The Pakistan Coinage Act, 1906
ACT No. III OF 1906
(For Statement of Objects and Reasons, see Gazette of India, 1905, Part. V, p. 32; for Report of the Select Committee, see bid., 1906, Part. V, p. 9; and for Proceedings in Council, see ibid., 190, Part VI, p. 142; ibid 1906, Part VI, p. 28.
This Act has been declared to be in force in,—
(1) Upper Tanawal, an excluded area in N.‑W.F.P, by N.‑W.F.P Regulation I of 1941;
(2) Chittagong Hill Tracts by Bengal Regulation I of 1940.
It has been extended to the Leased Areas of Baluchistan, see the Leased Areas (Laws) Order, 1950 (G. G. O. 3 of 1950); and applied in the Federated Areas of Baluchistan, see Gazette of India, 1937, Pt. I, p. 1499.
It has also been extended to the Baluchistan States Union, see the Baluchistan States Union (Federal Laws) (Extension) Order, 1953 (G. G. O. 4 of 1953), as amended by the Baluchistan States Union (Federal Laws) (Extension) (Second Arndt.) Order, 1953 (G. G. O. 19 of 1953).
It has also been extended to the Khairpur State, see G. G. O. 5 of 1953, as amended by G. G. O. 24 of 1953.
It has also been extended to the State of Bahawalpur by the Bahawalpur (Extension of Federal Laws) Order, 1953 (G. G. O. 11 of 1953), as amended by the Bahawalpur (Extension of Federal Laws) (Arndt.) Order, 1953 (G. G. O. 21 of 1953).
It has also been extended to the Baluchistan by Baluchistan Laws Reg. II of 1913 s. 3.
The Act has been and shall be deemed to have been brought into force in Gawadur with effect from the 8th September, 1958 by the Gawadur (Application of Central Laws) Ordinance, 1960 (37 of 1960), s. 2.)
[2nd March, 1906]
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:—
PRELIMINARY
l. Short title and extent.—(Subs. by the Pakistan (Monetary System and Reserve Bank) Order, 1947 (G. G. O. 21 of 1947), Art. 10, for the original section 1.) (1) This Act may be called The Pakistan Coinage Act, 1906.
(2) It extends to the whole of Pakistan.
2. Definition.— 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 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.
3. Power to establish and abolish Mints.— The (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] may, by notification in the (Subs. ibid. for “Gazette of India”.)[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” omitted by the Indian Coinage (Amdt.) Act, 1947 (28 of 1947), s. 2.) * *
4. [Silver Coins. Standard weight and fineness.] Rep. by the Indian Coinage (Amendment) Act, 1947 (28 of 1947), s. 2. (S.6 and the heading above it, subs. ibid., s. 3, for the original heading and s. 6 as subsequently amended.) [COINAGE]
5. [Silver Coins. Standard weight and fineness.] Rep. by the Indian Coinage (Amendment) Act, 1947 (28 of 1947), s. 2. (S.6 and the heading above it, subs. ibid., s. 3, for the original heading and s. 6 as subsequently amended.) [COINAGE]
6. Denomination, dimensions, designs and composition of coins.— ( S.6 and the heading above it, subs. ibid., s. 3, for the original heading and s. 6 as subsequently amended.) Coins may be coined at the Mint for issue under the authority of the Central Government, of such denominations [nor less than one rpuee][1] not higher than one rupee, of such dimensions and designs, and of such metals or of mixed metals of such composition as the Central Government may, by (For instances of such notifications, see Gaz. of P., 1960, Ext., pp. 1353‑1355, ibid. 1963, Ext., pp. 89‑90 and ibid., 1964, Ext., pp. 141‑144.) notification in the official Gazette, determine.]
[7. Standard weight and remedy:— The(Subs. by the Indian Coinage (Amendment) Ordinance, 1942 (4 of 1942), s. 2, for sections 7, 8 and 9. For instances of notification under section 7, see Gaz. of P., 1952, Pt. I., pp. 212‑213, ibid., 1960, Ext., p. 1353, ibid., 1963, Ext., p. 91, and ibid., 1964, Ext., p. 142.) 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.]
8.* * * * * * * * * *( Subs. by the Indian Coinage (Amendment) Ordinance, 1942 (4 of 1942), s. 2, for sections 7, 8 and 9. For instances of notification under section 7, see Gaz. of P., 1952, Pt. I., pp. 212‑213, ibid., 1960, Ext., p. 1353, ibid., 1963, Ext., p. 91, and ibid., 1964, Ext., p. 142.)
* * * *( The heading “Dimensions and Designs of Coins” was omitted by the Indian Coinage (Amdt.) Act, 1947 (28 of 1947), s. 4.)
9.* * * * * * * * * *( Subs. by the Indian Coinage (Amendment) Ordinance, 1942 (4 of 1942), s. 2, for sections 7, 8 and 9. For instances of notification under section 7, see Gaz. of P., 1952, Pt. I., pp. 212‑213, ibid., 1960, Ext., p. 1353, ibid., 1963, Ext., p. 91, and ibid., 1964, Ext., p. 142.)
* * * *( The heading “Dimensions and Designs of Coins” was omitted by the Indian Coinage (Amdt.) Act, 1947 (28 of 1947), s. 4.)
10. [Power to direct coining and to prescribe dimensions and designs. Demonetizations of sovereign and half sovereign. Silver coin when a legal tender.] Rep. by the Indian Coinage (Amendment) Act, 1947 (XXVIII of 1947).
11. [Power to direct coining and to prescribe dimensions and designs. Demonetizations of sovereign and half sovereign. Silver coin when a legal tender.] Rep. by the Indian Coinage (Amendment) Act, 1947 (XXVIII of 1947).
12. [Power to direct coining and to prescribe dimensions and designs. Demonetizations of sovereign and half sovereign. Silver coin when a legal tender.] Rep. by the Indian Coinage (Amendment) Act, 1947 (XXVIII of 1947).
[13. Coin when a legal tender— (1) The coins issued under the authority of section 6 shall be legal tender in payment or on account for any sum:—
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) All the gold or silver coins issued under the Act on or after the 1st day of January, 1976, shall continue as before to be legal tender in payment or on account for any sum:—
Provided that the coin has not been defaced and has not lost more than one-fortieth of weight as specified below,—
(a) In case of gold,—
(i) 33.437 grams in the case of three thousand rupee coin issued in 1976 to commemorate to conservation of Astor Markhor;
(ii) 9 grams in case of one thousand rupee coin issued in 1977 to commemorate the Islamic Summit Conference;
(iii) 4.5 grams in case of five thousand rupees coin issued in 1976 to celebrate the 100th birth anniversary of Quaid-e-Azam Muhammad Ali Jinnah; and
(b) In case of silver,—
(i) 28.28 grams in the case of one hundred rupee coin issued in 1976 to commemorate conservation of Western Trogopan;
(ii) 20.44 grams in case of the one hundred rupees coin issued in 1976 to celebrate the 100th birth anniversary of Quaid-e-Azam Muhammad Ali Jinnah;
(iii) 20.44 grams in case of the one hundred rupees coin issued in 1977 to commemorate the Islamic Summit Conference;
(iv) 20.44 grams in case of the one hundred rupees coin issued in 1977 to celebrate the 100th birth anniversary of Allama Iqbal; and
(v) 35 grams in case one hundred fifty rupees coin issued in 1976 to commemorate the conversation of Gharial Crocodile.”.[2]
14.* * * * * * * * * * *( By the Indian Coinage (Amdt.) Ordinance, 1942 (4 of 1942), section 14 and the original section 13 were together substituted by a single section I which has again been subs. by the Indian Coinage (Amdt.) Act, 1947 (28 of 1947), s. 5.)
15. [Coin made under former Acts.] Rep. by the Indian Coinage (Amendment) Act, 1947 (XXVIII of 1947).
[15-A. Power to call in coin:— ( S. 15A ins. by the Indian Coinage (Amdt.) Act 1924 (10 of 1924) s.3.)Notwithstanding anything contained in (Subs. by Act 28 of 1947, s. 7, for `section 12, section 13, or section 15,”)[section 13,] the (Subs. by A. O., 1937, for “G. G. in C.”)[Central Government] may, by (For instance of notifications, see Gaz. of P., 1963, Pt. I., p. 234, ibid., 1964, Pt. I., p. 340.) notification in the (Subs. by A. O., 1937 for “Gazette of India”.)[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, s. 7, 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”,omitted by the Indian Coinage (Second Amdt.) Ordinance, 1940 (12 of 1940), s. 2.)* * * and on and from the date so specified such coin shall cease to be a legal tender (Subs. ibid., for the words “save at a Government currency office’’)[save to such extent as may be specified in the notification].
* * * * * * *]( Proviso omitted, ibid.)
[DECIMAL COINAGE(The heading and s. 15B, ins. by the Pakistan Coinage Act (Amdt. Ordinance, 1960 (31 of 1960), s. 2.)
“15-AA. Decimal coinage.- State Bank of Pakistan shall exchange coins of paisa 1, 2, 5, 10, 25 and 50, already issued by the Federal Government, till such date as notified by the State Bank of Pakistan; thereafter, these coins shall cease to be legal tender.”.[3]
15-B. Decimal coinage etc.—[(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 (For instance of notification, see Gaz. of P., 1960, Ext., p. 1353.) notification in the official Gazette, under such name as it thinks fit, and the rupee, half-rupee and quarter-rupee shall respectively be 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 legal tender in payment or on account accordingly.
(2) All coins issued under the authority of this Act in the denominations of annas, pice and pies shall, to the extent specified in section 13, be 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 annas, 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).]][4]
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 (Subs. by A. O., 1937, for “G.G. in C.”.)[Central Government] is tendered to any person authorised by the (Subs. by A. O., 1937, for “G.G. in C.”.)[Central Government] (The words “or by the L. G.” omitted, ibid.)* * * 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.
17. Procedure in regard to coin cut under section 16(a).—A person cutting or breaking coin tinder 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.
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 been 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.
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.
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” omitted by the Indian Coinage (Amdt.) Act, 1947 (28 of 1947), s. 8.)* * * coin purporting to be coined or issued under the authority of the (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] is tendered to any person authorised by the (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] (The words “or by the L. G.” omitted, ibid.)* * * to act under this section, and such person has reason to believe that the coin is counterfeit (Ins. by Act 28 of 1947, s. 8.)[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 the Indian Coinage (Amdt.) Act, 1919 (21 of 1919), s. 6(2).)[in the case of silver coin] receive and pay for the coin according to the value of the silver bullion contained in it.
21. Power to make rules— (1) The (Subs. by A. O., 1937, for “G. G. in C.”.)[Central Government] may make (For instances of rules, see Gaz. of P., 1960, Ext., p. 1355, ibid., 1963, Ext., p. 91 and ibid., 1964, Ext., p. 142.) 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,—
* * * * * * * * * *( Clause (a) omitted by the Indian Coinage (Amendment) Act. 1947 (28 of 1947), s. 9.)
(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. 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 clause (e) rep. by the Currency Act. 1927 (4 of 1927), s. 2.)*
(The word “and” and clause (e) rep. by the Currency Act. 1927 (4 of 1927), s. 2.). * * * * * * * * *
(3) Every such rule shall be published in the (Subs. by A. O., 1937, for “Gazette of India”.)(official Gazette), and on such publication shall have effect as if enacted in this Act.
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.
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 limit of (The original words “British India” have successively been amended by A. O., 1949, Arts. 3(2) and 4, A. O., 1964, Art. 2 and Sch. and the Repealing and Amending Ordinance, 1965 (10 of 19655). s. 3 and 2nd Sch. to read as above.)[Pakistan].
24. [Saving of copper coins.] Rep. by the Indian Coinage (Amendment) Act, 1947 (XXVIII of 1947), s. 10.
[5][25. Act No. X of 2012 not to apply to the Mint.- The Industrial Relations Act, 2012 (X of 2012) shall not apply to or in relation to any person in the service of the Mint]
[1] Added by section 2 of the Pakistan Coinage (Amendment) Act, 2013 (Act No. X of 2013).
[2] Added by section 3 of the Pakistan Coinage (Amendment) Act, 2013 (Act No. X of 2013).
[3] Added by section 4 of the Pakistan Coinage (Amendment) Act, 2013 (Act No. X of 2013).
[4] Deleted by section 5 of the Pakistan Coinage (Amendment) Act, 2013 (Act No. X of 2013).
[5] Added by section 2 of the Pakistan Coinage (Amendment) Act, 2019.
