(1) Where a substituted subscriber draws the prize amount; the defaulting subscriber shall be entitled to recover his contributions subject to such deductions as may be provided for in the chit agreement, which in no case shall exceed the dividend already received by such defaulting subscriber.
(2) The foreman shall on demand made by the defaulting subscriber and on his executing an acknowledgement duly signed, inform the Registrar of the amount due after making all deductions and the Registrar shall issue a cheque or draft in favour of such defaulting subscriber.
(3) If the defaulting subscriber fails to furnish the acknowledgement as aforesaid, the foreman shall, before the date of next succeeding instalment deposit in as approved bank the amount due to the defaulting subscriber, and intimate in writing the fact of such deposit to the defaulting subscriber and the Registrar, The amount so deposited shall not be withdrawn by the foreman for any purpose other than for payment to the defaulting subscriber.
CHAPTER V PRIZED SUBSCRIBERS Prized subscriber to give security
25. Every prized subscriber shall receiving before the prize amount without deductions of all future subscriptions, furnish to the foreman sufficient security and the foreman shall take such security for the due payment of future subscriptions, and if the foreman is the prized subscriber or draws the chit amount under clause (a) of section 15, he shall furnish security for the due payment of future subscriptions to the satisfaction of the Registrar :
Provided that a prized subscriber, other than the foreman, whose security is not being accepted as sufficient by the foreman, may within three months of the date on which he becomes the prized subscriber, appeal to the Registrar, who may, after giving the parties an opportunity of being heard, pass such orders on the appeal as he thinks fit, and his decision in the matter shall be final.
Prized subscriber to pay subscriptions regularly
26. Every prized subscriber shall pay his subscriptions regularly at the time and the place and on the dates mentioned in the chit agreement, failing which, he shall be liable to make a consolidated payment of all the future subscriptions at once :
Provided that the foreman shall pay the amount of subscription every month on behalf of any defaulting prized subscriber till the consolidated payment for arrears and all future interments are realized from such defaulting prized subscriber, which amount shall be deposited by the foreman in the account of the Registrar after deducting the subscription paid by him on behalf of such prized subscriber.
71 [The Uttar Pradesh Chit Funds Act, 1975] [Section 27-30] Recovery of consolidated payment and its disposal