Chit Fund Punjab Rules 1999.

8/16/2019 Chit Fund Punjab Rules 1999.

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GOVERNMENT OF PUNJABDEPARTMENT OF FINANCE

DIRECTORATE OF INSTITUTIONAL FINANCE AND BANKINGAND PUBLIC ENTERPRISES

Notifcation

The Ist April, 1999

No. II/3/!3/IF/I/"#"$ A.%In exercise of the powers conferred by&'ction !( of the Chit Fund Act, 1982 (Central Act, ! of 1982",and all of other powers enablin# hi$ in this behalf, the %o&ernor of 'unab in consultation with the )eser&e *an+ of India, is pleased to$a+e the followin# rules, na$ely--

PART I

1. S)o*t tit+' an, co--'nc'-'nt./(i" These rules $ay be

called the Chit Funds ('unab" )ules, 1999.

(ii" They shall co$e into force fro$ the day of Ist April, 1999..

2. D'fnition&.%In these rules, unless the context otherwisere0uires-

.(a" Act $eans the Chit Funds Act, 1982 (Central Act ! of

1982".(b" 3authorised a#ent4 $eans a person duly authorised by a

#eneral or special 'ower-of-Attorney executed and

authenticated in the $anner speci5ed in &'ction 33 of the)e#istration Act, 19!8 (Central Act 67I of 19!8", or a personauthorised by a letter of authorisation speci5ed in For$ I bythe person concerned

(c" 3For$4 $eans a for$ appended to these rules (d" 3ection4 $eans a section of the Act and(e" :ords and expressions used in these rules but not de5ned

therein, shall ha&e the a$e $eanin#s respecti&ely asassi#ned to the$ in the Act.

PART II

);%IT)ATIcere$powered by it in this behalf, for co$$ence$ent or conduct of aChit shall be $ade by the Fo*'-an in For$ II.

. Co--nication o t)' *'&a+ to &anctionco--'nc'-'nt o* con,ct o a C)it.%4I" :here sanction forthe co$$ence$ent or conduct of a Chit is refused, the reasons for

such refusal shall be recorded in writin# and a copy thereof shall beco$$unicated to the applicant within one $onth. (2" *eforerefusin# sanction under sub-rule (I" the tate %o&ern$ent shallissue a notice to the fore$an callin# upon hi$ to show causewithin a reasonable period to be stipulated in such notice as to whysanction be not refused. (" :here the #round for the proposedrefusal of sanction under sub-rule (I" is default in pay$ent of feesor 5lin# of any state$ent or record re0uired to be paid or 5ledunder the Act, the tate %o&ern$ent shall condone the saiddefault, if it is satis5ed in hearin# the fore$an that the default hasoccurred due to reasons beyond the control of the fore$an or due

to other bona 5de reasons


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'ro&ided that the Fore$an has paid the fees or 5led the necessarydocu$ents on or before the date of such hearin#.?. A+ication o* *'1i&t*ation o C)it.%;&ery application forthe re#istration or a Chit to be $ade by the fore$an to the)e#istrar shall be in For$ III.

@. En,o*&'-'nt o *'1i&t*ation o C)it./The endorse$ent of re#istration of a Chit a#ree$ent to be issued by the )e#istrar shallbe in For$ I7.

. R'1i&t*ation n-0'* o C)it./;&ery chit re#istered underthe Act shall be nu$bered serially by the )e#istrar in separateseries for each calendar year.

8. Co--nication o t)' *'&a+ to *'1i&t'* o a C)it./(1" If the )e#istrar refuses to re#ister a Chit, he shall record the reasons

for such refusal in writin# and co$$unicate a copy of the order of the applicant.

(2" *efore refusin# re#istration, the )e#istrar shall issue anotice to theFore$an callin# upon hi$ to show cause within a reasonable periodto be stipulated in such notice as to why re#istration be notrefused.

(" :here the #round for the proposed refusal of re#istrationis default in pay$ent of fees or 5llin# of any state$ent or record

re0uired to be paid or 5led as the case $ay be, under the Act, the)e#istrar shall condone the said default, if the )e#istrar is satis5edon hearin# the fore$an that the default has occurred due toreasons beyond the control of the fore$an or due to other bona5de reasons

'ro&ided that the fore$an has paid the fees or 5led the necessarydocu$ents on or before the date of such hearin#.

(. A+ication o* a*o*iation o an5 &- *o- t)'R'&'*2' Fn,./;&ery application for obtainin# prior appro&al of

the )e#istrar for appropriation of any su$ or su$s fro$ the reser&efund by a co$pany as re0uired under sub-section (" of section 8shall be in For$ 7.

"#. D'c+a*ation to 0' f+', a0ot &0&c*ition to a++ tic6't&o a C)it./;&ery declaration to be 5led by a fore$an after alltic+ets in a chit speci5ed in the chit a#ree$ent ha&e been fullysubscribed shall be in For$ 7I.

"". Fo*- o c'*tifcat' o co--'nc'-'nt o C)it./TheCerti5cate of co$$ence$ent of a chit to be #ranted to the

fore$an shall be in For$ 7II.

"$.Fo*- o c'*tifcat' a0ot *ni&)in1 a co5 o t)' c)ita1*''-'nt to t)' &0&c*i0'*& o a C)it./The Certi5cate by thefore$an about ha&in# furnished a copy of the chit a#ree$ent toe&ery subscriber of a chit to be 5led with the )e#istrar, shall be inFor$ 7III.

"3.Fo*- o C)it a1*''-'nt.% The chit a#ree$ent of e&ery chitstarted under the Act shall, as far as $ay be, confor$ to theperfor$a set forth in For$ I6.


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"7.R'1i&t*ation o a+t'*ation8 a,,ition o* o-i&&ion o c)ita1*''-'nt./(1" =o alteration, addition or o$ission of anypro&ision in the chit a#ree$ent shall ha&e eBect unless suchalteration or addition, or as the case $ay be, o$ission isre#istered. If the fore$an $a+es any alteration or addition oro$ission of any pro&ision in the chit a#ree$ent he shall sub$it

such alteration or addition or o$ission in duplicate to the )e#istrarduly si#ned and attested by atleast two witnesses alon#with theapplication for re#istration of such alteration or addition oro$ission as the case $ay be, of the chit a#ree$ent.

(2" An application to re#ister an alteration of or addition to oro$ission of any 'ro&ision in the chit a#ree$ent shall be dealt within the sa$e $anner as an application for re#istration of the chita#ree$ent.

"9. Dat' o ':'ct o a+t'*ation o* a,,ition o* o-i&&ion o

an5 *o2i&ion in c)it a1*''-'nt.%An alteration of or addition toor o$ission of any pro&ision in the chit a#ree$ent shall not ta+eeBect fro$ a date earlier than the date of such re#istration of thealteration or addition or o$ission, as the case $ay be, unlessotherwise ordered by the )e#istrar.

'ro&ided that the )e#istrar shall not #i&e eBect to thealteration or addition or &'ction4"= an, 4$= o &'ction $$ since the date of the

pre&ious draw

40= 'articulars of deposit, if any, of $oney under &0>&'ction 4"= o S'ction 3# an, &0>&'ction 47= o &'ction 33 sincethe date of the pre&ious draw

4c= A$ount withdrawn fro$ the appro&ed ban+ (the na$e

of the ban+ to be speci5ed= and the purpose for whichthe a$ount was withdrawn since the date of thepre&ious draw

4,= how the pried subscriber was ascertained accordin# tothe ter$s of the chit a#ree$ent and particulars of tic+ets and prie a$ount. If the ascertain$ent of thepried subscriber related to a fraction of a tic+et,particulars in respect of each such fraction shall beentered.


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4'= full particulars of the co$$ission paid to the fore$anand the a$ount of di&idend assi#ned to eachsubscriber and

4= na$es of subscribers or their authorised a#ents whobid at the draw, their tic+et nu$bers and si#natures.

PART>IIIF&'ction 4i= o &'ction $# ?

(i" :here the security is other than i$$o&able property,the &alue of the security shall not be less than oneand half ti$es the &alue of the chit a$ount and

(ii" in respect of security of i$$o&able property, the &alueof the security shall not be less than two ti$es the&alue of the chit a$ount.

(?" A fore$an of a chit proposin# to #i&e $o&eable or i$$o&ableproperty as security for the proper conduct of a chit shall apply tothe )e#istrar in For$ 6I. The application under this sub-rule shallclearly furnish the correct and co$plete infor$ation re#ardin# theproperty oBered as security and in case the property oBered isi$$o&able property, the application shall be acco$panied by the

docu$ents of title to the property and no encu$brance certi5catefor ten years relatin# to that property.(@" :here the i$$o&able property oBered as security is situatedoutside the urisdiction of the )e#istrar ha&in# urisdiction o&er theChit, the inspection of the property shall, under the orders of theconcerned tate %o&ern$ent, be $ade by the )e#istrar ha&in# urisdiction o&er such property, who shall forward a report to the)e#istrar concerned as to the su>ciency of the security.(" If the security oBered is accepted as su>cient by the)e#istrar, he shall record in writin# on the application a certi5cateof su>ciency in For$ 6II and attach a state$ent of the &aluation

$ade.


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(8" If the security oBered is not accepted by the )e#istrar, heshall #i&e the applicant an endorse$ent to that eBect within a$onth.19. Va+ation o c)it a-ont in 1*ain c)it&./(1" In a #rainchit, for the purpose of security under section 2!, the #rain shall be&alued by the )e#istrar as follows--

4a= the total 0uantity of #rain due fro$ all subscribers atone instal$ent of the chit shall be ascertained 40= the $ar+et &alue for the ti$e bein# of the total

0uantity referred to in clause (a" shall then becalculated.

4c= In assessin# the $ar+et &alue, the )e#istrar shall adoptthe current $ar+et prices in the nearest town asascertained fro$ the Tehsildar ha&in# urisdiction and

4,=


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2. P*oc',*' o* *'+'a&' o &'c*it5./(1" The)e#istrar $ay for the purpose of releasin# the security under sub-section (?" of section 2!, call upon the fore$an to produce a copyduly certi5ed to be a true copy of any re#ister and boo+ of accounts$aintained by the fore$an and shall exhibit a notice on his o>cenotice board statin# that the security is proposed to be released

and that any person ha&in# any obection to such release, $ay 5lewith the )e#istrar his state$ent of obections, if any, within 5fteendays fro$ the date of exhibition of the notice.(2" If no obections are recei&ed within the period speci5ed in thenotice, the )e#istrar shall release the security to#ether withinterest, if any, accrued thereon and re$ainin# unpaid.(" If any obection is recei&ed, the )e#istrar shall en0uire into theobection su$$arily within fourteen days after the date of expiry of the period speci5ed in the notice referred to in sub-rule (1" andrecord his decision in writin# and forward a copy thereon to thefore$an and to the obector.

2?. Boo6& o accont& to 0' -aintain', 05 t)'o*'-an./In addition to the boo+ of $inutes of proceedin#s of e&eryG draw speci5ed in section 1, e&ery fore$an shall +eep thefollowin# re#isters and boo+s of accounts in the for$s $entioneda#ainst each or in the for$s as near thereto as possible-

(1" A re#ister of subscribers in For$ 6I7 (2" A led#er in For$ 67 (" A day boo+ in For$ 67I (" A receipt boo+ in For$ 67II duly certi5ed by the

fore$an as to the nu$ber of pa#es in duplicate

(?" A boo+ containin# copies of all notices issued by thefore$an to thesubscribers

(@" A 5le containin# the letters of authorisation of thesubscribers, for

ubscribin# his na$e in the chit a#ree$ent and forparticipatin# in the auction of the chit

(" A 5le containin# the &ouchers of pay$ents $ade bythe fore$an

(8" A 5le containin# docu$ents relatin# to securitiesoBered by the pried subscribers and

(9" A re#ister in For$ 66II showin# a$ounts deposited inappro&ed ban+s in respect of all Chits conducted bythe fore$an.

2@. Accont& to 0' @*itt'n *o-t+5./(1" ;&eryentry in the re#ister of subscribers, the led#er speci5ed in rule 2?shall be $ade as and when a particular e&ent occurs.(2"


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speci5ed in clause (8" of rule 2?. The 5le shall contain an index forfacilitatin# the scrutiny of the docu$ents.2. Fi+in1 o 2oc)'*&./As soon as each pay$ent is$ade, the fore$an shall obtain a &oucher fro$ the payee. He shall&erify whether the &oucher speci5es the purpose for which thepay$ent was recei&ed and whether it is properly si#ned by the

recipient and preser&e it in the 5le speci5ed in clause (" of rule 2?after assi#nin# a serial nu$ber thereto for each calendar $onth.

28. Dat' o &0-i&&ion o 0a+anc' &)''t./(1" Thebalance sheet prepared in accordance with the pro&isions of section2 shall be 5led with the )e#istrar within a period of three $onthsfro$ the expiry of the period with reference to which it is prepared.(2" )eceipts and ;xpenditure account and state$ent showin#the assets and liabilities of the indi&idual chit #roup shall be 5led inFor$ 67III with the )e#istrar within a period of two $onths fro$the ter$ination of chit when the duration of the chit does not

exceed one year and when the duration of chit exceeds one year,on the expiry of e&ery period of twel&e $onths and also on theter$ination of the chit as a resolution passed by chit $e$bers andthis period should not exceed 1? $onths.

29. Rat' o int'*'&t o* ,'a+t', in&ta+-'nt.% Therate of interest payable by a defaultin# subscriber shall not exceedtwel&e per cent per annu$. The defaultin# fore$an will also payinterest 12J '.A..

!. A,it 05 c)it a,ito*.%41" If a fore$an desires to

ha&e the balance sheet and pro5t and loss account audited by aChit Auditor appointed under sub-section (2" of section @1, thefore$an shall i$$ediately after the preparation of the balancesheet $a+e an application for such audit to the )e#istrar withinwhose urisdiction the chit is conducted, specifyin# whether theaudit shall be at the pre$ises of the fore$an or not. Theapplication shall be acco$panied by the a$ount of fee set out inAppendix-II.(2" The )e#istrar shall forward the application to the Inspector of Chits ha&in# urisdiction, who shall cause the balance sheet andpro5t and loss account to be audited by the Chit Auditor, as

expeditiously as possible.


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certi5cate and the auditorGs report within one $onth fro$ the dateof receipt of the audit certi5cate and audit report fro$ the chitauditor or within three $onths fro$ the last day of the periodco&ered by the balance sheet, whiche&er is earlier.(2" In the case of audit by an auditor 0uali5ed to act as auditor of co$panies under the Co$panies Act, 19?@ (Central Act 1 of 19?@",

the fore$an shall 5le with the )e#istrar the docu$ents referred toin sub-rule (1" within three $onths fro$ the expiry of the periodwith reference to which the balance sheet is prepared undersection 2 in the case of indi&idual chit as referred to in sub-rule (2"of rule 28, within a period of two $onths.

PART> IV:I=EI=% K' ce where the chit a#ree$ent was re#istered(iii" the chit a$ount

(i&" the total nu$ber of tic+ets (&" the nu$ber of subscribers and the nu$ber of

tic+ets subscribed by each subscriber.(&i" the nu$ber of non-pried subscribers on the date

of the petition and(&ii" the nu$ber of unpaid pried subscribers, if any

(?" Facts on which the petitioner relies in support of thepetition

(@" 'articulars relatin# to the award and execution of other

process which has been returned unsatis5ed in wholeor in part, if the #round of the petition is that executionof other process issued on an award or order of the)e#istrar in fa&our of any subscriber in respect of thea$ounts due to hi$ fro$ the fore$an, was returnedunsatis5ed on whole or in part.

(" Full details to show that the condition speci5ed inclause (a" of the pro&iso to &'ction 7( is satis5ed, if the windin# up of the chit is applied for under c+a&'4,= o &'ction 7! and if the said clause (a" replied

and


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(8" :hether the pre&ious sanction of the tate %o&ern$enthas been obtained, if c+a&' 40= o t)' *o2i&o to&'ction 7( applies. (A copy of the rele&ant order of the tate %o&ern$ent shall be attached".

37. P*oo&a+ o* co++'ction an, ,i&t*i0tion o c)it

a&&'t&./(1" The )ecei&er (appoint$ent as en&isa#ed in S'ction9$ o t)' Act= shall as soon as possible settle and sub$it to the)e#istrar a state$ent (hereinafter referred to as the 3'ro&isionaltate$ent4" showin#--

(a" the na$es of subscribers and other persons fro$ who$$oneys are due to the chit.

(b" the na$es of the subscribers and other persons towho$$oneys are due fro$ the chit

(c" proposals as to how the chit assets are to be collectedand applied in the dischar#e of its liabilities and

(d" the a$ount proposed to be paid to each of the personsspeci5ed inclause (b".

(2" =otice of the preparation of the pro&isional state$entacco$panied by a copy thereof shall be published and be ser&edon the petitioner, the subscribers and other persons speci5ed bythe )ecei&er, in such $anner as the )e#istrar $ay direct. If thenu$ber of persons on who$ notice is to be ser&ed, is lar#e, thenotice $ay, in the discretion of the )e#istrar, be ser&ed on thepetitioner only and ad&ertised in one or $ore daily newspapers. The notice shall specify the date on which obections to he

pro&isional state$ent will be heard and shall call upon any personha&in# such obections--

(i" to sub$it his state$ent of obections and the #roundstherefore supported by an a>da&it before the dateappointed by the )e#istrar in this behalf and

(ii" to appear in person or by an ad&ocate on the date of hearin# with all the e&idence in support of hisobections.

?. S't ot to 0' a++o@',./:hen $oney is due fro$ the

fore$an to a subscriber and also fro$ the subscriber to thefore$an, the subscriber shall be allowed to the bene5t of a set oB (as pro&ided in the code of Ci&il 'rocedure 19!8".@. 'a*in1 o o0'ction& to t)' *o2i&iona+&tat'-'nt.%


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accordin#ly on the date 5xed under rule @ for the collection anddistribution of the chit assets. The )e#istrar $ay also pass suchorders as $ay be necessary for the distribution of the a&ailable chitassets in case such assets happen to be insu>cient to $eet thesu$s which ha&e to be paid to the subscribers.(2" The 5nal orders passed by the )e#istrar under this rule shall

be conclusi&e e&idence of the se&eral clai$s to be $et out of thechit assets.

8. P*o2i&ion o* ''n&'& o @in,in1 .%In the$a+in# proposals for the distribution of the chit assets, the)ecei&er shall specify the esti$ated a$ount of the cost of windin#up includin# re$uneration for the )ecei&er and such other ite$s orexpenditure as are incidental to the windin# up and such esti$ateda$ount shall 5rst be pro&ided for the deducted fro$ the &alue of the chit assets and the balance a$ount shall also be proposed fordistribution in the pro&isional state$ent and the fresh list speci5ed

in rule .9. Fi+in1 o fna+ accont& 05 R'c'i2'*./(1" Kpon theter$ination of the proceedin#s relatin# to the windin# up, the)ecei&er shall 5le his 5nal accounts with the )e#istrar within 5fteendays of such 5nal accounts bein# passed by the )e#istrar, thebalance of $oney in the hands of the )ecei&er shall be paid to the)e#istrar. The )ecei&er shall also state how the balance a$ount$ay be disposed of to#ether with the reasons for his proposals.He shall also deposit with the )e#istrar all boo+s, accounts and allother records relatin# to the chit which has been wound up.

(2" The )ecei&er $ay thereafter apply to the )e#istrar for acerti5cate of dischar#e fro$ the duties as )ecei&er and for the&acatin# of his );C


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(2" The tate %o&ern$ent, by noti5cation in cial %aetteappoint, as $any persons as $i#ht be necessary, to act as)e#istrarGs no$inee for settle$ent of disputes arisin# under theAct.

?!. P*oc',*' o* )'a*in1 an, ,'ci&ion o ,i&t'&./(1" The )e#istrar or his no$inee shall record in the o>cial lan#ua#eof the tate, the e&idence of the parties to the dispute and thewitnesses who attend. Kpon the e&idence so recorded and uponconsideration of any docu$entary e&idence produced by theparties, a decision shall be #i&en by hi$ in writin#. uch decisionshall be pronounced in the open court, either at once or as soon as$ay be practicable, on so$e future day, of which due notice shallbe #i&en to the parties.

(2" :here neither party appears when the dispute is called out

for hearin#, the )e#istrar or his no$inee $ay $a+e an order that itbe dis$issed for default.

(" :here the opponent appears and the disputant does notappear when the dispute is called out for hearin# the )e#istrar orhis no$inee shall $a+e an order that the dispute be dis$issed,unless the opponent ad$its the clai$ or a part thereof, in whichcase the )e#istrar or his no$inee, as the case $ay be, shall $a+ean order a#ainst the opponent upon such ad$ission and where,part only of the clai$ is ad$itted, $ay dis$iss the dispute in so faras it relates to the re$ainder.

(" :here the disputant appears and the opponent does notappear when the dispute is called out for hearin#, then if the)e#istrar or his no$inee is satis5ed fro$ the record andproceedin#s that the su$$ons was duly ser&ed, the )e#istrar orhis no$inee shall proceed with the dispute ex parte. :here thesu$$ons is ser&ed by any o>cer of the )e#istrar or his no$inee,be shall $a+e his report of ser&ice on oath.

(?" The )e#istrar or his no$inee shall not ordinarily #rant $orethan two adourn$ents to each party to the dispute at his re0uest.

The )e#istrar or his no$inee shall howe&er, at his discretion #rantsuch further adourn$ents on pay$ent of such costs to the otherside and such fees to the )e#istrar or his no$inee as the )e#istraror his no$inee, as the case $ay be, $ay direct.

(@" Any party to a dispute $ay apply for and obtain a certi5edcopy of any order, ud#e$ent or award $ade by the )e#istrar or hisno$inee on pay$ent of copyin# fees, at the rate speci5ed inAppendix II.?1. S--on&8 notic'& an, fin1 o ,at'&8 +ac'8 inconn'ction @it) t)' ,i&t'&./(1" The )e#istrar, or as the case

$ay be his no$inee, $ay issue su$$ons or notices at least 5fteendays before the date 5xed for the hearin# of the dispute re0uirin#

(i" the attendance of the parties to the dispute and of witness, if any and

(ii" the production of all boo+s and docu$ents relatin# tothe$atter in dispute.

(2" u$$ons or notices issued by the )e#istrar or his no$ineeunder sub-rule (I" $ay be ser&ed throu#h the Tehsildar or anye$ployee of the Eirectorate of Institutional Finance M *an+in# and


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'ublic ;nterprises, Eepart$ent of Finance or by re#istered postwith ac+nowled#e$ent due.(" The o>cer ser&in# a su$$ons or notice shall, in all cases inwhich su$$ons or notice ser&ed, endorse or annex or cause to beendorsed on or annexed to, the ori#inal su$$ons or notice, areturn statin# the ti$e when, and the $anner in which, the

su$$ons or, as the case $aybe, notice was ser&ed, and the na$eand address of the person (if any" identifyin# the person ser&edand witnessin# the deli&ery or tender of the su$$ons or thenotice.(" The o>cial issuin# the su$$ons or notice $ay exa$ine theser&in# o>cer on oath or cause hi$ to be so exa$ined by theo>cer throu#h who$ it is ser&ed and $ay $a+e such furtherin0uiry in the $atter as he thin+ 5t and shall either declare thatthe su$$ons or, as the case $ay be, notice has been duly ser&edor order it to be ser&ed in such $anner as he thin+s 5t.(?" The $ode of ser&in# su$$ons and notices as laid down in

sub-rule (1" to (" shall $utatis $utandis apply to the ser&ice of notices #i&en by the )e#istrar or the person authorised by hi$, forthe purpose of &'ction 7.

9$. In2'&ti1ation o c+ai-& an, o0'ction& a1ain&tan5 attac)-'nt./:here any clai$ or obection has beenpreferred a#ainst the attach$ent of any property under section @8on the #round that such property is not liable to such attach$ent,the )e#istrar, or as the case $ay be, his no$inee shall in&esti#ateinto the clai$ or obection and dispose it of on $erits

'ro&ided that no such in&esti#ation shall be $ade when the)e#istrar or his no$inee considers that the clai$s or obection isfri&olous.

?. P*oc',*' o* t)' c&to,5 o *o'*t5 attac)',n,'* &'ction !- (1" :here the property to be attached undersection @8 is $o&eable property, other than a#ricultural produce inthe possession of the debtor to the dispute referred to the )e#istrarunder section @, the attach$ent shall be $ade by actual seiureand attachin# o>cer shall +eep the property in his own custody orin the custody of one of his subordinates, or of a )ecei&er, if one is

appointed under sub-rule (2" and shall be responsible for the duecustody thereof

'ro&ided that, when the property seied is subect to speedy andnatural decay, or when the expenses of +eepin# it in custody areli+ely to exceed its &alue, the attachin# o>cer $ay sell it at once.

(2" :here it appears to the o>cer orderin# conditionalattach$ent under section @8 to be ust and con&enient, he $ayappoint a )ecei&er for the custody of the $o&eable property attachunder that section and his duties and liabilities shall be identical

with those of a )ecei&er appointed under order 6N, of the Firstchedule to the Code of Ci&il 'rocedure, 19!8.(" (i" :here the property to be attached is i$$o&able, theattach$ent shall be $ade by an order prohibitin# the debtor fro$transferrin# or char#in# the property in any way, and all personsfro$ ta+in# any bene5t fro$ such transfer or char#e.

(ii" The attach$ent of the i$$o&able property shall bedirected by an order which shall be proclai$ed at so$e place on, oradacent to, such property by beat of dru$s or other custo$ary$ode, and a copy of such order shall be 5xed on a conspicuous

part of the property and upon a conspicuous part of the &illa#e


14/55

ath, and where the property is land payin# re&enue to the tate%o&ern$ent, also in the o>ce of the Collector of district and in theo>ce of the Tehsildar or any other re&enue o>cer within whose urisdiction the property is situated.

?. P*oc',*' o* attac)-'nt an, &a+' o *o'*t5

o* *'a+i&ation o an5 &'c*it5 1i2'n 05 '*&on in co*&' o ''ction *oc'',in1&./The procedure laid down in rules ?2and ? shall $utatis $utandis apply for attach$ent and sale of property for the realiation of any security #i&en by a person in thecourse of execution proceedin#s.

??. I&&' o *oc+a-ation *o)i0itin1 *i2at't*an&'* o *o'*t5.% The )e#istrar when actin# under c+a&'4a= o &'ction


15/55

("


16/55

(b" :here the property is in the possession of the defaulteror of so$e other 'erson on his behalf or so$e otherperson clai$in# under a title created by the defaultersubse0uent to the issue of a certi5cate under section1, the Court or the Collector or the )e#istrar, as thecase $ay be, shall order deli&ery to be $ade by puttin#

the ud#$ent creditor or any person who$ he $ayappoint to recei&e deli&ery on his behalf in actualpossession of the property and if need be, by re$o&in#any person, who$ ille#ally refuses to &acate the sa$eand

(c" :here the property is in the possession of a tenant orother person entitled to hold the sa$e by a titleac0uired before the date of issue of a certi5cate undersection 1, the Court or the Collector or the )e#istrar,as the case $ay be, shall order deli&ery to be $a+e bya>xin# a copy of the certi5cate of transfer of the

property to the ud#$ent creditor. In co$econspicuous place on the property and proclai$in# tosuch person by beat of dru$ or other custo$ary $odeat so$e con&enient place that the interest of thedefaulter has been transferred to the ud#e$entcreditor.

(9" The ud#e$ent creditor shall be re0uired to pay expensesincidental to sale includin# the cost of $aintenance of li&e-stoc+, if any, accordin# to such scale as $ay be 5xed by the )e#istrar fro$the ti$e to ti$e.

(1!" :here the land is deli&ered to the ud#e$ent creditor undersub-clause (a" of clause (ii" of sub-rule (8" before the #rowin# of standin# crop is cut and #athered, the ud#e$ent creditor shall beliable to pay the current years land re&enue on the land.

(11" The ud#e$ent creditor shall forthwith report any transferunder sub-clause (b" or (c" of clause (ii" of sub-rule (8" to the &illa#epatwari for infor$ation and entry in the )ecord of )i#hts.

(12" The ud#e$ent creditor to who$ property is transferred

under sub-rule (?" shall $aintain for each such defaulter a separateaccount showin# all the expenses incurred includin# pay$ent tooutside encu$brances, land re&enue and other dues on theproperty and all the inco$e deri&ed fro$ it.

(1" The ud#e$ent creditor to who$ property is transferredunder sub-rule (?" shall use his best endea&or to sell the propertyas soon as practicable to the best ad&anta#e of the fore$an as wellas that of the defaulter, the 5rst option bein# always #i&en to thedefaulter who ori#inally owned the property. The sale shall besubect to con5r$ation by the )e#istrar. The proceeds of the sale

shall be applied to in defrayin# the expenses of the sale and otherexpenses incurred by the ud#e$ent creditor refer to in sub-rule (9"and (12" and to the pay$ent of the arrears due by the defaulterunder the order in execution, and the surplus (if any", shall than bepaid to the defaulter.

(1" Kntil the property is sold, the ud#e$ent creditor to who$ theproperty is transferred under sub-rule (?"shall use his bestendea&ours to lease it or to $a+e any other use that can be$ade of it so as to deri&e the lar#est possible inco$e fro$the property.


17/55

(1?" :hen the ud#$ent creditor to who$ property is transferredunder sub-rule (?" has realised all his dues, under the order inexecution of which the property was transferred, fro$ the proceedsof $ana#e$ent of the property the property, if unsold shall berestored to the defaulter.

?8. L'25 o ''& o* *''*'nc' o ,i&t'& to t)' R'1i&t*a*.%41" The )e#istrar or his no$inee, as the case $ay be, $ay ta+e adispute on the 5le only if the application re#ardin# reference forsuch dispute in For$ 6I6 is a>xed with court-fee sta$ps at thefollowin# scales, na$ely-

P*o'* co*t ''(in )upees"

(i" i$ple $oney clai$s-(a" when the a$ount of the clai$ in

2?.!! dispute does not exceed )s.1,!!!.

(b" when such a$ount exceeds )s.1,!!!?!.!! but does not exceed )s.?,!!!.(c" when such a$ount exceeds )s.?,!!!(ii" Co$plicated $oney clai$s-- ?.!!(a" when the a$ount of the clai$ in

?!.!! dispute does not exceed ).1,!!!.(b" when such a$ount exceed )s.1,!!!

?.!! but does not exceed )s.?,!!!.(c" :hen such a$ount exceeds )s.?,!!!.

1!!.!!

(iii" All other disputes 1!!.!!

;xplanation- For the purpose of this sub-rule, 3si$ple $oneyclai$4-$eans the clai$ of a fore$an whose business consists of conductin# chits includin# disburse$ent of prie a$ount based onloan bonds, pro$issory notes, ad$issions or ac+nowled#e$ents,and 3co$plicated $oney clai$s4 $eans all $oney clai$s otherthan si$ple $oney clai$s.

The 0uestion re#ardin# the classi5cation of a dispute for thepurposes of this sub-rule shall be decided by the )e#istrar or hisno$inee decidin# the dispute and the decision of the )e#istrar orhis no$inee, as the case $ay be in this behalf, shall be 5nal.

(2" =o docu$ent of any of the +inds speci5ed below shall be5led before the )e#istrar or his no$inee unless it is a>xed with theproper court-fee sta$p as speci5ed a#ainst it.

=a$e of docu$ent P*o'*

co*t '' (in rupees"

(i" 7a+alatna$a2.!!(ii" Application for adourn$ent 1!.!!(iii" Application for interi$ stay or relief.

2?.!!

("(a" The )e#istrar or his no$inee decidin# any dispute, $ayre0uire the party or parties to the dispute to deposit such su$ as

$ay, in his opinion be necessary to $eet the expenses, includin#


18/55


19/55

(a" fro$ the date of release of the security in the case of chits which are ter$inated and

(b" fro$ the date when the aBairs of the chit areco$pletely wound up in cases dealt with in Chapter 6of the Act and if orders passed under that Chapter areappealable, fro$ the date of disposal of the appeal.

@2. R'1i&t'* o *'co*,& 6't./;&ery )e#istrar shall +eep aseparate re#ister in which shall be entered particulars of all recordsrelatin# to chits re#istered in his o>ce.

@. Co-on,in1 o o:'nc'& a*i&in1 n,'* t)' Act>>(1" Any o>cer e$powered by the tate %o&ern$ent shall issue ashow cause notice before ta+in# any action under &'ction cer authorised by the tate %o&ern$ent.

(ii"


20/55

APPENDIH>IF


21/55

FORM II

Ree ection (2" And )ule S

For$ of application to be used by a fore$an for obtainin# pre&ioussanction to co$$ence or conduct a chit.

'laceEate

Fro$

OOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOO

To

(The Authorised cer by desi#nation"

ir,

IOOOOOOOOOOOOOOOOOOOsonwifedau#hter ofOOOOOOOOOOOOOOOOOO(herestate profession or occupation"residin# atOOOOOOOOOOOOOOOwe, theChair$an and ecretary respecti&ely U


22/55

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOtri+e out or delete whate&er is not applicable.UInsert the desi#nation as $ay be appropriate to the applicant.Here enter the na$e of the applicant institution, if any.

s

ANNEHURE

tate$ent of 'articulars

1. =a$e and address of the Co$panyAssociation onindi&idualCo-operati&e

ociety'artnershipsole proprietorship (address of the abo&ere#istered Uinstitutions as well as the

Heado>ceAd$inistrati&e ce, if any, should be #i&en".

2. Constitution that is whether incorporated as co$panyco-operati&e society re#isteredun-re#istered association of indi&idualspartnershipsole proprietorshipAlso specify thepro&ision of the Act under which incorporatedre#istered alon#with the date of incorporationre#istration".

. =a$es and address of the brancheso>ces, if any.

. Dain obects of the institution (enclose a copy of theDe$orandu$ and Articles of Association, or, as the case $ay be

, of the *ye-laws of )ules re#ulatin# the acti&ities of theinstitution".

?. =a$es, occupations and residential address of the directors or,as the case $ay be, of the pro$oters$e$bers of theco$$ittee of $ana#e$entpartners etc..

@. =a$es and residential address of the Chief ;xecuti&e cer andtwo other o>cers i$$ediately next to hi$, in the $ana#erialset up.

. =a$es of the *an+ers and their addresses.

8. =a$es of the auditors and their addresses.

9. 'articulars of the chit(s" to be started (such as the chit a$ount,duration of the chit fre0uency of the draws, $anner of draws,etc.-Also attach a copy of the draft of the chit a#ree$ent to beentered into with the subscribers".

1!. 'laces where the chit sche$e(s" are proposed to beconducted.

11. =a$es and addresses of the associate co$paniesco-operati&esocietiesassociations of indi&idualspartnership sole

proprietorships.12. =a$es, occupations and residential addresses of the directors

or,as the case $ay be, of the pro$oters$e$bers of the co$$ittee of $ana#e$ent, etc. of the institution(s" referred to in ite$ 11.

Iwe sole$nly declare that the facts stated therein as also in theenclosures are true to the best of $your +nowled#e infor$ationand belief.Eated thisOOOOOOOOOOOOOday ofOOOOOOOO19 atOOOOOOOOOOOOOOOOOOOOOOOOO

=a$e(s" i#nature(s"


23/55

Eesi#nation(s"for and on behalf ofOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

UHere enter the na$e of the applicant institution, if any.tri+e out whate&er is not applicable.=otes If the space a#ainst any ite$ is inade0uate for

furnishin# full particulars, the re0uired infor$ation should be #i&enin separate sheets indicatin# the cross reference a#ainst therelati&e ite$ of this state$ent.(ii" A copy of the latest a&ailable audited *alance heet and'ro5t and loss Account, if any, should be attached.

FORM III

(ee ection and )ule ?"

Application for the re#istration of the Chit A#ree$ent.

'laceEate

To

The )e#istrar of Chits OOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOO

Eear ir,

(a" IOOOOOOOOOOOOOOOOOOOOson of hriOOOOOOOOOOOOOOOOOOOOOOO bein# the fore$an conductin# chit under the na$e and style of OOOOOOOOOOOOOOOOOat OOOOOOOOOOOOOOOOofOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOO

(b" :eOOOOOOOOOOOOOOOOOOOOOthe Chair$an and ecretary

respecti&ely of the fore$an conductin# chit business underthe na$eandOOOOOOOOOOOOOOOOOOOOOOOOstyleOOOOOOOOOOOOOOOOOOOOOOOO of OOOOOOOOOOOOOOOOOOOOOOOOOOOOatOOOOOOOOOOOOOOOOOOOOherebyapply for re#istration of the chit a#ree$ent..2. The chit a#ree$ent in duplicate is attached herewithto#ether with a su$ of )s.OOOOOOOOOOOObein# the re#istrationfee as re0uired under the Chit Funds ('unab" )ule,1999.

. The nu$ber of current chits which are runnin# as on the dateof this application isOOOOOOOOOOOOOand the a##re#ate chit a$ount of

these chits in&ol&ed therein )s.OOOOOOOOOOOwhich is within the li$itsspeci5ed in &'ction "3 of the Chit Funds Act, 1982 (Central Act=o.! of 1982".

. A certi5ed true copy of the sanction obtained under &'ction7 of the abo&e Act for co$$ence$ent and conduct of the chit in0uestion is enclosed. A copy of the application datedtheOOOOOOOOOOOOOOOOOto#ether with its enclosures $ade to the tate%o&ern$entAuthorised cer in this behalf is also enclosed forinfor$ation and ready reference.


24/55

?. Iwe re$it herewith a su$ of )s.OOOOOOOOOO()upees inwords" OOOOOOOOOOOOOOOOOOObein# the fee prescribed forthe purpose.

D'c+a*ation

@. Iwe ha&e read the Chit Funds Act, 1982 (Central Act =o.! of 1982" and the rules $ade by the tate %o&ern$ent thereunder andIwe declare that the chit a#ree$ent has been drawn up inconfor$ity with the pro&ision of the said Act and the rules.

The abo&e state$ents are true and co$plete to the best of $your+nowled#e, infor$ation and belief.

Vours faithfully,

Chair$anecretary

=a$e(s"

Eesi#nation(s"

for and on behalf of (Fore$an"

Not'&; (" Here enter the na$e of the applicant institution, if any.

(iii" tri+e out or delete whate&er is not applicable. Insertthe desi#nation(s" as $ay be appropriate to theapplicant.


25/55

FORM IV(ee ection (2" and )ule @"

;ndorse$ent of )e#istrationI hereby certify that chit a#ree$ent relatin# to the chit proposed tobe conducted byOOOOOOOOOOOOOOOOOO(the na$e and address of thefore$an should be 5lled in here" as a fore$an hasthisOOOOOOOOOOday ofOOOOOOOOOOO19OOOOOOObeen re#istered by $eunder &0>&'ction 4$= o &'ction


26/55

. :e shall be #lad, if you will +indly #rant us per$ission towithdraw a su$ of OOOOOOOOOOOOOOOOOfro$ the )eser&e Fund.

Voursfaithfully,

Chair$an

ecretary.

Ufor and on behalf of (Fore$anCo$pany"

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOUHere enter the na$e of the applicantco$pany.

FORM VI

Ree ection 9(1" and )ule 1!S'laceEate

The )e#istrar of ChitsQQQQQQQQQQQQQQQQQQ

Eear ir,

*y your letter dated theOOOOOOOOOOOOOOOOOOOOOOOyou were pleased to#rant $eus a certi5cate of re#istration to start a new chit of a chit,a$ount of )s.OOOOOOOOOOof a durationOOOOOOOOOOOOO$onths..

2. I:e ha&e subse0uently enlisted the re0uired nu$ber of $e$bers and we hereby declare in ter$s of sub-section (1" of ection 9 of the Chit Funds Act, 1982 (Central Act =o.! of 1982"that all the tic+ets speci5ed in the chit a#ree$ent ha&e been fullysubscribed.

. I:e re$it herewith a su$ of )s.OOOOOOOOOO()s. in

words"OOOOOOOOOOOOOObein# the fees prescribed for the purpose of 5lin# this declaration.

Vours faithfully,

Chair$an

ecretary

UFor and on behalf of (Fore$an".

tri+e out or delete whate&er is not applicable. UInsert suchdesi#nation(s" as $ay be appropriate to the applicant.


27/55

FORM VII

Ree ection 9(2" and )ule 11S

Certi5cate of co$$ence$ent of chit

'laceEatece of the )e#istrar of Chits OOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOO

I hereby certify that UOOOOOOOOOOis entitled to co$$ence and

conduct the chit OOOOOOOOOOOOOOOOOOOOOOOOOOOOthe chit a#ree$entin respect of which was re#istered in $y o>ce as chit=o.OOOOOOOOOof 19 .

%i&en under $y hand and seal, this OOOOOOOOOOOOOday ofOOOOOOOOOO19atOOOOOOOOOO.

i#nature of )e#istrar

(eal"

• Here enter the na$e of the fore$an.• Here $ention the chit a$ount and duration etc. of the chits.


28/55

FORM VIIIRee ection 1!(2" and )ule 12S

The )e#istrar

Eear ir,s

The Chit Funds act, 1982(Central Act =o.! of 1982".

I:eOOOOOOOOOOOOOOOOOOOOthe fore$an of the chitChair$an andecretary on behalf of the fore$an 5r$co$pany, conductin# the

chit, the chitU a#ree$ent bearin# re#istration nu$berOOOOOOOOof 19OOOOOOOOhas been re#istered in the o>ce of the )e#istrar of Chits,OOOOOOOdo hereby certify that I:e ha&e furnished to e&erysubscriber of the chit, a copyU of the said chit a#ree$ent dulycerti5ed by $eus tobe a true copy. The copies were furnished toeach of the subscribers onOOOOOOOO.

The date of obtainin# the certi5cate of co$$ence$ent of the saidchit #ranted under sub-section (2" of section 9 is OOOOOOOOOOOOOO.

The 5rst draw of the said chit was held onOOOOOOOOOO.

Vours faithfully,

'lace Chair$anecretary

For and on behalf ofOOOOOOOOO (Fore$an"

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOO Utri+e outdelete whate&er is not applicable.Insert the desi#nation(s" as $aybe appropriate to the applicant.


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FORM IH

(ee ection @ and )ule 1"

For$ of Chit A#ree$ent(Article of a#ree$ent between the fore$an and the subscribers"(1" ce where the chit is re#istered.(2" Vear and re#istered =o.OOOOOOOVearOOOOOOO.=o.(" Full =a$e and address of fore$an.(" ciency of security, if obtained.


30/55

(" The fore$an shall not #et release of the security in full untilall the liabilities under the chit are dischar#ed.

7. Dode of conductin# the chit/(1" The subscriber who is to #etthe prie at any instal$ent, shall be deter$ined by lot or by

auction at the ti$e and place speci5ed in Article III..

(Here specify the s$allest fraction of a tic+et, the prie for whichwill be deter$ined by lot or by auction, and the ti$e allowed foreach purpose".(2" :here the prie is to be deter$ined by auction, a tic+et orfraction thereof shall be auctioned for a su$ not less than the chita$ount $inus fore$anGs co$$ission, and the subscriber who bidsfor the hi#hest discount not exceedin# thirty per cent of the totala$ount of the chit, shall be entitled to ha&e it con5r$ed in hisna$e.

=otes --:here the fraction of a tic+et is auctioned, the subscriberwho bids it for the hi#hest discount is entitled to ha&e con5r$ed inhis na$e at the sa$e rate as $any such fractions as he wishes tobid.

(" In case where the subscribers are not prepared to bid anytic+et or fraction thereof or where the discount is not su>cient to$eet the fore$anGs co$$ission, the subscriber, who entitled to theprie a$ount, shall be deter$ined by lot. The subscriber sodeter$ined shall be dee$ed to be the pried subscriber who shall

be entitled to the chit a$ount for his tic+et less fore$anGsco$$ission for that tic+et.

(" A defaulter subscriber shall not be entitled to ta+e part in theproceedin#s.(?" If for nay reason, the subscriber is unable to ta+e part in theproceedin#s, he $ay in writin# authorise an a#ent in that behalf.uch a#ent shall ha&e all the ri#hts and pri&ile#es of a subscriber atsuch proceedin#s.

7I. Mo,' o a5-'nt o 'ac) in&ta+-'nt.%41" ;&ery

subscriber shall on the date of each instal$ent pay to the fore$anthe a$ount due for his tic+et for each such instal$ent and #et areceipt in that behalf fro$ the fore$an.

(2" In the case of a pried subscriber, if the a$ount due fro$ hi$for a particular instal$ent is not paid on the date of thatinstal$ent, it shall be paid within OOOOOOOdayswee+s$onths withinterest atOOOOOOJ '.A.OOOOOOOfailin# which it shall be co$petent tothe fore$an to realise fro$ the defaulter in lu$p-su$ all the futuresubscriptions due fro$ hi$ to#ether with the interest due thereonand other incidental expenses.

(" In the case of a non-pried subscriber, if the a$ount due fro$hi$ for a particular instal$ent is not paid on the date of thatinstal$ent, it shall be paid withinOOOOOOOOdayswee+s$onths withinterest atOOOOOJ '.A.OOOOOOOfailin# which it shall be open to thefore$an to re$o&e hi$ fro$ the list of subscriber and ha&eanother person substituted for such defaulter subscriber. Thefore$an shall duly infor$ the defaulter subscriber of the actionta+en a#ainst hi$.

=ote-- Knder clauses (2" and (", the period within which the

a$ount shall be 'aid and the rate at which interest due thereon


31/55

shall be paid $ay be such as shall not be inconsistent with thepro&isions of the Act or any other law for the ti$e bein# in force.

(" A non-pried defaultin# subscriber shall be entitled to thea$ount paid by hi$ and the discount due to hi$ on his executin#an ac+nowled#e$ent in writin# at the ti$e the substituted

subscriber draws the prie a$ount. If the defaulter subscriber failsto obtain the a$ount due to hi$, the fore$en shall deposit thesa$e in the appro&ed ban+. If the fore$an fails to pay suchsubscriber the a$ount so due to hi$ on the due date, it shall beco$petent for such subscriber to realise such a$ount with interestper$issible under the law for the ti$e bein# in force.

7II. A pried subscriber or his no$inee shall recei&e fro$ theprie a$ount within (here specify the period" after furnishin# to thesatisfaction of the fore$an su>cient security for the pay$ent of future subscriptions.

(2" In case the pried subscriber or his no$inee fails to recei&ethe prie a$ount after furnishin# su>cient security, the fore$anshall deposit the a$ount in the appro&ed ban+ and infor$ thepried subscriber of that fact.

(" In case the a$ount so deposited is not su>cient for thepay$ent of future subscriptions, the fore$an shall be entitled torealise fro$ such pried subscriber such a$ount as $ay bede5cient to#ether with the interest due thereon and all otherincidental char#es.

(" In case there re$ains any portion of the a$ount depositedafter payin#, the future subscriptions and other char#es suchportion shall be payable by the fore$an to the pried subscriberafter the ter$ination of the chit, failin# which the pried subscriberor his no$inee shall be entitled to realise fro$ the fore$an suchportion as re$ains to#ether with the interest due thereon fro$ thedate of ter$ination of the chit.

(?" If at any ti$e after the prie a$ount if deposited in anappro&ed ban+, the pried subscriber or his no$inee furnishes

su>cient security, the fore$an shall withdraw the a$ount sodeposited and pay it to the pried subscriber or his no$inee afterdeductin# therefro$ the a$ount due fro$ hi$ for the pay$ent of the instal$ents prior to the date on which the security is furnished.

(@" If the fore$an fails to pay the prie a$ount to the priedsubscriber or his no$inee furnishin# su>cient security it shall beco$petent to such subscriber or no$inee to realise fro$ thefore$an the prie a$ount to#ether with the interest due thereonfro$ the date of furnishin# such security.

VIII. Di&0*&'-'nt o ,i&cont.%(1" The discount for e&erytic+et auctioned shall be distributed e0ually between the pried andnon-pried subscribers after deductin# there fro$ the fore$anGsco$$ission.

I6. Fo*'-an& co--i&&ion an, t)' in&ta+-'nt at @)ic)t)' o*'-an i& to 1't t)' *i'.%(1" (Here specify the date andnu$ber of instal$ent at which the fore$an is to #et the prie" 5rstand the last instal$ent not bein# subect to auction, thesubscribers shall be liable to pay the full a$ount of their tic+ets.


32/55

(2" Here specify the rate or percenta#e of fore$anGs co$$issionand the total a$ount of co$$ission char#eable on the chita$ount.

=ote- Any other a$ount a#reed to by the subscribers for anyother purpose

$ay also be speci5ed here.

H. T*an&'* )o@ to 0' ':'ct',./(1" =o subscriber shall beentitled to transfer his ri#hts in a chit except with the consent inwritin# of the fore$an but no such consent shall be necessary inthe case of a transfer by a subscriber whose na$e has beenre$o&ed by the fore$an fro$ the list of subscribers for default of pay$ent of subscriptions. The transferee (whether he is already asubscriber or not", shall be entitled to no $ore ri#hts than thetransferor had in the chit in respect of the tic+et or fraction thereof which is transferred.

(2" =o transfer of the ri#hts of a fore$an to recei&e subscriptionsfro$ the pried subscribers shall be $ade without the pre&ioussanction in writin# of the )e#istrar of Chits. Any such transfer shall,if it defeats or delays a non-pried subscriber, be a&oidable at theinstance of such subscriber.

HI. Ba+anc' S)''t an, &0&c*i0'*& *i1)t to 'a-in' c)it*'co*,&./(1"


33/55

pried and unpaid pried subscribers for $a+in# any alteration inthe chit a#ree$ent not inconsistent with the pro&isions of the Actand the rules $a+e thereunder.

(@" If for any default of the fore$an, the conduct of the chit is notcontinued, the fore$an shall pay to the non-pried subscribers

their contributions includin# discount within (here specify theperiod", failin# which shall be entitled to such subscribers to realisethe a$ount to#ether with the interest due thereon fro$ thefore$an or fro$ all or any of the followin# assets --

(a" the security #i&en or deposited by the fore$an (b" other properties belon#in# to the fore$an (c" the future subscriptions due to the fore$an fro$ the

pried subscribers..

(" In case where the fore$an holds tic+ets as an ordinary

subscriber in addition to the tic+et of which he is entitled to theprie without deduction of the discount, he shall not ha&e any $oreri#hts or pri&ile#es than the other subscribers ha&e in the chit.:hen the fore$an bids such tic+ets, he shall furnish su>cientsecurity for the pay$ent or future subscriptions as re0uired by theAct and the rules $ade thereunder.

(8" If before the ter$ination of the chit, the fore$an dies orotherwise beco$es unable to conduct the chit.

(i" (Here specify the arran#e$ents $ade for the conduct

of the chit" (ii" in such a case any one or $ore of thenon-pried subscribers authorised by a specialresolution $ay, in the absence of any pro&ision in thischit a#ree$ent for the future conduct of the chit, ta+ethe place of the fore$an and ha&e the ri#ht to continuethe chit or to $a+e suitable arran#e$ents for the futureconduct of the chit.

(9" Here specify any other pro&isions that $ay be a#reed to suchas pay$ent of interest of penalty, if any, payable or any default inthe pay$ent of stipulated any instal$ents, etc.

(1!" The subscribers who ha&e a>xed their si#natures hereundera#reed to the abo&e articles - OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOO r.=o. =a$e and

fullAddress ofsubscriber

=o. of tic+etsta+en.

ubscriberssi#nature Mdate.

=a$e,si#natureand addressof witness

"1 Fore$an2..

..?.@.


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FORM H

(ee ection 1@ and )ule 1@"=otice to subscribers of Chit =u$ber of 19

ir,

This is to infor$ you that the -----------draw in $onthly0uarterlyhalf yearlyyearly Chit =o.--------------19---------in which you are one of the subscribers will be held on-----day-----------($onth", 19--------at---------A..D.'.D. at--------------(address". Vou $ay +indly $a+e itcon&enient to be present at the draw in person or by your duly

authorised a#ent.

Vours faithfully,

ecretary2. for and on behalf of (fore$an".

-------------------------------------------------------------------------------------------------------------1. tri+e out or delete whate&er is not applicable.

(2" Insert such desi#nation(s" as $ay be appropriate.


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. Dar+et &alue of the property.8. Eetails of prior encu$brances,

If any, on the property.9. Do&eable (and i$$o&able"

'roperties belon#in# solely to The applicant (to be shown

separately".1!. :hether the applicant hasany debt and if so, the

a$ount of such debt.

11. :hether the applicant has Conducted any chit before and If so, whether there is anyubsistin# liability under the sa$e.

I a$we are appendin# herewith-

(i" title deeds in support of title to the property oBered assecurity and

(2" the no encu$brance certi5cate of the property for the pastten years. The infor$ation and particulars furnished herein are true andcorrect to the best of $your +nowled#e, infor$ation and belief.

Vours faithfully,

Chair$an

ecretary'lace

i#nature(s"Eate for an on behalf of--------------

=ote- (I" Applicable only when the security oBered isI$$o&able property.

(" tri+e outdelete whate&er is not applicable. Insert theEesi#nation as $ay be appropriate to the applicant.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

OOOO Eetails of decision

Eetails of )e#istrar of Chits.

eal


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F


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FORM NO. HIII

Ree ection 2!(" and )ule 2!S

Application for the substitution of security'laceEate The )e#istrar of Chits--------------------------

Eear ir,Iwe propose to #i&e the under noted security in substitution of theori#inal security for proper conduct of the chit, for theco$$ence$ent of which a certi5cate had been #ranted by you(&ide =o.---------------datedOOOOOOO". Certain other particulars are also#i&en below-

1. =a$e of fore$an 2. A#e and occupation , if the fore$an isnot a 5r$ or a co$pany. . The o>ce in which the chit a#ree$ent

of the chit has been re#istered and the nu$ber andyear of re#istration.. Chit a$ount. ?. Eetails of the ori#inal security #i&en. @. Eetails of all $o&eable (and i$$o&able" properties belon#in# solely to the applicant.. :hether the applicant has any debt and, if so, the a$ount of any such debt and to who$ theyare due.8. Eetails of %o&ern$ent securityother securities oBered as substituted security.

Iwe hereby declare that the infor$ation and particulars furnishedherein are true and correct to the best of $your +nowled#e,infor$ation and belief.

Vours faithfully,

Chair$an

ecretary

i#nature(s"


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For and on behalf of------

1. tri+e outdelete whate&er is not applicable.2. Insert the desi#nations as $ay be appropriate to the

applicant.

FORM HIVRee ection 2 and )ule 2?SFor$ of )e#ister of subscribers to be $aintained

ce where the chit a#ree$ent of the chit isre#istered------------------- The re#istration nu$ber and year of re#istration of chit a#ree$entof the chit------------- OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOO

erial=u$beraccordin#to chita#ree$ent.

=a$e andfulladdress of thesubscriber

Eate of si#nin#the chita#ree$ent.

Eate of receipt of copy of the chita#ree$ent by thesubscriber.

Chitsubscriber

=u$ber of tic+ets

A$ount

1 2. . . ?. @.

Assi#n$ent

=a$e andaddress of the assi#nee

Eate of assi#n$ent

=u$ber andfraction of tic+ets

A$ount Eate onwhich thefore$anreco#nisedthe

assi#n$ent. 8. 9 1!. 11.

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOO ubstitution OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOO

)eason

s for

Eate of

re$o&

=a$e

and

Eate of

substit

=u$be

r and

A$oun

t

Eate of

inti$at

)e$ar

+s


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there$o&al of subscription

al address of thesubstitutedsubscri

ber

ution. fraction of tic+ets

ion of thesubstitutionof there$o&

edsubscriber..

12. 1.. 1. 1?. 1@. 1. 18. 19

FORM HV

(ee ection 2 and )ule 2?"

For$ of the Ned#er to be $aintained

ce were the chit a#ree$ent of the chit isre#istered----------------------------------)e#istration nu$ber of the chita#ree$ent--------------------------ection I )eceipts and pay$ents in respect of subscriber

=u$ber of subscriber =a$e of subscriber

=u$ber of tic+ets ta+en Chit A$ount Ned#er )s.

Eate =u$ber of instal$ents


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FORM HVIII

Ree rule 28(2"S

=a$e of the Fore$an

(i" ce where the bye-laws of thechit are re#istered.

(i" )e#istration nu$ber and year of the bye laws of the chit.

(ii" Eate on which the balancesheet was prepared.

(ii" =a$e of the fore$an

(iii" =u$ber of Instal$entsconducted till the date. (iii"Chit a$ounts.

(i&"=u$ber of instal$ents.


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4Ann'*' to Fo*- HVIII=

1. );C;I'T A=E ;6';=EITK);

)eceipt Currentyear

Totalincludin#pre&iousyears.

;xpenditure

Currentyear

Totalincludin#pre&iousyear.

)s. '. )s. '. )s. '. )s. '.1. ubscription paid by the 1. 'rie a$ountspried and non-pried subscribers. disbursed to prie

subscribers.

2. )eceipts under di&idend. 2.Interest paid to subscribers.

. Interest realied fro$ the . A$ounts paid tosubscribers. defaulter non-pried

subscribers.. Contributions by substituted . A$ount contributed or assi#nee non-pried by fore$an for pay$ent of the subscribers in respect prie a$ount.of dues of defaulters

?. Any other a$ount recei&ed ?. Fore$anGs co$$ission.

Fro$ subscribers.@. A$ount contributed by the @. A$ounts on account of fore$an for pay$ent of interest realised forprie a$ount. Eelayed pay$ents andforfeited

di&idends

. Interest accrued fro$ In&est$ents. . Ei&idend paid.

8.


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9. In&est$ents withdrawn. 9.


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(i"tate$ent of details of receipts and expenditure foreach instal$ents.

(ii" tate$ent of disburse$ent.(iii" tate$ent of the prie a$ount in respect of each

instal$ent, and

(i&" tate$ent of details of arrears due on the date of the preparation of the balance sheet fro$ thepried and non-pried subscribers.

(&"'articulars of docu$ents to be entered here.

ecurity oBered by the Fore$an, hypothecation bonds, etc.executed under S'ction $#, and hypothecation bonds etc.obtained fro$ the pried subscribers under section 1 of the Act.

7. C;)TIFICAT; *V F


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2. =a$e A#e


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=otice is hereby #i&en that any pri&ate transfer or deli&ery of, orencu$brance or char#e on, the property $ade or created after theissue of the certi5cate shall be null and &oid a#ainst the said ud#e$ent-creditor under &'ction ce of theCollector of the Eistrict in which the land is situated.

'lace )e#istrar of ChitsEate OOOOOOOOOOOOOOOO *. In the case of $o&eable property, a si$ilar notice $ay be

#i&en with necessary chan#es as to the description of theproperty. A copy of the notice shall be deli&ered to the ud#e$ent-debtor.


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FORM HHI

Ree )ule ? (?"S

Certi5cate for transfer of propertyIn the case of i$$o&able property

:H;);A in execution of the award under section @9 of the ChitFunds Act, 1982 (Central Act =o.! of 1982" in fa&our of-----------(hereinafter referred to as the ud#e$ent creditor" an order aspassed on the-------day of-----19----------for sale of theunder$entioned property of the person or persons (debtor ordebtors"

:hereas the CourtCollector)e#istrar is satis5ed that the said

property can not be sold for want of buyers

It is hereby ordered that the ri#ht, title and interest of the debtor inthe said property shall &est in the said ud#e$ent-creditor and shallbe deli&ered to hi$ subect to the ter$s and conditions laid downin the schedule hereto annexed.

DESCRIPTION OF TE PROPERT ur&ey =o. Area and

assess$ent

=ature of ri#ht, title

and interest of thedefaulter.

Eetails of

encu$brances towhich property issubect.

TE SCEDULE

The said property is transferred to the ud#e$ent-creditor infullpartial satisfaction of the a$ount due to hi$ fro$ the debtor.


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%i&en under $y hand and seal of the CourtCollector)e#istrarthis------------day of------------19----------------

CourtCollector)e#istrar of Chits

In the case of $o&eable property

(The for$ shall be si$ilar with necessary chan#es as re#ards thedescription and the deli&ery of the property".

FORM HHII

Ree )ule 2?(9" S

F


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APPENDIH>II

N;7V


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)s.!,!!!. $ini$u$ of )s.2!!.

(&" :hen the chit a$ount )s.12.!! per tic+et or instal$entexceeds )s.!,!!! but not whiche&er is hi#her

)s.!,!!!. subect to a $ini$u$ of )s.2?!.

(&i" :hen the chit a$ount )s.1?.!! per tic+et or instal$ent exceeds )s.!,!!! but not whiche&er is hi#her but not )s.?!,!!!. subect to a $ini$u$ of )s.!!.

(&ii" :hen the chit a$ount )s.2! per tic+et or instal$entwhiche&er

exceeds )s.?!,!!!. is hi#her subect to a $ini$u$ of )s.!!.

2 (a" For 5llin# the chit a#ree$ent with the ?.!!)e#istrar and the )e#istration of Chit under section .

(b" For e&ery application for re#istration of alternation, ?.!!addition to or cancellation of chit a#ree$ent under section 1?and )ule 1.

. For 5lin# the declaration with the )e#istrar and the 2.!!#rant of a certi5cate of co$$ence$ent under sub-section

(1"of ection 9.

. For 5llin# the certi5cate under sub-section (2" 2.!!of section 1!.

?. For 5llin# a copy $inutes of the proceedin#s 2.!!under section 18.@. For the audit of balance sheet under section 2by the Chit Auditor.(a" :hen the a##re#ate chit a$ount of chits ?!.!!co&ered by the balance sheet does not exceed )s.1!,!!!.(b" :hen such a$ount exceeds )s.1!,!!! for e&ery 1!.!!)s.1,!!! part thereof in excess of )s.1!,!!!.. For 5llin# the audited balance sheet under section 2-

(a" :hen the a##re#ate chit a$ount of chits 2?.!!

co&ered by the balance sheet does not exceed )s.?,!!!.

(b" :hen such a$ount exceeds )s.?,!!! but not ?!.!!)s.1!,!!!.(c" :hen such a$ount exceeds )s.1!,!!! but not

1!!.!!)s.2!,!!!.(d" :hen such a$ount exceeds )s.2!,!!! but not

1?!.!!)s.!,!!!.

(e" :hen such a$ount exceeds )s.!,!!! but not2!!.!!

)s.!,!!!.(f" :hen such a$ount exceeds )s.!,!!!

2?!.!!

8. For the audit of accounts under sub-section of ection @1 by the Chit Auditor/

(a" :hen the chit a$ount does not exceeds )s.?,!!! 2?.!!(b" :hen the chit a$ount exceeds )s.?,!!! ?!.!!but not )s.1!,!!!.


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(c" :hen the chit a$ount exceeds )s.1!,!!! but1!!.!!

not )s.2!,!!!..(d" :hen the chit a$ount exceeds )s.2!,!!! but

1?!.!!not )s.!,!!!.

(e" :hen the chit a$ount exceeds )s.!,!!! but2!!.!!not )s. !,!!!.(f" :hen the chit a$ount exceeds )s.!,!!! but

2?!.!!not )s.?!,!!!.

9.If the balance sheet or accounts are audited )s.2!.!! plus ana$ount)s.2!.!! plus anunder section 2 of sub-section (" of ection @1 a$ount e0ual to

at the 're$ises of fore$an or outside the o>ce and dailyallowanceof the )e#istrar for each such audit in addition ad$issible to the

Chitto fee payable under Articles @ and 8. Auditor under the

'unab Tra&ellin#Allowance )ules.

.For the application for extension of ti$e 5llin#?.!! The declaration under &0>&'ction43= o &'ction &'ction 47= o S'ction !.

1!. For the application oBer as security the i$$o&e- able property under sub-rule (?" of )ule 18.

ituated outside the urisdiction of the 2!.!!

)e#istrar but within the tate.

ituated outside the tate. ?!.!!

For the application for per$ission to substitute 2!.!! The security durin# the currency of the chit underS0>&'ction 43= o &'ction $#.

11. For the application fro$ the Fore$an to conduct ?.!! Dany draw in the presence of the )e#istrar or the 'erson deputed by hi$ under &0>&'ction 43= o

S'ction ".

For the application for the prior appro&al of the ?!.!!)e#istrar to open a new place of business under &0S'ction 4"= o &'ction "(.

For the application of extension to ti$e to 5le 1!.!!Copies of docu$ents under &'ction &'ction 4"= o &'ction 9!.


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For the application for inunction order under ?.!!S'ction 9$.

For the application for lea&e to continue le#al ?.!!'roceedin#s a#ainst Fore$an under &'ction 99.

Application for attach$ent of property under 1!.!!ub-section (1" of section @8.

A fee of rupees two shall be le&ied in each case forFillin# with the )e#istrar--

(a"A copy of each entry relatin# to the re$o&al of Eefaultin# subscriber under &0>&'ction 4$= o S'ction $!.

(b"A copy of each entry relatin# to the substitutions of aubscriber under &0>&'ction 4$= o &'ction $(.(c" A copy of entry relatin# to transfer of the ri#htsof Fore$an under &'ction 3


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(b" :hen such a$ount not exceeds )s.?,!!!. ?.!!(c" :hen such a$ount exceeds )s.?,!!!.

1!!.!!

;xplanation./For the purpose of this Article 3si$ple $oney clai$4$eans clai$ of a Fore$an whose business consists of conductin#

chits includin# disburse$ent of prie a$ounts based on loanbonds, 3'ro$issory bonds, pro$issory notes ad$issions orac+nowled#e$ent and co$plicated $oney clai$s4 all $oney clai$other than si$ple $oney clai$.

1. Fee for application for windin# up of Chit-

(a" :hen the chit a$ount does not exceed ?!.!!)s.?,!!!.(b" :hen the chit a$ount exceeds )s.?,!!!.

1!!.!!

1. Fee for adourn$ent of any proceedin#s under 1!.!!the Act.Fee for application for interi$ stay or relief other than 2?.!!Appeals to the %o&ern$ent or any other authorityKnder the Act.

Fee for appeal to the tate %o&ern$ent or any otherAuthority under S'ction

Chit Fund Punjab Rules 1999.

Documents

Transcript of Chit Fund Punjab Rules 1999.