Chapter IV Chapter IV

Non-prized Subscribers

1. (1) Every non- prized subscriber shall pay his subscription at the time and place mentioned in the chit agreement and shall on such payment be entitled to get a receipt from the foreman.
2. (2) A non-prized subscriber who defaults in paying his subscription in accordance with the terms of the chit agreement shall in no way be entitled for the benefit of dividend. in respect of the instalment for which he defaults.

1. (1) A non-prized defaulting subscriber shall be liable to have his name removed from the list of subscribers.
2. (2) Every removal under sub-section (1) shall, with the date thereof. be entered in the relevant book maintained by the foreman and a written notice of such removal shall be given by the foreman to the defaulting subscriber within fourteen days of such removal.
3. (3) A true copy of the entry referred to in sub-section (1) shall be filed by the foreman with the Registrar within fourteen days from the date of such removal.
4. (4) Any defaulting subscriber aggrieved by the removal of his name from the list of subscribers may. within seven days of the communication to him of the notice of removal, appeal to the Registrar.
5. (5) The Registrar shall, after giving the parties an opportunity of being heard. pass such orders on the appeal as he thinks fit and the decision of the Registrar shall be final. the (6) When an appeal has been preferred under sub-section (4) subscription payable by defaulting subscriber during the pendency of the appeal shall be advanced by the foreman.

(1) The Foreman may substitute in the list of subscribers any person in place of a defaulting subscriber whose name have been removed from such list under sub- section (1) of section 20; J11- Provided that no such substitution shall be made until the expiry of the period allowed for appeal under sub-section (4) of section 20. or where any such appeal has been preferred, until the same has been disposed of: Provided further that until any person has been substituted in place of a defaulting subscriber, the subscription payable by a defaulting subscriber shall be advanced by the foreman. (2)Every substitution referred to in sub-section (1) shall. with the date thereof, be entered in the relevant book maintained by the foreman. A true copy of every such entry shall be filed by the foreman with the Registrar within fourteen days from the date of substitution. (3)All arrears of subscriptions realised from the substituted subscriber, less amount advanced by the foreman. foreman's commission. dividend allowed. shall before the date of the next succeeding instalment. be deposited by the foreman in an approved bank mentioned in the chit agreement. The foreman shall not withdraw the amount so deposited except for payment to the defaulting subscriber. Explanation.— For the purposes of sub-section (3). "arrears of subscriptions’ shall mean all the previous instalments realised from the substituted subscriber.

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Provided that no such substitution shall be made until the expiry of the period allowed for appeal under sub-section (4) of section 20. or where any such appeal has been preferred, until the same has been disposed of:

Provided further that until any person has been substituted in place of a defaulting subscriber, the subscription payable by a defaulting subscriber shall be advanced by the foreman.

(2)Every substitution referred to in sub-section (1) shall. with the date thereof, be entered in the relevant book maintained by the foreman. A true copy of every such entry shall be filed by the foreman with the Registrar within fourteen days from the date of substitution.

(3)All arrears of subscriptions realised from the substituted subscriber, less amount advanced by the foreman. foreman's commission. dividend allowed. shall before the date of the next succeeding instalment. be deposited by the foreman in an approved bank mentioned in the chit agreement. The foreman shall not withdraw the amount so deposited except for payment to the defaulting subscriber.

Explanation.— For the purposes of sub-section (3). "arrears of subscriptions’ shall mean all the previous instalments realised from the substituted subscriber.

1. (1) When a substituted subscriber draws the prize amount, the defaulting subscriber shall be entitled to recover from the foreman his contributions, subject to such deductions as may be provided for in the chit agreement.
2. (2) The foreman shall on demand made by the defaulting subscriber and on his executing an acknowledgement duly signed. be bound to pay to the defaulting subscriber the amount due to him before the date of the next succeeding instalment.
3. (3) Where the defaulting subscriber fails to furnish the acknowledgement as aforesaid. the foreman shall. before the date of next succeeding instalment, deposit in an approved bank the amount due to the defaulting subscriber and the amount so deposited shall not be withdrawn by the foreman for any purpose other than for payment to the defaulting subscriber.

1. (1) The foreman may. on his own initiative convene a special meeting of the general body of subscribers for considering proposal to pass a special resolution,
2. (2) The foreman shall convene such a meeting on the requisition in writing of not less than twenty five percent of the number of non-prized and unpaid prized subscribers. and the meeting so convened shall be held within thirty days of the date of the receipt of the requisition and if the foreman refuses or fails to call the meeting within fourteen days of the receipt of such requisition. the meeting may be convened by not less than twenty five per cent, of the number of the non-prized and unpaid prized subscribers. (3)If the foreman refuses or fails to convene a meeting as required by sub-section (2). he shall be punishable with fine which may extend to one hundred rupees. S12-
3. (4) Notice of not less than fourteen days shall be given to all subscribers of a meeting under this section specifying the object. date. hour and place of the meeting and a copy of the proposed special resolution shall also be sent along with the notice.
4. (5) The meeting shall elect its own chairman.