COMMITTEE (CHIT) AGREEMENT
BY AND AMONG
__________, __________, of __________, PAN __________ (the "Foreman"),
AND
The Subscribers listed in Schedule I, each of whom executes this Agreement in respect of the ticket or tickets shown against their name (each a "Subscriber" and together the "Subscribers").
The Foreman and the Subscribers are each a "Party" and together the "Parties".
RECITALS
A. The Foreman has obtained the previous sanction required by s.4 of the Chit Funds Act, 1982 to commence and conduct this chit. Particulars of that sanction: __________
NOW THIS AGREEMENT WITNESSES as follows.
- 1. THE CHIT
- 2. THE FOREMAN'S COMMISSION
- 3. CONDUCT OF THE DRAW OR AUCTION
3.4 A Subscriber unable to attend may authorise another person in writing to bid or represent them at the draw; a Subscriber neither present nor so represented is bound by the result of that meeting in the same way as one who attended.
3.5 A Subscriber who has already been prized under this chit is not entitled to bid or be drawn again for a further prize in the same chit.
- 4. THE DISCOUNT
4.2 The Foreman shall prepare and make available to every Subscriber, after each meeting, a statement showing the chit amount, the prize amount paid out, the commission deducted, and the discount distributed, together with the running account of each Subscriber's instalments and dues.
- 5. PAYMENT OF THE PRIZE AMOUNT
5.1 The Foreman shall pay the prize amount to the Subscriber prized at a meeting only after that Subscriber has furnished the security required by clause 6 and after deducting the Foreman's commission for that instalment under clause 2.
5.2 The Foreman shall pay the prize amount within the time the Chit Funds Act, 1982 or the Rules made under it prescribe, and in any event without unreasonable delay once the security under clause 6 is furnished.
- 6. SECURITY FROM A PRIZED SUBSCRIBER
6.2 Security furnished under clause 6.1 is released once every remaining instalment on that ticket has been paid in full.
- 7. DEFAULT
7.3 Where a prized Subscriber defaults on a remaining instalment, the Foreman may recover it from the security furnished under clause 6 without prejudice to any other remedy available to the Foreman or to the other Subscribers under the Chit Funds Act, 1982.
- 8. FOREMAN'S OBLIGATIONS
8.1 The Foreman shall conduct every meeting, draw or auction transparently and in the presence of the Subscribers or their authorised representatives, shall keep true and accurate accounts of the chit, and shall make them available for inspection by any Subscriber on reasonable request.
8.2 The Foreman shall not commence a further chit using the instalments collected under this chit, and shall keep the funds of this chit identifiable and separate from the Foreman's own funds and from any other chit the Foreman conducts.
- 9. TERMINATION AND WINDING UP
9.1 This Agreement, and the chit it records, continues until every ticket has been prized and every instalment has been paid, unless it is earlier discontinued or wound up in accordance with the Chit Funds Act, 1982.
9.2 If the chit is discontinued before every ticket is prized, the Foreman shall account to every Subscriber for the instalments paid and the discount and commission position as at the date of discontinuance, in accordance with the Act and the Rules made under it.
- 10. FILING AND REGISTRATION
- 11. STAMP DUTY
- 12. NOTICES
12.1 A notice to a Subscriber under this Agreement is sufficient if sent to the address shown against that Subscriber's name in Schedule I, or handed to the Subscriber or their authorised representative at a meeting under clause 3.
- 13. DISPUTE RESOLUTION AND GOVERNING LAW
- 14. GENERAL
14.1 This Agreement, with Schedule I, is the entire agreement among the Parties about the chit described in it.
14.2 No amendment is effective unless made in writing and signed by the Foreman and by every Subscriber affected by it.
14.3 If any provision is held invalid or unenforceable, the rest of this Agreement continues in effect.
SCHEDULE I — THE SUBSCRIBERS
__________
SIGNED AND DELIVERED by the FOREMAN
__________
Signature: ______________________________
SIGNED by each SUBSCRIBER named in Schedule I, against their own name in the Foreman's register of signatures maintained for this chit.
WITNESSES