 the public debt (amendment) bill, 1956a it p""",ii h",' ftt ~ 1'a!j it 8l'tmtf (as introduced in lok sabha)  tile public debt (amendment) bill, 1956 (as introduced in lok sabra) abill , prtgnerf 'b!! ,,,~ rn~ ~~tii further to amend the pubzl'debt act, 1944 whereas in pursuance of clause (1) of article 252 of the constitution, resolutions have been passed by the legislatures of all part b states other than the state of jammu and kashmir to the effect that eertain matters relating to the public debt of those states, that s is to say, the matters for which provision is made in the public debt is of 19440 act, 1944, should be reiulated in those states by parliament by law; and whereas in consequence thereof it is necessary further to amend the public debt act, 1944, for the purposes hereinafter appearing 10 bb it enacted by parliament in the seventh year of the republic of india as follows:-1 (1) this act may be called the public debt (amendment) short tide act, 1956 add comm-clicoidcnt (2) it shall come into force on such date as the central govern-is ment may, by notification in the official gazette, appoint is of im40 2 in the public debt act, 1944 (hereinafter referred to as the amcmmc'dt principal act), in the long title and the preamble, for the words ~o::~~ and letter "the union and the part a states", the words, "the gov- hie ernment" shall be substituted 20 3 in section 1 of the principal act, sub-section (2) hall be ameddldellt omitted of leetion j 1naertioll of 4 after section 1 of the principal act, the following section shall dcw section be inserted, namely:-ia securitiet to which fbill act applies "1a 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 other than the government ot jammu and kashmir!'   in section 2 of the principal act, in clause (2),-amemmem of aec:tiod 2 (a) in sub-clause (a), for the words "whether before or after the commencement of this act, by the central government 10 or a state government", the words "by the government" shall be tubatituted; (b) ia sub-clause (b), far the words "the, central government or a state government", the words "the government" shall be substituted is i in section 3 of the principal act, in sub-section (1), for the words and figures "and in the cable of a security issued by a state government, is made after the 31st day of march, 1949", the words, figures and letters "and in the case of a security issued by the government of a part a state, is made after the 31st day of march, 1949, 20 and in the case of a security issued by the government of a part b state to which this act applies, is made after the commencement of the pubuc ,debt (amendment) act, 1936" shall be substituted amendment of iectiod 8 1 in section 8 of the principal act, in the e~zmtaiion, for the words and figures "a body incorporated under the indian companies 2s act, 1913", the words and figures "a body incorpora1ed or deemed to 7 of 1913 be incorporated under the companies act, 1956" shall be substituted i of 19s6 8 in section 13 of the principal act,-(a) for the words and letters "part a states and part c states", the word "india" shall be substituted; 30 (ib) for the words "those states", the word "india" shall be substituted /i amendment 9 in section 14 of the principal act, in sub-section (1), the words of section 1+ and letters "01' in a part b state the political agenj;" shall be  o~itted 3s amendment 10 in section 20 of the principal act, for the words and letters of aection 20 "a part a state or a part c state", the word "india" shan be  8ubstitu~ 11 in section 23 of the principal act, for the words "the states", amendment the word "india" shall be substituted of lcction 33· 12 in section 28 of the principal act,-~~ (a) in clause (c) of sub-section (2), for the words and letter s "rulers of part b states", the words "rulers of former indian states" shall be substituted (b) in sub-section (3), for the word "parliament", the words "both houses of parliament" shall be substituted  - 13 for section 29 of the principal act, the following section shall !f:::n:: 10 be substituted namely: _ ~od for sec-, ~ 10 of j9l0 "29 the indian securities act, 1920 and any law correspond- ~;tt~: a~;i; ing to that law in force in any part b state immediately before to governthe commencement of the public debt (amendment) act, 1956, ri::secushall cease to apply to government securities to which this act is applies and to all matters for which provision is made by this act: zo provided that any such corresponding law shall continue to apply to or in relation to any securities created and issued by the government of hyderabad, saurashtra or travancore-cochin on or before the 31st day of march, 1953, for such period / not exceeding one year from the commencement of the public debt (amendment) act 1956 as the central government may by notification in the official gazette, specify" 14 after section 29 of the principal act, the following section insertion of dew iectiod ~ shall be inserted, namely:-30 3 of 19s1 30 "30 any reference in this act to any law which did not ~':r=': extend to any part b state or any part of such state bdore the to laws not commencement of the part b states (laws) act, 1951, shall ~ror:~ wherever necessary, be construed as including a reference to aprii,19s1 the corresponding law, if any, in force in that state, or, as the ~~ b case may be, any part thereof, before the said date" 35 15 (1) the following enactments are hereby repealed, namely: -rej?eal and lavmg 1 the madhya bharat public debt, act, 1953 2 the mysore public debt act, 1953 3 the saurashtra public debt act, 1953 4 the travancore-cochin public debt act, 1954 (2) notwithstanding such repeal, anything done or any action taken in the exercise of any power conferred by or under any such enactment shall be deemed to have been done or taken in the exercise of the powers conferred by or under the principal act as amended by this act as if the principal act as amended by this act s were in force on the day on which such thing was done or action was taken  statement of objects and reasonsthe public debt and securities of the union and part a states are at present administered by the reserve bank of india in accordance with the public debt act, 1944, and the rules made thereunder the act, at present, does not extend to securities created and issued by the governments of part b states some of these states have their own public debt laws while others have acquired public debt only recently and have no regular law on the subject securities issued by the governments of part b states are circulating in all parts of the country and the public debt of part b states is also being administered by the reserve bank of india it is, therefore, desirable that there should be uniformity of procedure in respect of the public debt of the union and all part a and part b states and that the public debt act, 1944, should apply to securities issued by the government of part b states as it applies to securities issued by the central government or a part a state the legislatures of part b sta~ other than that of the state of jammu and kashmir have passed resolutions in pursuance of article 252 of the constitution empowering parliament to pass the necessary legislation on the subject the bill, accordingly amends the public debt act, 1944, so as to make it applicable to securities issued by the governments of part b states other than the government of jammu and kashmir and makes certain other minor and incidental amendments in that act manilal c shah new deliu, the 10th august, 1956  annexure extracts from the public ddt act, 1944 (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 union and the part a states 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 union and part a states;     -  ;  j-~ \ "', 1 (1) short dtle ededtadd commtdcemalt   -  (2) it extends to the whole of india except part b states      defiditiona 2 in this act, unless there is anything repugnant in the subject or context,-iii                                                                                                                                                                                                                                                                                                                                                                                                          - (2) "government security" means-    (a) a security, created and issued, whether before or after the commencement of this act, by the central government or a state government for the purpose of raising a public loan, and having one of the following forms, namely:-                                                                                                                                                                                                                                                         -                                                                                                                                                                     -    (b) any other security created and issued by the central government or a state government in such form and for s\lch of the purposes of this act as may be prescribed;                                                                                                                                                                                                                                                                           -                                                                                                                                                                                  3 (1) subject to the provisions of section 5, a transfer of a <lov- transferor ernment security shall be made only in the manner prescribed for ~:=~:rlt the making of transfers of securities of the class to which it belongs, and no transfer of a government security which, in the case of a security issued by the central government is made after the 30th day of april, 1946, and in the case of a security issued by a state government, is made after the 31st day of march, 1949 shall be valid if-(a) it does not purport to convey the full title to the security, or or several piiycc ••  (b) it is of such a nature as to affect the manner in which the security was expressed by the government to be held ~ ,     8 notwithstanding anything contained in section 45 of the indian right of contract act, 1872-~~id:! -     e:rplqnation-for the purposes of this section a body incorporat-vii of 1913· ed under the indian companies act, 1913, or the co-operative ii of 1912 societies act, 1912, or any other enactment for the time being in force whether within or without india relating to the incorporation of associations of individuals, shall be deemed to die when it is dissolved - - -   13 notwithstanding that as a matter of convenience the govern- law appliment may have arranged for payments on a government security :~!~d~o to be made elsewhere than in part a stares and part c states, the govciddlcdt rights of all persons in relation to government securities shall be securities determined in connection with all such questions as are dealt with by this act by the law and in the courts of those states it (1) for the purpose of making any order which it is em- recording powered to make under this act, the bank may request a district of evidence magistrate or in a part b state the political agent to record or to have recorded the whole or any part of such evidence as any person whose evidence the bank requires may produce a district magistrate so requested 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 in this behalf by general or special order of the state government to record the evidence, and shall forward a copy thereof to the bank - sta; of proceedinp on order of court 20 where the bank contemplates making with referenee to· a21)t government security any order which it is empowered to make under this act, and before the order is made the bank receives from a court in a part a state or a part c state- an order to stay the making of such order, the bank shall either-(a) hold the security together with any interest unpaid or accruing thereon until the further orders of the court are received, or  (b) apply to the court to have the security transferred to the official trustees appointed for the state in which such court is situated, pending the disposal of the proceedings before the court - - - - - diicharge in 23  the government shall be discharged from all liability on a ~ ~ bearer bond or on any interest coupon of such a bond on payment to the holder of such bond or coupon on presentation on or after the date when it becomes due of the amount expressed therein, unless before such payment an order of a court in the states has been served on the government restraining it from making payment - - - - - power to make ruels 28 (1) - - - - -  (2) in particular and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely:-- - - - - (c) the conditions subject to which government securities may be issued to the rulers of part b states; - - - - - (3) a copy of all rules under this section shall be laid on the table of parliament as soon as may be after they are made - - - - - act xof 1920 29 the indian securities act, 1920 shall cease to apply to govern- x r 1920• :~  ::,t" ment secur~t~es ~o which this, act applies, and to all matters for ment tecujl- which provision 18 made by this act tiel a bill further to amend the public debt act, 1944 (shri m c shah,                             minister of revenue and              civil expenditure) 