Chapter VI TRANSFER

Restrictions on transfer of rights of foreman : -

1. (1) No transfer of the rights of a foreman to receive subscriptions from prized subscribers shall be made without the previous sanction in writing of the Registrar.
2. (2) Any such transfer of the rights of a foreman to receive subscriptions from a prized subscriber shall, orr application by the subscriber and if it is likely to affect prejudicially the interest of any non-prized subscriber or unpaid prized subscriber, be set aside by such officer as may be empowered by the Government in this behalf.
3. (3) When under sub-section (2), a transfer is disputed by a subscriber, the burden of proving that the foreman was in insolvent circumstances at the time of the transfer and that the transfer is not likely to affect prejudicially the interests of any such subscriber is upon the transferee.

Transfer of non-prized subscriber's rights to be in writing: - Every transfer by a non-prized subscriber of his rights in the chit shall be in writing duly attested by at least two witnesses and shall be filed with the foreman.

Recognition of transfer by the foreman :- Every transfer under Section 27 shall be recognized by the foreman unless the transferee is not sol- vent or the transfer was effected with a view to defeat the provisions of any law.

Entry of transferee's name in the books :- Every transfer made under Section 26 or Section 27 shall be entered by the foreman in the books of the chit forthwith and true copy of such entry shall be filed by the foreman with the Registrar within fourteen days from the date of such entry.