INDIAN COINAGE ACT, 1906

Preamble 1 - INDIAN COINAGE ACT, 1906

 

THE INDIAN COINAGE ACT, 1906

[Act, No. 3 of 1906]

[AS ON 1956]

[2nd March, 1906]

PREAMBLE

An Act to consolidate and amend the law relating to Coinage and the Mint.

WHEREAS it is expedient to consolidate and amend the law relating to Coinage and the Mint;

It is hereby enacted as follows:?

Section 1 - Short title and extent

(1)     This Act may be called the[1] [***]Coinage Act, 1906; and

[2] [***]

Section 2 - Definitions

In this Act, unless there is anything repugnant in the subject or context,?

(a)      "deface", with its grammatical variations and cognate expressions, includes clipping, filing, stamping, or such other alteration of the surface or shape of a coin as is readily distinguishable from the effects of reasonable wear;

 

(b)      "the Mint" includes the Mints now existing and any which may hereafter be established;

 

(c)      "prescribed" includes prescribed by a rule made under this Act;

 

(d)      "remedy" means variation from the standard weight and fineness; and

 

(e)      "standard weight" means the weight prescribed for any coin.

Section 3 - Power to establish and abolish Mints

The Central Government may, by notification in the Official Gazette,?

(a)      establish a Mint at any place at which a Mint does not for the time being exist; and

 

(b)      abolish any Mint, whether now existing or hereafter established.

[The heading "Silver Coinage" was repealed. by Act 28 of 1947,Section2.]

Section 4 - [Repealed]

[Silver coins.] Rep. by the Indian Coinage (Amendment) Act, 1947 (28 of 1947),Section2.

Section 5 - [Repealed]

[Standard weight and fitness.] Rep., by the Indian Coinage (Amendment) Act, 1947 (28 of 1947), Section. 2.

Section 6-20 - Coinage

[3] [Coinage

[The heading Coinage and Section 6 were subs. by Section 3, ibid., for the former Section6.]

Section 6 - Denominations, dimensions, designs and composition of coins

[4] [(1)]Coins may be coined at the Mint for issue under the authority of the Central Government,[5] [of such denominations not higher than one thousand rupees], of such dimensions and designs, and of such metals or of mixed metals of such composition as the Central Government may, by notification in the Official Gazette, determine.]

[6] [(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion that it is necessary or expedient in the public interest so to do, it may authorise the coining, in like manner as is provided in that sub-section, of coins by any person (including the Government of any foreign country), beyond the limits of India and import such coins for issue under its authority under that sub-section.]

[Subs. by Ordinance 4 of 1942,Section2, for the former ss.7, 8 and 9.]

Section 7 - Standard weight and remedy

The standard weight of the coins of any denomination coined under the provisions of section 6, and the remedy allowed in the making of such coins shall be such as may be prescribed in this behalf by the Central Government.]

[The heading "Dimensions and Designs of Coins" was rep. by Act 28 of 1947,Section4.]

Section 10 - [Repealed]

[Power to direct coining, and to prescribe dimensions and designs.] Rep. by the Indian Coinage (Amendment) Act, 1947 (28 of 1947),Section4.

Section 11 - [Repealed]

[Demonetization of sovereign and half-sovereign.] Rep. by the Indian Coinage (Amendment) Act, 1947 (28 of 1947), Section, 4.

Section 12 - [Repealed]

[Silver coin when a legal tender.] Rep., by the Indian Coinage (Amendment) Act, 1947 (28 of 1947), Section, 4.

[Subs. by Section 5, ibid., for the former Section13 which had been subs. by Ordinance 4 of 1942,Section4, for ss.13 and 14.]

Section 13 - Coin when a legal tender

(1)     The coins issued under the authority of section 6 shall be a legal tender in payment or on account,--

(a)[7] [In the case of a Coin of any denomination not lower than one rupee], for any sum;

(b) in the case of a half-rupee coin, for any sum not exceeding ten rupees;

(c) in the case of any other coin, for any sum not exceeding one rupee:

Provided that the coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its case.

(2)     (2) All silver coins issued under this Act after the 10th day of March, 1940[8] [and before the commence of the Indian Coinage (Amendment) Act, 1947] shall continue as before to be a legal tender in payment or on account,-

 

(a)      in the case of a rupee coin, for any sum;

 

(b)      in the case of a half-rupee coin, for any sum not exceeding ten rupees;

 

(c)      in the case of a quarter-rupee, for any sum not exceeding one rupee:

Provided that the coin has not been defaced and has not lost weight so as to be less than-

(i)       176.4 grains Troy in the case of a rupee coin, or

 

(ii)     88.2 grains Troy in the case of a half-rupee coin, or

 

(iii)    such weight as may be prescribed in the case of a quarter-rupee coin.

 

(3)     All nickel, copper and bronze coins which may have been issued under this Act before the 24th day of January 1942 shall continue as before to be a legal tender in payment or on account for any sum not exceeding one rupee.]

[9] [(4) All new coins in the naya paisa series, designated as such under the notification of the Government of India in the Ministry of Finance, Department of Economic Affairs, No.SectionR.O. 1120, dated 11thMay, 1956, which may have been issued under this Act prior to the commencement of the Indian Coinage (Amendment) Act, 1964, shall continue to be a legal tender in payment or on account -

(a)      in the case of a half-rupee of fifty naya paisa coin, for any sum not exceeding ten rupees.

 

(b)      In the case of any other coin, for any sum not exceeding one rupee.]

Section 14 - Decimal system of coinage

[10] [14. Decimal system of coinage.- 

(1)     The rupee shall be divided into one hundred units and the new coin representing such unit may be designated by the Central Government, by notification in the Official Gazette, under such name as it thinks fit, and the rupee, half-rupee and quarter-rupee shall be respectively equivalent to one hundred, fifty and twenty-five such new coins and shall, subject to the provisions of sub-section (1) and sub-section (2) of section 13 and to the extent specified therein, be a legal tender in payment or on account accordingly.

 

(2)     All coins issued under the authority of this Act in any denominations of annas, pice and pies shall, to the extent specified in section 13, be a legal tender in payment or on account at the rate of sixteen annas, sixty-four pice or one hundred and ninety-two pies to one hundred new coins referred to in sub-section (1), calculated in respect of any such single coin or number of such coins, tendered at one transaction, to the nearest new coin, or where the new coin above and the new coin below are equally near, to the new coin below.

 

(3)     All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value expressed in, pice and pies shall be construed as references to that value expressed in new coins referred to in sub-section (1) converted thereto at the rate specified in sub-section (2).]

[11] [(4) As from the commencement of the Indian Coinage (Amendment) Act, 1964, all references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value in naya paisa or naya paisa shall be construed as references to that value expressed respectively in paisa or paise, being the new coins, designated as such from 1stday of June, 1964]

Section 15 - [Repealed]

[Coin made under former Acts.] Rep. by the Indian Coinage (Amendment) Act, 1947 (28 of 1947),Section6.

[Section.15A was ins. by Act 10 of 1924,Section3.] 

Section 15A - Power to call in coin

Notwithstanding anything contained in [Subs. by Act 28 of 1947,Section7, for "section 12, section 13, or section 15".The words "section 14" before the word "or" had been rep. by Ordinance 4 of 1942,Section5] [section 13], the Central Government may, by notification in the Official Gazette, call in, with effect from such date as may be specified in the notification, any coin, of whatever date or denomination, referred to in [Subs. by Act 28 of 1947,Section7, for "any of those sections"] [that section] [The words "other than the rupee and half-rupee referred to in sub-section (1) of section 12" were rep. by Ordinance 12 of 1940,Section2] and on and from the date so specified such coin shall cease to be a legal tender [Subs. by Ordinance 12 of 1940,Section2, for "save at a Govt. currency office"] [save to such extent as may be specified in the notification].]

[The proviso was rep. bySection2.ibid.]

Diminished, defaced and counterfeit [The word Silver was rep. by Act 21 of 1919,Section6 (1) coins

Section 16 - Power to certain persons to cut diminished or defaced silver coins

Where any silver coin which has been coined and issued under the authority of the Central Government is tendered to any person authorised by the Central Government {The words "or by the L.G." were rep. by the A, O.1937} to act under this section, and such person has reason to believe that the coin?

(a)      has been diminished in weight so as to be more than such percentage below standard weight as may be prescribed as the limit of reasonable wear, or

 

(b)          has been defaced,

he shall, by himself or another, cut or break the coin.

Section 17 - Procedure in regard to coin cut under section 16 (a)

A person cutting or breaking coin under the provisions of clause (a) of section 16 shall observe the following procedure, namely:?

(a)      if the coin has been diminished in weight so as to be more than such percentage below standard weight as may be prescribed as the limit of reasonable wear, but not more than such further percentage as may be prescribed in this behalf, he shall either return the pieces to the person tendering the coin, or, if such person so requests, shall receive and pay for the coin at such rates as may be prescribed in this behalf; and

 

(b)      if the coin has been diminished in weight so as to be more than such further percentage below standard weight so prescribed as aforesaid, he shall return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or breaking.

Section 18 - Procedure in regard to coin cut under section 16 (b)

A person cutting or breaking coin under the provisions of clause (b) of section 16 shall observe the following procedure namely:?

(a)      if such person has reason to believe that the coin has beer fraudulently defaced, he shall return the pieces to the person tendering the coin, who shall bear the loss caused by such cutting or breaking;

 

(b)      if such person has not reason to believe that the coin has been fraudulently defaced, he shall receive and pay for the coin at its nominal value.

Explanation.?For the purposes of this section a coin which, there is reason to believe, has been defaced by sweating shall be deemed to have been fraudulently defaced.

Section 19 - Procedure in regard to coin which is liable to be cut under both clause (a) and clause (b) of section 16

If a coin is liable to be cut or broken under the provisions of both clause (a) and clause (b) of section 16, the person cutting or breaking the coin shall deal with it,?

(a)      if he has reason to believe that the coin has been fraudulently defaced, under clause (a) of section 18, and

 

(b)      in other cases, under section 17.

Section 20 - Power to certain persons to cut counterfeit or fraudulently defaced coin and procedure in regard to coin so cut

Where any {The words "silver or other" were rep. by Act 28 of 1947,Section8}coin purporting to be coined or issued under the authority of the Central Government is tendered to any person {For persons so authorised, see Gen. R.& O. Supplementary Vol. VI,P.232} authorised by the Central Government {The words "or by the L.G."were rep. by the A.O.1937} to act under this section, and such person has reason to believe that the coin is counterfeit {Ins.by Act 28 of 1947,Section8}[or has been fraudulently defaced], he shall by himself or another cut or break the coin, and may at his discretion either return the pieces to the tenderer, who shall bear the loss caused by such cutting or breaking, or {Ins.by Act 21 of 1919,Section6 (2)} [in the case of silver coin] receive and pay for the coin according to the value of the silver bullion contained in it.

Section 21 - Power to make rules

 

(1)     [12] [The Central Government may, by notification in the Official Gazette, make rules] to carry out the purposes and objects of this Act.

 

(2)     In particular and without prejudice to the generality of the foregoing power, such rules may-

[Cl. (a) was rep. by Act 28 of 1947,Section9.]

(b) ??provide for the guidance of persons authorised to cut or break coin under sections 16 and 20;

(c) ??determine the percentage of diminution in weight below standard weight not being less {Subs. bySection9, ibid., for "in any case than two per cent."} [than two per cent. in the case of silver coins or five per cent. in the case of pure nickel coins], which shall be the limit of reasonable wear;

(d)? ?prescribe the further percentage referred to in clause (a) of section 17, and the rates at which payments shall be made in the case of coins falling under the same clause {The word "and" and cl.(e) were rep. by Act 4 of 1927,Section2}.

[The word "and" and cl.(e) were rep. by Act 4 of 1927,Section2.]

[13] [(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a title period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or to be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

Section 22 - Bar of suits

No suit or other proceeding shall lie against any person in respect of anything in good faith done, or intended to be done, under or in pursuance of the provisions of this Act.

Section 23 - Saving of making of other coins at Mints

Nothing in this Act shall be deemed to prohibit or restrict the making at the Mint of coins intended for issue as money by the Government of any territories beyond the limits of [Subs. by Act 3 of 1951,Section3 and Sch., for "the States"}[14] [India]

Section 24 - Temporary provisions with respect to certain Hyderabad coins

[Ins., by Act 3 of 1951., Original Section. 24 was rep. by Act 28 of 1947,Section. 10.]

Notwithstanding anything in section 6 of the Part B States (Laws) Act, 1951 (3 of 1951), coins of such description as at the commencement of the said Act were in circulation as legal tender in {Subs. by Act 10 of 1953,Section2, for "any Part B State"} [the State of Hyderabad] shall continue to be legal tender in that State to the like extent and subject to the same conditions as immediately before the commencement of the said Act for such period, not exceeding {Subs., ibid., for "two years"} [four years] from such commencement, as the Central Government may, by notification in the Official Gazette, determine.]

Section 25 - Temporary provisions with respect to French coins

[15] [25. Temporary provisions with respect to French coins.-  

Notwithstanding anything contained in para. 6 of the French Establishments (Application of Laws) order, 1954, or in this Act coins of such description as at the commencement of the said Order were in circulation as legal tender in the French Establishment, as defined in that Order, shall continue to be legal tender in the said establishments to the like extent and subject to the same conditions as immediately before the commencement of the said Order and for such period or periods, not exceeding one year in the aggregate from such commencement as the Central Government may from time to time, by notification in official Gazette, determine]

The Schedule.-[Enactments repealed.] Rep. by the Repealing and Amending Act, 1914 (10 of 1914),Section3 and Sch.2.

Amending Act 1 - INDIAN COINAGE (AMENDMENT) ACT, 1955

 

THE INDIAN COINAGE (AMENDMENT) ACT, 1955

[Act, No. 31 of 1955]

[17th September, 1955]

PREAMBLE

An Act further to amend the Indian Coinage Act, 1906.

BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:-

1 . Short title and commencement.- 

(1)     This Act may be called the Indian Coinage (Amendment) Act, 1955.

 

(2)     It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2 . Insertion of new section 14.- 

After section 13 of the Indian Coinage Act, 1906 (3 of 1906), the following section shall be inserted, namely:-

(1)     "14. Decimal system of coinage.- (1) The rupee shall be divided into one hundred units and the new coin representing such unit may be designated by the Central Government, by notification in the Official Gazette, under such name as it thinks fit, and the rupee, half-rupee and quarter-rupee shall be respectively equivalent to one hundred, fifty and twenty-five such new coins and shall, subject to the provisions of sub-section (1) and sub-section (2) of section 13 and to the extent specified therein, be a legal tender in payment or on account accordingly.

 

(2)     All coins issued under the authority of this Act in any denominations of annas, pice and pies shall, to the extent specified in section 13, be a legal tender in payment or on account at the rate of sixteen annas, sixty-four pice or one hundred and ninety-two pies to one hundred new coins referred to in sub-section (1), calculated in respect of any such single coin or number of such coins, tendered at one transaction, to the nearest new coin, or where the new coin above and the new coin below are equally near, to the new coin below.

 

(3)     All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any value expressed in, pice and pies shall be construed as references to that value expressed in new coins referred to in sub-section (1) converted thereto at the rate specified in sub-section (2)."

Amending Act 2 - INDIAN COINAGE (AMENDMENT) ACT, 1968

 

THE INDIAN COINAGE (AMENDMENT) ACT, 1968

[Act, No. 28 of 1968]

[6th August, 1968]

PREAMBLE

An Act further to amend the Indian Coinage Act, 1906.

BE it enacted by Parliament in the Nineteenth Year of the Republic of India as follows : -

1 . Short title and commencement.- 

(1)     This may be called the Indian Coinage (Amendment) Act, 1968.

 

(2)     It shall come into force on such date{1st November, 1968 vide S.O.3618, dated the 8th October, 1968, Gazette of India, 1968, Extraordinary, Pt.II, Sec.3 (ii), p.1185 } as the Central Government may, by notification in the Official Gazette, appoint.

2 . Amendment of section 6.- 

In section 6 of the Indian Coinage Act, 1906(3 of 1906) (hereinafter referred to as the Principal Act), for the words "of such denominations not higher than one rupee", the words "of such denominations not higher than one hundred rupees" shall be substituted.

3 . Amendment of section 13.-

In section 13 of the principal Act, -

(a)      in sub - section (1), in clause (a), for the words "in the case of a rupee coin", the words "in the case of a coin of any denomination not lower than one rupee" shall be substituted ;

 

(b)      in sub - section (2), after the words, figures and letters "after the 10th day of March, 1940", the words, brackets and figures "and before the commencement of the Indian Coinage (Amendment) Act, 1947"( 28 of 1947) shall be inserted.

Amending Act 3 -

 

THE INDIAN COINAGE (AMENDMENT) ACT, 1975

[Act, No. 47 of 1975]

[12th August, 1975.]

PREAMBLE

An Act further to amend the Indian Coinage Act, 1906.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:-

1 . Short title.- 

This Act may be called the Indian Coinage (Amendment) Act, 1975.

2 . Amendment of section 1.- 

In section 1 of the Indian Coinage Act, 1906 (3 of 1906), (hereinafter referred to as the principal Act), in sub-section (1), the word "Indian" shall be omitted.

3 . Amendment of section 6.- 

In section 6 of the principal Act, for the words "of such denominations not higher than one hundred rupees", the words "of such denominations not higher than one thousand rupees" shall be substituted.

4 . Amendment of section 21.-

In section 21 of the principal Act,-

(i)       in sub-section (1), for the words "The Central Government may make rules", the words "The Central Government may, by notification in the Official Gazette, make rules" shall be substituted;

 

(ii)      for sub-section (3), the following sub-section shall be substituted, namely:-

"(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a title period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or to be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule."

Amending Act 4 - COINAGE (AMENDMENT) ACT, 1985

 

THE COINAGE (AMENDMENT) ACT, 1985

[Act, No. 33 of 1985]

[24th May, 1985]

PREAMBLE

An Act further to amend to Coinage Act, 1906.

BE it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows:-

1 . Short title.- 

This Act may be called the Coinage (Amendment) Act, 1985.

2 . Amendment of section 6.- 

Section 6 of the Coinage Act, 1906 (8 of 1906.)shall be re-numbered as sub-section (1) of that section and after sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely:-

"(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion that it is necessary or expedient in the public interest so to do, it may authorise the coining, in like manner as is provided in that sub-section, of coins by any person (including the Government of any foreign country), beyond the limits of India and import such coins for issue under its authority under that sub-section".