Chit Fund Department
Delhi Chit Fund Rules
Chapter II
REGISTRATION
3. Application for registration of by-laws -
(1) For the purpose of registration of by-laws under sub-section (2) of section 3 there shall be submitted to the Registrar application in Form CF 1. Every such application shall be signed by the foreman if an individual proprietor, or in case the foreman is a firm, Hindu undivided family, Cooperative society or a company incorporated under the companies Act, by its partner, by its "karta', by its President or Secretary or any member duly authorised in this behalf, or by the principal officer managing the business, respectively.
(2) The fee prescribed in rule 44 shall be charged for the registration of the by-laws of a chit and every application under sub-rule (1) shall be accompanied by a treasury receipt evidencing the payment of such fees.
4. Registration of by-laws -
(1) On receipt of the application under rule 3, the Registrar shall examine the application and the by-laws in order to satisfy himself that the by-laws are-
(a) in conformity with the Act and these rules;
(b) suitable for carrying out the object of the chit ;and
(c) suitable for carrying safe and fair conduct of the business of the chit.
(2) The Registrar shall, if satisfied that the requirements laid down in sub-rule (1) have been fulfilled, grant a certificate of registration in Form CF II.
(3) Every certificate of registration issued under sub-section (3) of section 3 shall be signed by the Registrar and shall bear his official seal. The Registrar shall endorse the duplicate copy of the by-laws in the following manner:-
"Certified that the by-laws of the chit the original copy of which has been filed with me, have been duly registered under section 3 of the Madras Chit Funds Act, 1961 as extended to the Union Territory of Delhi in the name of-
SEAL
Date...................
Registrar
Foreman's Signature.............
(4) The Registrar may for reasons to be recorded in writing refuse to register of the by-laws provided that before passing such order that applicant shall be given due opportunity of being heard. In the event of such refusal a copy of the order shall be sent to the applicant free of charge.
(5) In the event of refusal of registration of by-laws under sub-rule (4), the registration fee, subject to final order passed in this behalf under sub-section (3) of section 54, would on application become refundable to the applicant.
(6) No application for refund under sub-rule (5) shall be entertained if it is filed after twelve months form the date of the order refusing registration or after six months from the date of final order passed on appeal under section 54.
(7) No registration of by-laws shall be allowed if the applicant foreman:
(a) is a minor, or
(b) is an undischarged insolvent ;or
(c) has been adjudicated by a competent court to be of unsound mind.
(8) In the event of the foreman of a chit becoming disqualified under sub-rule (7) the registration of by-laws shall, ipso facto become void.
5. Grant of attested copy for additional place of business and display of certificate of registration or attested copy thereof -
(1) The registrar shall furnish the foreman free of cost an attested copy of the Certificate of the Registration for every additional place where chit business is conducted.
(2) The Certificate of Registration or the attested copy thereof shall displayed prominently at every place of chit business.
6. Duplicate copy certificate of registration and by-laws.- Any foreman may obtain form the Registrar on deposit in the Treasury of a fee prescribed for the purpose in rule 44-
(1) a duplicate copy of the Certificate of Registration in case the original certificate or Registration or attested copy thereof has been lost, destroyed or defaced;
(2) another duly endorsed duplicate copy of the by-laws if the duplicate of the by-laws endorsed under rule 4 has been lost destroyed of defaced;
7. Change in ownership name or place of business of a foreman -
(1) Subject to the provisions contained in section 18, any change in the ownership, name or place of a business of a foreman shall be notified to the Registrar within 14 days of such charge.
(2) On receipt of such information the Registrar shall make or cause to be made such enquiries as he may deem necessary. On being satisfied as to the genuineness of the change, the Registrar shall pass an order of incorporation of the change in the Certificate of Registration.
8. Framing of by-laws -The by-laws submitted for registration under sub-section 3 shall provide inter alia for the following matters :
(i) The full name of foreman conducting chit business.
(ii) The complete address of the foreman being a registered address in the case of a company being a foreman.
(iii) The name under which chit business is done or its proposed to be done.
(iv) The full details of the working of the chit.
(v) The area of operation of the chit.
(vi) The circumstances under which withdrawals of subscribers shall be permitted.
(vii) The procedure to be followed for returning the money of the subscriber in case of withdrawal, ineligibility or death of subscriber.
(viii) The conditions under which a transfer of a chit or the interest of a subscriber shall be permitted.
(ix) The full name and designation of the officer entitled to sign documents on behalf of the foreman.
(x) The rate of commission to which the foreman will be entitled.
(xi) The language in which the accounts shall be kept.
(xii) The mode of custody and investment of money.
(xiii) The settlement of disputes touching or concerning the shit.
Provided that when the foreman proposes to be one of the subscribers, no by-law or by laws shall entitle him to any discriminatory advantage or to reserve for himself any special privileges or rights which normally are not available to other subscribers.
9. Amendment of by-laws.-
(1) After the by-laws have been registered a foreman may amend them by altering or rescinding any by-laws or by adding a new by-law. No such amendment shall be made unless the existing non-prized subscribers or unpaid prized subscribers give their consent thereto.
(2) In special cases on an application made by at least 50 per cent of the existing subscribers of a chit or series of chits the Registrar may register an amendment if the adoption of the proposed amendment is in the interest of the chit provided that the foreman shall be given due opportunity of being heard before such amendment is ordered by the Registrar.
(3) In every case of amendment of by-laws, whether by addition of new-laws or by alteration or rescission of some of the existing by-laws by a foreman an application accompanied by a fee prescribed for the purpose in rule 43 in court fee stamp affixed thereon for the registration of the by-laws as so amended shall be submitted to the Registrar along with the complete by-laws, in duplicate as so amended and as proposed to be registered.
(4) When the Registrar registers amendment by-laws submitted to him under sub-rule (3) thereof he shall retain one copy thereof and send another copy together with an endorsement of registration in the following manner :--
"Certified that the by-laws as amended, the original copy of which has been filed with me, have been duly registered under section 3 of the Madras Chit Funds Act, 1961 as extended to the Union Territory of Delhi. The by-laws as originally registered have been cancelled and stand substituted by these amended by-laws."
(5) In every case in which the Registrar refuses to register any amended by-laws, he shall record in writing the reason for his refusal and shall communicate his decision to the applicant.