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Bar News Acts League

The Chit Funds Act, 1982

Act ID: 1982

The Chit Funds Act, 1982

"An Act to provide for the regulation of chit funds and for matters connected therewith."

Table of Contents

90 Sections

Ch. 1

PRELIMINARY

S.1Short title, extent and commencement.S.2Definitions.S.3Act to override other laws, memorandum, articles, etc.

Ch. 2

REGISTRATION OF CHITS, COMMENCEMENT AND CONDUCT OF CHIT BUSINESS

S.4Prohibition of chits not sanctioned or registered under the Act.S.5Prohibition of invitation for subscriptions except under certain conditions.S.6Form of chit agreement.S.7Filing of chit agreement.S.8Minimum capital requirements for the commencement, etc., of a chit, and creation of a reserve fund, by a company.S.9Commencement of chit.S.10Copies of chit agreement to be given to subscribers.S.11Use of words "chit", "chit fund", "chitty", "kuri", "fraternity fund", or "Rotating Savings and Credit Institution".S.12Prohibition of transacting business other than chit business by a company.S.13Aggregate amount of chits.S.14Utilisation of funds.S.15Alteration of chit agreement.S.16Date, time and place of conducting chits.S.17Minutes of proceedings.S.18Copies of minutes to be filed with Registrar.S.19Restriction on opening of new place of business.

Ch. 3

RIGHTS AND DUTIES OF FOREMAN

S.20Security to be given by foreman.S.21Rights of foreman.S.22Duties of foreman.S.23Books, records, etc., to be kept by foreman.S.24Balance sheet.S.25Liability of foreman to subscribers.S.26Withdrawal of foreman.

Ch. 4

RIGHTS AND DUTIES OF NON-PRIZED SUBSCRIBERS

S.27Non-prized subscribers to pay subscriptions and obtain receipts.S.28Removal of defaulting subscribers.S.29Substitution of subscribers.S.30Amounts due to defaulting subscribers.

Ch. 5

RIGHTS AND DUTIES OF PRIZED SUBSCRIBERS

S.31Prized subscriber to furnish security.S.32Prized subscriber to pay subscriptions regularly.S.33Foreman to demand future subscriptions by written notice.

Ch. 6

TRANSFERS

S.34Restrictions on transfer of rights of foreman.S.35Transfer of non-prized subscriber's rights to be in writing.S.36Recognition of transfer by foreman.S.37Entry of transferee's name in the books.

Ch. 7

MEETINGS OF GENERAL BODY OF SUBSCRIBERS

S.38Meetings of general body of subscribers.

Ch. 8

TERMINATION OF CHITS

S.39Provision for continuation of chits in certain cases.S.40Termination of chits.S.41Copy of assent or consent to be filed with Registrar.S.42Refund of non-prized subscribers' subscriptions.S.43Subscribers' dues to be first charge on chit assets.

Ch. 9

INSPECTION OF DOCUMENTS

S.44Foreman to allow certain subscribers to inspect chit records.S.45Preservation of chit records by foreman.S.46Inspection of chit books and records by Registrar.S.47Power of Reserve Bank to inspect chit books and records.

Ch. 10

WINDING UP OF CHITS

S.48Circumstances under which chits may be wound up.S.49Application for winding up.S.50Bar to winding up proceedings.S.51Commencement and effect of winding up order.S.52Injunction order.S.53Powers of Registrar.S.54Vesting of chit assets in Registrar or other persons.S.55Suits, etc., to be stayed on winding up order.S.56Notification of winding up order.S.57Cessation of winding up proceedings on insolvency of foreman, etc., or the winding up of the company and transfer of such proceedings.S.58Award of compensation to foreman.S.59Right to appeal.S.60Limitation.

Ch. 11

APPOINTMENT OF OFFICERS AND LEVY OF FEES

S.61Appointment of Registrar and other officers.S.62Inspection of documents in Registrar's office.S.63Levy of fees.

Ch. 12

DISPUTES AND ARBITRATION

S.64Disputes relating to chit business.S.65Period of limitation.S.66Settlement of disputes.S.67Procedure for settlement of disputes and powers of Registrar or nominee.S.68Attachment before judgment and other interlocutory orders.S.69Decision of Registrar or nominee.S.70Appeal against decision of Registrar or nominee.S.71Money how recovered.S.72Private transfer of property made after issue of certificate void against foreman.

Ch. 13

MISCELLANEOUS

S.73Advisory role of Reserve Bank.S.74Appeals.S.75Powers of Registrar to give extension of time for filing documents.S.76Penalties.S.77Penalty for second and subsequent convictions.S.78Application of fine.S.79Offences by companies.S.80Cognizance of offences.S.81Power to compound offences.S.82Power to enter and search any place and to seize any documents.S.83Officers to be public servants.S.84Power to delegate.S.85Act not to apply to certain chits.S.86Banks not to conduct chit business.S.87Power to exempt.S.88Protection of action taken under the Act.S.89Power to make rules.S.90Repeal and saving.