New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    In the absence of any shorter period specified by law,

    when does the liability of the Government end concerning interest payments on a Government security as per the Government Securtities Act?
    A After three years from the date on which the amount due by way of interest became payable Correct Answer Incorrect Answer
    B After five years from the date on which the amount due by way of interest became payable Correct Answer Incorrect Answer
    C After six years from the date on which the amount due by way of interest became payable Correct Answer Incorrect Answer
    D After eight years from the date on which the amount due by way of interest became payable Correct Answer Incorrect Answer
    E After ten years from the date on which the amount due by way of interest became payable Correct Answer Incorrect Answer

    Solution

    Section 23. Period of limitation of Governments’ liability in respect of interest: (1) Where no shorter period of limitation is fixed by any law for the time being in force, the liability of the Government in respect of any interest payment due on a Government security shall terminate on the expiry of six years from the date on which the amount due by way of interest became payable: Provided that the Government may allow a bona fide claim for payment of interest after the expiry of the period of six years in those cases where the holders of securities could not prefer their claims within the said period of six years.

    Practice Next