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← Kerala Acts

The Kerala Chitties Act, 1975

72 sections · 0 chapters

- Section 1 Short title, extent and commencement
- Section 2 Insertion of new section 70A
- Section 34 How meetings to be held

The Kerala Chitties Act, 1975

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General1975Kerala Act

The Kerala Chitties Act, 1975

The Kerala Chitties Act, 1975, provides a comprehensive legal framework for the regulation of chit funds (chitties) within the state of Kerala. It mandates that all chitty schemes must be registered with the government to ensure transparency and protect the financial interests of subscribers. The Act defines the specific roles and responsibilities of the "foreman" (the organizer) and the subscribers, requiring the foreman to provide security for the chitty funds. It establishes strict rules for conducting auctions, maintaining accurate financial records, and handling disputes. By providing a clear mechanism for winding up insolvent chitties and penalizing fraudulent activities, the Act safeguards ordinary citizens from financial exploitation.

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Legislative Amendment Timeline

Chronological legislative evolution of The Kerala Chitties Act, 1975 across statutory gazettes and amending Acts.

Enacted1975

Amendments0

Enactment1975
Act Enacted

Principal Statute in Force: No subsequent statutory amendments have been recorded for this edition.

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Part I— Part I

Section 1Short title, extent and commencement
Section 2Insertion of new section 70A

Part II— Part II

Section 3Prohibition of chitty not sanctioned or registered under this Act
Section 4Prohibition of invitation for subscription except under certain conditions
Section 5Saving of some chitties
Section 6Variola
Section 7Particulars of variola
Section 8Registration
Section 9Effect of registration
Section 10Copies of variola to be given to subscribers and acknowledgements to be filed
Section 11Alteration of variola
Section 12Time and place of conducting chitty
Section 13Minutes of proceedings of drawing of chitty
Section 14Copy of minutes to be filed with Registrar

Part III— Part III

Section 15Security to be given by foreman
Section 16Provided that the security left after release of the part is sufficient to satisfy the outstanding claims of all subscribers.
Section 17Duties of foreman
Section 18Books to be kept by foreman
Section 19Punishment for failure to keep books
Section 20Balance sheet
Section 21Liability of foreman to subscribers
Section 22Withdrawal of foreman

Part IV— Part IV

Section 23Non-prized subscribers to pay subscriptions and get receipts
Section 24Removal of defaulting subscribers
Section 25Amount due to defaulting subscriber how dealt with

Part V— Part V

Section 26Prized subscriber to sign minutes of proceedings
Section 27Prized subscriber to give security
Section 28Consequences of prized subscriber defaulting to pay subscriptions
Section 29Foreman to give notice in writing before demanding payment of all future subscriptions

Part VI— Part VI

Section 30Transfer of rights of foreman when voidable
Section 31Transfer to be in writing
Section 32Recognition of transfer by foreman
Section 33Entry of transferee's name in the books

Part VII— Part VII

Section 34How meetings to be held

Part VIII— Part VIII

Section 35Provision for continuation of chitties in certain cases
Section 36Termination of chitty
Section 37Copy of resolution, etc., to be filed with the Registrar
Section 38Refund of non-prized subscribers subscription
Section 39Preference of subscribers over chitty assets

Part IX— Part IX

Section 40Foreman to allow subscriber to examine chitty records
Section 41Preservation of chitty records by foreman
Section 42Inspection of chitty books and records

Part X— Part X

Section 43Chitty when to be wound up
Section 44Winding up application
Section 45Insolvency or liquidation a bar to winding up proceedings
Section 46Commencement and effect of winding up order
Section 47Injunction order
Section 48Powers of court on hearing the petition
Section 49Vesting of chitty assets in receiver
Section 50Suits stayed on winding up order
Section 51Copy of winding up order to be filed with the Registrar
Section 52Stay of winding up proceedings on insolvency of foreman and transfer of insolvency proceedings
Section 53Award of compensation to foreman
Section 54Right of appeal
Section 55Limitation

Part XI— Part XI

Section 56Registration Office
Section 57Appointment of Registrars, inspecting officers and chitty auditors
Section 58Inspection of documents in Registrar's Office
Section 59Levy of fees

Part XII— Part XII

Section 60Penalty if the foreman is a company
Section 61Application of fine
Section 62Compounding of offences
Section 63Penalty for false statement
Section 64Power to enter and search any place and to seize documents, etc
Section 65Interest at more than 9 per cent not to be allowed on grain
Section 66Power of courts to grant relief in certain cases
Section 67Protection of action taken under this Act
Section 68Power to make rules
Section 69Recovery of amounts due from foreman
Section 70Application of Act to certain existing chitties
Section 70APower to exempt
Section 71Power to remove difficulties
Section 72Repeal