Public Debt, Act, 1944

The Public Debt Act, 1944 governs how government securities — the instruments through which the government borrows money from the public — are issued, held, transferred, and managed, with the State Bank of Pakistan (referred to as "the Bank") administering the system.

Section 2 defines "Government security" broadly to include stock transferable by registration in the Bank's books, promissory notes payable to order, bearer bonds, treasury bills, and other prescribed forms issued by the Federal or a Provincial Government. Section 3 requires that transfers of Government securities follow the manner prescribed for that class of security and be valid transfers of full title. Section 4 protects a person who transfers a security from being personally liable for the money it represents. Section 5 allows Government securities to be held in the name of a public office (rather than a named individual), automatically transferring to a successor when someone takes over that office.

Section 6 provides that the Bank need not recognise notice of any trust over a security. Sections 7 to 10 deal with succession: who can be recognised as entitled to a deceased sole holder's security (Section 7), rights of survivors among joint holders (Section 8), a summary procedure on the death of a holder (Section 9), and a simplified process for small holdings — securities not exceeding five thousand rupees face value belonging to a minor or person of unsound mind (Section 10). Section 11 covers issuing duplicate or renewed securities, and Section 12 lets the Bank summarily determine title in case of a dispute over a security.

Sections 15 to 21 set out a "vesting order" procedure for resolving disputed claims to securities, including postponing payment pending a vesting order (Section 15), requiring bonds from claimants (Section 16), publishing notices (Section 17), the scope and legal effect of vesting orders (Sections 18-19), staying proceedings on a court order (Section 20), and cancelling vesting proceedings (Section 21). Sections 22-24 address discharge of the government's payment obligations for interest and bearer bonds, and a limitation period on claims for unpaid interest. Section 26 deems the Bank and its officers to be public officers, Section 27 provides for a penalty (without a specific amount stated in this extract), Section 28 is the rule-making power, and Section 29 disapplies the Securities Act, 1920 to securities covered by this Act.

This is a very old law dating to 1944 (pre-independence, originally applying to British India), and the extract shows extensive amendment history — including changes by the Public Debt (Central Government) (Amendment) Ordinance, 1961, the Federal Adaptation of Laws Order, 1975 (replacing "Central Government" with "Federal Government"), and others. Given this history, anyone relying on specific procedural details should check the current official text.