In exercise of the powers conferred by
Section 63 of the Andhra Pradesh Chit Funds Act, 1971 (Andhra Pradesh Act 9 of
1971), the Governor of Andhra Pradesh hereby makes the following rules: CHAPTER -I Preliminary These rules may be called the Andhra Pradesh
Chit Fund Rules, 1971. In these rules, unless the context otherwise
requires,-- (1)
"Act"
means the Andhra Pradesh Chit Funds Act, 1971 (Andhra Pradesh Act No. 9 of
1971). (2)
"Appendix"
means a form in Appendix I to these rules. (3)
"Section"
means a section of the Act CHAPTER ? II Constitution and
Registration The bye-laws shall provide for the following
matters namely:-- (1)
Scheme
of the Chit:-- (a)
The
Objects of the Chit; (b)
place
where the Chit is proposed to be conducted and the Registrar within whose
Jurisdiction it is situated, (c)
Chit
amount (d)
Total
number of tickets in the chit; (e)
Total
number of installments and the amount of subscription or quantity of grain or
other commodity payable for each installments; (f)
Minimum
number of tickets or the minimum fraction of a ticket and the maximum number of
tickets, if any fixed, for which subscription can be made by a subscriber. (g)
Date
of commencement termination of the Chit (2)
Foreman:-- (a)
If
the foreman is not a firm or a corporation, the name, father's/husband's name
or mother's name age, occupation and permanent address of the foreman: (b)
If
the foreman is a firm, the name of the firm and the name of each one of the
partners of the firm and the other particulars mentioned in sub-clause (a) of
each partner thereof. (c)
If
the foreman is a corporation, the name of the Corporation its registration number
and the name and situation of its registered office: Provided that if the foreman is a firm or a
Corporation a true copy of the entry in the register or firms or the
Registration certificate, as the case may be, duly certified by the Registrar
of Firms or the Registrar of Companies retained by the Registrar along with the
bye-laws in the office. The said certificate shall not be called for by the
Registrar in respect of said Corporation or firm within whose Jurisdiction it
lies, again and again when the bye-laws are registered. (3)
Rights
of the Foreman:-- (a)
Right,
if any, reserved to the foreman to obtain the chit amount at any specified
installment without any action, drawl or tender. (b)
The
rate of commission or remuneration. (c)
To
transfer the right of defaulting subscribers to other existing subscribers. Note:-- The bye-laws of every chit shall
contain a condition that every substituted subscriber shall execute the chit
agreement and have it filed by the foreman with the Registrar before the
drawing of installment next to the one at which the substituted subscriber
concerned participated. (d)
Lien
of the foreman on the amounts due to prized subscribers, for the subscription
due to chit payable by each subscriber, (4)
Duties
of the foreman:-- (a)
Duty
of the foreman to specify the date and place for payment of the prize amount to
the prized subscribers. (b)
Details
of the arrangements made for the investment of funds including the undisguised
amount due to prized subscribers, arrears of subscription collected from
substituted subscribers and future subscription from defaulting prized
subscribers. (c)
A
declaration that all moneys relating to the chit shall be deposited under the
provisions of the Act, in any of the approved banks or in the post office. Name
of the approved banks into which all the moneys relating to chit shall be
deposited under the provisions of the Act. (d)
Description
and kind of security conferred by the foremen for running the chit with right
reserved to charge or substituted the security subject to the previous sanction
of the Registrar; (e)
Nature
and kind of audit of accounts proposed and the person by whom the balance-sheets
are to be audited with reference to Section 16; (f)
Date,
time and place for the examination of chit records under Section 35 and fee
payable therefore. (5)
Subscription
: Place of payment and last date for payment of each installment (6)
Time
and place of drawl, auction or receipt of tender and the maximum and minimum
amount of dividend, if any fixed in respect of each installment (7)
Dividend-Information
as to how assessed and how distributed among the subscribers, (8)
Mode
of determining the successful bidder. (9)
Procedure
to be adopted when there are no bidders or when there is a tie between the
bidders; (10)
Persons
competent to bid at each installment; (11)
Penalties
and fines imposed, if any, on defaulting subscribers; (12)
Provisions
made for the payment of subscription due from a defaulting subscriber till a
substituted subscriber takes his place; (13)
Provision
made for the transfer of the ticket of non-prized subscribers and of the
interests of the foreman; (14)
Procedure
to be adopted on the death of a subscriber before the termination of the Chit; (15)
Procedure
for the continuance of the Chit in the event of (i) the death of the foreman or
his becoming of unsound mind, if the foreman is an individual (ii) the
dissolution of the firm if the for man is a partnership firm and (iii) the
winding up of the company, if the foreman is an incorporated company; (16)
Procedure
to be adopted for meeting the expenditure connected with the execution of chit
agreement, the security bond to be executed by prized subscribers, release of
security and any other matter relating to the chit (17)
Such
other matters incidental to the conduct and management of the chits as may be
deemed necessary. Every application for the registration of the
bye-laws shall be made to the Registrar by the foreman in Form No. I and it
shall be accompanied by the fee set out in Appendix No. II. The Certificate of Registration to be issued
under sub-section (3) of Section 3 shall be in Form No. II. Every set of bye-laws registered under the
Act shall be numbered serially by the Registrar in separate series for each
Financial Year. If the Registrar refuses to register the
bye-laws of a Chit, he shall record his reasons for such refusal in writing and
communicate a copy of the order to the applicant (1)
No
alteration or abrogation of the bye-laws of a chit shall have effect unless
such alteration or a abrogation is registered. If the foreman makes any
alteration to the bye-laws, he shall submit the alteration in duplicate to the
Registrar duly signed and attested by two witnesses along with an application
for the registration of such alteration. (2)
An
application to register an alteration of the bye-laws shall be dealt with in
the same manner as an application to register the bye-laws. An amendment to the bye-laws of a chit shall
not take effect from a date earlier than the date of registration of such
amendment, unless otherwise ordered by the Registrar: Provided that the
Registrar shall not give effect to the amendment from a date earlier than the
date of application, for the registration of the amendment. A chit shall be conducted only at the place
specified in the registered bye-laws of the Chit. The Chit agreement shall, in addition to the
particulars mentioned in Section 5, contain full and complete particulars
mentioned on the following points: (1)
The
Registrar with whom the bye-laws have been registered: (2)
Registration
number and date of registration of the bye-laws: (3)
(a)
If the foreman is not a firm or a Corporation, the name, father's or
mother's/husband's name, age, occupation and permanent address of the foreman; (b) If the foreman is a firm, the name of the
firm and the names of each one or the partners of the firm and the other
particulars specified in sub-clause (a) in respect of each partner thereof; (c) If the foreman is a corporation, the name
of the corporation, its registration number and the name and situation of its
registered office; (4)
Chit
amount; (5)
Time
and place at which and the period within which every prized or non-prized
subscriber shall pay his subscription; (6)
If
the prized subscriber at a drawing is to be ascertained by auction or tenders,
provision for determining the prized subscribers when there are no bids or
tenders; (7)
Persons
who can bid or participate in the drawl and the rights of the participants if
they are nominees of subscribers; (8)
Whether
non-prized and unpaid prized subscribers will get their contribution to the
chit on the termination of the chit without any deductions; (9)
Particulars
of security given or deposited by the foreman under Section 12 with the right
reserved to change or substitute the security subject to the permission of the
Registrar; If immovable property is offered as security,
full description of the property and if the security is in the form of cash or
movables, the place or bank wherein they are deposited and if Government
securities, their nature and value. The value of the security shall be given in
each case. (10)
Period
within which subscription for each installment is payable and the fine or
penalty, if any for belated payment; (11)
Nature
and kind of audit of accounts proposed and the person to whom the audit of
balance sheets is to be entrusted with reference to Section 16; (12)
Date,
time and place for the examination of the Chit records under Section 35 and the
fee payable therefore; (13)
The
manner of security to be furnished by prized subscriber for the due payment of
future subscriptions; (14)
Whether
the subscribers to the agreement undertake to abide by the bye-laws of the
chit. CHAPTER III Foremen The Certificate of commencement referred to
in Section 7 shall be in Form No. III. The Certificate to be filed under sub-section
(2) of Section 8 shall be in Form No. IV. The minutes of proceedings of every drawing
shall in addition to the particulars specified in sub-section (2) of Section
10, contain full particulars on the following points: (1)
Particulars
of deposit, if any, of money under sub-sections (1) and (2) of Section 14 since
the date of the previous drawing. (2)
Particular
of deposit, if any, of money under sub-section (3) of Section 21, Section 22
and sub-section (4) of Section 25 since the date of the previous drawing. (3)
Amount
withdrawn from the approved bank (the name of the bank to be specified) and the
purpose for which the amount was withdrawn since the date of previous drawing. (4)
How
the prized subscriber was ascertained as per the terms of the Chit agreement
and particulars of ticket and prize amount; If the ascertainment of the prized
subscribers related to fraction of ticket, particulars in respect of each
fraction shall be entered. (5)
Full
particulars of commission paid to the foreman and the amount of dividend
assigned to each subscriber. (6)
Name
of subscribers or their authorised agents who bid at the drawing, their ticket
numbers and signature. The same shall be in Form No. XI in Appendix-I. In a Grain Chit, for the purpose of security
under Section 12, the grains shall be valued by the Registrar as follows: (a)
the
total quantity of grains due from all subscribers at one instalment of the Chit
shall be ascertained; (b)
the
market value for the time being of the total quantity referred to in clause (a)
shall then be calculated; (c)
In
assessing the market value, the Registrar shall adopt the current market prices
at the nearest taluk, town as ascertained from the Tahsildar having
jurisdiction; (d)
one
and one quarter times the market value mentioned in clause (b) shall be taken
to be the chit amount for the purpose of furnishing security by the foreman
under sub-section (1) of Section 12. (1)
In
the case of cash deposited in an approved bank and transferred in favour of the
Registrar under sub-clause (1) of clause (b) of sub-section (1) of Section 12,
the receipt or the pass book issued by the approved bank shall be delivered to
the Registrar. The Registrar shall inform the approved bank that the security
amount has been deposited in the bank in pursuance of Section 12. (2)
In
case of Government securities transferred in favour of the Registrar under
sub-clause (ii) of clause (b) of sub-section (1) of Section 12, the Registrar
shall keep them in safe custody under his control in a Government Treasury. (1)
The
kinds of movable property for the purpose of proviso to subsection (1) of
Section 12, shall be either gold or silver in the form of bullion or
manufactured articles. (2)
The
foreman shall deposit any movable property, referred to in sub-rule (1) in any
approved bank and submit the receipt together with the certificate of valuation
of such property by the bank to the Registrar. The foreman shall make the
necessary arrangements with the bank to make the property so deposited
available as security for the proper conduct of the chit. The Registrar shall
inform the bank that the movable property has been deposited in pursuance of
Section 12. (1)
During
the currency of a chit, the foreman may apply in Form No. 'V' to the Registrar
for permission to substitute the security given by him for the proper conduct
of the chit by fresh security. (2)
The
Registrar may grant the permission after satisfying himself:-- (i)
that
the request of the foreman for the substitution of the security given under
Section 12 is for reasons to be stated in the application; and (ii)
that
the fresh security offered is adequate. (3)
The
procedure prescribed in Rules 16 and 17 shall apply mutates mutants to
substitute security given by the foreman under Rule 18. (1)
On
the acceptance of the substituted security by the Registrar and on the receipt
of the bond or registered mortgage deed executed in favour of the Registrar as
trustee the Registrar shall return the bond or mortgage deed relating to the
original security with an endorsement of cancellation made and signed by him
with the date of each cancellation. (2)
The
Registrar shall, if so required by the foreman, execute and register a deed of
release in respect of the original security at the cost of the foreman. (3)
If
the original security to be returned is movable property in the form of cash,
gold or silver (bullion or manufactured articles) deposited in any approved
bank or Government securities deposited in a Government Treasury, the Registrar
shall arrange to return the security offered by the foreman after making
endorsements of retransfer in the pass book, receipt, Government security or
other record, as the case may be. On the termination of chit the foreman may
apply to the Registrar for the release of the security given by him. An application for release of security under
Rule 22 shall contain a declaration separately signed by the foreman stating
that the claims of all the subscribers have been fully satisfied and that all
dues payable by the foreman under the Act to the Registrar or any other officer
have been paid. (1)
(a)
The Registrar may, for the purpose of Section (4) of Section 12, call upon the
foreman to produce a copy duly certified to be true copy, of any register and
book of accounts maintained by the foreman and, shall exhibit a notice on his
office notice board stating that the security is proposed to be released and
that any person objecting to such release may file with the Registrar his
statement of objections, if any, within fifteen days from the date of
exhibition of the notice. A copy of the notice in duplicate shall be sent to
(i) every other Registrar; and (ii) every Tahsildar in whose Jurisdiction the
whole or a part of the property given as security is situated for exhibition of
one copy on the notice boards of their offices and retransmission of the other
copy with an endorsement of the fact of such exhibition. (b) If no objections are received within the
period, specified in the notice, the Registrar shall release the security. The
Registrar shall, if so required by the foreman, execute and register a deed of
release at the cost of the foreman. (2)
If
any objections are received, the Registrar shall enquire into the objections
summarily within fourteen days after the date of expiry of the period specified
in the notice referred to in sub-rule (1) and record his decision in writing
and communicate a copy thereof to the foreman and to the objector. In addition to the book of minutes of
drawings mentioned in Section 10, every foreman shall keep the following
registered and books of accounts:- (1)
a
register of subscribers in Form No. V" (2)
a
ledger in Form No. 'VII'; (3)
a
day book in Form No. "VIII' (4)
a
receipt book in Form No. 'IX' duly certified by the foreman as to the number of
pages in duplicate; (5)
a
book containing copies of all notices issued by the foreman to the subscribers; (6)
a
file containing the vouchers for payments made by the foreman; and (7)
a
file containing documents relating to securities given by the prized
subscribers. (1)
Every
entry in the register of subscribers, the ledger or the day-book mentioned in
Rule 23 shall be made as and when the particular event concerned occurs. (2)
On
the receipt of any money, a receipt shall immediately be prepared by the
foreman in Form No. 'IX' and delivered to the payer. (3)
The
foreman shall, at the time of issuing every notice prepare a copy thereof in
the book mentioned in clause (5) of Rule 23 certify it to be a true copy, and
enter therein under his signature the date of despatch of the notice. (4)
A
voucher duly signed by the recipient shall be obtained by the foreman at the
time any payment is made to him and such voucher shall be immediately filed in
the file specified in clause (6) of Rule 23, after due verification of all the
particulars entered therein. (5)
Every
document relating to the security given by prized subscribers shall as soon as
it is received be filed in the file mentioned in clause (7) of Rule 23. The
file shall contain an Index for facilitating the security of the documents. As soon as each payment is made the foreman
shall obtain a voucher from the payee. He shall verify whether the voucher specifies
the purpose for which the payment was received and whether it is properly
signed by the recipient and preserve it in the file mentioned in clause (6) or
Rule 23 after assigning a serial number thereto for each calendar month. The balance sheet referred to in sub-section
(1) of Section 16 shall be in Form No. 'X' except those of incorporated
Companies registered under the Indian Companies Act 1956. (1)
The
Balance Sheet containing all chits shall be prepared by the foreman save those
of incorporated companies under the Indian Companies Act 1956 and filed with
the respective Registrars. (a)
When
the duration of the Chit does not exceed one year on the termination of chit;
and (b)
When
the duration of the chit exceeds one year on the expiry of every period of
twelve months and also on the termination of the chit. (2)
In
the case of incorporated companies for the purpose of this rule the true copy
of the audited balance sheet filed with the Registrar of Companies shall be
filed with the Registrar of chits. (3)
The
balance sheet shall be filed by the foreman within two months from the date of
expiry of the period referred to in sub-rule (1). (1)
If
the foreman desires to have the balance sheet and profit and loss account
audited by a Chit Auditor appointed under sub-section (2) of Section 51, the
foreman shall immediately after the preparation of the balance sheet make an
application for such audit to the Registrar in whose Jurisdiction the Chit is
conducted, specifying whether the audit shall be at the premises of the foreman
or not and the application shall be accompanied by the fees set out in Appendix
II. (2)
The
Registrar shall forward the application of the foreman to the Inspecting
officer having jurisdiction, who shall cause the balance sheet and profit and
loss account to be audited by the Chit Auditor as expeditiously as possible. On
receipt of the application the Inspecting Officer shall forward it to the Chit
Auditor who shall there upon call upon the foreman to produce the chit records
on such date, time and place as he may fix and the foreman shall produce all
registers, books of accounts and other records relating to the chit accordingly
and furnish such Information and give such facilities as may be necessary or
required for the proper audit of the balance sheet and profit and loss account
at the time and place fixed by the Chit Auditor. (3)
Notice
of not less than seven days shall be given to the foreman as to the date of
audit at the premises of the foreman or for the production of registers, books
of account and other records relating to the Chit, as the case may be. The Chit Auditor shall prepare his report and
audit certificate in quadruplicate and shall sent one copy to the foreman, the
second to the Registrar, the third to the Inspecting Officer and keep the last
copy for his own file. (1)
Where
the audit is done by the Chit Auditor, the foreman shall file with the
Registrar a copy of the balance sheet and profit and loss account together with
the audit certificate, and the auditor's report within one month from the date
of receipt of the audit certificate and audit report from the Chit Auditor or
within four months from the last date of the period covered by the balance
sheet, whichever is earlier. (2)
In
the case of audit by an auditor qualified to act as auditor of companies under
the Companies Act, 1956 (Central Act I of 1956), the foreman shall file with
the Registrar the documents referred to in sub-rule (1) within three months of
the expiry of the period with reference to which the balance sheet is to be
prepared under Rule 27. CHAPTER ? IV Winding up of Chits A petition for winding up shall contain the
following particulars: (1)
Full
Name, description, occupation and address of petitioner/petitioners. (2)
Address
of his/their advocate for the service of all notices, process etc. (3)
Address
of the foreman; (4)
Particulars
of the chit: (i)
number
and date of registration of bye-laws: (ii)
office
where the bye-laws were registered: (iii)
The
chit amount; (iv)
The
total number of tickets: (v)
The
number of subscribers and the number of tickets subscribed by each subscriber; (vi)
The
number of the non-prized subscribers, on the date of the petition; and (vii)
The
number of unpaid subscribers. (5)
Facts
on which the petitioner/petitioners rely in support of the petition. (6)
Particulars
relating to the decree and execution of other process which has been returned
unsatisfied in whole or in part if the ground of the petition is that, execution
or other process issued on a decree or order of any court in favour of any
subscriber in respect of the amount due to him from the foreman was returned
unsatisfied in whole or in part. (7)
Full
details to show that the condition prescribed in clause (a) of the proviso, to
Section 39 is satisfied if the winding-up of the Chit is applied for under
clause (d) or (h) of Section 38 and if the said clause (a) applies. (8)
Whether
the previous sanction of the Government has been obtained, if clause (b) of the
proviso to Section 39 applies (a copy of the relevant order of Government to be
attached). (1)
On
the making of an order for the winding of a chit, the court shall send a copy
of its order to the Registrar within whose jurisdiction the chit is conducted.
The Registrar shall forthwith forward a copy of the order to the Chit Auditor
through the Inspecting Officer under whose administrative control the chit
auditor is placed, with instructions requiring him to take into his custody on
behalf of the Court, all the properties, effects, books of accounts and papers
relating to the chit if a Receiver has not been appointed by the Court. The
Chit Auditor shall forthwith take into his custody all properties, effects,
books and papers relating to the Chit and hand them over to the Receiver as
soon as a Receiver is appointed by the Court. (2)
The
Provisions contained in Order XL, of the First Schedule to the Code of Civil
Procedure, 1908 (Central Act V of 1908) shall, so far as may be, apply to the
appointment of Receivers their powers and duties in relation to a chit in
respect of which a winding up order has been made. (1)
The
Receiver shall as soon as possible settle and submit to Court a Statement
(hereinafter referred to as the 'Provisional' statement) showing: (a)
the
names of subscribers and other persons from whom moneys are due to the chit; (b)
the
names of subscribers and other persons to whom moneys are due from the chit; (c)
proposals
as to how the assets of the chit are to be collected and applied in discharge
of its liabilities: and (d)
the
amount proposed to be paid to each of the persons specified in clause (b). (2)
Notice
of the preparation of the provisional statement accompanied by a copy thereof
shall be published and be served on the petitioner, the subscribers and other
persons mentioned by the Court, in such manner as the Court may direct. If the
number of persons on whom notice is to be served is large, the notice may in
the discretion of the Court be served on the petitioner only and advertised in
one or more daily newspapers. The notice shall specify the date on which
objections to the provisional statement will be heard and shall call upon any
person having such objections (1) to submit his statement of objections and the
grounds therefore supported by an affidavit before the date appointed by the
Court in this behalf and (2) to appear in person or by advocate on the date of
hearing with all evidence in support of his objections. When money is due from the foreman, to a
subscriber and also from the subscriber to the foreman, the subscriber shall be
allowed the benefit of a setoff. On the date fixed for the hearing of
objections under sub-rule (2) of Rule 33, the Court shall enquire into the
objections and after considering the evidence adduced in support thereof, pass
orders on the objections and call upon the Receiver to revise, if necessary,
the provisional statement in accordance with its orders. The Court shall fix a
date by which such revision is to be made and intimate orally or in writing
such date to the persons who have appeared in person or through their advocates
on the date of the hearing. (1)
As
soon as possible thereafter and at least ten days before the date fixed under
Rule 38, the Receiver shall submit the Court a fresh list of subscribers or
other persons whom or from whom moneys are due and fresh proposals for the
distribution of the available assets the chit, after making such further
enquiry as may be necessary., The Court shall thereupon consider the said list
and proposals and approve or modify them in such manner as it considers
necessary, the Court shall pass final orders accordingly on the date fixed
under Rule 38 for the collection and distribution of the assets of the chit.
The Court may also pass such orders as may be necessary for the distribution of
the available assets in case such assets happen to be insufficient to meet sums
which have to be paid to the subscribers. (2)
The
final orders passed by the Court under this rule shall be conclusive evidence
of the several claims to be met out of the assets of the chit. (3)
Without
prejudice to the general powers of the Court to enforce any orders passed by
it, the final order passed under this rule may be enforced as if it were a
decree of the Court in such manner as it may direct. In making proposals for the distribution of
the assets, the Receiver shall specify the estimated amount of the cost of
winding-up including remuneration for the Receiver and such other items of
expenditure as are incidental to the winding-up and such estimated amount shal
first be provided for and deducted from the value of the chit assets and the
balance amount shall alone be proposed for distribution in the provisional
statement and the fresh list mentioned in Rules 33, 35 and 36. (1)
Upon
the termination of the proceedings relating to the winding-up, the Receiver
shall file his final account into the Court. Within fifteen days of such final
account being passed by the Court, the balance of money in the hands of the
Receiver shall be paid Into the Court. The Receiver shall also state how the
balance amount may be disposed of together with his reasons for his proposals.
He shall also deposit into the court all books, accounts and all other records
relating to the chit which has been wound up. (2)
The
Receiver may thereafter apply to the Court for a certificate of discharge from
his duties as Receiver and for the vacating of his recognizance bonds entered
into by him and the sureties, if any, on receipt of such application, the Court
may pass orders of such discharge and vacating of the bonds and for the
disposal of the final balance of the chit assets, if any. (1)
After
the affairs of a chit have been completely wound up and the Court makes on
order recording the facts, the Receiver shall send a copy of such order to the
Registrar within fourteen days from the date of the order. (2)
On
receipt of the copy specified in sub-rule (i), the Registrar shall enter in his
books a gist of the order passed by the Court. The books and papers of a chit which has been
completely wound up and the Receiver shall be retained and disposed of in such
manner as the Court directs. When the number of subscribers is large and
the Court, whether on application of the Receiver or at any stage considers
that a meeting of all such parties is necessary in order to ascertain their
wishes, in any matter, the Court may pass an order for holding such a meeting.
The Court may direct the manner in which the time and place at which the
meeting shall be held and the Receiver shall convene and hold the meeting
accordingly. CHAPTER ? V? Fees The fees payable to the Registrar for the
matter specified in Section 53 shall be as set out in Appendix II and shall be
paid in cash. The Registrar shall grant receipts for all
fees received by him. The Registrar may, with the previous sanction
of the Inspection Officer, refund the fee paid to him in excess of the amount
prescribed or any fee that is unearned. Explanation:-- The expression 'fee that is
unearned' in this rule means fee paid in connection with the registration of
the bye-laws the filing of a document or other service to be performed by the
Registrar where such registration or filing is not actually effected or the
service is not actually rendered. CHAPTER ? VI Miscellaneous (1)
An
appeal under sub-sections (1) and (2) of Section 54, shall be either presented
in person or sent by registered post to the Director of Chits. (2)
The
appeal shall be in the form of a memorandum and shall be accompanied by the
original or a certified copy of the order appealed against. (3)
Every
appeal shall: (a)
specify
the name and address of the appellant and also the names and addresses of the
respondents; (b)
state
by whom the order appealed against was made; (c)
set
forth concisely and under distinct heads the grounds of objections to the order
appealed against with the memorandum of evidence; (d)
state
precisely the relief which the appellant claims; and (e)
give
the date of the order appealed against. (1)
The
proceedings of the Director of Chits shall be summary and shall be governed as
far as possible by the provisions of the Code of Civil Procedure, 1908 (Central
Act V of 1908). (2)
On
receipt of the appeal, the Director of Chits shall, as soon as possible,
examine it and ensure that,-- (a)
the
person presenting the appeal has the locus standi to do so: (b)
it
is made within the prescribed time limit; and (c)
it
conforms to all the provisions of the Act and these rules. (3)
In
the proceedings before the Director of Chits, the appellant and the respondents
may be represented by an agent holding a power of attorney or by a legal
practitioner. (4)
The
Director of Chits shall, on the basis of the enquiry conducted and with
reference to the records examined, pass such order on the appeal as may seem
just and reasonable. (5)
Every
order of the Director of Chits under sub-rule (4) shall be in writing and it
shall be communicated to the appellant and the Registrar concerned. In respect of an appeal under sub-section (3)
of Section 20 or an application under sub-section (2) of Section 26, the
procedure specified in Rules 45 and 46 shall mutatis mutandis apply. The records of a chit including registrar and
books of account shall be preserved in the Office of the Registrar for twelve
years (a) from the date of release of security in the case of chits terminated
and (b) from the date when the affairs of the chit are completely wound up in
the cases dealt within Chapter IX of the Act and if orders passed under that
Chapter are appealable, from the date of disposal of such appeal. Every Registrar shall keep a separate register
in which shall be entered particulars of all records relating to chits
registered in his office. [1]THE
ANDHRA PRADESH CHIT FUNDS RULES, 1971
PREAMBLE