(1) The Registrar or any other officer authorized by him in this behalf may inspect the chit books and all records relating to the chit.
(2) Every foreman shall be bound to produce the chit books and records before the Registrar or the officer authorised under subsection (1) at such time and place as he may require and shall furnish to him any other information as he may require :
Provided that such inspection may be made at the premises of the foreman if he pays in advance such fees as may be prescribed for the inspection :
Provided further that if the foreman is a banking company as defined in the Banking Companies Act, 1949, such inspection shall be made only at the premises of the Company and only on a working day and such foreman shall pay such fees as may be prescribed for the inspection.
74 [The Uttar Pradesh Chit Funds Act, 1975] [Section 40]
(3) Any officer mentioned in sub-section (1) may impound and retain in his custody for such period as he thinks fit any books of account or other documents produced before him :
Provided that such officer shall not --
(a) impound any books of account or other documents without recording his reasons for so doing; or
(b) retain in his custody any such books or documents for a period exceeding fifteen days excluding days falling on holidays save for adequate and exceptional reasons to be recorded and in the case of an officer other than the Registrar, without obtaining the written approval of Registrar in that behalf.
CHAPTER IX WINDING UP OF CHITS When chit may be wound up
40. A chit may be wound up by the prescribed authority having jurisdiction over the place where the chit has been registered-
(a) if the chit has terminated under clause (c) of section 33; or
(b) if the foreman fails to give the security specified, in section 14 or it he commits any such act in respect thereto as is calculated to impair materially the nature of the security or the value thereof; or
(c) if he fails to deposit the chit money in accordance with the provisions of this Act; or
(d) if it ispr6vedto the satisfaction of the prescribed authority that the foreman is unable to pay the amounts due to the subscribers ; or
(e) if execution or other process issued on a decree or order of any court in favour of any subscriber in respect of amounts due to him from the chit is returned unsatisfied in whole or in part ; or
(f) if it is proved that there has been fraud or collusion on the part of the foreman in the matter of taking securities from prized subscriber; or
(g) if the foreman has appropriated the prize amount in his capacity as a subscriber without furnishing sufficient security for future subscriptions; or
(h) if it Is otherwise just and equitable that the chit should be wound up.
Explanation-- For the purposes of clause (d), in determining whether the foreman is unable to pay the amounts due to the subscribers, the prescribed authority, shall take into account his contingent and prospective liabilities in respect of the chit :
Provided that a chit conducted by a company within, the meaning of the Companies Act, 1956, may be wound up only by the Court having jurisdiction under that Act.
75 [The Uttar Pradesh Chit Funds Act, 1975] [Section 41-46] Windings up application Act v of 1908
41. The application to the prescribed authority or court, as the case may be, for the winding up of a chit shall be by a petition presented by any non-prized subscriber or unpaid prized subscriber or by the Registrar, signed and verified in the manner prescribed by the Code of Civil Procedure, 1908, and shall contain such particulars as may be prescribed :
Provided that no application for the winding up of a chit under clause
(d) or clause (h) of section 40 shall the unless such petition is presented----
(a) by such non-prized subscriber and unpaid prized subscribers whose subscriptions to the chit amount in the aggregate to not less than twenty-five per cent of the amounts contributed by all the non-prized subscriber and unpaid prized subscriber; or
(b) by or with the previous sanction of the Registrar.
Explanation-- For the purposes of the proviso, a subscriber of a fraction of a ticket shall be deemed to by a subscriber only to the extent of such fraction.
Insolvency or liquidation a bar to winding up proceedings
42. Notwithstanding anything contained in sections 40 and 41, no petition for the winding up of a chit shall be entertained by the prescribed authority or a court under section 40 if proceedings under the Provincial Insolvency Act, 1920, are pending against the foreman for adjudicating him an insolvent or where the foreman is a company, if proceedings for winding up the company are pending against such company under the Companies Act,
1956.
Commencem ent and effect to winding up order
43. An order for the winding up of a chit shall operate in favour of all the subscribers to whom amounts are due from the chit and it shall be deemed to have effect from the time of the presentation of the application for the winding up.
Interim Receiver and stay of other proceedings
44. The prescribed authority or court may, upon the application of the foreman or of any subscribers to whom amounts are due in respect of the chit at any time after the presentation of the application for the winding up of a chit under this Act, make an order for the appointment of an Interim Receiver or an order staying further proceedings in any suit or proceeding instituted against the foreman for the realisation of amounts due in respect of the chit upon such terms as the prescribed authority or court thinks fit.
Power of court on hearing the application
45. On hearing the application, the prescribed authority or court may dismiss it with or without costs or adjourn the hearing conditionally or unconditionally or make an interim order or any other order as it may deem fit.
Chit assets to vest in prescri-bed authority or court for distribution
46. On the making of an order for the winding up of a chit, the entire chit assets shall vest in the prescribed authority or court, as the case may be, for distribution amongst the subscribers to whom amounts are due in respect of the chit and such prescribed authority or court shall appoint a Receiver and pass such other orders in the matter as it deems fit.
76 [The Uttar Pradesh Chit Funds Act, 1975] [Section 47-51] Suits, etc.
stayed on winding up orders
47. Where a winding up order has been made by the prescribed authority or a court, no suit or other legal proceedings shall be continued or commenced against the foreman by a subscriber for the realization of amounts due to him in respect of the chit except with the leave of the prescribed authority or court and on such terms as the prescribed authority or court may impose.