(1) Where the foreman who is an individual dies or becomes of unsound mind or is otherwise incapacitated. the chit may be continued in accordance with the provisions of the chit agreement where the agreement so provides.
(2) In the case of a foreman which is a firm if a partner dies, becomes of unsound mind or is otherwise incapacitated the chit shall not be deemed to have terminated and the surviving partner or partners shall conduct the chitin the absence of any provisions to the contrary in the chit agreement.
Termination of chit
33. A chit shall be deemed to have terminated-
(a) when the period fixed in the chit agreement has expired, provided payment of dues to all the subscribers has been completed ; or
(b) when all the non-prized and unpaid prized subscribers consent in writing to the termination of the chit and a copy of such consent is filed as required by section 34; or
(c) when a foreman, who is an individual, dies, becomes of unsound mind or is otherwise ,incapacitated, and the chit agreement does not provide for the continuation of the chit or when the partner of a foreman which is firm dies or becomes of unsound mind or is otherwise incapacitated and the chit agreement provides for the discontinuation. of the chit in such an event.
Filling of consent with Registrar
34. A true copy of every consent mentioned in sub-section (1) of section 20 or in clause (b) of section 33 with the date of such consent, shall be filed by the foreman or by the remaining foreman or foremen with the Registrar within fourteen days from the date of such consent.
Refund of nonprized subscribers contributions
35. Except in the cases referred to in clauses, (a) and (b) of section 33 --
(1) every non-prized subscriber shall, unless otherwise provided for in the chit agreement, be entitled to get back his contribution at the termination of the chit without deduction for dividend, if any, received by him :
73 [The Uttar Pradesh Chit Funds Act, 1975] [Section 36-39]
Provided that any persons to whom the rights of a non-prized subscriber are transferred under section 29, shall in addition to his own contributions, be entitled, unless otherwise provided for in the chit agreement, to get back the contributions made by such non prized subscriber ;
(2) if the chit terminates on a date earlier than the date originally fixed in the chit agreement, the non-prized subscriber's, claim shall be deemed to have arisen on the date on which he has received a notice of such termination.
Subscribers dues to be first charge on chit assets
36. Where there are debts due from the foreman of a chit in relation thereto and also other debts due from him, the chit debts due to, the subscribers shall be first charge on the chit assets.
Chapter VIII INSPECTION OF DOCUMENTS Foreman to allow subscribers to examine chit records
37. Every foreman shall, on payment of such fee not exceeding five rupees as may be specified in the chit agreement, allow non prized and unpaid prized subscribers all reasonable facilities on all days of drawing of chits or, on such days and within such hours as may be provided for in the chit agreement for the inspection of security bonds and documents, receipts and other records taken from the prized subscribers or furnished by the foreman himself in his capacity as a subscriber and all chit records including books of account and pass books, the balance-sheets and profit and loss accounts and such other records as may show the actual financial position of the chit scheme.
Preservation of chit records by foreman
38. All records pertaining to a chit shall be preserved in tact by the foreman and, kept for a period of six years from the date of the termination of the chit.
Inspection of chit books and records