when on non payment of money called on shares, the shares 
of a holder are forfeited , it is called forfeiture... it 
is a penalising action... law provides the guidelines for 
carrying out this procedure........ whereas surrender is an 
intentional act of the holder wen he accepts that he cant 
pay the called money n hence wants to give up his holding.. 
law doesnt provide any guidelines for this...

While Forfeiture is punitive in nature, Surrender is a 
voluntary action by the shareholder who is not able to pay 
the amount being called on shares by the company whose 
shares are held by him.

Forfeiture of shares refers to cancellation of shares by 
the company issued to the shareholders for non-payment of 
money called upon shares. 

Surrender of shares refers to voluntary act by the 
shareholder to the company.

if any shareholder fails to pay the amount due on allotment
or on any call withinthe specificed period, the derictors 
may cancel his share. this is called foreiture of shares.

forfeiture is the method of cancelling the shares of the share holder who had not paid the money alloted on shares in the situation when the director of the company may cancel his shares ... 
whereas on the other hand surrender of shares is the situation in which the share holder himself realises that   he is unable to pay the amount on shares being purchased by him... so he wants to cancel them... this situation is called surrender of shares.....