FORM VIII

FORM VIII
(See Section 6 and Rule 13)
Form of Chit Agreement
(Articles of Agreement between the Foreman and the Subscribers)
1. Office where the chit is registered.
2. Year and Registered No. Year No
3. Full name and address of foreman
4. Occupation (if applicable)
5. Age (if applicable)
I. Chit amount and No of tickets.
1. No of tickets or fraction thereof Full
Held byeach subscriber 3/4
1/2
1/4
1/8
2. No. of installments and amount payable No. Amount
for each ticket at every installment Rs.
3. Chit amount Rs.
II. Duration of the chit
1. Date of 1st installment.
2. Dates of subsequent installments.
3. Date of termination.
4. Duration of the chit. Years months
III. The place, time and probable date when the chit is to be commenced.
1. Place (give full particulars)
2. Probable date
3. Time of commencement of the proceedings.
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IV. Particulars of security given or deposited by foreman.
1. Under Section 20 of the Act, the following security sufficient to the satisfaction
of the Registrar of Chits, the particulars of which are described below, has been given for
the proper conduct of thechit:-
(Here enter description of security such as cash, Government security
(immovable property) etc., (in case immovable property has been charged, its
particulars such as its description / location / market value etc., should be given).
2. No. and date of the certificate of Registrar of Chits regarding, the sufficiency of
security, if obtained.
3. The foreman shall not get release of the security in full until all the liabilities
under the chit are discharged.
V. Mode of conducting the chit.
The foreman shall exhibit a list of non-prized subscribers before every
auction.
1. The subscriber who is to get the prize at any installment shall be determined
by lost or by auction at the time and place specified in Article III.
(Here specify the smallest fraction of a ticket the prize for which will be
determined by lot or by auction, and the time allowed for each purpose).
2. Where the prize is to be determined by auction, a ticket or fraction thereof
shall be auctioned for a sum not less that the chit amount minus foreman’s commission,
and the subscriber who bids for the highest discount not exceeding 40% of the total
amount of the chitshall be entitled to have it confirmed in his name.
Note: Where a fraction of a ticket is auctioned, the subscriber who bids it for the
highest discount is entitled to have confirmed in his name at the same rate as many
such fractions as he wished to bid.
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3. In case where the subscribers are not be prepared to bid any ticket or
fraction thereof or where the discount is not sufficient to meet the foreman’s commission,
the subscriber who is entitled to the prize amount shall be determined by lot. The
subscriber so determined shall be deemed to be the prized subscriber who shall be
entitled to the chit amount for his ticket less foreman’s commission for that ticket.
4. A defaulter-subscriber shall not be entitled to take part in the proceedings.
5. If for any reason the subscriber is unable to take part in the proceedings, he
may in writing authorize an agent in that behalf. Such agent shall have all the rights and
privileges of a subscriber of suchproceedings.
VI. Mode of payment of each installment:
1. Every subscriber shall on the date of each installment pay in the foreman the
amount due for his ticket for each such instalment and get a receipt in that behalf from the
foreman.
2. In the case of the prized subscriber, if the amount due from him for a
particular instalment is not paid on the date of that instalment, it shall be paid within
(here mention weeks or months) with interest at (here specify the rate) failing which it shall
be competent for the foreman to realize from the defaulter in a
lump sum all the future subscriptions due from him together with the interest due
thereon and other incidental expenses.
3. In the case of a non-prized subscriber, if the amount due from him for a
particular instalment is not paid on the date of that instalment, it shall be paid within
(here mentioned week or months) with interest at (here specify the rate) failing which it
shall be open to the foreman to remove him from the list of subscribers and have another
person substituted for such defaulter subscriber. The foreman shall duly inform the
defaulter subscriber of the action taken againsthim.
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Note: Under clauses (2) and (3), the period within which the amount shall be paid
and the rate at which interest due thereon shall be paid may be such as shall not be
inconsistent with the provisions of the Act or any law for the time being in force.
4. A non-prized defaulting subscriber shall be entitled to the amount paid by him
and the discount due to him on his executing an acknowledgement in writing at the time
the substituted subscriber draws the prize amount of the defaulter- subscriber fails to
obtain the amount due to him, the foreman shall deposit the same in the approved bank. If
the foreman fails to pay such subscriber, the amount so due to him on the due date, it
shall be competent for such subscriber to realize such amount with interest permissible
under the law for the time being in force.
VII. Procedure for receiving the prize amount by a prizedsubscriber.
1. A prized subscriber or his nominee shall receive from the foreman the prize
amount within (here specify the period) after furnishing to the satisfaction of the foreman
sufficient security, for the payment of future subscriptions.
2. In case the prized subscriber or his nominee fails to receive the prize amount
after furnishing sufficient security the foreman shall deposit the amount in the approved
bank and inform the prized subscriber of that fact.
3. In case the amount so deposited is not sufficient for the payment of future
subscriptions, it shall be competent to the foreman to realize from such prized subscriber
such amount as may be deficient together with the interest due thereon and all other
incidental charges.
4. In case there remains any portion of the amount deposited after paying the
future subscriptions and other charges such portion shall be payable by the foreman to the
prized subscriber after the termination of the chit, failing which it shall be competent for
the prized subscriber or his nominee to realize from the foreman such portion as remains
together with the interest due thereon from the date of termination of the chit.
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5. If at any time after the prize amount is deposited in an approved bank, the
prized subscriber of his nominee furnishes sufficient security, the foreman shall withdraw
the amount so deposited and pay it to the prized subscriber or his nominee after deducting
there from the amount due from him for the payment of the instalment prior to the date
on which the security is furnished.
6. If the foreman fails to pay the prize amount to the prized subscriber or his
nominee furnishing sufficient security, it shall be competent for such subscriber or his
nominee to realize from the foreman the prize amount together with interest due thereon
from the date of furnishing such security.
VIII. Disbursement of Discount
The discount for every ticket auctioned shall be distributed equally between
the prized and non-prized subscribers after deducting there from the foremen’s
commission.
IX. Foreman’s Commission and the installment at which the foreman is to get the prize.
1. (Here specify the date and number of instalment at which the foreman is to get
the prize) First and the last instalment not being subject to auction, the subscribers shall
be liable to pay the full amount of their tickets.
2. Here specify the rate per cent of foreman’s commission and the total amount of
commission chargeable on the chit amount.
Note: Any other amount agreed to by the subscribers for any other purpose may also
be specified here.
X. Transfer how to be effected
1. It shall not be competent to any subscriber to transfer his rights in a chit except
with the consent in writing of the foreman provided that no such consentshall be necessary
in the case of transfer by a subscriber whose name has been removed by the foreman from
the list of subscribers for default of payment of subscriptions. The transferee (whether he
is already a subscriber or not) shall be entitled to no
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more rights than the transferer had in the chit in respect of the ticket or fraction
thereof transferred.
2. No transfer of the rights of a foreman to receive subscriptions from the prized
subscribers shall be made without the previous sanction in writing of the Registrar of
Chits. Any such transfer shall, if it defects or delays a non-prized subscriber, be avoidable
at the instance of suchsubscriber.
XI. Balance sheet and subscribers right to examine ChitRecords:
1. On termination of a chit, the foreman shall prepare the balance sheet
containing a summary of the assets and liabilities of the chit and giving such particulars as
will disclose the nature of the assets and liabilities an how the value of the assets has been
arrived at. Such balance sheet shall be made available for auditing by the auditors
specified in Rule 29 and a certificate or such auditing shall be received by the foreman and
kept byhim.
2. The foreman shall make available for examination by the subscribers all the chit
records between (here specify the time) on all the dates of the draw.
XII. Banks where chit money may be deposited (Here specify the approved bank(s) the
foreman proposes to deposit chitmoney).
XIII. Miscellaneous:
1. The subscriber who gets his prize at the last instalment shall be entitled to the
chit amount less the foreman’s commission. The foreman shall pay up such amount within
(here specify the period) from the normal date of last draw or last installment failing
which the prized subscriber shall be competent to realize the amount from the foreman
together with the interest due thereon the date aforesaid.
2. Any amount due to the foeman from any subscriber on account of the chit shall
be a first charge on the subscriptions paid by such subscriber. Similarly, the security and all
chit money deposited by the foreman shall be liable for discharging any amount due from
the foreman to thesubscribers.
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3. Receipts shall be granted for all payments by the foreman to the subscribers or
by the subscribers to the foreman duly affixing the Revenue Stamp required as per Article
51 of schedule 1 of the Indian Stamp Act, 1899.
4. The chit amount shall in no case be enhanced, but if necessary, it may be
reduced.
5. If all the non-prized and un-paid prized subscribers give consent in writing for
making any alteration in the chit agreement not in consistent with the provisions of the
Act and the Rules made there under the foreman shall convene the meeting for that
purpose.
6. If for any default of the foreman the conduct of the chit is not continued, the
foremen shall pay to the non-prized subscribers their contributions including dividend
within (here specify the period) failing which it shall be competent for such subscribers to
realize the amount together with the interest due thereon from the foreman or from all
or any of the following assets.
a) the security given or deposited by theforeman;
b) other properties belonging to the foreman;
c) the future subscriptions due to the foreman from the prized
subscribers.
7. In case the foreman holds tickets as an ordinary subscriber in addition to the
ticket of which he is entitled to the prize without deduction of the discount, he shall not
have any more rights, or privileges than the other subscribers have in the chit. When the
foreman bids such tickets he shall furnish sufficient security for the payment of future
subscriptions as required by the Act and the Rules made thereunder.
8. If before the termination of the chit, the foreman dies or otherwise becomes
unable to conduct the chit,
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a. here specify the arrangements made for the conduct of the chit.
b. In such a case one or more of the non-prized subscribers authorized
by a special resolution may, in the absence of any provision in this
Chit Agreement for the future conduct of the chit, take the place of
the foreman and have the right to continue the chit on to make
suitable arrangements for the future conduct of the chit.
9. Here specify any other provisions that may be agreed to such as payment of
interest or penalty, if any payable or any default in the payment of stipulated installments
etc.,
10. The subscribers who have affixed there signatures hereunder agreed to the
above Articles.
Sl. No. Name and full
address of
subscriber
No. of tickets
taken
Subscribers
signature and
date
Name,
Signature and
address of
witness
1 2 3 4 5
11. The total number of subscribers should be limited to the total number of drawn
/ auctions that have been agreed to and each subscriber shall be entitled to
the number of chits held by him, in each chit.