Section 90 of the Chit Funds Act, 1982 - Repeal and Saving
Section 90 is the repeal-and-saving provision of the Chit Funds Act, 1982. It repeals specified State and Union Territory chit fund enactments while protecting the legal effect of matters already arising under those laws and preserving their application to chits that were already in operation when the Central Act commenced.
Text and scope of Section 90
Section 90(1): The Andhra Pradesh Chit Funds Act, 1971; Kerala Chitties Act, 1975; Maharashtra Chit Funds Act, 1974; Tamil Nadu Chit Funds Act, 1961, as then in force in Tamil Nadu and in the Union territories of Chandigarh and Delhi; Uttar Pradesh Chit Funds Act, 1975; Goa, Daman and Diu Chit Funds Act, 1973; and Pondicherry Chit Funds Act, 1966 are repealed. Section 6 of the General Clauses Act, 1897 applies to those repeals as though each repealed enactment were a Central Act.
Section 90(2): Despite the repeal, the enactments listed in sub-section (1) continue to apply to chits that were in operation when the Chit Funds Act, 1982 commenced, in the same manner in which those enactments applied before commencement.
What does "repeal and saving" mean?
A repeal provision removes an earlier enactment from prospective operation. A saving provision prevents the repeal from automatically destroying specified existing rights, liabilities, proceedings, transactions, or other legal consequences. Section 90 combines both functions: it replaces the listed regional chit laws for the future while preserving the treatment of existing matters in the manner stated by the section.
Effect of Section 6 of the General Clauses Act, 1897
Section 90(1) expressly applies Section 6 of the General Clauses Act, 1897 to the listed repeals. Broadly, Section 6 provides that, unless a different intention appears, repeal does not ordinarily disturb the previous operation of the repealed law, things duly done under it, accrued rights and liabilities, penalties already incurred, or investigations, legal proceedings and remedies relating to such matters.
This cross-reference is important because it supplies the general legal consequences of repeal in addition to the specific protection given by Section 90(2).
Chits already in operation at commencement
Sub-section (2) contains a specific transitional rule. If a chit was already in operation when the Chit Funds Act, 1982 commenced in the relevant jurisdiction, the repealed enactment mentioned in sub-section (1) continues to govern that chit in the same manner as before commencement. This avoids an abrupt change in the statutory framework governing an existing chit merely because the Central Act came into force.
Key points of Section 90
- Section 90 repeals the particular chit fund enactments expressly listed in sub-section (1).
- The repeal is subject to Section 6 of the General Clauses Act, 1897.
- Existing legal consequences under the repealed laws may therefore continue where protected by the saving principles.
- Chits already in operation at commencement receive an express additional saving under Section 90(2).
- The applicable commencement date can depend on the notification bringing the Act into force in the relevant State or Union Territory, so the factual date should be verified in any specific dispute.
Official legal resources
For the authoritative statutory text, refer to the official Chit Funds Act, 1982 on India Code. The related saving principle can be checked in the official General Clauses Act, 1897 on India Code.
Practical note
Section 90 is principally a transitional provision. In a matter involving an older chit, the date on which the chit commenced or was in operation, the date on which the Central Act commenced in the relevant jurisdiction, and the earlier State law may all be material. The exact statutory text, commencement notification, rules and subsequent amendments should therefore be checked before applying the provision to a particular transaction or proceeding.
This page provides general legal information and is not a substitute for advice on the facts of a particular case.