Rule 37 - Transfer of negotiable instruments and shares - Income-tax (Certificate Proceedings) Rules, 1962

Transfer of negotiable instruments and shares. 37. (1) Where the execution of a document or the endorsement of the party in whose name a negotiable instrument or a share in a corporation is standing is required to transfer such negotiable instrument or share to a person who has purchased it under a sale under the Second Schedule, the Tax Recovery Officer may execute such document or make such endorsement as may be necessary and such execution or endorsement shall have the same effect as an execution or endorsement by the party. (2) Such execution or endorsement may be in the following form, namely :— "............. by ........ Tax Recovery Officer .......... in the proceedings for the recovery of arrears under the Income-tax Act, 1961, against .............." (3) The Tax Recovery Officer may cause the document to be executed on proper stamp paper and to be registered if its registration is required by any law for the time being in force and the expenses of such execution and registration shall be borne by the purchaser. (4) Until the transfer of such negotiable instrument or share, the Tax Recovery Officer may, by order, appoint some person to receive any interest or dividend due thereon and to sign a receipt for the same; and any receipt so signed shall be as valid and effectual for all purposes as if the same had been signed by the party himself.