Chit Fund Department
Government of NCT of Delhi

Delhi Chit Fund Rules, 2007    

Chapter VI

DISPUTES AND ARBITRATION

42.Reference of dispute.- A reference of a dispute under section 64 shall be made in writing to the Registrar in Form XVI. Wherever necessary, the Registrar may require the party referring the dispute to him to produce a certified copy of the relevant records on which the dispute is based and such other statement or records as may be required by him, before proceeding with the consideration of such reference.

43.Registrar’s satisfaction regarding existence of a dispute.-Where any reference of a dispute is made to the Registrar or any matter is brought to his notice, the Registrar shall, on the basis of the reference (if any) made to him in Form XVI and the relevant records and statements submitted to him, record his decision together with the reasons therefor, whether he is or is not satisfied about the existence of a dispute within the meaning of section 64. Such recording of decision shall be sufficient proof of the Registrar’s satisfaction, whether the matter is, or, is not a dispute, as the case may be.

44.Disposal of a dispute or reference to a nominee.- (1) Where the Registrar is satisfied that there is a dispute, the Registrar may decide the dispute himself or refer it for disposal to his nominee. (2) Neither the Registrar nor his nominee shall take up for consideration any dispute, unless the parties concerned comply with the conditions of affixing the court fees stamps specified in rule 50 for determining the dispute.

45.Qualifications for appointment as Registrar’s nominees.- The Registrar may appoint any serving or retired officer of Government of National Capital Territory of Delhi not below the rank of Group ‘A’ to act as his nominee.

46.Procedure for hearing and decision of disputes.-

1. The Registrar or his nominee shall record the evidence of the parties to the dispute and the witnesses who attend. Upon the evidence so recorded and upon consideration of any documentary evidence produced by the parties, a decision shall be given by him in writing. Such decision shall be pronounced in the open court, either at once or as soon as may be practicable on some future day, of which due notice shall be given to the parties.
2. Where neither party appears when the dispute is called out for hearing, the Registrar or his nominee may make an order that it to be dismissed for default.
3. Where the opponent appears and the disputant does not appear when the dispute is called out for hearing, the Registrar or his nominee may make an order that the dispute be dismissed, unless the opponent admits the claim or a part thereof, in which case the Registrar or his nominee, as the case may be, may make an order against the opponent upon such admission, and where, part only of the claim is admitted, may dismiss the dispute in so far as it relates to the remainder.
4. Whether the disputant appears and the opponent does not appear when the dispute is called out for hearing, then, if the Registrar or his nominee is satisfied from the record and proceedings that the summons was duly served, the Registrar or his nominee may proceed with the dispute ex parte. Where the summons is served by any official of the Registrar or his nominee, he shall make his report of service on oath.
5. The Registrar or his nominee may not ordinarily grant more than two adjournments to each party to the dispute at his request. The Registrar or his nominee may, however, at his discretion grant such further adjournments on payment of such costs to the other side and such fees to the Registrar or his nominee, as the case may be, may direct.
6. Any party to a dispute may apply for and obtain a certified copy of any order, judgment or award made by the Registrar or his nominee on payment of copying fees at the rate prescribed in Appendix II.

47.Summonses, notices and fixing of dates, places, etc. in connection with the disputes.-

1. The Registrar or his nominee, as the case may be, may issue summonses or notices, at least, fifteen days before the date fixed for the hearing of the dispute requiring- (i) the attendance of the parties to the dispute and of witnesses, if any; and (ii) the production of all books and documents relating to the matter in dispute.
2. Summonses or notices issued by the Registrar or his nominee may be served through a process server or any employee of the Chit Fund Department or by registered post.
3. The official serving a summons or notice shall, in all cases in which summons or notice has been served, endorse or annex or cause to be endorsed on or annexed to, the original summons or notice, a return stating the time and the manner in which, the summons or, as the case may be, notice was served, and the name and address of the person (if any), identifying the persons served and witnessing the delivery or tender of the summons or the notice.
4. The officer issuing the summons or notice may examine the serving official on oath or cause him to be so examined by the officer through whom it is served and may make such further inquiry in the matter as he thinks fit and shall either declare that the summons or, as the case may be, notice has been duly served or order it to be served in such manner as he thinks fit.
5. The mode of serving summonses and notices as laid down in sub rules (1) to (4) shall mutatis mutandis apply to the service of notices issued by the Registrar or the persons authorised by the State Government, when acting under section 46.

49.Procedure for the custody of property attached under section 68.-

1. Where the property to be attached is movable property, other than agricultural produce in the possession of the debtor, the attachment shall be made by actual seizure and the attaching officer shall keep the property in his own custody or in the custody of one of his subordinates, or of a receiver, if one is appointed under sub rule (2) and, shall be responsible for the due custody there of: Provided that when the property seized is subject to speedy and natural decay, or when the expenses of keeping it in custody are likely to exceed its value, the attaching officer may sell it at once.
2. Where it appears to the officer ordering conditional attachment under section 68 to be just and convenient, he may appoint a receiver for the custody of the movable property attached under that section and his duties and liabilities shall be identical with those of a Receiver appointed under Order XL in the First Schedule to the Code of Civil Procedure, 1908(Central Act 5 of 1908).
3. (i) Where the property to be attached is immovable, the attachment shall be made by an order prohibiting the debtor from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge. (ii) The order shall be proclaimed at some place on, or adjacent to such property by beat of drums or other customary mode, and a copy of the order shall be affixed on a conspicuous part of the property and upon a conspicuous part of the village chaupal and where the property is land paying revenue to the State Government, also in the office of the Deputy Commissioner of the revenue area, the Block Development Officer and the Tehsildar within whose jurisdiction the property is situated.

48.Procedure for execution of awards.-

1. Every order or award passed by the Registrar, or his nominee under section 68 or section 69 shall be forwarded by the Registrar to the foreman or to the party concerned with instructions that the foreman or the party concerned, as the case may be, should initiate execution proceedings forthwith according to the provisions of section 71.
2. If the amount due under the award is not forthwith recovered, or the order thereunder is not carried out, it shall be forwarded to the Registrar with an application for execution along with all information required by the Registrar, for the issue of certificate under section 71. The applicant shall state whether he desires to execute the award through a civil court or through the revenue authorities as provided under section 71.
3. On receipt of such application for execution, the Registrar shall forward the same to the proper authority for execution along with a certificate issued by him under section 71.
4. Every order passed in appeal under section 70 shall also be executed in the manner laid down in sub rules (2) and (3).

50.Payment of fees for decisions of disputes.-
 

1.The Registrar or his nominee may take a dispute on file only if the application regarding reference for such dispute in Form XVI is affixed with court fees stamps at the following scales, namely:-            

 

2.No document of any of the kind specified below shall be filed before the Registrar or his nominee, unless it is affixed with the proper court fee stamp at the following rates:- 

1. The Registrar or his nominee deciding any dispute may require the party or parties to the dispute to deposit such sum as may, in his opinion be necessary to meet the expenses, including payment of fees to the Registrar or his nominee.
2. The Registrar or his nominee shall have power to order the fees and expenses of determining the dispute to be paid by the foreman out of his funds or by such party, or parties to the dispute , as he may think fit, according to the scale laid down by the Registrar , after taking into account the amount deposited as above.
3. The Registrar may by general or special order specify the scale of fees and expenses to be paid to him or his nominee.