Section 17   [ View Judgements ]

Procedure for making vesting order


(1) The person claiming to be entitled to a Government security or the payment of interest thereon shall apply to the Bank and adduce documentary evidence in support of his claim.



(2) On receipt of the application under sub-regulation (1), if the Bank contemplates making a vesting order under the Act, the Bank may suspend the payment of interest or the maturity proceeds of the security or postpone the passing of any order under section 11 of the Act or the registration of any transfer of the security until the vesting order has been made.



(3) The Bank shall give notice, in writing to each claimant of whom it has knowledge, stating the names of all other claimants and the time when the officer of the Bank by whom the determination of title shall be made.



(4) On the date and time fixed in the notice, the officer, as directed by the Bank under sub-section (3) of section 12 of the Act, shall examine the evidence adduced by the parties and hear the parties affected and record such evidence as they may adduce:



Provided that no further evidence shall be recorded or entertained in cases where the District Magistrate has recorded the evidence or has been requested to have the evidence recorded.



(5) After determination of the issue by the officer, as directed by the Bank under sub section (3) of section 12 of the Act, the Bank shall give notice in writing to each claimant of the determination so made.



(6) The notices laid down in sub-regulation (4) and (5) shall be published in:- (a) the Gazette of India and the local Official Gazette where they relate to a security of the Central Government, and



(b) the Official Gazette of the State concerned, where they relate to security of a State Government, as soon as possible after the date on which they are respectively issued.



(7) The Bank may direct the person who is entitled to the security or payment of interest or both, to execute a bond in Form - XII.



(8) On the expiry of one month from the date of publication of the notices referred to in sub-regulation (6), subject to the provisions of section 17 of the Act, the Bank may make a vesting order in respect of the security in favour of such person who is entitled.



(9) The Bank, subject to production of documentary evidence, may make vesting order, with:- (a) a title limited to drawal of interest, in guardian of a minor or a manager of the property of an insane person; and



(b) full title, in the minor or the insane person to take effect on the minor attaining the age of majority or on the insane person becoming sane.

#LawyerServices #Section #Act #Law #Statute #IndianLaw #Kanoon