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Search Results Judgments > Act:chit funds act Page:2

Sep 28 1999

Margadarsi Chit Funt Pvt. Ltd., Hyderabad Vs. Government of Andhra Pra ...

  • Decided on : 28-Sep-1999

Court : Andhra Pradesh

Reported in : 1999(5)ALD718; 1999(5)ALT548

... has ultimately resulted in enactment of Chit Funds Act, 1982 by the Parliament. The provisions of the Central Act (40 of 1982) and A.P. Chit Funds Act (9 of 1971) are in pari materia. In fact, it may be noticed that Section 90 of the Central Act repeals the A.P. Chit Funds Act, 1971 and other State Acts. But the Central Act has not come into operation in the ... Chit fund business in this country. It is true, these reports were not available before enacting the Andhra Pradesh Chit Funds Act, 1971, in the State of Andhra Pradesh. The reports and recommendations of those committees were the basis for enactment of Chit Funds Act, 1982 (Central Act 40 of 1982). The Central Act is a comprehensive piece of Legislation, and the dominant purpose of the Act is to regulate the chit ... very object, scheme and the purpose which the Act intends to achieve.6. The chit business in the State of Andhra Pradesh is controlled and regulated by the provisions contained in the A.P. Chit Funds Act, 1971 and the Rules framed thereunder. Section 2(2) of the Act defines the chit. Chit means a transaction, whether called chit fund, chitty or by any other name, by which ... . Chit Funds Act (9 of 1971) are in pari materia. In fact, it may be noticed that Section 90 of the Central Act repeals the A.P. Chit Funds Act, 1971 and other State Acts. But the Central Act has not come into operation in the State of Andhra Pradesh, as the State Government failed to make the rules for giving effect to the provisions of the Act ...

Jan 29 1971

The Mayavaram Financial Corporation Limited and Ors. Vs. The Reserve B ...

  • Decided on : 29-Jan-1971

Court : Chennai

Reported in : (1973)2MLJ72

... of chits. A large number of instances came to light where foremen of chits have either disappeared or evaded payments to non-prized subscribers, and, with a view to safeguard the interests of subscribers, the State of Madras enacted the Madras Chit Funds Act, 1961.3. Section 2 (a) of the Madras Chit Funds Act defines chit as follows:'Chit' means a transaction whether called chit fund, chit, kuri, ... L of the Reserve Bank of India Act are valid, that the Madras Chit Funds Act 1961, regulates only the running of chits, that a major portion of the activities of the chit funds which consist in receiving deposits from the investing public and lending them out to third parties do not fall under the Madras Chit Funds Act, that chit funds are non-banking institutions not falling ... There is no need to control the activities of the foreman of chit, in view of the Madras Chit Funds Act 1961. (6) ,The Government in their supplemental counter-affidavit did not categorically specify the entry under which the impugned enactment falls except stating that the matters covered by the Madras Chit Funds Act 1961, are separate from those covered by the impugned provisions ... chit fund will not result in carrying on a trade. The learned Counsel referred to Sections 2(2), 2 (3) and 5 of the Madras Chit Funds Act and contended that there is no element of trade involved in the various provisions. We agree with him and hold that the impugned provisions do not entrench upon entry 26 of List II and that chit funds ...

Aug 16 1996

Goverdhan Upadhyan Vs. Aekelle Kameswara Rao (Died) and Ors.

  • Decided on : 16-Aug-1996

Court : Andhra Pradesh

Reported in : 1996(4)ALT1

... Chit Fund Company registered under the A.P. Chit funds Act and the plaintiff and the first defendant are the subscribers in the chits run by the 4th defendant. The first defendant became the prized subscriber for chit No. A-l bearing ticket No. 16 and the chit was for Rs. 20,000/- of 40 instalments of Rs. 500/- per each instalment The said chit ... Chit Funds Act, 1961 which is quite similar to the provisions of Section 26 of A.P. Chit Funds Act, 1971, only renders the transfer voidable under sub-section (2) and not null and void and that, therefore, the transfer of rights in favour of another subscriber by the Foreman cannot be considered to be invalid and inoperative. Under Section 26(1) of the A.P. Chit Funds Act ... Chit Funds inasmuch as the transfer effected by the 4th defendant in favour of the plaintiff is only voidable but not void. It is observed by the Madras High Court in the above cited decision that a breach of sub-section (1) of Section 26 of the Tamilnadu Chit Funds Act, 1961 which is quite similar to the provisions of Section 26 of A.P. Chit Funds Act ... to the same question with reference to the provisions of the Tamilnadu Chit Funds Act, 1961 which are similar to the provisions of Section 26 of A.P. Chit Funds Act, 1971. It is observed by the Court in that decision ... view of the provisions of Section 26 of A.P. Chit Funds Act, 1971. The contention of the contesting respondents is that under Section 26(1) of the A.P. Chit Funds Act, 1971, no transfer of the rights of a ...

Apr 29 1988

Sri Visalam Chit Fund Ltd. and others Vs. Union of India and others

  • Decided on : 29-Apr-1988

Court : Karnataka

Reported in : [1990]67CompCas203(Kar)

... the running of chit funds in the areas where such legislation is in force. The Tamil Nadu Chit Funds Act of 1961, seeks to regulate the chit fund business in the State of Tamil Nadu. With appropriate changes, this Act was adopted, with effect from July 15, 1964, in the Union Territory of Delhi. The Union Territory of Pondicherry has the Pondicherry Chit Funds Act, 1966, which ... 1. The constitutional validity of the Chit Funds Act, 1982 (Act NO. 40 of 1982) (in short 'the Act'), is challenged in this batch of writ petitions. 2. In writ petition No. 17110 of 1984, the petitioner is a chit fund company registered in Tamil Nadu under the Tamil Nadu Chit Funds Act. But, it is carrying on business in Banglore through through its branch office ... Tamil Nadu Chit Funds Act of 1961, seeks to regulate the chit fund business in the State of Tamil Nadu. With appropriate changes, this Act was adopted, with effect from July 15, 1964, in the Union Territory of Delhi. The Union Territory of Pondicherry has the Pondicherry Chit Funds Act, 1966, which came into force from August 1, 1967. In Kerala, the Travancore Chitties Act, ... have legislation on chit funds the object of which is to safeguard the interests of the members. The commission feels that it is essential to have a uniform chit fund legislation applicable to the whole country. Depending upon the constitutional position, whether chit funds come under the Union list, Concurrent list or the State list, either an All India Chit Funds Act may be ...

Dec 18 1997

S. Venkatachalam Vs. Secretary to Government of Tamil Nadu and others

  • Decided on : 18-Dec-1997

Court : Chennai

Reported in : [1999]95CompCas589(Mad)

... of the period of limitation specified therein. 19. There is no provision in the Chit Funds Act, 1982, or in the Chit Funds Rules, 1984, which provides for exclusion of Part III of the Limitation Act, 1963, and in particular section 12 of the Limitation Act, 1963. Section 12 of the Limitation Act provides for exclusion of time in legal proceedings. Sub-section (2) of section ... the Registrar of Chits. The disputant has to obviously apply for a certified copy of the judgment and award and the same will be furnished by the Registrar on payment of prescribed fees. 18. Section 65 of the Chit Funds Act, 1982, provides that notwithstanding anything contained in the Limitation Act, 1963, but subject to the specific provision contained in the Chit Funds Act, the ... ) any other matter which may be prescribed. 16. Thus, the proceedings before the Registrar in terms of Chapter XII of the Act have all the incidents of a civil proceeding. Neither the provisions of the Chit Funds Act, 1982, nor the Chit Funds Rules, 1984, provided for communication of the award or judgment by the Registrar and the Registrar is required to pronounce ... shall be excluded. 20. This salutary principle adumbrated in section 12 of the Limitation Act has to be applied while calculating the period of limitation prescribed for an appeal under section 70 of the Chit Funds Act, 1982. As already pointed out the provisions of the Limitation Act had not been excluded either specifically or impliedly. It is true that the Registrar ...

Jan 29 1971

Chockanathan Chit Fund and Finance (P) Ltd., Pondicherry and Ors. vs. ...

  • Decided on : 29-Jan-1971

Court : Chennai

Reported in : AIR1972Mad99

... 3. The Pondicherry Chit Funds Act 1966 is practically a copy of the Madras Chit Funds Act, 1961. The said Pondicherry enactment is in substance as follows. "Chit" is defined in Section 2 and "chit agreement" is defined in Section 2(3). Under Section 3 by laws of Chit Funds signed by the foreman have to be registered with the Registrar of Chits. Under Section 6, every chit agreement signed by ... see anything objectionable in this Chapter.9. Regarding S. 52 in the Pondicherry Chit Funds Act 1966 similar to the one in the Madras Chit Funds Act which has been struck down in 1966-1 Mad LJ 313, we consider that Section 52 is not so obnoxious as to be struck down. Chit fund transactions are not secret transactions and there can be no objection to any ... of the Punditry Chit Funds Act 1966. Under the Constitution (Fourteenth Amendment) Act, 1962, Pondicherry was constituted as a Union territory and de jure transfer of Pondicherry State to the Indian Union was made on 16-8-1962. The Legislative Assembly of the Union Territory of Pondicherry constituted under Section 18 of the Government of Union Territory Act 1963, has made the Pondicherry Chit Funds Act 1966 ... a chit.5. The validity of the Madras Chit Funds Act 1961 from which the impugned Act was copied has been upheld by this court in Tuticorin T. and C. Corpn. (P) Ltd., v. State of Madras, 1966-1 Mad LJ 313. The only provision that was held unconstitutional was Sec. 52.6. As the impugned enactment is a copy of the Madras Chit Funds Act ...

Oct 20 1976

Sudarshan Finance Corporation and Ors. Vs. The State of Madh. Pradesh

  • Decided on : 20-Oct-1976

Court : Madhya Pradesh

Reported in : AIR1977MP74; 1977MPLJ74

... promote it.'26. It was pointed out that in other States, the enactments have only 'regulated' chit fund business; for instance, Madras Chit Funds Act, 1961, Andhra Pradesh Chit Funds Act, 1971; Goa, Daman and Diu Chit Funds Act, 1973; Maharashtra Chit Funds Act, 1974; Kerala Chitties Act, 1975; and U. P. Chit Funds Act, 1975. It is at once remark-worthy that, on the one hand, the petitioners allege want ... chits in para 2, it was observed:--'A large number of instances came to light where foremen of Chits have either disappeared or evaded payments to non-prized subscribers, and, with a view to safeguard the interests of subscribers, the State of Madras enacted the Madras Chit Funds Act, 1961.' In Section 2 (2) of that Act, 'chit' is defined as follows:--' 'Chit' means a transaction whether called chit fund, chit ... entrance money of the members subscription and includes a chit.'[Section 2 (c)] A 'chit' has been defined in the Act thus:--' 'Chit' means a transaction whether called chit fund, chit, Kuri, or by any other name, by which its promoter, conductor or any other person responsible for the conduct of chit enters into an agreement with a number of ... Chockanathan Chit Fund v. Union Territory of Pondicherry, AIR 1972 Mad 99.24. The assent of the President to the Madhya Pradesh Act was received on July 2, 1975, before the Act was brought into force.25. It is then contended that the Act violates the right guaranteed under Article 301 of the Constitution. It is urged that chit fund ...

Dec 05 2011

V. Revathi Vs. The State of A.P, rep. by Public Prosecu

  • Decided on : 05-Dec-2011

Court : Andhra Pradesh

... chit fund transaction, 'return in any kind' is by way of dividends.11) It is contended for the Appellant that there are special enactments regulating chit fund transactions and that therefore the provisions of the 1999 Act cannot be applied to a chit fund transaction. Though the Andhra Pradesh Chit Funds Act 1971 (In short, the 1971 Act) and the Chit Funds Act 1982 (In short, the 1982 Act) are there for regulation of chit fund ... there are special enactments regulating chit fund transactions and that therefore the provisions of the 1999 Act cannot be applied to a chit fund transaction. Though the Andhra Pradesh Chit Funds Act 1971 (In short, the 1971 Act) and the Chit Funds Act 1982 (In short, the 1982 Act) are there for regulation of chit fund transactions, the 1999 Act is again a ... Act cannot be applied to a chit fund transaction. Though the Andhra Pradesh Chit Funds Act 1971 (In short, the 1971 Act) and the Chit Funds Act 1982 (In short, the 1982 Act) are there for regulation of chit fund transactions, the 1999 Act is again a special enactment which was enacted for protection of depositors of financial establishments. Statement of objects and reasons appended to the 1999 Act ... ) of the Act. It is further contended that there is specific enactment to deal with running of chits and that therefore any contravention in the chit fund business by any person is governed by only the Andhra Pradesh Chit Funds Act, 1971 and will not attract liability under Section 5 of the 1999 Act.4) On ...

Sep 23 2005

Shriram Chits (Bangalore) Ltd. Vs. Sri Panchakshari and Anr.

  • Decided on : 23-Sep-2005

Court : Karnataka

Reported in : ILR2006KAR498; 2006(6)KarLJ652

... brief facts of the case are as follows:The petitioner M/s Shriram Chits (Bangalore) Ltd., Hampankatta Branch, Mangalore is a Chit Company registered under the Chit Funds Act, 1982. The subscriber viz., the principal debtor Sri Shyam Bhandary of Uppinangady was a member of the Chit Fund and drawn the chit amount on the co-obligation of respondents Sri Panchakshari and Sri M ... a Chit Company registered under the Chit Funds Act, 1982. The subscriber viz., the principal debtor Sri Shyam Bhandary of Uppinangady was a member of the Chit Fund and drawn the chit amount on the co-obligation of respondents Sri Panchakshari and Sri M.P. Balakrishna Bhandary. The subscriber defaulted in payment of the subscription due in accordance with the terms of the chit ... the Chit Fund and drawn the chit amount on the co-obligation of respondents Sri Panchakshari and Sri M.P. Balakrishna Bhandary. The subscriber defaulted in payment of the subscription due in accordance with the terms of the chit agreement. In respect of the recovery of the dues, the petitioner initiated proceedings as provided under Chapter XII of the Chit Funds Act, 1982 ... Chit Funds Act, 1982, before the Development Officer, Bantwal, who is the nominee for adjudication of the disputes and an award came to be passed against the principal debtor and the sureties. The award appears to have been submitted to the Joint Registrar of Chits, Mysore Division, Mysore for certification as required under Section 71(a) of the Chit Funds Act, 1982 ...

Jan 20 2010

Konakanchi Madhu Vs. The Chairman, Shriram Group Companies and Others

  • Decided on : 20-Jan-2010

Court : Andhra Pradesh - State Consumer Disputes Redressal Commission (SCDRC) - Hyderabad

... Chit Fund, Kodada Branch. It is in these circumstances that he preferred the claim for return of the amount due to him in terms of Section 22 of the A.P.Chit Fund Act, 1971 quantified at Rs.1,88,015 plus dividend of Rs.70,000/- with some penal interest also and further payments for violating the stamps Act and the Chit Fund Act ... chit fund subscription within the four corners of the statute what is called A.P.Chit Funds Act, 1971 which is still going strong with the Central Act not having come into force as yet. The complainant tried to assail his removal even though he admitted to be a defaulting subscriber on the ground that various provisions of law in built in the A.P.Chit Funds Act ... Chit Fund Act, 1971 as observed in the order passed by the opposite party No.6 in which a penalty (last sheet of Ex.B16)was also imposed against the said Sri Ram Chit Fund, Kodada Branch. It is in these circumstances that he preferred the claim for return of the amount due to him in terms of Section 22 of the A.P.Chit Fund Act ... that Sri Ram chit Fund Copmpany did indulge in such vilations and imposed penalty U/s.56 of Chit Fund Act, 1971. This circumstance sets at rest in favour of the complaiant upholding his complaint that Sri Ram Chit Fund Company gave ... chit and the opposite parties 1 to 4 having offered financial service peculiarly concomitant with chit fund subscription within the four corners of the statute what is called A.P.Chit Funds Act, 1971 which is still going strong with the Central Act ...

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