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

Feb 24 1988

Angammal Vs. R. Sankaranarayanan

  • Decided on : 24-Feb-1988

Court : Chennai

Reported in : AIR1989Mad53; (1988)IMLJ467

... have been effected in contravention of Section 26 of the Tamil Nadu Chit Funds Act, 1961 (hereinafter referred to as the Act). Holding that the assignment of the promissory note was made with a view to defeat the right of the respondent to claim adjustment in respect of the amounts paid towards other chits, the lower appellate Court concluded that the appellant cannot be considered ... counsel submitted that each chit is a separate transaction and there cannot be an adjustment with reference to a claim arising out of one chit and that too after anassignment, as against amounts stated to have been paid in respect of other chits. Learned counsel for the respondent, however, pointed out that under Rule 34 of the Tamil Nadu Chit Fund Rules 1964, a subscriber ... down that by the endorsement the endorsee obtained the right under the promissory note to recover whatever money, was due by the promisor to the Foreman. In Durgachalam v. Jannet Chit Funds P. Ltd. 90 Mad LW 565 : 1977 TLR 2238, a Division Bench held agreeing with the decision in Chellaperumal Chetti v. Jayarathnam Chettiar, : AIR1960Mad314 that the promissory note represented the ... under Rule 34 of the Tamil Nadu Chit Fund Rules 1964, a subscriber is entitled to the benefit of a set off when amounts are due from the Foreman to a subscriber and also from the subscriber to the Foreman. Though in the written statement, the respondent had stated that he had been subscribing for, three chits and had also paid certain amounts ...

Oct 21 2008

Sriram Chits Tamil Nadu (P) Ltd. Vs. State of Tamil Nadu and Ors.

  • Decided on : 21-Oct-2008

Court : Chennai

Reported in : AIR2009Mad68

... Chit Funds Rules without there being an amendment to the very rules themselves, framed in exercise of the powers conferred under Section 89 of the Chit Funds Act. So far as the direction contained in (i) of paragraph-28 of the order is concerned, as observed by us, in terms of Rule 49(1) of the Chit Funds ... service of summonses or notices issued by the Registrar or the person authorised by him when acting under Section 46.The rules framed in exercise of the powers conferred under Section 89 of the Chit Funds Act should be strictly followed by the Registrar or his nominee not only to record the ... claim made by Suriya Chit Funds, the third respondent against one S.M. Bakir Mohammed. As against the order of the Deputy Registrar of Chits, Tiruppur accepting the claim of Suriya Chit Funds, an appeal was preferred and the appeal was also dismissed. On facts, the lis between the Suriya Chit Funds and S.M. ... ,36,819/-. These directions were issued without hearing the companies who are engaged in chit fund transactions. Apart from the above submission on facts, the learned senior counsel would submit that Rule 49(1) of the Chit Funds Rules provides that a decision should be given by the Registrar or his nominee ... the Deputy Registrar of Chits dated 7.2.2000.2. The writ petition came to be filed on the following facts:The fourth respondent (hereinafter referred to as 'the writ petitioner') was a subscriber to a chit under the Agreement No.72 of 1994 in Suriya Chit Funds, Pollachi, namely, the ...

Apr 29 1988

Sri Visalarn Chit Fund Ltd. and Anr. Vs. Union of India, New Delhi and ...

  • Decided on : 29-Apr-1988

Court : Karnataka

Reported in : AIR1989Kant125; ILR1988KAR1518

... Chit Funds Act, 1971, Kerala Chitties Act, 1975, Maharashtra Chits Fund Act, 1974, and Tamil Nadu Chit Funds Act, 1961. The validity of these State enactments had been upheld earlier by the High Courts where these Acts had been enacted by the respective legislatures. The impugned Act is an improvement on these Acts, in that, there is no such provision like S. 6(2) of the Act ... Chit funds Act, chit funds carried on in the States where no legislation exists may also be regulated. It is the sites of the agreement that now determines the application of the chit fund legislation to a particular chit. If the foreman of a chit f und company registered in Tamil Nadu runs a chit series in Maharashtra (where there is no such chit fund regulation), then if the chit ... chit funds operating in States having no chit fund legislation, are branches, of the chit funds registered in States having such legislation (e.g. Kerala and Tamil Nadu), it, will be useful if the provisions of chit, fund legislation in the latter States are applied to branches functioning in the former States. Thus, e.g., a chit' fund registered in Tamil Nadu will be governed by the Tamil Nadu Chit Funds Act ...

Apr 23 1992

Commissioner & Secretary to Govt., Commercial Taxes & Religious Endowm ...

  • Decided on : 23-Apr-1992

Court : Supreme Court of India

Reported in : AIR1992SC1383; [1992]74CompCas650(SC); JT1992(3)SC591; (1993)1MLJ3(SC); 1992(1)SCALE900; (1992)3SCC488; [1992]2SCR735

... Article 8-A to Appendix II of the Tamil Nadu Chit Fund Rules, 1964 (for short 'the Rules'). The High Court in its judgment dated 20.3.1985 has struck down as invalid the impugned amendments.2. The Tamil Nadu Chit Funds Act, 1961 (The Act) provides for the regulation of chit fund in the State of Tamil Nadu. 'Chit' is a transaction by which its foreman enters ... 'chit fund' business in the State of Tamil Nadu. No person can start or conduct any 'chit' unless he registers the proposed bye-laws in accordance with the procedure prescribed. It is common knowledge that there are large number of subscribers to the 'chit fund' business. The Act and the Rules primarily protect the subscribers and in the process help the proprietors to run the 'chit fund' ... large number of subscribers to the 'chit fund' business. The Act and the Rules primarily protect the subscribers and in the process help the proprietors to run the 'chit fund' business to their advantage. There are elaborate provisions under the Act and the Rules providing investigation into the functioning of the said business. The scheme of the Act and the Rules as detailed in the ... instalment of a chit without any deduction for discount or otherwise is chit amount.3. It is useful to summarise the scheme of the Act and the rules. The Registrar of chit funds is appointed by the Government under Section 51. No person can start or conduct any chit unless he registers with the Registrar the proposed bye-laws of the chit. Section 7 provides ...

Jan 29 1971

Mayavaram Financial Corporation Ltd. and Ors. Vs. Reserve Bank of Indi ...

  • Decided on : 29-Jan-1971

Court : Chennai

Reported in : [1971]41CompCas890(Mad)

... of chits. A large number of instances came to light where foreman 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. 2. Section 2(2) of the Madras Chit Funds Act defines chit as follows: ' Chit means a transaction whether called chit fund, chit, kuri, ... 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 ...

Jul 23 1986

Registrar of Chits (Sub-registrar), Registration Department Vs. Y.V. P ...

  • Decided on : 23-Jul-1986

Court : Andhra Pradesh

Reported in : [1988]63CompCas854(AP)

... Pradesh Chit Funds Act (9 of 1971), for short 'the Act'. Assailing the legality thereof, the Registrar filed this revision petition. The facts not in dispute are these: The first judgment-debtor is the chit fund company and the second respondent is its branch manager. They have conducted a chit under the Act with forty members. The chit was ... judgment-debtor is the chit fund company and the second respondent is its branch manager. They have conducted a chit under the Act with forty members. The chit was for Rs. 25,000. A sum of Rs. 12,500 was deposited as security which was attached. Section 12 of the Act in Chapter III postulates ... chit under the Act with forty members. The chit was for Rs. 25,000. A sum of Rs. 12,500 was deposited as security which was attached. Section 12 of the Act in Chapter III postulates the duties of the foreman thus : '12. Security to be given by the foreman. - (1) For the proper conduct of the chit ... of a decree or otherwise subject to the provisions of section 530 of the Companies Act. The duration of the indenture of mortgage and the charge on the amount thus deposited shall ensure until the chit is terminated and the claims of all the subscribers are fully satisfied and until ... and the charge on the amount thus deposited shall ensure until the chit is terminated and the claims of all the subscribers are fully satisfied and until all the dues payable by the foreman under this Act to the Registrar or any other officer have been paid and where owing ...

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 ...

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 ...

Feb 06 1981

Jannet Chit Funds Pvt. Ltd. (In Liqn), Madras vs. M.N. Ethirajan and O ...

  • Decided on : 06-Feb-1981

Court : Chennai

Reported in : AIR1982Mad133

... Nadu Chit Funds Act 1961, was enacted for regulation of chit funds in the State. The Act contained provisions governing the liability of subscribers to the chit, both prized subscribers and non-prize subscribers. As for prized subscribers, Section 24 of the Act clearly provided that every one of them shall pay his subscription regularly at the time and place and on the date mentioned in the chit agreement ... respect of the chit fund transaction and for no other liability. The complaint of the learned counsel is that this point had not been fairly considered by the courts below.4. For appreciating this argument, it would be necessary to refer to the relevant statutory provisions. The Tamil Nadu Chit Funds Act 1961, was enacted for regulation of chit funds in the State. The Act contained provisions governing ... spelled out at the trial on the footing of the proviso to Section 25 (2 of the Tamil Nadu Chit Funds Act 1961. Both the trial court and the New Trial Bench of the Court of Small Causes, Madras, upheld the contention that the chit fund company in liquidation was riot entitled to any decree on the basis of the frame of the suit. On ... at the trial. What the courts have been required to do under the Chit Funds Act, however, is not merely to adjudicate on the civil suit, but also to administer the statute, which as I had earlier Pointed out, was passed by the Legislature with the avowed intention of regulation of chit funds in the State. As one of the law enforcing agencies of the ...

Jun 19 2006

Bilahari Investments (P) Ltd. Vs. The Commissioner of Income Tax

  • Decided on : 19-Jun-2006

Court : Chennai

Reported in : (2007)207CTR(Mad)512; [2007]288ITR39(Mad); (2006)4MLJ1644

... mercantile system of accounting.10.1. The chit transaction is governed by the provisions of the Chit Funds Act. In view of the non obstante clause found in Section 3 of the Chit Funds Act, 1982, namely,3. Act to override other laws, memorandum, articles, etc.- Save as otherwise expressly provided in this Act,-(a) the provisions of this Act shall have effect notwithstanding anything to the ... chit dividend has to be reckoned and assessed as income of that year following the principles of mercantile/accrual system of accounting, particularly when the assessees are companies following the mercantile system of accounting.10.1. The chit transaction is governed by the provisions of the Chit Funds Act. In view of the non obstante clause found in Section 3 of the Chit Funds Act, 1982, namely,3. Act ... 2(d), 2(g), 2(h) and 2(m) of the Chit Funds Act, 1982 is inevitable, which read as follows:2. Definition.- In this Act, unless the context otherwise require,-(d) 'chit amount' means the sum-total of the subscriptions payable by all the subscribers for any installment of a chit without any deduction of discount or otherwise;(g) 'discount' means ... of benefit over a specific period. In the chit transaction, there is no deferred benefit, which is construed to mean the benefit deferred to a year subsequent to the accounting year and hence, the question of deferred expenditure does not arise.10.3. That apart, the provisions of the Chit Funds Act require the prized subscriber to furnish security for ...

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