‘Valuable Security’ is a document whereby any legal right is created, extended, transferred, restricted, extinguished or released, or where any person acknowledges that he lies under a legal liability, or has not a certain right. The use of the words ‘which is, or purports to be’ show that not only a document which in fact creates a right is a valuable security, but also a document, which because of some defect in fact does not create a right but purports to create one, is a valuable security.
Similarly, a document whereby one acknowledges that he owes a liability under the law, or he does not have a certain right is also a valuable security. The Supreme Court has held that an income-tax assessment order is a valuable security. A principal, undergoing suspension, pressurised certain persons to issue an order that the earlier suspension order against him was non est. It was held, that the second order was a valuable security.
A passport is a valuable security as it creates a legal right. It has been held by the Supreme Court that forged certificates on the basis of which someone tries to get admitted to a college are not valuable securities. A correction made by a competent authority in the original endorsement is not a valuable security as no right accrued to the candidate to be called for an interview. A copy of a valuable security is not a valuable security.