Chapter IV-Non-Prized Subscribers

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The Madras Chit Funds Act, 1961    

 Chapter IV
   
NON-PRIZED SUBSCRIBERS

19.Non-prized subscriber to pay subscription and get receipt - Every non-prized subscriber shall pay his subscription at the time and place mentioned in the chit agreement and shall on such payment be entitled to get a receipt from the foreman.

20. Removal of defaulting -

  1.  A non-prized subscriber who defaults in paying his subscription in accordance with the terms of the chit agreement shall be liable to have his name removed from the list of subscribers. Every such removal shall, with the date thereof, be entered in the relevant book maintained by the foreman. A written notice of such removal shall be given by the foreman to the defaulting subscriber within fifteen days of such removal.
     
  2. A true copy of the entry referred to in sub-section (1) shall be filed by the foreman with the Registrar within fourteen days from the date of such removal.
     
  3.  Any defaulting subscriber aggrieved by the removal of his name from the list of subscribers may, within seven days of the communication to him of the notice of removal, appeal to the Registrar.
     
  4. The Registrar may, after giving the parties an opportunity being heard, pass such orders on the appeal as he thinks fit and the decision of the Registrar shall be final.

21. Substitution -

  1. The foreman may substitute in the list of subscribers any person in the place of a defaulting subscriber whose name has been removed from such list under sub-section (1) of section 20: Provided that no such substitution shall be made until the expiry of the period allowed for appeal under sub-section (3) of section 20, or where any such appeal has been preferred, until the same has been disposed of.
  2. Every substitution referred to in sub-section (1) shall, with the date thereof, be entered in the relevant book maintained by the foreman. A true copy of every such entry shall be filed by the foreman with the registrar within fourteen days from the date of substitution.
  3. All arrears of subscriptions realised from the substituted subscriber, less any amount by the foreman, shall before the date of the next succeeding instalment the deposited by the foreman shall not withdraw the amount so deposited except for payment to the defaulting subscriber.

Explanation - For the purpose of sub-section (3), 'arrears of subscriptions' shall mean all the previous instalments realised from the substituted subscriber.

22. Amount due to defaulting subscriber how dealt with - When a substituted subscriber draws the prize amount the defaulting subscriber shall be entitled to recover from the foreman his contributions subject to such deductions as may be provided for in the chit agreement. The foreman shall on demand made by the defaulting subscriber and on his executing an acknowledgement duly signed be bound to pay to the defaulting subscriber the amount due to him before the date of the next succeeding instalment. If the defaulting subscriber fails to furnish the acknowledgement as aforesaid, the foreman shall, before the date of the next succeeding instalment, deposit in an approved bank the amount due to the defaulting subscriber. The amount so deposited shall not be withdrawn by the foreman for any purpose other than for payment to the defaulting subscriber.

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