Chit fund auction venue change can be registered even outside the original registrar's territorial jurisdiction.

An alteration in a chit agreement that changes only the auction venue is registrable even if the new place lies outside the territorial jurisdiction of the original registrar. The change does not amount to opening a new place of business within section 19 of the Chit Funds Act, 1982, and the Act and rules disclose no prohibition on holding the auction outside the registering authority's area. Because the chit was already registered within that jurisdiction, the registrar retained supervisory control under section 16(3) and could not refuse registration of the alteration solely on territorial grounds. The objection to registration was therefore unsustainable, and the change in auction place had to be registered.

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Issues: Whether an alteration in a chit agreement changing only the place of auction can be registered even if the new auction place lies outside the territorial jurisdiction of the registrar with whom the chit agreement was originally registered.

Analysis: The alteration related only to the place where the chit was to be drawn and did not amount to opening a new place of business within the meaning of section 19 of the Chit Funds Act, 1982. The scheme of the Act and the relevant rules did not disclose any prohibition against conducting the auction at a place outside the jurisdiction of the registering authority. Since the chit agreement had already been registered within the respondent's jurisdiction, the respondent continued to have control over the chit and could exercise the powers conferred by the Act, including supervision under section 16(3). The absence of any statutory bar meant that the registrar could not refuse registration of the alteration merely because the new auction venue was outside his territorial limits.

Conclusion: The objection to registration of the alteration was unsustainable, and the petitioner was entitled to have the change in the place of auction registered.

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