act, the Government 
shall not, in respect of any Government Security, recognize 
its holder as its trustee. But when any person has obtained 
succession certificate or probate of the will in respect of any 
Government security belonging to the estate of a deceased 
person, the Government may recognize the person wh ose 
name is entered in the certificate as its full owner. 
 
4. (1) Notwithstanding the provisions of section 46 of the 
3Hyderabad Contract Act No. VI of 1316 Fasli, when the 
amount of any Government security is payable to two or 
                                                           
1. The Government Securities Act, 13 30 F. in force in the combined 
State, as on 02.06.2014, has been adapted to the State of Telangana, 
under section 101 of the Andhra Pradesh Reorganisation Act, 2014 
(Central Act 6 of 2014) vide. the Telangana Adaptation of Laws (No.2) 
Order, 2016, issued in G.O.Ms.No.46, Law (F) Department, dated 
01.06.2016. 
2. Substituted by G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
3. Repealed by Central Act 3 of 1951. 
Definition of 
Government 
securities. 
Notice of trust not 
receivable. 
Short title, 
commencement 
and extent. 
Rights of survivors 
of joint payees. 
Prescribed. 
2  [Act No.II of 1330 F.] 
more persons jointly and one or more of the m die, the 
amount of such securi ty shall be payable to the survivor or 
survivors. 
 
 (2) When the amount of any Government security is 
payable to two or more persons jointly and one or more of 
them die; the amount of such security shall be payable to 
the survivor or survivors or to the representative of the 
deceased or to any of them. 
 
 (3) Nothing contained in this se ction shall affect any 
claim which any representative of a deceased person may 
have against the survivor or survivors in respect of any 
Government security payable to the survivor or survivors 
and the deceased jointly or severally. 
 
 (4) This section shall apply in every case whether the 
death of the person to whom any Government security is 
payable jointly or severally occur red before or occurs after 
the commencement of this Act. 
 
5. Notwithstanding the provisions of section 13 of the 
4Hyderabad Negotiable lnstruments Act, No. V of 1318 F., 
no transfer of a Government promissory note shall be valid, 
unless such transfer is made by the holder by an 
endorsement on such promissory note. 
 
6. (1) Where the Government, by notification in the Official 
Gazette has applied this sub -section to any Government 
office, Government securities may be tran sferred by 
endorsement, to or to the order of the officer for the time 
being holding the same, by the name of the office. 
 
 (2) When a Government security is endorsed as 
aforesaid, it shall be deemed to be transferred without any 
                                                           
4. Repealed by Central Act 3 of 1951. 
Prohibition to 
make 
endorsement 
except on 
Government 
promissory note. 
Transfer of 
Government 
securities to any 
person in his ex-
officio capacity. 
[Act No.II of 1330 F.]  3 
further endorsement from the officer for the time being 
holding office, to the person appointed to the office, from 
the date of his taking over charge. 
 
 (3) When the of ficer holding office for the time being 
desires to transfer to a third person, any Government 
security endorsed as aforesaid, he shall subscribe his name 
and designation to the same. 
 
 (4) When any Government securi ty has been 
transferred by endo rsement in his ex -officio capacity to any 
person holding any Government office on or before the 
commencement of this Act, such endorsement shall not be 
invalid by reason only of the security having been endorsed 
in the name of a person in his ex -officio capacity, and that 
the name of the officer is not entered therein. 
 
 (5) This section ap plies as well to offices to which two 
or more persons are appointed at a time. 
 
7. Notwithstanding anything contained in the 5Hyderabad 
Negotiable Instruments Act No. V of 1 318 Fasli, a person 
shall not, by reason only of his having  endorsed a 
Government security, be liable in respect of the sum entered 
therein or any interest thereon. 
 
8. (1) The Government shall notify in the Official Gazette 
the officer who shall sign Government securities on behalf of 
the Government. 
 
 (2) The signature of the officers authorised to sign 
Government securities may be printed, engraved, 
lithographed or impressed on Government securities by 
mechanical process in such manner as the Government 
may direct. 
                                                           
5. Repealed by Central Act 3 of 1951. 
Endorser of 
Government 
security not liable 
for amount 
thereof. 
Signature or 
impression of 
signature on 
Government 
securities. 
4  [Act No.II of 1330 F.] 
 (3) The signature so printed, engraved, lithographed or 
impressed shall be valid as if it had been inscribed in the 
handwriting of the said officer. 
 
9. (1) When a Government security is alleged to have 
been lost or destroyed wholly or in part and a person claims 
that but for its loss or destruction it would be payable to him, 
he may, on application to the prescribed authority and on 
producing proof to his satisfaction of the loss or destruction 
and of the justice or his cla im and on payment of the 
prescribed fee, if any, obtain an order, for,- 
 
  (a) the payment of interest in respect of the security 
said to be lost or destroyed pending the iss ue of a duplicate 
security; and 
 
  (b) the issue of a duplicate security to the applicant. 
 
 (2) An order shall not be passed under sub -section (1) 
until the publication of the prescribed notification of the loss 
or destruction. 
 
 (3) A list of the securities in respect of which an order is 
passed under s ub-section (1) shall be publishe d in the 
prescribed manner. 
 
10. Subject to the provisions of section 11, a person 
claiming to be entitled to a Government prom issory note 
may, on applying to the prescribed authority and on 
satisfying him of the justice of his claim  and delivering to 
him the promissory note received in t he prescribed manner, 
and paying the prescribed fee, if any, obtain from s uch 
authority a renewed promissory note payable to him: 
 
 Provided that when application is made for the renewal 
of a Government promissory note which appears to the 
prescribed autho rity to stand in the name of a deceased 
Issue of duplicate 
Government 
securities. 
Renewal of 
promissory notes. 
[Act No.II of 1330 F.]  5 
member of a Hindu undivided family governed by the 
Mitakshara law, a renewed promissory note shall not be 
issued to the applicant, unless he produces a certificate 
from the prescribed authority and after such enquiry  as may 
be prescribed to the effect that the deceased was a member 
of a Hindu undivided family governed by the Mitakshara law, 
that the promissory note formed part of the joint property of 
the family and that the applicant is the kartha i.e., manager 
or the sole surviving male member of the family. 
 
11. (1) 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 
authority may,- 
 
  (a) where any party to the dispute has obtained a 
final decision from a Court of competent jurisdiction 
declaring him to be entitled to such note, issue a renewed 
note in his favour, or 
 
  (b) refuse to renew a note until such  final decision is 
made, or 
 
  (c) after such inquiry as is hereinafter provided and 
consideration of the result thereof, declare by order in 
writing which of the parties is in his opinion, entitled to such 
note and after the expiration of three months fro m the date 
of such order in writing issue a renewed note in his favour in 
accordance with section 10, unless within that period he has 
received notice, in writing that a suit or proceeding has been 
instituted by any person i n a Court of competent jurisdic tion 
for the purpose of establishing a title to such note. 
 
 Explanation:- For the purposes of this sub -section the 
expression „final decision ‟ means a decision which is not 
appealable or a decision which is appealable but against 
Renewal of 
promissory notes 
in case of dispute 
as to title. 
6  [Act No.II of 1330 F.] 
which no appeal has been filed within the period prescribed 
by law. 
 
 (2) For the purpose of an enquiry referred to in sub -
section (1), the prescribed authority may himself recor d or 
may request the District Ma gistrate to record or to cause to 
be recorded such evidence as the parti es may desire to 
produce. When such request has been made to the District 
Magistrate, he may himself record such evidence or may 
have it recorded by any Magistrate of the first class or of the 
second class subordinate to him and shall for ward a copy 
thereof to the prescribed authority. 
 
 Explanation:- For the purposes of this sub -section, 
District Magistrate means the District Magistrate of the 
district where interest on the promissory note in dispute is 
payable. 
 
 (3) The prescribed authority or any Magistrate 
recording evidence under this section may, before recording 
such evidence, administer oath to the witness. 
 
 (4) Nothing in this section shall bar a claim against the 
Government in respect of such note by any person who had 
no notice of the proceeding under this section or who 
derives title through such person. 
 
12. Securities may be renewed in such circumstances and 
in such manner as may be prescribed. 
 
13. (1) The prescribed authority may, subject to such 
conditions as may be prescribed, on the application of a 
person claiming to be entitled to a Government security, on 
being satisfied of the justice of the claim and on delivery of 
the security receipted in the prescribed manner and on 
payment of the prescribed fee, issue in the name of the 
applicant a converted security in place of such security or 
Renewal of other 
securities. 
Issue of converted 
securities. 
[Act No.II of 1330 F.]  7 
consolidated security or securities in place of securiti es of 
lower amounts or securitie s of lesser amount in p lace of a 
security of a larger amount. 
 
 (2) The securities issued under sub -section (1) may be 
in respect of one loan or different loans. 
 
14. (1) When a renewed security is issued under section 10 
or 13, such security shall constitute a new contract between 
the Government and the person in whose name the security 
has been issued or any person deriving title through him. 
 
 (2) The issue of new securities under section 10 or 13 
shall not, as against the Government, affect the rights of any 
other person in respect of the security so renewed or 
converted. 
 
15. Save as otherwise provided in this Act,- 
 
 (1) on payment of the amount due on a Government 
security after the date on winch payment becomes due, or 
 
 (2) when a duplicate security has been issued under 
section 9, or 
 
 (3) when a renewed or converted security has been 
issued under section 10 or 1 1 or 13, the Government shall 
be discharged from all liabilities in respect of the original 
security the amount of which has been paid or in respect of 
which duplicate security has been issued or in place of 
which renewed or converted security or securities has or 
have been issued,- 
 
  (a) in the case of payment, after the lapse of six years 
from the date on which payment was due; 
 
Liability in respect 
of renewed 
promissory notes. 
Discharge of 
Government from 
liability. 
8  [Act No.II of 1330 F.] 
  (b) in the case of a duplicate security, after the lapse 
of six years from the date of the pu blication under sub -
section (3) of section 9, of the list in which the security is first 
mentioned or from the date of the last payment of interest 
on the original security, whichever date is later; 
 
  (c) in the case of renewed or converted securities, 
after the lapse of six years from the date of issue thereof. 
 
16. (1) When any perso n holding Government securities 
the value of which does not in the aggregate exceed five 
thousand rupees dies and within six months of the death of 
such person, probate of the will, or letter of administration of 
the estate of such pe rson or succession certificate granted 
under Act No III of 1307 Fasli, is not produced before the 
prescribed authority, such authority may, after inquiry in the 
manner provided in sub -sections (2) a nd (3) of section 11, 
determine the person entitled to the securities or to 
administer the estate of the deceased, and may,- 
 
  (a) in the case of securitie s which are due for 
repayment, order payment of  the amount to such person; 
and 
 
  (b) in the case of  securities which are not due for 
repayment, order the issue of new securities in favour of 
such person. 
 
 (2) Upon the payment of the amount of or issue of new 
securities in accordance with sub -section (1), the 
Government shall be discharged from liabilit y in respect of 
the original securities. 
 
 (3) Any creditor or claimant against the estate of the 
deceased may recover his debt or claim from the person to 
whom any amount is paid under sub -section (1) and not 
lawfully utilised by him, in the same manner and to the same 
Procedure on 
death of the 
person holding 
securities of the 
value of five 
thousand rupees. 
[Act No.II of 1330 F.]  9 
extent as if he had obtained  letters of administration of the 
estate of the deceased and nothing in this section shall 
affect the rights of an executor or administrator or 
representative of the deceased against such person. Such 
amounts as have been lawfully paid by him in due course  of 
administration of the estate of the deceased shall not be 
claimed. 
 
17. Where a Government security stands in the name of a 
minor or a person who is insane and incapable of managing 
his affairs, the interest accruing on such securities or the 
capital sum thereof shall be paid in such manner as may be 
prescribed; Provided that in the case of interest the 
aggregate amount of original securities does not exceed five 
thousand rupees and in the case of capital sum payable, the 
sum payable does not exceed five thousand rupees. When 
the payment of interest or capital sum is made in the 
aforesaid manner, the Government shall, not withstanding 
anything in any law, be discharged from all liability i n 
respect thereof. 
 
18. Notwithstanding anything contained in sections 9, 10, 
11 and 13, the prescribed authori ty may in any of the cases 
mentioned in the said sections,- 
 
 (a) issue duplicate securities or renewed securities or 
converted securities or consolidated securities or securities 
of lesser amounts, provided that the applicant executes the 
prescribed indemnity -bond against the claims of pe rsons 
having any right in respect of the original security; or 
 
 (b) refuse to issue  duplicate or renewed or converted 
or consolidated securities of lesser amount unless such 
indemnity-bond is executed. 
 
 
Payment in case 
of securities in the 
name of minor or 
lunatic. 
Indemnity bond. 
10  [Act No.II of 1330 F.] 
19. No person shall be entitled to inspect or to receive 
information from any Government security in posses sion of 
the Government or any book, register or other document 
maintained on behalf of the Government in relation to 
Government securities, save in such circumstances and 
manner and subject to such conditions as may be 
prescribed. 
 
20. (1) If  any person, for the purpose of obtaining for 
himself or for any other person the payment of the interest 
or capital sum on any Government security or causing the 
issue of a duplicate security or causing any Government 
security to be renewed, or obtaining,  instead, converted or 
consolidated Government securities or Government 
securities of lesser amount, makes to any authority 
appointed under this Act a statement which is false and 
which he either knows to be false or does not believe to be 
true, he shall b e punished with imprisonment which may 
extend to six months or with fine or with both. 
 
 (2) No Court shall take cognizance of any offence 
mentioned in sub -section (1) save on the complaint of the 
authority to whom the false statement was made. 
 
21. (1) The Government may, after previous publication 
make rules for the purposes of this Act. 
 
 (2) Such rules may, inter alia, prov ide for the following 
matters:- 
 
  (a) the manner in which payment of interest in 
respect of Government secu rities shall be made and 
acknowledged; 
 
  (b) the circumstances in which Government securities 
must be renewed before the interest thereon can be 
claimed; 
Inspection of 
documents. 
Penalties. 
Power to make 
rules. 
[Act No.II of 1330 F.]  11 
  (c) the fees payable in respect of the issue of 
duplicate securities or for the renewal or conversi on of 
securities or for the issue  of consolidated se curities or 
securities of lesser amount; 
 
  (d) the proof to be produced by persons applying for 
duplicate securities; 
 
  (e) the form and manner of publication of the 
notification mentioned in sub -section (2) of section 9 and 
the manner of publication of the list mentioned in sub -
section (3) of section 9; 
 
  (f) the officer who shall exercise the powers and 
perform the duties specified in sections 9, 10, 11, 13, 16 and 
18; 
 
  (g) the manner of making the enquiry mentioned in 
the proviso to section 10; 
 
  (h) the circumstances and the manner in which 
Government securities may be renewed; 
 
  (i) the form in which any Government security, 
delivered for cancellation or renewal or conversion shall be 
receipted; 
 
  (j) the conditions subject to which, securities may be 
converted or consolidated securities or securities of lesser 
amount shall be issued; 
 
  (k) the persons to whom and the manner in which 
payments may be made in respect of securities standing in 
the name of any minor or a person who is insane and 
incapable of managing his affairs; 
 
12  [Act No.II of 1330 F.] 
  (l) the taking of indemnity bonds against adverse 
claims of third parties from persons who receive the interest 
or capital sum in respect of any Government security or who 
obtain duplicate or renewed or converted or consolidated 
securities or securities of lesser amount; 
 
  (m) the manner in which any document relating to 
any security or any endorsement thereon, may, on the 
request of any person who, for any reason is unable to write, 
be executed on his behalf; 
 
  (n) enabling holders of Government stock to be 
entered in the stock registers as trustees of any particular 
trust or as trustees in general and for the recognition of 
powers of attorney granted by such trustees; 
 
  (o) the holders of Government stock may hold offices 
other than Government offices; and the manner in which 
and the conditions subject to which the stock so standing in 
the name of the holder of any office may be transferred; 
 
  (p) the mode of attestat ion of documents relating to 
Government stock; 
 
  (q) all matters connected with the grant of duplicates 
of Government securities or with the issue of renewed or 
converted or consolidated securities or securities of lesser 
amount; 
 
  (r) the circumstances and the manner in which and 
the conditions subject to which inspection of securities, 
books, registers and other documents may be allowed or 
information relating thereto may be given under section 19. 
 
 (3) Nothing in rules made under clauses (n) and (o) o f 
sub-section (2), shall, as between trustees or as between 
trustees and beneficiaries, authoris e the trustees to act in 
[Act No.II of 1330 F.]  13 
contravention of law applicable to the said trust or the terms 
of the instrument of trust, and the Government or any 
person holding any stock or acquiring any right therein shall 
not, by reason only, of any entry in the register maintained 
by the Government in relation to Government stock or stock-
holders or of anything in any document relating to 
Government stock, be deemed to be informe d of any trust 
or of the fiduciary character of any stock -holder or of any 
fiduciary obligation in respect of any Government stock. 
 
 (4) Rules made under this section shall be published in 
the Official Gazette and shall, after publication have the 
same effect as if enacted in this Act. 
 
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