 |
Premature termination of Chit |
 |
|
A chit can be terminated before expiry of period fixed in the chit agreement if;
1. All the non-prized and unpaid subscribers consent in writing to the termination of chit and copy of such consent is filed as required by the Act; or
2. A foreman, who is an individual dies or becomes of unsound mind or insolvent and the chit is not continued in accordance of the provisions 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 insolvent, the chit shall not be deemed to have been terminated and the surviving partner or partners shall conduct the chit in the absence of any provision contrary to the chit agreement, then every non-prized subscribers will be entitled to get back his contribution without deduction of dividend unless the chit agreement provides otherwise. |
Local Services 