The Chits Funds Act,1982
39. Provisions for continuation of chits in certain cases.
(1) Where a foreman dies or becomes of unsound mind or is otherwise incapacitated, the chit may continue in accordance with the provisions of the chit agreement.
(2) Where a foreman is adjudicated an insolvent, or withdraws from the chit under Sec. 26, or fails to conduct the chit at any installments or on any other date before the next succeeding installments as may have been agreed upon by a special resolution, any one or more of such subscribers authoreised by ssuch resolution may, in the absence of any provision in the chit agreement for the future conduct of the chit, take the place of the foreman and continue the chit or make other arrangements for the further conduct the chit.