Chapter XI MISCELLANEOUS

Appeals :-

1. (1) any foreman aggrieved by the decision of the Registrar -
   • (a) refusing to issue a certificate of registration of the bye-laws of chit under section 3;
   • (b) refusing to grant a certificate of commencement under sub- section
2. (2) of Section 7;
   • (c) refusing to accept the security under clause
   • (a) of sub-section (1)

of section 12 or under Section 23 ;or

1. (d) refusing to release the property charged by way of security or to

order the release of the cash security of the Government securities

under sub-section

1. (4) or sub-section
2. (5) of Section 12; may within thirty days of the communication to him of such decision appeal to the Director of Chits.
3. (2) Any foreman or any other person aggrieved by an order of the Registrar under sub-section
4. (1) of Section 26 or by an order of an

officer empowered by the Government under sub-section

1. (2) of that Section may, within thirty days of the communication to him of such

order, appeal to the Director of Chits.

1. (3) The Director of Chits my, after giving the appellant an

opportunity of making his representation pass such order on the

appeal under subsection

1. (1) or sub-section
2. (2) as he thinks fit.

Power of Registrar to condone delay in certain cases: - The Registrar may, in his discretion and upon an application in writing by any foreman made within the period of fourteen days specified in any of the provisions of sub section

1. (2) of Section 20, sub-section
2. (2) of Section 21, Section 29 and Section 32, allow to the foreman further time not exceeding fifteen days to file a copy of any document under any of the provisions referred to above.

Penalties: -

1. (I) Whoever contravenes or abets the contravention of any of the provisions of sub-section ( 1 ) of Section 3 or Section 4, sub-section ( I ) of Section 7 shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five hundred rupees or with both.

1. (2) Any foreman-
   • (a) who does not file the chit agreement under Section 6 or a copy of any document under section 11, sub-section 2 of Section 20, sub-section
2. (2) of Section 21, Section 29 or Section 32 within the period specified for such filing or within the further time allowed under Section 55 for such filing ; or
   • (b) who contravenes any of the provisions of Section 8, sub-section (1),
3. (2) and
4. (6) of Section 12, Section 14, Section 15, Section 16, Section 18, Section 20, Section 2 1 , Section 23, sub-section
5. (4) of Section 25, Section 29, Section 35, Section 36, Section 37 and sub-section
6. (4) of Section 51 ; or
   • (c) who fails to comply with the requirements of the chit agreement regarding the date, time and place at which the chit is to be drawn ; shall be punishable with fine which may extend to one hundred rupees.
7. (3) Whoever in any document required by, or for purposes of, any of the provisions of this Act, wilfully makes a statement false, in any material particulars knowing it to be false, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five hundred rupees or with both.

Cognizance of offences: - No Court inferior to that of a salaried magistrate of the First Class shall try any offence under this Act.

Application of fines: -The Court imposing any fine under this Act, may direct that the whole or any part thereof be applied in or towards payment of the costs of the proceedings.

Power to enter and search any place and to seize documents, etc.:-

1. (1) A Magistrate of the First Class may, on receiving a report from the Registrar or the Inspecting Officer appointed under sub-section
2. (1) of Section 51, that any person conducts, or is responsible for the conduct of a chit in any place in contravention of the provisions of this Act, issue a warrant empowering the Registrar or the Inspecting Officer to enter the place with such assistance as he considers necessary and search or inspect the books, registers, accounts or documents in such place. On receiving such warrant the Registrar or the Inspecting Officer may enter the place with such assistance as he considers necessary and search or inspect the books, registers, accounts or documents in such place and may take to his office for further investigation such books, registers, accounts and documents as he considers necessary: Provided that if the Registrar or the Inspecting Officer removes from the place any books, registers, accounts or documents he shall give to the person in charge of the place, a receipt describing the book, register, account or document so removed by him. Provided further that within twenty-four hours of the removal of the books registers, accounts and documents from the place, the Registrar or the Inspecting Officer shall either return them to the person from whose custody they were removed or produce them in the Court of the Magistrate who issued the warrant ; and the Magistrate may return the books, registers, accounts and documents or any of them to the person from whose custody they were removed by the Registrar or Inspecting Officer, after taking from that person such security as the Magistrate considers necessary for the production of the books, registers, accounts and documents when required whether by the Registrar or by the Inspecting Officer or by the Court, or may pass such other orders as to their disposal as appear just and convenient to the Magistrate.
3. (2) The Registrar or the Inspecting Officer shall have authority to require any person whose testimony he may require regarding any chit agreement to attend before him or to produce or cause to be produced any document and to examine such person on oath. (3} The Registrar or the Inspecting Officer may apply for assistance to an officer in charge of police station and take police officer to accompany and assist the Registrar or the Inspecting Officer in discharging his duties under this Act.
4. (4) The provisions of Section 102 of the Code of Criminal Procedure, 1898, shall, so far as may be, apply to a search under this Section.

Payment to be evidenced by documents :- All payments in respect of a chit whether by the foreman or by the subscriber shall be evidenced by documents in writing.

Interest at more than twelve percent not be allowed: - No court shall award interest on claim arising under this Act at more than twelve percent per annum simple interest.

Power of court to grant relief in certain cases : - Nothing in the foregoing provisions of this Act shall affect the power vested in a Court for granting relief against any of the provisions contained in the chit agreement if the same be unconscionable or opposed to the provisions of any law.

Power to make rules :-

1. (1) The Government may, be notification, make rules for carrying out all or any of the purposes of this Act.
2. (3) In particular, and without prejudices to the generality of the foregoing power, such rules may provide for or regulate: -
   • (a) all matters expressly required or allowed by this Act to be prescribed.
   • (b) The matter in respect of which provision shall be made in the bye-laws of a chit and the procedure to be followed in making, registering, altering and abrogation;
   • (c) The particulars which every chit agreement shall contain;
   • (d) the method of valuation of grain or other commodity by the Registrar in a grain chit, for the purposes of security under section 12;
   • (e) the restrictions and conditions subject to which and the manner in which , any security given by a foreman under Section 12 may be changed or substituted;
   • (f) the procedure to be followed by the Registrar for the release of security given by the foreman under section 12;
   • (g) the maintenance of registers and books of accounts by the foreman, the safe custody of books, papers and documents in the Registrar’s office and also for the destruction of such books, papers and documents as need no longer be kept;
   • (h) the procedure to be followed for the winding up a chit under Chapter IX ; and
     • (i) the auditing of the balance sheets and profit and loss accounts and the issue of audit certificates.
3. (4) Every rules made under this Act, shall immediately after its made be laid before each House of the State Legislature if it is in session and if it is not in session, in the session immediately following, for a total period of fourteen days which may be comprised in one session or in two successive sessions and if before the expiration of the session in which it is so laid or the session immediately following , both Houses agree in making any modification in the rule or in the annulment of the rule, the rule shall form the date on which the modification or annulment is notified have effect only is such modified form or shall stand annulled as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Recovery of amounts due from a foreman: - All amounts due from a foremen to the Registrar or any other officer under this Act by way of any fee shall be recoverable as arrears of land revenue .

Act not apply to certain Chits :- the provisions of this Act shall

not apply in respect of ---

1. (1) any chit started and conducted before the commencement of this Act, or
2. (2) any chit the chit amount of which or where two or more chits are started or conducted simultaneously by the same foreman, the aggregate chit amount of which does not exceed one hundred rupees.

Power to exempt: - The Government may, by notification exempt any person or class of persons to who or any chit or class of chits to which this Act applies from all or any of its provisions, subject to such conditions as they deem fit and may cancel or modify any such notification.

-1 67. Amendment of Central Act 2 of 1899:- In Schedule 1-A to the Indian Stamp Act, 1899 as amended by the Indian Stamp ( Andhra Pradesh Amendment) Act, 1922, after entry 18, the following entry shall be inserted namely:-

1. (1) (2) "18-A. Chit agreement that is to say an agreement, relating to a chit as defined in clause
2. (2) of section 2 of the Andhra Pradesh Chit Funds Act 1971 if, either such agreement is executed or the chit is conducted in the State of Andhra Pradesh. One rupee"