Legal Question in Banking Law in India

A company send me demand draft after the validity period of my dividend warrant expires.Due to some reasons I have not encashed the draft and its validity period expired.As per the present law amount of dividend warrants which are not encashed for seven years will have to credited to the Investors protection fund. Sinc ethe company issued a bank draft in lieu of dividend warrant which law is applicable.Whether the company can get a fresh drat for me even the date of declaration of the captioned dividend warrant exceeded seven years or it can treat ny drat as bank draft and not to credit the draft amount to Investor protection fund treating the original dividend warrant exceeded seven years


Asked on 2/27/16, 7:41 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

27.02.2016

Dear Sir / Madam,

Yes, the Company can at its discretion issue you a fresh draft despite the date of declaration of the original dividend warrant exceeds seven years. Crediting the unclaimed dividend to the Investor Protection Fund for seven years in no way implies that the unclaimed dividend is forfeited.

Regards,

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Answered on 2/27/16, 8:30 am


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