Section 71 of the Chit Funds Act, 1982 - Money How Recovered
Section 71 of the Chit Funds Act, 1982 provides the mechanism for enforcing an order for payment of money made by the Registrar or nominee under Section 68 or Section 69, or by the State Government in an appeal under Section 70, when the order is not complied with.
What Section 71 provides
Every order passed by the Registrar or the nominee under section 68 or section 69 and every order passed by the State Government in appeal under section 70 for payment of any money shall, if not carried out,--
(a) on a certificate issued by the Registrar, be deemed to be a decree of a Civil Court, and shall be executed in the same manner as a decree of such Court, or
(b) be executed in accordance with the provisions of any law for the time being in force for the recovery of amounts as arrears of land revenue:
Provided that no application for execution under clause (b) shall be made after the expiry of three years from the date fixed in the order, and if no such date is fixed, from the date of the order.
Meaning and effect of Section 71
The provision gives two statutory routes for recovery when a monetary order covered by Section 71 remains unperformed. First, after the Registrar issues a certificate, the order is treated as a decree of a Civil Court and may be executed in the same manner as such a decree. Second, the order may be executed under the applicable law governing recovery of amounts as arrears of land revenue.
| Provision | Function |
|---|---|
| Section 68 | Deals with the Registrar's power to settle a dispute himself or refer it to a nominee for disposal. |
| Section 69 | Provides for the decision or award of the Registrar or nominee after giving the parties a reasonable opportunity of being heard. |
| Section 70 | Provides an appeal to the State Government against specified orders or awards of the Registrar or nominee, ordinarily within two months from the date of the order or award. |
| Section 71 | Provides the recovery and execution mechanism for qualifying orders directing payment of money. |
Three-year limit for land revenue recovery
The proviso to Section 71 specifically restricts an application for execution under clause (b). Such an application cannot be made after three years from the date fixed in the order. If the order does not fix a date, the three-year period runs from the date of the order.
Important: The three-year proviso is expressly attached to execution under clause (b). The precise procedure for execution, limitation and recovery can depend on the route used, the nature of the order, and the law applicable in the relevant State. The current statutory text and applicable State rules should therefore be checked for a particular proceeding.
Relationship with Section 72
Section 72 follows the recovery provision and addresses certain private transfers, deliveries, encumbrances or charges on property made or created after the Registrar issues a certificate under Section 71. Readers dealing with enforcement should therefore consider Section 72 together with Section 71 where property transactions are involved.
Official statutory source
For the authoritative Central Act text, see the Chit Funds Act, 1982 on India Code. The Chit Funds (Amendment) Act, 2019 amended specified provisions of the principal Act; the official amendment text may also be checked on India Code when reviewing the Act as currently applicable.
Frequently asked questions
Can an order under Section 71 be executed like a Civil Court decree?
Yes. Under clause (a), once the Registrar issues the required certificate, the qualifying order is deemed to be a decree of a Civil Court and is executed in the same manner as such a decree.
Can recovery be made as arrears of land revenue?
Yes. Clause (b) permits execution in accordance with the law for the time being in force for recovery of amounts as arrears of land revenue, subject to the three-year restriction stated in the proviso.
Which orders are covered?
Section 71 covers orders for payment of money passed by the Registrar or nominee under Section 68 or Section 69 and orders passed by the State Government in appeal under Section 70, where the order has not been carried out.