1990 (12) TMI 324

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....n 12 of the Tamil Nadu Chit Funds Act, 1961 as amended by the Amendment Act 14 of 1975. 2. Section 12, as it stood before the amendment, required the foreman of the chit-scheme to execute an indenture by mortgaging property in favour and to the satisfaction of the Registrar by way of security for the realisation of the chit amount deposited in an approved bank. The said section after amendment re....

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....he conclusion that the amended provision was in public interest and was necessary to regulate the trade. The High Court observed as under : Allowing a chit fund transaction to be run by a foreman without a proper security would be normally ruinous to the interests of the several poor subscribers who are lured into the business by the promise of lump sum payment. The precaution that the State has....