(1) The foreman may substitute in the list of subscribers any person in place of a defaulting subscriber whose name have been removed from such list under sub-section (1) of section 20:
Manual of Goa Laws (Vol. I) – 685 – Chit Funds Act
Provided that no such substitution shall be made until the expiry of the period allowed for appeal under sub-section (4) of section 20, or where any such appeal has been preferred, until the same has been disposed of:
Provided further that until any person has been substituted in place of a defaulting subscriber, the subscription payable by a defaulting subscriber shall be advanced by the foreman.
(2) Every substitution referred to in sub-section (1) shall, with the date thereof, be entered in the relevant book maintained by the foreman. A true copy of every such entry shall be filed by the foreman with the Registrar within fourteen days from the date of substitution.
(3) All arrears of subscriptions realised from the substituted subscriber, less amount advanced by the foreman, foreman's commission, dividend allowed, shall before the date of the next succeeding instalment, be deposited by the foreman in an approved bank mentioned in the chit agreement. The foreman shall not withdraw the amount so deposited except for payment to the defaulting subscriber.
Explanation.— For the purposes of sub-section (3), 'arrears of subscriptions' shall mean all the previous instalments realised from the substituted subscriber.