When chit may be wound up

When chit may be wound up :- The City Civil Court in respect of a chit registered in the area comprised within the jurisdiction of the Municipal Corporation of Hyderabad and the District Court having jurisdiction in respect of a chit registered elsewhere may wind up a chit for all or any of the following reasons, namely .-

1. (a) if the chit has terminated under clause
2. (c) of Section 31 ;
3. (b) if the foreman fails to give the security specified in Section 12 or

if he commits any such act in respect thereto as is calculated to impair

materially the nature of the security or the value thereof, or

1. (c) if he fails to deposit the chit moneys in accordance with the provisions of this Act, or
2. (d) if it is proved to the satisfaction of the court that the foreman is unable to pay the amounts due to the subscriber, or
3. (e) if execution or other process issued on a decree or order of any court in favour of any subscriber in respect of amounts due to him from the chit is returned unsatisfied in whole or in part, or
4. (f) if it is proved that there has been fraud or collusion on the part of the foreman in the matter of taking securities from prized subscriber, or
5. (g) if the foreman has appropriated the prize amount in his capacity as a subscriber without furnishing sufficient security for future subscriptions, or
6. (h) if it is just and equitable that the chit should be wound up. Explanation:- For the purposes of clause (d), in determining whether the foreman is unable to pay the amounts due to the subscriber, the Court shall take into account his contingent and prospective liabilities in respect of the chit; Provided that a chit conducted by a company within the meaning of the Companies Act, 1956 shall be wound up only by the Court having jurisdiction under that Act.