https://www.taxtmi.com/caselaws?id=313196 A chit fund creates a present contractual liability between the foreman and subscribers, and when a prized subscriber draws the chit amount, the obligation to pay future instalments is treated as enforceable on default. Sections 31, 32 and 33 of the Chit Funds Act, 1982 recognise security for future subscriptions, regular instalment payment, and consolidated recovery of unpaid future subscriptions if default occurs. The lump-sum recovery mechanism is intended to protect remaining subscribers and keep the chit running, and it is not punitive in character. Accordingly, a defaulting prized subscriber may be made liable for the consolidated balance of future subscriptions forthwith. en-us Wed, 06 Nov 2019 00:00:00 +0530 Fri, 29 Mar 2024 15:47:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313196 A chit fund creates a present contractual liability between the foreman and subscribers, and when a prized subscriber draws the chit amount, the obligation to pay future instalments is treated as enforceable on default. Sections 31, 32 and 33 of the Chit Funds Act, 1982 recognise security for future subscriptions, regular instalment payment, and consolidated recovery of unpaid future subscriptions if default occurs. The lump-sum recovery mechanism is intended to protect remaining subscribers and keep the chit running, and it is not punitive in character. Accordingly, a defaulting prized subscriber may be made liable for the consolidated balance of future subscriptions forthwith. Case-Laws Indian Laws Wed, 06 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313196