https://www.taxtmi.com/caselaws?id=174323 The Chit Funds Act, 1982 was treated as a special form of contract and not money-lending, so it fell within Entry 7 of List III and Parliament had legislative competence to enact it. The statutory controls on commencement, business conduct, security, draws, foreman's powers, dispute resolution, and winding up were upheld as protective regulation aimed at subscriber safety and financial discipline, not as arbitrary restraints. The Court held that these measures were reasonable restrictions in the socio-economic context of chit operations and did not violate Article 19(1)(g). The constitutional challenge to the Act therefore failed and the regulatory framework was sustained. en-us Tue, 13 Jul 1993 00:00:00 +0530 Mon, 20 Jun 2016 09:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174323 The Chit Funds Act, 1982 was treated as a special form of contract and not money-lending, so it fell within Entry 7 of List III and Parliament had legislative competence to enact it. The statutory controls on commencement, business conduct, security, draws, foreman's powers, dispute resolution, and winding up were upheld as protective regulation aimed at subscriber safety and financial discipline, not as arbitrary restraints. The Court held that these measures were reasonable restrictions in the socio-economic context of chit operations and did not violate Article 19(1)(g). The constitutional challenge to the Act therefore failed and the regulatory framework was sustained. Case-Laws Indian Laws Tue, 13 Jul 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174323