Section 42 of Chit Funds Act - Refund of non-prized subscribers' subscriptions

Section 42: Refund of non-prized subscribers' subscriptions - Chit Funds Act 1982

Except in the cases referred to in clauses (a) and (b) of section 40,--

(a) every non-prized subscriber shall, unless otherwise provided for in this Act or in the chit agreement, be entitled to get back his subscriptions at the termination of the chit without any deduction for 1[share of discount], if any, earned by him:

Provided that, any person to whom the rights of a non-prized subscriber are transferred in accordance with the provisions of section 35, shall, in addition to his own subscriptions, be entitled to get back the subscriptions paid by such non-prized subscriber, subject to the conditions specified in this section;

(b) if a chit terminates on a date earlier than the date originally fixed in the chit agreement, the non-prized subscribers claim shall be deemed to have arisen on the date on which he has notice thereof.
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1. Subs. by Act 41 of 2019, s. 3, for "dividend" (w.e.f. 1-1-2020).