(1) A non-prized subscriber who defaults in paying his subscription in accordance with the terms of the chit agreement shall be liable to have his name removed from the list of subscribers and a written notice of such removal shall be given by the foreman to the defaulting subscriber within fourteen days of the date of such removal:
Provided that if the defaulter pays the defaulted instalment with interest at such rate as may be prescribed within seven days of the date of receipt of such notice, his name shall be re-entered in the list of such subscribers.
(2) Every such removal under sub-section (1) shall with the date thereof be entered in the relevant book maintained by the foreman.
(3) A true copy of the entry referred to in sub-section (2) shall be filed by the foreman with the Registrar within fourteen days from the date of removal.
(4) Any
defaulting subscriber aggrieved by the removal of his name from the list of
subscribers may, within seven days of the date of receipt of the notice of
removal refer the matter to the Registrar for arbitration under section 64.
Section 21 of Chit Funds Act - Rights of foreman
Section 22 of Chit Funds Act - Duties of foreman
Section 23 of Chit Funds Act - Books, records, etc., to be kept by foreman
Section 24 of Chit Funds Act - Balance sheet
Section 25 of Chit Funds Act - Liability of foreman to subscribers
Section 26 of Chit Funds Act - Withdrawal of foreman
Section 27 of Chit Funds Act - Non-prized subscribers to pay subscriptions and obtain receipts
Section 28 of Chit Funds Act - Removal of defaulting subscribers
Section 29 of Chit Funds Act - Substitution of subscribers
Section 30 of Chit Funds Act - Amounts due to defaulting subscribers