Section 113 - Limitation of time for issue of certificate. - Companies Act, 1956

Issue of Certificate of Shares, etc. Limitation of time for issue of certificate. 113. [1] [(1) Every company, unless prohibited by any provision of law or of any order of any court, tribunal or other authority, shall, within three months after the allotment of any of its shares, debentures or debenture stock, and within two months after the application [2] for the registration of the transfer of any such shares, debentures or debenture stock, deliver, in accordance with the procedure laid down in section 53, the certificates of all shares, debentures and certificates of debenture stocks allotted or transferred: Provided that the [3] [Central Government] may, on an application being made to it in this behalf by the company, extend any of the periods within which the certificates of all debentures and debenture stocks allotted or transferred shall be delivered under this sub-section, to a further period not exceeding nine months, if it is satisfied that it is not possible for the company to deliver such certificates within the said periods.] The expression "transfer", for the purposes of this sub-section, means a transfer duly stamped and otherwise valid, and does not include any transfer which the company is for any reason entitled to refuse to register and does not register. (2) If default is made in complying with sub-section (1), the company, and every officer of the company who is in default, shall be punishable with fine which may extend to [4] [five thousand rupees] for every day during which the default continues .[5] (3) If any company on which a notice has been served requiring it to make good any default in complying with the provisions of sub-section (1), fails to make good the default within ten days after the service of the notice, the [6] [Central Government] may, on the application [7] of the person entitled to have the certificates or the debentures delivered to him, make an order directing the company and any officer of the company to make good the default within such time as may be specified in the order; and any such order may provide that all costs of and incidental to the application shall be borne by the company or by any officer of the company responsible for the default. [8] [ (4) Notwithstanding anything contained in sub-section (1), where the securities are dealt with in a depository, the company shall intimate the details of allotment of securities to depository immediately on allotment of such securities.] -------------------------------------- Noted:- [1] Substituted by the Companies (Amendment) Act, 1988, section 17, w.e.f. 15-6-1988 for the words: "Every company shall, within three months after the allotment of any of its shares, debentures or debenture stock, and within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, complete and have ready for delivery the certificates of all shares, the debentures and the certificate of all debentures stock allotted or transferred, unless the conditions of issue of the shares, debentures or debenture stock otherwise provide." [2] Fees prescribed is Rs. 500. On notification of the commencement of the amendment, power will be transferred to the Central Government. [3] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. [4] Substituted for "five hundred rupees" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [5] Prosecution powers are exercisable delegated to DCA and SEBI officials vide Notification No. 727(E), dated 18-9-2000. [6] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier Company Law Board was substituted for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [7] Fees prescribed is Rs. 50. On notification of the commencement of the amendment, power will be transferred to the Central Government. [8] Inserted by the Depositories Act, 1996, w.r.e.f. 20-9-1995.