Urgent: chit funds
Prashanth Anand
(Querist) 30 September 2013
This query is : Resolved
Hello Experts,
I have been struggling to get the answer for this in Chit Funds Act.. Please help me..
As per Sec 21(1)(e) of the Chit Funds Act, "A foreman shall be entitled to demand sufficient security from the prized subscriber for the due payment of the future subscriptions payable by him"
If I provide another unprized chit as security for getting the prize money, In the preview of Sec 21(1)(b) of the referred, does the foreman have any right to deduct commission on such unprized chit before considering as security..
In other words, The word 'Sufficient Security' as referred in Sec 21(1)(e) of the Chit Funds Act include/provide any right to foreman to get security towards his commission too, in way of deducting it from the security provided..?
I am here with quoting the relevant Sections of the Act:
Sec 21(1)(b): "to such amount not exceeding five per cent of the chit amount as may be fixed in the chit agreement, by way of commission, remuneration or for meeting the expenses of running the chit;"
Sec 21(1)(e): "to demand sufficient security from and prized subscriber for the due payment of future subscriptions payable by him"
Sec 31: "Every prized subscriber shall, if he has not offered to deduct the amount of all future subscription from the prize amount due to him, furnish and a foreman shall take, sufficient security for the due payment of all future subscriptions"
Thanks in Advance...
Prashanth Anand
(Querist) 02 October 2013
Sorry, my query is the foreman can deduct such commission before considering other chits mentioned above as security...?
