The UTTAR PRADESH CHIT FUND ACT, 1975
uttarakhand · 1975
The scanned source for this Act is imperfect — headings or section boundaries may be off. Verify against the official source.
- S. 1For Statement of Objects-and Reasons, please see
- S. 2Section defines "approved bank" and "chit" for the purposes of the Uttar Pradesh Chit Fund Act, 1975.
- S. 3Section 3 mandates chit registration with Registrar, outlines bye-law requirements, and specifies conditions for refusal of registration.
- S. 4Section prohibits issuing chit-related documents without registered general bye-laws.
- S. 5Section 5 mandates chit agreements to be signed by subscribers and foreman, detailing subscriber info, ticket numbers, installment details, and chit terms.
- S. 6Section 6 mandates filing chit agreements and their alterations with the Registrar, who retains the original and returns a marked duplicate to the foreman.
- S. 7Section 7 prohibits auctions or chit drawings without a Registrar's certificate and mandates the Registrar to issue it upon meeting specific conditions.
- S. 8Section 8 mandates the foreman to provide subscribers with chit bye-laws and agreements, and file compliance with the Registrar.
- S. 9Section 9 prohibits altering, adding, or canceling chit agreements without written consent from the foreman and all subscribers.
- S. 10(1) A general meeting of the general body of subscribers shall be held each month in the prescribed manner
- S. 11Section 11 mandates detailed recording and signing of chit fund draw proceedings and filing of these records with the Registrar.
- S. 15Section 15 outlines the duties of a foreman in managing chit funds, including receiving contributions, commissions, and securing payments.
- S. 16Section 16 outlines the foreman's obligations to pay prize amounts and deposit future subscriptions in an approved bank.
- S. 17Every foreman shall keep such registers and books of account, and in such form, as may be prescribed
- S. 18Section 18 mandates every foreman to prepare and file audited balance sheets with the Registrar, detailing assets, liabilities, and valuation methods.
- S. 19(1) Every foreman shall be liable to account to the subscribers for the amounts due to them
- S. 20Section 20 prohibits a foreman from withdrawing from a chit fund unless all non-prized subscribers consent and a copy of this consent is filed.
- S. 21Section 21 mandates non-prized subscribers to pay their subscriptions as per chit agreement and receive a receipt from the foreman.
- S. 22Section 22 outlines the process for removing defaulting subscribers from chit fund agreements and appeals against such removal.
- S. 23Section 23 allows a foreman to replace a defaulting subscriber in a chit fund after 15 days, with proper documentation and bank deposit of arrears.
- S. 24Section 24 outlines procedures for defaulting subscribers to recover their contributions when a substituted subscriber wins a prize.
- S. 25Prized subscribers must provide security for future subscriptions, with an appeal process to the Registrar if security is rejected.
- S. 26Section 26 mandates prized subscribers to pay regular subscriptions or face consolidated payment for all future subscriptions, with the foreman collecting and depositing these funds.
- S. 27Section 27 allows defaulting subscribers to settle arrears in a chit fund suit, and mandates deposit of future subscription payments in an approved bank.
- S. 28Section 28 regulates transfers of subscription rights, requiring Registrar's written approval and allowing subscribers to challenge transfers.
- S. 29Section 29 mandates written, witnessed transfers of chit rights by non-prized subscribers to be filed with the foreman.
- S. 30Section 30 mandates that transfers under section 29 are valid unless the foreman deems the transferee insolvent or the transfer violates existing laws.
- S. 31Section 31 mandates the foreman to record and report chit transfers to the Registrar within 14 days.
- S. 32(1) Where the foreman who is an individual dies or becomes of unsound mind or is otherwise incapacitated
- S. 33Section 33 outlines conditions under which a chit fund agreement in Uttar Pradesh terminates.
- S. 34Section 34 requires filing a true copy of specified consents with the Registrar within 14 days.
- S. 35Section 35 ensures non-prized subscribers can reclaim their contributions without dividend deductions unless otherwise specified in the chit agreement.
- S. 36Section 36 prioritizes chit debts over other debts in the foreman's liabilities, ensuring subscribers' claims are first.
- S. 37Section mandates a foreman to provide chit participants with access to financial records and documents upon payment of a fee.
- S. 38Section mandates preservation of chit records by the foreman for six years after termination.
- S. 39Section 39 allows authorized officers to inspect chit books and records, impound them temporarily, and set conditions for retention.
- S. 40Section 40 outlines conditions under which a chit fund may be wound up by the relevant authority.
- S. 41Section 41 outlines the conditions and procedures for petitioning to wind up a chit fund in Uttar Pradesh.
- S. 42Section 42 prevents chit winding up if insolvency or company liquidation proceedings against the chit's foreman or company are pending.
- S. 43Section 43 mandates winding up of a chit, benefiting all subscribers with due amounts, effective from application submission.
- S. 44The section allows the authority or court to appoint an Interim Receiver or halt proceedings against the foreman for chit fund amounts due.
- S. 45Section 45 allows the authority or court to dismiss, adjourn, or make orders on chit fund applications, with assets vesting for distribution.
- S. 46Section 46 mandates that upon chit winding up, assets vest in authority for distribution to subscribers, appointing a Receiver.
- S. 47Section 47 prohibits chit fund subscribers from suing the foreman without court or authority approval after winding up.
- S. 48Section 48 mandates filing a winding up order with the Registrar and its publication upon filing.
- S. 49Section 49 halts chit fund winding up if the foreman becomes insolvent or a company is wound up, directing asset distribution through relevant insolvency or company court.
- S. 50Section awards compensation to chit foreman if application for winding up is dismissed as frivolous, barring separate compensation suit.
- S. 51Section 51 allows appeals to the High Court against decisions in chit fund winding up, but most are final.
- S. 52Section 52 suspends chit winding up proceedings and excludes certain periods from limitation calculations for legal actions.
- S. 53Section 53 establishes the appointment and roles of Registrars and Chit Auditors for overseeing chit fund accounts in Uttar Pradesh.
- S. 54Section 54 establishes the Registrar of Chits as a corporate entity with perpetual succession and legal standing to manage chit funds.
- S. 55Section allows inspection of Registrar's documents and obtaining certified copies for a fee.
- S. 56Section 56 outlines fees payable to the Registrar for various chit fund registration, certificate, document filing, inspection, and audit services.
- S. 57Section 57 allows aggrieved foremen to appeal Registrar's orders to the State Government for review and final decision.
- S. 58The Registrar can extend a foreman's deadline for filing documents by up to fifteen days at their discretion.
- S. 59Section 59 penalizes violations of the Uttar Pradesh Chit Fund Act, including fines and imprisonment for non-compliance with chit agreement filing and other provisions.
- S. 60No court shall take cognizance of any offence punishable under this Act except on a complaint in writing by the Registr
- S. 61Section allows fines from violations to be used to cover legal costs of proceedings.
- S. 62Section 62 authorizes the Registrar to inspect and seize chit-related documents and call witnesses for investigation.
- S. 63All payments in respect of a chit, whether by the foreman or by the subscriber shall be evidenced by documents in writi
- S. 64No court shall award interest on claims arising under this Act at more than twelve per cent per annum simple interest
- S. 65Section 65 allows courts to provide relief against unfair Chit agreements or those against existing laws.
- S. 66Section 66 allows fees due from a foreman to be recovered as arrears of land revenue.
- S. 67Section 67 allows application of the Act to pre-existing chits but exempts small chits under 100 rupees.
- S. 68The section allows the State Government to exempt certain individuals or chits from the Act's provisions and revoke such exemptions.
- S. 69(1) The State Government may by notification in the official Gazette make rules for carrying out the purposes of this A
- S. 1956—