Section 13 of GSA : Section 13: Law Applicable In Regard To Government Securities

Explanation using Example

Imagine that an Indian citizen, Mr. Sharma, purchases a Government security that offers periodic interest payments. The Government of India, for convenience, arranges for these interest payments to be made to him through a bank in the United States where Mr. Sharma currently resides. However, a dispute arises regarding the payment of interest. Mr. Sharma believes he has been underpaid, while the issuing authority claims the payments have been made correctly.

In this scenario, despite the payments being processed outside of India, Section 13 of The Government Securities Act, 2006, ensures that any legal disputes over the Government security, including those related to payment, will be governed by Indian law and adjudicated in the Indian courts. So, Mr. Sharma would need to approach the Indian legal system to resolve his dispute, as the rights and obligations under the security are determined by the law of India, regardless of where the payment was made.