law: Companies Act, 1956
  Sec 121     -     Power
  
  to re-issue redeemed debentures in certain cases. 
  (1) Where either before or after the
  
  commencement of this Act, a company has redeemed any debentures previously
  
  issued, then,
  (a) unless any provision to the contrary,
  
  whether express or implied, is contained in the articles, or in the conditions
  
  of issue, or in any contract entered into by the company ; or
  (b) unless the company has, by passing a
  
  resolution to that effect or by some other act, manifested its intention that
  
  the debentures shall be cancelled ;
  the company shall have, and shall be deemed
  
  always to have had, the right to keep the debentures alive for the purposes of
  
  re-issue ; and in exercising such a right, the company shall have, and shall be
  
  deemed always to have had, power to re-issue the debentures either by
  
  re-issuing the same debentures or by issuing other debentures in their place.
  (2) Upon such re-issue, the person entitled to
  
  the debentures shall have, and shall be deemed always to have had, the same
  
  rights and priorities as if the debentures had never been redeemed.
  (3) Where with the object of keeping
  
  debentures alive for the purpose of re-issue, they have, either before or after
  
  the commencement of this Act, been transferred to a nominee of the company, a
  
  transfer from that nominee shall be deemed to be a re-issue for the purposes of
  
  this section.
  (4) Where a company, has either before or
  
  after the commencement of this Act, deposited any of its debentures to secure
  
  advances from time to time on current account or otherwise, the debentures
  
  shall not be deemed to have been redeemed by reason only of the account of the
  
  company having ceased to be in debit whilst the debentures remained so
  
  deposited.
  (5) The re-issue of a debenture or the issue
  
  of another debenture in its place under the power by this section given to, or
  
  deemed to have been possessed by, a company, whether the re-issue or issue was
  
  made before or after the commencement of this Act, shall be treated as the
  
  issue of a new debenture for the purposes of stamp duty, but it shall not be so
  
  treated for the purposes of any provision limiting the amount or number of
  
  debentures to be issued :
  Provided  that any person lending money on the
  
  security of a debenture re-issued under this section which appears to be duly
  
  stamped may give the debenture in evidence in any proceedings for enforcing his
  
  security without payment of the stamp duty or any penalty in respect thereof,
  
  unless he had notice or, but for his negligence, might have discovered, that
  
  the debenture was not duly stamped ; but in any such case the company shall be
  
  liable to pay the proper stamp duty and penalty.
  (6) Nothing in this section shall prejudicen :
  
  
  (a) the operation of any decree or order of a
  
  Court of competent jurisdiction pronounced or made before the twenty-fifth day
  
  of February, 1910, as between the parties to the proceedings in which the
  
  decree or order was made ;
  (b) where an appeal has been preferred against
  
  any such decree or order, the operation of any decree or order passed on such
  
  appeal, as between the parties to such an appeal ; or
  (c) any power to issue debentures in the place
  
  of any debentures paid off or otherwise satisfied or extinguished, reserved to
  
  a company by its debentures or the securities for the same.