Termination of chit

Termination of chit:- A chit shall be deemed lo have terminated

1. (a) when the period fixed in the chit agreement has expired provided payment of dues to all the subscribers has been completed ; or
2. (b) when all the non-prized and unpaid prized subscribers consent in writing to the termination of the chit and a copy of such consent is filed as required by Section 32 ; or
3. (c) when a foreman, who is an individual, dies or becomes of un- sound mind or is otherwise incapacitated and the chit is not continued in accor- dance with the provision of the chit agreement : Provided that in the case of a foreman which is a firm, if a partner dies or becomes of unsound mind or is otherwise incapacitated the chit shall not be

deemed to have terminated and surviving partner or partners shall conduct the

chit in the absence of any provision to the contrary in the chit agreement.