Section 40: Termination of chits

Q: What does Section 40 of The Chit Funds Act, 1982 (TCFA) deal with?

Section 40 TCFA pertains to "Termination of chits". It is part of the The Chit Funds Act, 1982, a legislation enacted by the Parliament of India. Section 40 of The Chit Funds Act, 1982 (TCFA) governs termination of chits. As verified on 22 May 2026.

Q: Is Section 40 TCFA still in force?

Yes, Section 40 of the The Chit Funds Act, 1982 is currently in force across the Republic of India.

Q: What is धारा 40 TCFA?

धारा 40 TCFA is the Devanagari Hindi reference for Section 40 of the The Chit Funds Act, 1982. Section 40 of The Chit Funds Act, 1982 (TCFA) governs termination of chits. As verified on 22 May 2026.

Q: What is Dhara 40 TCFA?

Dhara 40 TCFA is the Roman Hindi reference for Section 40 of the The Chit Funds Act, 1982. "Dhara" means "Section" in Hindi. Section 40 of The Chit Funds Act, 1982 (TCFA) governs termination of chits. As verified on 22 May 2026.

Q: How to cite Section 40 of The Chit Funds Act, 1982?

Cite as: "Section 40, The Chit Funds Act, 1982 (TCFA)" in legal briefs. For academic writing, use the BlueBook format: The Chit Funds Act, 1982, 1982, § 40 (India).

Law on Tips Editorial Board

A chit shall be deemed to have terminated,—

when the period specified therefor in the chit agreement has expired provided the payment of dues to all the subscribers has been completed; or
when all the non-prized and unpaid prized subscribers and the foreman consent in writing to the termination of the chit and a copy of such consent is filed with the Registrar as required under section 41; or
where a foreman dies or becomes of unsound mind or is otherwise incapacitated and the chit is not continued in accordance with the provisions of the chit agreement: