Section 21
Rights of foreman.
About this Act
An Act to provide for the regulation of chit funds and for matters connected therewith.
(1) The foreman shall be entitled,--
(a) in the absence of any provision in the chit agreement to the contrary, to obtain the 1[gross chit amount] at the first instalment without deduction of the discount specified in the chit agreement, subject to the condition that he shall subscribe to a ticket in the chit:
Provided that in a case where the foreman has subscribed to more than one ticket, he shall not be eligible to obtain more than one chit amount in a 1[gross chit amount] discount;
(b) to such amount not exceeding 2[seven per cent.] of the 1[gross chit amount] as may be fixed in the chit agreement, by way of commission, remuneration or for meeting the expenses of running the chit;
(c) to interest and penalty, if any, payable on any default in the payment of instalments and to such other amounts as may be payable to him under the provisions of the chit agreement;
(d) to receive and realise all subscriptions from the subscribers and to distribute the prize amounts to the prized subscribers;
(e) to demand sufficient security from any prized subscriber for the due payment of future subscriptions payable by him.
Explanation. -- A security shall be deemed to be sufficient for the purposes of this clause if its value exceeds by one-third, or of it consists of immovable properties, the value of which exceeds by one-half, of the amount due from the prized subscriber;
(f) to substitute subscribers in place of defaulting subscribers; 3***
4[(fa) to exercise his right to lien against the credit balance in other non-prized chits; and]
(g) to do all other acts that may be necessary for the due and proper conduct of the chit.
(2) Where any dispute arises with regard to the value of the property offered as security under clause (e) of sub-section (1), it shall be referred to the Registrar for arbitration under section 64.
(a) in the absence of any provision in the chit agreement to the contrary, to obtain the 1[gross chit amount] at the first instalment without deduction of the discount specified in the chit agreement, subject to the condition that he shall subscribe to a ticket in the chit:
Provided that in a case where the foreman has subscribed to more than one ticket, he shall not be eligible to obtain more than one chit amount in a 1[gross chit amount] discount;
(b) to such amount not exceeding 2[seven per cent.] of the 1[gross chit amount] as may be fixed in the chit agreement, by way of commission, remuneration or for meeting the expenses of running the chit;
(c) to interest and penalty, if any, payable on any default in the payment of instalments and to such other amounts as may be payable to him under the provisions of the chit agreement;
(d) to receive and realise all subscriptions from the subscribers and to distribute the prize amounts to the prized subscribers;
(e) to demand sufficient security from any prized subscriber for the due payment of future subscriptions payable by him.
Explanation. -- A security shall be deemed to be sufficient for the purposes of this clause if its value exceeds by one-third, or of it consists of immovable properties, the value of which exceeds by one-half, of the amount due from the prized subscriber;
(f) to substitute subscribers in place of defaulting subscribers; 3***
4[(fa) to exercise his right to lien against the credit balance in other non-prized chits; and]
(g) to do all other acts that may be necessary for the due and proper conduct of the chit.
(2) Where any dispute arises with regard to the value of the property offered as security under clause (e) of sub-section (1), it shall be referred to the Registrar for arbitration under section 64.
Notes
1. Subs. by Act 41 of 2019, s. 3, for "chit amount" (w.e.f. 1-1-2020).
2. Subs. by Act 41 of 2019, s. 8, for "five per cent." (w.e.f. 1-1-2020).
3. The word "and" omitted by s. 8, ibid. (w.e.f. 1-1-2020).
4. Ins. by s. 8, ibid. (w.e.f. 1-1-2020).
2. Subs. by Act 41 of 2019, s. 8, for "five per cent." (w.e.f. 1-1-2020).
3. The word "and" omitted by s. 8, ibid. (w.e.f. 1-1-2020).
4. Ins. by s. 8, ibid. (w.e.f. 1-1-2020).