N.K.Assumi (Advocate) 16 June 2009

Meaning of valuable securities under IPC:

Academic documents like Degree cerificates, Exam question papers and answer scripts etc, be regarded as valuable securities under the Indian Penal Code?

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4 Replies

Shree. ( Advocate.) 16 June 2009

Dear Assumi Sir,

Valuable security-- The words “valuable security” denote a document which is, or purports to be, a document where by any legal right is created, extended, transferred, retracted, extinguished or released, or where by any person acknowledges that he lies under legal liability , or has not a certain legal right.

Example:

A writes his name on the back of a bill of exchange. As the effect of this endorsement is to transfer the right to the bill to any person who may become the lawful holder of it the endorsement is a “valuable security”.

The essence of ‘valuable securities lies in its essential link with(a) a legal right , or (b) a legal liability. In the case of a legal right, a mere acknowledgement that a person does not have a legal right becomes a valuable right. This is different from “release”, in which the right is asserted, but (by the same instrument) abandoned.

The principal Sections of the Code in which the expression “valuable security” occurs are concerned with (a) offences against the human body (Sections 329-331, 347,348), (b) offences against property (Section 420), and(c) offences relating to documents (Sections 467 and471).

An unregistered document (which is not fully effective without registration) is not, in the strict sense, a valuable security but it purports to be a valuable security and so falls within Section 467 (forgery of valuable security, etc).- Kashi Nath v. Naik, (1897) ILR 25 Cal 207.

If a document purports to be only a copy of a valuable security , its forgery is not punishable under Section 467.- Gobinda Prasad, (1962) I 1 Cr LJ 316.

However, in certain circumstances, such conduct may amount to the offence of cheating.

N.K.Assumi (Advocate) 16 June 2009

Shree, thank you for the responds with your valuable comments.

Manish Kalra (Advocate) 16 June 2009

The defenation of the valuable security is given in section 30 of the Indian Penal code 1860 itself which is as under :-

30. "Valuable security".--The words "valuable security" denote a document which is, or purports to be, a document whereby any legal right is created, extended, transferred, restricted, extinguished or released, or who hereby any person acknowledges that he lies under legal liability, or has not a certain legal right.

---------------------------------------------------------------------- 1. Subs. by Act 1 of 1889, s. 9, for the original Explanation.107 Illustration A writes his name on the back of a bill of exchange. As theeffect of this endorsement is to transfer the right to the bill to anyperson who may become the lawful holder of it, the endorsement is a"valuable security".

will, sale deed, mortgage deed, adoption deed etc are few examples of valuable securities