The Chits Funds Act,1982
22. Duties of foreman.
(1) The foreman shall .on the prized subscriber furnishing sufficient security for the due payment of future subscriptions, be bound to pay him the prize amount:
Provided that the prized subscriber shall be ntitled to the payment of the prize amount without any security whatsoever if he agrees to the deduction therefrom of the amount of all future subscriptions and in such a case, the foreman shall pay the prize amount to the prized subscriber within seven days after the date of the draw or before the date of the next succeeding installments , whichever is earlier;
Provided further that where the prize amount has been paid to the prized subscriber under the first proviso, the amount deducted shall be deposited by the foreman in an approved bank mentioned in the chit greement and he shall not withdraw the amount so deposited except for the payment of future subscriptions.
(2) If, owing to the default of the prized subscriber, the prize amount due in respect of any draw remains unpaid until the date of the next succeeding installments, the foreman shall deposit the prize amount forth with in a separated account in an approved bank mentioned in the chit agreement and intimate in writing the fact of such deposit and the reasons therefore to the prized subscriber and the Registrar:
Provided that where any prized subscriber does not collect the prize amount in respect of any installments of a chit within a period of two months from the date of the draw, it shall be open to the foreman to hold another draw in respect of such installments.
(3) Every payment of the prize amount or the amount of future subscriptions under subsection (1), and the deposit of the prize amount under sub-section (2), shall be intimated to the subscribers at the next succeeding draw and the particulars of such payment or deposit shall be entered in the minutes of the proceedings of that draw.
(4) The Foreman shall not appropriate to himself any amount in excess of what he is entitled to under Cl.(b) or Cl.(c) of sub-section (1) of Sec. 21 Provided that where the foreman is himself a prized subscriber, he shall be entitled to appropriated to himself the prize amount subject to his complying with provisions of Sec. 31
Provided further that the foreman may appropriate to himself the interest accruing on the amount deposited under the second proviso to sub-section (1).
(5) The foreman shall not admit any person as a subscriber to a chit, if, by such admission, the total number of tickets mentioned in the chit agreement is increased.
(6) The foreman shall distribute among the subscribers in accordance with the chit agreement, the dividend either in cash, grain or by way of adjustment towards the subscriptions payable for the next installments, if any.
