Provision for continuation of chitties in certain cases

Of Termination of Chitties

Provision for continuation of chitties in certain cases.—

1. (1) When a foreman dies or becomes of unsound mind, his legal representative or his guardian, as the case may be, may, in the absence of any provision in the variola to the contrary, in the absence of any provision to the contrary, take the place of the foreman and continue the chitty or make other arrangements in consultation with the non-prized and unpaid subscribers for the further conduct thereof.
2. (2) If the legal representative or the guardian, as the case may be, fails to make any arrangement under sub-section (1), any one or more of the non-prized or unpaid prized subscribers authorised by a resolution passed at a meeting of the non-prized and unpaid prized subscribers may, in the absence of any provision in the variola to the contrary, take the place of the foreman and continue the chitty or make other arrangements for the further conduct thereof.
3. (3) When a foreman is adjudicated an insolvent under the Insolvency Act, 1955 (2 of 1956), or withdraws from the chitty under section 22 or fails to conduct the chitty at any instalment or at any other date before the next succeeding instalment as may have been agreed upon by a resolution passed at a meeting of non-prized and unpaid prized subscribers held in that behalf, any one or more of the non-prized or unpaid prized subscribers authorized by the above resolution may, in the variola for the future conduct of the chitty, take the place of the foreman and have the right to continue the chitty or to make other arrangements for the further conduct of the chitty.