Chit Fund Department
Government of NCT of Delhi

The Madras Chit Funds Act, 1961

Chapter XI

MISCELLANEOUS

54. Appeals :-

(1) Any foreman aggrieved by an order of the Register-
(a) Refusing to register the bye-laws of a chit under sub-section (1) of section 3;
(b) Refusing to grant certificate of commencement under sub-section (2) of section 7;
(c) Refusing to accept the security under clause (a) of sub-section (1) of section 12 or under section 23; or
(d) Refusing to release the property charged by way of security or to order the release of the cash security or the Government securities under sub-section (4) or sub-section (5) of section 12;
may, within thirty days of the communication to him of such order, appeal to the Director of Chits.

(2) Any foreman or any other person aggrieved by an order of the Registrar under sub-section 1 of section 26 or by an order of an officer empowered by the Administrator under sub-section (2) of that section may, within thirty days of the communication to him of such order, appeal to the Director of Chits.
(3) The Director of Chits may, after giving the appellant an opportunity of being heard, pass such orders on the appeal under sub-section (1) or sub-section (2), as he thinks fit.

55. Power to Registrar to condone delay in certain cases:- The Registrar may in his discretion and upon an application in writing by any foreman made within the period of fourteen days specified in any of the provisions of sub-section (2) of section 20,sub-section (2) of section 21, section 29 and section32, allow to the foreman further time not exceeding fifteen days to file a copy of any document under any of the provisions referred to above.

56. Penalties:-
(1) Whoever contravenes or abets the contravention of any of the provisions of section 3,4 and 7 shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five hundred rupees or with both.

(2)Any foreman-

(a) Who does not file the chit agreement under section 6 or a copy of any document under section11, sub-section (2) of section 20, sub-section (2) of section 21, section 29 or section 32 within the period specified for such filing or within the further time allowed under section 55 for such filing ; or
(b) Who contravenes any of the provisions of section 8 sub-sections (1) and (6) of section 12, section 14, section 15, section 16, section 20, section 21, section22, section23, sub-section (4) of section 2, section29, section 35 section 36, section 37 and sub-section (4) of section 51;or
(c) Who fails to comply with the requirement of the chit agreement regarding the date, time and place at which the chit is to be drawn;
shall be punishable with fine which may extend to one hundred rupees.

(3) Whoever in any document required by;or for purposes of, any of the provisions of this Act wilfully makes a statement false in any material particular knowing it to be false, punishable with imprisonment for a term which may extend to one year or with fine may extend to five hundred rupees.

57.Cognizance of offences:- No court inferior to that of a salaried magistrate of the first-class shall try any offence under this Act.

58. Application of fines:- The court imposing any fine under this Act may direct that the whole or any part thereof be applied in or towards payment of the costs of the proceedings.

59. Power to enter and search any place and to seize documents, etc:-
(1) A magistrate of the first-class may, on receiving a report from the Registrar or the Inspecting Officer appointed under sub-section(1) of section 51 that any person conducts or is reasonable for the conduct of a chit in anyplace in contravention of the provisions of this act, issue a warrant empowering the Registrar or the Inspecting Officer to enter such place with such assistants as he considers necessary and inspect the books, registers, accounts or documents in such place. On receiving such warrant the Registrar or the Inspecting Officer may enter the place with such assistants as he considers necessary and the books, registers accounts or documents in such place and may take to his office for further investigation such books, registers, accounts and documents as he considers necessary:

Provided that if the Registrar or the Inspecting Officer removes from the place any book, register, account or document, he shall give to the person in charge of the place a receipt describing the book, register, account or document so removed by him:

Provided further that within twenty four hours of the removal of the books register, accounts and documents from the place, the Registrar or the Inspecting Officer shall either return them to the person from whose custody they were removed or produce them in the court of the magistrate who issued the warrant. Such magistrate may return the book, registers, accounts and documents or any of them to the person from whose custody they were removed by the Registrar or the Inspecting Officer, after taking from such person such security or the magistrate considers necessary for the production of the books, registers, accounts and documents when required whether by the Register or by the Inspecting Officer or by the court, or may pass such other orders as to their disposal as appear just and convenient to the magistrate.

(2) The Registrar or the Inspecting Officer shall have authority to require any person whose testimony he may require regarding any chit agreement to attend before him on to produce or cause to be produced any document and to examine such person on oath.

(3) The Registrar or the Inspecting Officer may apply for assistance to an officer in charge of a police station and take Police Officer to accompany and assist the Registrar or the Inspecting Officer in performing his duties under this Act.

60. Payment to be evidenced by document:- All payments in respects of a chit whether by the foreman or by the subscriber shall be evidenced by documents in writing.

61. Interest at more than twelve per cent not to be allowed:- No court shall award interest on claims arising under this Act at more than twelve per cent per annum simple interest.

62. Power of court to grant relief in certain cases:- Nothing contained in the foregoing provisions of this Act shall affect the powers vested in court for granting relief against any of the provisions contained in the chit agreement, if same be unconscionable or opposed to the provisions of any law.

63. Power to make rules:-
(1) The Administrator may make rules for carrying out all or any of the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power,such rules may provide for or regulate-

(a) All matters expressly required or allowed by this Act to the prescribed:
(b) The matters in respect of which provision shall be made in the bye-laws of a chit and the procedure to be followed in making, registering, altering and abrogating bye-laws and the conditions to be satisfied prior to such making, registration, alteration or abrogation:
(c) The particulars which every chit agreement shall contain;
(d) The method of valuation of grains by the Registrar in a grain chit, for the purpose of security under section 12;
(e) The restrictions and conditions subject to which and the manner in which, any security given by a foreman under section 12 may be changed or submitted;
(f) The procedure to be followed by the Registrar for the release of security given by the foreman under section 12;
(g) The maintenance of registers and books of accounts by the foreman, the safe custody of books, papers and documents in the Registrar's office and also for the destruction of such books, papers and documents as need no longer be kept;
(h) The procedure to be followed for the winding up of a chit under Chapter IX; and
(i) The auditing of the balance sheets and profit and loss account and the issue of audit certificates.
(3) (a) All rules made under this Act shall be published in the Delhi Gazette and, unless they are expressed to come into force on a particular day, shall come in force on the day on which they are so published.
(b) All notifications issued under this Act, shall unless they are expressed to come into force on a particuler day come into force on the day on which they are published.

(4) Omitted

64. Recovery of amounts due from a foreman:- All amounts due from a foreman to the Registrar, or any other officer under this Act by way of any fee shall be recoverable as arrears of land revenue.

65. Act not to apply to certain chits:- The provisions of this Act shall not apply in respect of:-
(1) any chit started before the commencement of this Act, or
(2) any chit the chit amount of which or where two or more chits are started or conducted simultaneously by the same foreman, the aggregate chit amount of which does not exceed one hundred rupees.

66. Power to exempt:- The Administrator may, by notification exempt any person or class of persons to whom or any chit or class of chits to which the Act applies from all or any of its provisions, subject to such conditions as he deems fit and may cancel or modify any such notification.

67. Amendment of Central Act II of 1899 in its application to the Union Territory of Delhi:- In schedule 1-A, to the Indian Stamp Act, 1899 (Central Act II of 1899), in its application to the Union Territory of Delhi, after entry 20, the following entry shall be inserted, namely:-

One rupee

68. Omitted.
69. Power to remove difficulties:-
(1) If any difficulty arises in giving effect to the provisions of this Act, the Administrator may, as occasion may require, by order, do anything which appears to him to be necessary for the purpose of removing the difficulty.
(2) Omitted.

No( F3/6/62 - UTL-70 )
HARI SHARMA; Additional Secretary