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The Securities Act, 1920

( ACT NO. X OF 1920 )


Renewal of promissory notes in case of dispute as to title
13.(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 favour of such party, or
(b) refuse to renew the note until such a decision has been obtained, 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 its opinion entitled to such note and may, after the expiration of three months from the date of such declaration, issue a renewed note in favour of such party in accordance with the provisions of section 12, unless within that period it has received notice that proceedings have been instituted by any person in a Court of competent jurisdiction for the purpose of establishing a title to such note.
Explanation.- For the purposes of sub-section the expression "final decision" means a decision which is not appealable or a decision which is appealable but against which no appeal has been filed within the period of limitation allowed by law.
(2) For the purpose of the inquiry referred to in sub-section (1), the prescribed authority may direct one of its officers to record, or may request the District Magistrate to record or to have recorded, the whole or any part of such evidence as the parties may produce. When such request has been made to the District Magistrate, such Magistrate may himself record or may direct any Magistrate of the first class subordinate to him, or any Magistrate of the second class subordinate to him and empowered by general or special order of the Government in this behalf, to record the evidence, and shall forward a copy thereof to the prescribed authority.
Explanation.-For the purposes of this sub-section, the District Magistrate means the District Magistrate having jurisdiction in the place where interest on the promissory note is payable 1[* * *].
(3) The officer of the prescribed authority or any Magistrate acting under this section may, if he thinks fit, record evidence on oath.

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