An Act to provide for the regulation of chit funds and for matters connected therewith BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows -
2. Definitions - In this Act, unless the context otherwise requires -
Explanation - A transaction is not a chit within the meaning of this clause. if in such transaction,
3. Act to override other laws, memorandum, articles, etc. - Save as otherwise expressly provided in this Act, -
Non-prized subscribers to pay subscriptions and obtain receipts Every non-prized subscriber shall pay his subscription due in respect of every instalment on the dates and times and at the places mentioned in the chit agreement and shall, on such payment, be entitled to obtain a receipt from the foreman.
Removal of defaulting subscribers -
Substitution of subscribers
Amounts due to defaulting subscribers
Prized subscriber to furnish security
Every prized subscriber shall, if he has not offered, to deduct the amount of all future subscriptions from the prize amount due to him, furnish, and a foreman shall take, sufficient security for the due payment of all future subscriptions and, if the foreman is a prized subscriber, he shall give security for the due payment of all the future subscriptions to the satisfaction of the Registrar.
Prized subscriber to pay subscriptions regularly
Every prized subscriber shall pay his subscriptions regularly on the dates and times and at the place mentioned in the chit agreement and, on his failure to do so, he shall be liable to make a consolidated payment of all the future subscriptions forthwith.
Foreman to demand future subscriptions by written notice