COMPANIES ACT - 1963 (ACT 179)

    Section - 94 - Re-issue of Redeemed Debentures

    (1) Where, either before or after the commencement of this Code, a company has redeemed any debenture previously issued, the company may, subject to subsection (5) of this section, re-issue the same.

    (2) Such re-issue may be made either by re-issuing the same debenture or by issuing another in its place.

    (3) On re-issue the person entitled to the debenture shall have the same priority as if the debenture had never been redeemed.

    (4) The re-issue of a redeemed debenture shall be treated as the issue of a new debenture for the purposes of stamp duty but not for any other purpose including any provision limiting the amount or number of debentures to be issued:

    Provided that any person lending money on the security of any re-issued debenture which appears to be duly stamped may give the debenture in evidence in any proceedings without payment of the stamp duty or any penalty unless he had notice, or but for his negligence, might have discovered that the debenture was not duly stamped, but in any such case the company shall be liable to pay the proper stamp duty and penalty.

    (5) Nothing herein contained shall entitle a company to re-issue a redeemed debenture if it has manifested its intention that the debenture shall be cancelled or if re-issue is forbidden by any provision in the company's Regulations or in the debenture, trust deed or other contract entered into by the company.

    (6) Where a company has deposited any of its debentures to secure advances from time to time on current account or otherwise, the debentures shall not be deemed to have been redeemed by reason of the account of the company having ceased to be in debit while the debentures remained so deposited.