Chapter VII-Termination of Chits

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The Madras Chit Funds Act, 1961    

Chapter VII

TERMINATION OF CHITS

30. Provisions from continuation of chits in certain cases:-Where the foreman who is an individual dies or becomes of unsound mind,the chit may be continued in accordance with the provisions of the chit agreement.

31. Termination of chit.- A chit shall be deemed to have terminated-

  1. When the period fixed in the chit agreement has expired, provided payment of dues to all the subscribers has been completed; or
  2. When all the non-prized and unpaid prized subscribers consent in writing to the termination of the chit and a copy of such consent is filed as required by section 32; or
  3. When a foreman, who is an individual, dies or becomes of unsound mind and the chit is not continued in accordance with provisions of the chit agreement
    Provided that in the case of a foreman which is a firm, if a partner dies or becomes of unsound mind, the chit shall not be deemed to have terminated and the surviving partner or partners shall conduct the chitin the absence of any provision to the contrary in the chit agreement


32.Copy of assent or consent to be filed with the Registrar:-A true copy of every assent mentioned in section 18 and of every consent mentioned in section 31, with the date of such assent or consent shall be filed by the foreman or by the remaining foreman or foreman, as the case may be, with the Registrar within fourteen days from the date of such assent or consent.

33. Refund of non-prized subscriber's contributions. Except in the cases referred to in clauses (a) and (b) of section 31--

  1. Every non-prized subscriber shall., unless otherwise provided for in the chit agreement, entitled toget back his contribution at the termination of the chit without deduction for dividend, if any, received by him.
    Provided that any person to whom the right of a non-prized subscriber are transferred under sections 27,28 and 29 shall, n addition to his own contributions, be entitled to get back the contribution made by such non-prized subscriber, subject to the conditions specified in this clause:
  2. If the chit terminates on a date earlier than the date originally fixed in the chit agreement, the non-prized subscriber's claim shall be deemed to have arisen on the date on which he has notice thereof.


34. Subscribers dues to be first charge on chit assets:-Where there are debts due from the foreman of a chit in relation there to and also other debts due from such foreman, the chit debts due to the subscribers shall be a first charge on the chit assets.

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