law: Companies Act, 1956
  Sec 112    -    
  
  Certification of transfers. 
  (1) The certification by a company of any
  
  instrument of transfer of shares in, or debentures of, the company, shall be
  
  taken as a representation by the company to any person acting on the faith of
  
  the certification that there have been produced to the company such documents
  
  as on the face of them show a prima facie title to the shares or debentures in
  
  the transferor named in the instrument of transfer, but not as a representation
  
  that the transferor has any title to the shares or debentures.
  (2) Where any person acts on the faith of an
  
  erroneous certification made by a company negligently, the company shall be
  
  under the same liability to him as if the certification had been made
  
  fraudulently.
  (3) For the purposes of this section :
  (a) an instrument of transfer shall be deemed
  
  to be certificated if it bears the words " certificate lodged " or
  
  words to the like effect ;
  (b) the certification of an instrument of
  
  transfer shall be deemed to be made by a company, if
  (i) the person issuing the certificated
  
  instrument is a person authorized to issue such instruments of transfer on the
  
  company's behalf ; and
  (ii) the certification is signed by any
  
  officer or servant of the company or any other person, authorized to
  
  certificate transfers on the company's behalf, or if a body corporate has been
  
  so authorized, by any officer or servant of that body corporate ;
  (c) a certification shall be deemed to be
  
  signed by any person, if it purports to be authenticated by his signature
  
  unless it is shown that the signature was placed there neither by himself nor
  
  by any person authorized to use the signature for the purpose of certificating
  
  transfers on the company's behalf