66. Power to raise loans.—(1) A Board may, with the previous sanction of the Central Government
and after due notification in the Official Gazette, raise loans for the purposes of this Act:
Provided that no such notification shall be necessary if a loan is obtained from the Central
Government or a State Government.
(2) Loans may be raised by a Board in the open market on Port Trust securities issued by it or may be
obtained from the Central Government or a State Government.
(3) The terms of all loans shall be subject to the approval of the Central Government.
67. Port Trust securities.—(1) A Board may, with the sanction of the Central Government, prescribe
the form in which Port Trust securities shall be issued by it and the mode in which, and the conditions
subject to which, they may be transferred.
(2) The holder of any Port Trust security in any form may obtain in exchange therefor, upon such
terms as the Board may from time to time determine, a Port Trust security in any other form prescribed by
regulations.
1. Subs. by Act 29 of 1974, s. 24, for sub-section (2) (w.e.f. 1-2-1975).
2. Subs. by s. 25, ibid., for section 65 (w.e.f. 1-2-1975).
30
(3) The right to sue in respect of moneys secured by Port Trust securities shall be exercisable by the
holders thereof for the time being without preference in respect of priority of date.
68. Right of survivors of joint or several payees of securities.—(1) Notwithstanding anything
contained in section 45 of the Indian Contract Act, 1872 (9 of 1872)—
(a) when any Port Trust security is payable to two or more persons jointly, and either or any of
them dies, the Port Trust security shall be payable to the survivor or survivors of those persons, and
(b) when any such security is payable to two or more persons severally and either or any of them
dies, the security shall be payable to the survivor or survivors of those persons, or to the
representatives of the deceased, or to any of them.
(2) This section shall apply whether such death occurred or occurs before or after the appointed day.
(3) Nothing herein contained shall affect any claim which any representative of a deceased person
may have against the survivor or survivors under or in respect of any security to which sub-section (1)
applies.
(4) For the purposes of this section, a body incorporated or deemed to be incorporated under the
Companies Act, 1956 (1 of 1956), or the Co-operative Societies Act, 1912 (2 of 1912) or any other
enactment for the time being in force, whether within or without India, shall be deemed to die when it is
dissolved.
69. Power of one or two or more joint holders to grant receipts.—Where two or more persons are
joint holders of any Port Trust security, any one of those persons may give an effectual receipt for any
interest payable in respect of such security unless notice to the contrary has been given to the Board by
any other of the holders.
70. Indorsements to be made on security itself.—Notwithstanding anything in section 15 of the
Negotiable Instruments Act, 1881, (26 of 1881) no indorsement of a Port Trust security, which is
transferable by indorsement, shall be valid unless made by the signature of the holder inscribed on the
back of the security itself.
71. Indorser of security not liable for amount thereof.—Notwithstanding anything in the
Negotiable Instruments Act, 1881 (26 of 1881), a person shall not by reason only of his having indorsed
any Port Trust security be liable to pay any money due, either as principal or as interest, thereunder.
72. Impression of signature on securities.—(1) The signature of the person authorised to sign Port
Trust securities on behalf of the Board may be printed, engraved or lithographed or impressed by such
other mechanical process, as the Board may direct on such securities.
(2) A signature so printed, engraved, lithographed or otherwise impressed shall be as valid as if it had
been inscribed in the proper handwriting of the person so authorised.
73. Issue of duplicate securities.—(1) When any Port Trust security is alleged to have been lost,
stolen or destroyed either wholly or in part, and a person claims to be the person to whom but for the loss,
theft or destruction it would be payable, he may, on application to the Board and on producing proof to its
satisfaction of the loss, theft or destruction and of the justice of the claim and on payment of such fee, if
any, as may be prescribed by regulations, obtain from the Board an order for—
(a) the payment of interest in respect of the security said to be lost, stolen or destroyed, pending
the issue of a duplicate security; and
(b) the issue of a duplicate security payable to the applicant.
(2) An order shall not be passed under sub-section (1) until after the issue by the Board of the
prescribed notification of the loss, theft or destruction.
(3) A list of the securities in respect of which an order is passed under sub-section (1) shall be
published in such manner as the Board may prescribe.
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(4) If at any time before the Board becomes discharged under the provisions of this Act from liability
in respect of any security the whole of which is alleged to have been lost, stolen or destroyed, such
security is found, any order passed in respect thereof under this section shall be cancelled.
74. Issue of converted, etc., securities.—(1) A Board may, subject to such conditions as it may
prescribe, on the application of a person claiming to be entitled to a Port Trust security or securities issued
by it, on being satisfied of the justice of the claim and on delivery of the security or securities receipted in
such manner and on payment of such fee, if any, as it may prescribe convert, consolidate or sub-divide the
security or securities, and issue to the applicant a new security or securities accordingly.
(2) The conversion, consolidation or sub-division referred to in sub-section (1) may be into a security
or securities of the same or different classes or of the same or different loans.
1
[74A. Recognition as holder of Port Trust securities in certain cases.—The person to whom a
duplicate security has been issued under section 73 or a new security or securities has or have been issued
under section 74 shall be deemed for the purposes of section 74B to have been recognised by the Board as
the holder of the security or securities; and a duplicate security or a new security or securities so issued to
any person shall be deemed to constitute a new contract between the Board and such person and all
persons deriving title thereafter through him.
74B. Legal effect of recognition by the Board under section 74A.—No recognition by the Board of
a person as the holder of a Port Trust security or securities shall be called in question by any court so far
as such recognition affects the relations of the Board with the person recognised by it as the holder of a
Port Trust security or securities or with any person claiming an interest in such security or securities; and
any such recognition by the Board of any person shall operate to confer on that person a title to the
security or securities subject only to a personal liability to the rightful owner of the security or securities
for money had and received on his account.]
75. Discharge in certain cases.—Notwithstanding anything contained in 2
[the Limitation Act, 1963
(36 of 1963)]—
(i) on payment of the amount due on a Port Trust security on or after the date on which payment
becomes due, or
(ii) when a duplicate security has been issued under section 73, or
(iii) when a new security or securities has or have been issued upon conversion, consolidation or
sub-division under section 74,
the Board shall be discharged from all liability in respect of the security or securities so paid or in place of
which a duplicate or new 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;
(b) in the case of a duplicate security—after the lapse of six years from the date of the
publication under sub-section (3) of section 73 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 a new security issued upon conversion, consolidation or sub-division—after
the lapse of six years from the date of the issue thereof.
76. Power of Board to make regulations.—A Board may, from time to time, make regulations to
provide for all or any of the following matters, namely:—
(a) the person, if any, authorised to sign, and the mode of affixing the corporate seal and of
attestation of documents relating to Port Trust securities issued or to be issued by the Board;
1. Ins. by Act 29 of 1974, s. 26 (w.e.f. 1-2-1975).
2. Subs. by s. 27, ibid., for “the Indian Limitation Act, 1908 (9 of 1908)” (w.e.f. 1-2-1975).
32
(b) the manner in which payment of interest in respect of such Port Trust securities is to be made,
recorded and acknowledged;
(c) the circumstances and the manner in which such Port Trust securities may be renewed;
(d) the circumstances in which such securities must be renewed before further payment of interest
thereon can be claimed;
(e) the form in which such securities delivered for renewal, conversion, consolidation or
sub-division are to be receipted;
(f) the proof which is to be produced by a person applying for duplicate securities;
(g) the form and manner of publication of the notification mentioned in sub-section (2) of
section 73 and the manner of publication of the list mentioned in sub-section (3) of that section;
(h) the nature and amount of indemnity to be given by a person applying for the payment of
interest on Port Trust securities alleged to have been wholly or partly lost, stolen or destroyed, or for
the issue of duplicate Port Trust securities;
(i) the conditions subject to which Port Trust securities may be converted, consolidated or
sub-divided;
(j) the amounts for which stock certificate may be issued;
(k) generally, all matters connected with the grant of duplicate, renewed, converted, consolidated
and sub-divided securities;
(l) the fees to be paid in respect of the issue of duplicate securities and of the renewal, conversion,
consolidation and sub-division of Port Trust securities;
(m) the fees to be levied in respect of the issue of stock certificates.
77. Place and currency of loans raised by Board.—All loans contracted by a Board under this Act
shall be raised in India, and in Indian currency, unless the Central Government, by notification in the
Official Gazette, otherwise directs.
78. Security for loans taken out by Board.—All loans raised by a Board under this Act shall be a
first charge on—
(a) the property vested, or which may hereafter during the currency of the loans become vested,
in the Board 1
[other than—
(i) any sum set apart by the Board—
(1) as the sinking fund for the purpose of paying off any loan; or
(2) for the payment of pension to its employees; or
(ii) the provident or pension fund established by the Board; and]
(b) the rates leviable by the Board under this Act.
79. Remedies of Government in respect of loans made to Boards.—The Central Government or a
State Government shall have in respect of loans made by it to a Board, or of loans made to any other
authority for the repayment of which the Board is legally liable, the same remedies as holders of Port
Trust securities issued by the Board; and such Government shall not be deemed to possess any prior or
greater rights in respect of such loans than holders of such Port Trust securities:
Provided that where the terms of any such loan made before the appointed day expressly provide that
the loan shall have priority over all other loans in the matter of repayment by the Board, such loan shall
have priority.
1. Subs. by Act 29 of 1974, s. 28, for certain words (w.e.f. 1-2-1975).
33
80. Power of Board to repay loans before due date.—A Board may, with the previous sanction of
the Central Government, apply any sums, out of moneys which may come into its hands under the
provisions of this Act and which can be so applied without prejudicing the security of the other holders of
Port Trust securities, in repaying to the Government any sum which may remain due to it in respect of the
principal of any loan although the time fixed for the repayment of the same may not have arrived:
Provided that no such repayment shall be made of any sum less than ten thousand rupees; and that, if
such repayment is made, the amount of interest in each succeeding instalment shall be so adjusted as to
represent exactly the interest due on the outstanding principal.
81. Establishment of sinking fund.—(1) In respect of every loan raised by a Board under this Act,
which is not repayable before the expiration of one year from the date of the loan, the Board shall set
apart half-yearly out of its income as a sinking fund a sum sufficient to liquidate the loan within a period
which shall not in any case, unless the previous consent of the Central Government has been obtained,
exceed thirty years; but the maximum period shall not in any case exceed sixty years:
Provided that a sinking fund need not in the absence of any stipulation to that effect be established in
the case of loans taken by the Board from the Central Government or any State Government.
(2) Where any sinking fund has, before the appointed day, been established by any authority in
respect of a loan raised by it for which loan the Board is liable under this Act, the sinking fund so
established by that authority shall be deemed to have been established by the Board under this section.
82. Investment and application of sinking fund.—(1) The sums so set apart by a Board under
sub-section (1) of section 81 and the sums forming part of any sinking fund referred to in sub-section (2)
of that section shall be invested in public securities or in such other securities as the Central Government
may approve in this behalf, and shall be held in trust for the purposes of this Act 1
[by the Board].
(2) A Board may apply the whole or any part of the sums accumulated in any sinking fund in or
towards the discharge of the moneys for the repayment of which the fund has been established:
Provided that it pays into the fund in each year, and accumulates until the whole of the moneys
borrowed are discharged, a sum equivalent to the interest which would have been produced by the sinking
fund, or the part of the sinking fund so applied.
83. Examination of sinking fund.—(1) A sinking fund established for the liquidation of any loan
shall be subject to annual examination by such person as may be appointed by the Central Government in
this behalf, and the person so appointed shall ascertain whether the cash and the current market value of
the securities at the credit of the fund are actually equal to the amount which would have been
accumulated had investments been regularly made and had the rate of interest as originally estimated been
obtained thereon.
(2) A Board shall pay forthwith into the sinking fund any amount which the person appointed under
sub-section (1) to conduct the annual examination of the fund may certify to be deficient, unless the
Central Government specifically sanctions a gradual readjustment.
(3) If the cash and the current market value of the securities at the credit of a sinking fund are in
excess of the amount which should be at its credit, the person appointed under sub-section (1) shall certify
the amount of this excess, and the Board may, with the previous sanction of the Central Government,—
(a) withdraw the whole or any part of the certified excess in which case the Trustees in whose
names the sinking fund is invested under sub-section (1) of section 82, shall forthwith transfer
securities of the requisite current market value, or cash and securities of the requisite current market
value, to the Board, or
(b) reduce or discontinue the half-yearly contributions to the sinking fund required under
section 81, or
(c) adopt a combination of these measures.
1. Subs. by Act 29 of 1974, s. 29, for certain words (w.e.f. 1-2-1975).
34
84. Power of Board to raise loans on short-term bills.—Nothing contained in this Act shall be
deemed to affect the power of the Board to raise loans under the Local Authorities Loans Act,
1914 (9 of 1914).
85. Power of Board to take temporary loans or overdrafts.—Notwithstanding anything contained
in this Act, a Board may borrow moneys by means of temporary overdraft or otherwise by pledging the
securities held by the Board in its reserve funds or on the security of the fixed deposits of the Board in its
banks:
Provided that such temporary overdrafts or other loans—
(a) shall not at any time have a longer currency than six months; and
(b) shall not be taken, without the previous sanction of the Central Government, if at any time in
any year the amount of such overdrafts or other loans exceeds 1
[such amount as the Central
Government may fix in this behalf and different amounts may be fixed with respect to different
Boards]:
Provided further that all moneys so borrowed by temporary overdrafts or otherwise shall be expended
for the purposes of this Act.
86. Powers of Board to borrow money from International Bank for Reconstruction and
Development or other foreign institutions.—Notwithstanding anything contained in this Act or any
other law for the time being in force, a Board may, with the previous sanction of the Central Government
and on such terms and conditions as may be approved by that Government, raise for the purposes of this
Act loans in any currency or currencies from the International Bank for Reconstruction and Development
or from any other bank or institution in any country outside India; and no other provision of this Chapter
shall apply to or in relation to any such loan unless the terms and conditions of the loan or the approval
thereof by the Central Government otherwise provide.