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Mazhuppel Chitty Monthly Agreement Template - English

{{company_logo}} Mazhuppel Chits Private Limited

Payyavoor, Ph: 04602210679, Mob: 9446510679

Agreement for the monthly auction chit permitted under order number {{blank_001}} of the Deputy Registrar of Chits, Kannur District, subject to the Chit Funds Act, 1982 (Central Act 40 of 1982).

Form No. VIII - Form of Chit Agreement

(Terms and conditions of the agreement entered into between the foreman and the subscribers)

The terms and conditions of the agreement entered into between the chit foreman, Mazhuppel Richard Joseph (Managing Director, Mazhuppel Chits Private Limited), and the subscribers for conducting the chit on the {{blank_002}} day of every English calendar month are as follows.

  1. This chit is registered at the Sreekandapuram Sub Registrar Office under number {{blank_003}}.

  2. This chit is registered in the year 20{{blank_004}}, in the month of {{blank_005}}, on the {{blank_006}} day. Richard Joseph, S/o Joseph Mazhuppel, aged {{blank_007}}, chit foreman, Payyavoor amsom/desom, P.O. Payyavoor, Kannur District, PIN 670633, phone number 04602210679, is the foreman of this chit.

I. Chit Amount

This chit shall have an installment amount of Rs. {{blank_008}} and a total of {{blank_009}} installments, making the total chit amount. The first installment shall be paid without any deduction. From the second installment onward, the amount payable shall be the installment amount after deducting the auction discount from the stated installment amount. A subscriber who wins the chit auction shall receive only the prize amount after deducting the foreman's commission and the auction discount.

II. Chit Period

The first installment date of the chit shall be in the year {{blank_010}}, in the month of {{blank_011}}, and thereafter the {{blank_012}} day of every month shall be the installment date. If the chit day falls on a company holiday, the chit shall be conducted on the next working day. With 12 installments per year, the chit shall run for {{blank_013}} months and shall end in the year {{blank_014}}, in the month of {{blank_015}}.

III. Chit Auction

The auction shall be conducted at {{blank_016}} at the office of Mazhuppel Chits Private Limited, situated in building number PGP IX/673 at Payyavoor, on every installment date. If normal office functioning is not possible due to uncontrollable circumstances such as bandh, hartal, strikes, law and order issues, public holidays, or similar reasons, the chit auction shall be conducted on the next working day. The first installment shall be collected by the foreman without auction. On the same day, the second installment shall be auctioned in advance, and each subsequent installment shall likewise be auctioned in advance. For one chit number of Rs. {{blank_017}}, the auction shall begin with a reduction of Rs. {{blank_018}}.

IV. Details of Deposit Given as Foreman's Security

  1. Section 20(a) of the Chit Funds Act: As security for the proper conduct of this chit, the foreman has deposited an amount equal to the chit value, namely Rs. {{blank_019}} ({{blank_020}}), as a cash deposit in the name of the Assistant Registrar of Chits, Sreekandapuram, under receipt number {{blank_021}}, at {{blank_022}} branch, on {{blank_023}}, thereby creating security in favor of the Assistant Registrar of Chits, Sreekandapuram, for the benefit of the subscribers.

  2. A certificate bearing number {{blank_025}}, dated {{blank_024}}, has been obtained from the Assistant Registrar of Chits, Sreekandapuram, confirming that the security mentioned under Section 20 of the Chit Funds Act is sufficient.

  3. The foreman shall not withdraw or receive back the said security until all liabilities relating to the chit have been fully discharged.

V. Manner of Conducting the Chit

  1. This chit has an installment amount of Rs. {{blank_026}} and a duration of {{blank_027}} months. The foreman's commission is fixed at {{blank_028}} of the chit value, and the auction time is fixed at 10 minutes. The persons entitled to the chit amount shall be determined either by auction or by drawing lots. The auction of this chit shall be conducted at the place, date, and time mentioned in Article III.

  2. On every chit auction day, the auction shall begin after deducting the foreman's commission of {{blank_029}} from the total chit amount. In each auction, the subscriber who offers to forgo the highest amount, in reductions of Rs. {{blank_030}}, shall be confirmed as the successful bidder. However, the discount shall not exceed 40% of the chit amount. If more than one subscriber offers a 40% discount, the successful subscriber shall be decided by drawing lots.

  3. If, for any reason, no person bids after deducting the foreman's commission, the successful subscriber shall be decided by drawing lots from among subscribers who are not in arrears of subscription, and the person so selected shall be entitled to the amount after deducting the foreman's commission.

  4. Subscribers who have defaulted on installments shall not have the right to participate in the auction.

  5. If, for any reason, a subscriber is unable to participate in the auction, the foreman shall have the right to permit a person authorized in writing by the subscriber to participate in the auction. The foreman may also participate in the auction as the agent of the subscriber if authorized in writing by the subscriber.

VI. Manner of Paying Chit Installments

  1. Subscribers shall pay the amount due for the chit before the auction time on the chit day and obtain a proper receipt. Receipts without the signature and seal of the foreman shall not be valid.

  2. If a successful subscriber fails to pay any installment amount before the respective installment date, the entire balance amount shall become payable along with interest not exceeding 12%. If such payment is not made, the foreman shall have the right to recover the full liability, interest not exceeding 12% from the default date, and expenses, from the movable and immovable properties of the subscriber and from the sureties.

  3. If subscribers who have not yet won the chit fail to pay the installment amount on the respective installment date, they shall pay it with interest not exceeding 12% on or before the next installment date. If they fail to do so, the foreman shall have the right, after giving notice as required by law, to remove the defaulting subscriber and substitute another person. The defaulting subscriber shall be informed within 14 days of such removal and substitution. The removed subscriber shall not be entitled to dividend interest on the installments already paid, and shall receive only the amount paid after deducting the foreman's commission and GST.

  4. From the amount collected from a new subscriber substituted for a defaulting subscriber who has not won the chit, the amount due to the defaulting subscriber shall be separately deposited by the foreman in an approved bank. The foreman shall pay that amount to the defaulting subscriber when demanded. If the foreman fails to do so, the defaulting subscriber shall have the right to recover the said amount with interest.

VII. Procedure for a Successful Subscriber to Receive the Chit Amount

  1. The successful subscriber, or the subscriber's legal heir, shall provide security acceptable to the foreman and receive the chit amount after 15 days from the next installment date. For the installments remaining payable under the chit, the successful subscriber or legal heir shall provide appropriate security to the foreman.

  2. If, for any reason, the successful subscriber or legal heir does not provide sufficient security and receive the chit amount, the foreman shall deposit that amount in a branch of an approved bank and inform the successful subscriber accordingly.

  3. If, for any reason, the deposited amount is insufficient for the remaining installments, the foreman shall have the right to recover that amount, the interest thereon, and other expenses from the subscriber.

  4. If any balance remains after paying the installments due from the deposit amount, the foreman shall pay such balance to the subscriber or legal heir after completion of the chit. If the foreman fails to do so, the subscriber or legal heir shall have the right to recover the amount from the foreman with lawful interest from the date of completion of the chit.

  5. After the chit amount is deposited in the bank, if the subscriber or legal heir produces the required security or guarantee to receive the chit amount, the foreman shall withdraw the deposit amount, deduct the amount due for the installments already conducted, and pay the balance to the subscriber or legal heir.

  6. If the successful subscriber or legal heir produces the required security and guarantee to receive the chit amount and the foreman still fails to pay the chit amount, the successful subscriber or legal heir shall have the right to recover that amount from the foreman with lawful interest from the date on which the security was produced.

VIII. Distribution of Dividend Interest

The foreman's commission and auction surplus for each ticket shall be distributed equally among subscribers who have won the chit and those who have not won the chit.

IX. Foreman's Commission and Details of the Installment Collected

  1. On {{blank_031}}, the first installment of the chit consisting of {{blank_032}} installments shall be collected by the foreman without any discount. There shall be no auction for the first and last installments. The person receiving the last installment shall be entitled to the total amount after deducting the foreman's commission.

  2. The foreman's commission is fixed at {{blank_033}}% of the chit amount. For a chit of Rs. {{blank_036}}, having an installment amount of Rs. {{blank_034}} and a duration of {{blank_035}} months, the commission per ticket shall be Rs. {{blank_037}}.

  3. The foreman shall have the authority to collect GST imposed by the Central Government on the foreman's commission from the subscribers at the applicable rates from time to time.

X. Transfer of Chit Rights

  1. Subscribers shall not have the right to transfer their rights in the chit without the written consent of the foreman. A substituted subscriber shall not acquire any rights greater than those held by the previous subscriber, and all terms and conditions stated in this agreement shall apply to the substituted subscriber. Removed subscribers do not require the foreman's permission to transfer the rights they had in the chit. However, the transferee shall not acquire any right greater than the right held by the removed subscriber.

  2. The foreman's right to recover installment amounts from successful subscribers shall not be transferred without the prior written permission of the Assistant Registrar of Chits. If such transfer delays payment of amounts due to subscribers who have not received the chit amount, or creates a situation in which such amounts cannot be received, those subscribers shall have the right to challenge or invalidate such transfers.

XI. Chit Balance Sheet and Subscribers' Right to Inspect Chit Records

  1. The annual balance sheet of the chit, showing the chit-related assets and liabilities, their nature, and the manner in which the chit fund has been valued, shall be prepared in Form No. 28. It shall be provided to the auditors for audit under Chit Rule 31, the audited sheet shall be filed in time, and the foreman shall obtain and keep a certificate from the auditors.

  2. Chit-related records shall be available for inspection by subscribers at the office of Mazhuppel Chits Private Limited on chit days between 11:00 AM and 12:00 noon.

XII. Deposit of Chit-Related Amounts

Amounts related to the chit shall be deposited in the Payyavoor branch of State Bank of India, an approved bank under the Chit Funds Act.

XIII. Miscellaneous

  1. The subscriber who receives the last installment shall be entitled to the entire amount after deducting the foreman's commission. The foreman shall pay the said amount within one month after completion of the chit cycle. In case of default, the subscriber and the subscriber's nominee shall have the right to recover the chit amount from the foreman with lawful interest from the date of completion.

  2. If the foreman is entitled to recover any amount from subscribers in relation to the chit, the foreman shall have first and primary charge over the relevant amounts. Likewise, if subscribers are entitled to recover any chit-related amount from the foreman, the subscriber entitled to receive money shall have the right to recover such amount from the foreman's security amount and from the chit amount deposited in the bank.

  3. All receipts and payments between the foreman and subscribers shall be made through receipts.

  4. The chit capital shall not be increased for any reason. However, it may be reduced if found necessary.

  5. If the chit agreement is to be amended without violating the provisions of the Chit Funds Act and Rules, the foreman shall call, in writing, a meeting of not less than 25% of the subscribers who have not won the chit and the successful subscribers who have not yet received the chit amount, and obtain their approval.

  6. If the chit cannot be continued because of any default by the foreman, the amounts contributed by all subscribers who have not received or won the chit, including dividend interest, shall be paid within 60 days. In case of default, those amounts may be recovered by the subscribers from the following assets of the foreman:

a. Security deposit amount b. Other properties c. Amounts payable by successful subscribers toward future installments

  1. If the foreman holds any tickets as a subscriber, other than in the capacity of foreman, the foreman shall not have any rights or privileges in respect of those tickets beyond those of other subscribers. When the foreman receives money for such units, the foreman shall, like other subscribers, furnish security for future installments in accordance with the Chit Funds Act and Rules.

  2. If the foreman dies before the end of the chit period, or becomes unable to continue conducting the chit:

a. If the foreman dies before completion of the chit cycle, or in any other unavoidable circumstance, Daisy Richard Mazhuppel, Director of the company, shall continue conducting the chit. b. If that is not possible, the chit may be completed by a person selected as foreman by a special general meeting of subscribers who have won the chit but have not received the amount. If that also is not possible, an appropriate decision shall be taken by special resolution regarding the continued conduct of the chit.

  1. The Chit Registrar shall have authority to decide all disputes relating to the conduct of the chit under Section 64 of the Chit Funds Act, 1982 and the related rules.

  2. I have read and understood all the above terms and conditions, agree that they are binding on me, and agree to act accordingly. In witness whereof, I sign this chit agreement before the witnesses named below on the {{blank_040}} day of {{blank_039}}, {{blank_038}}.

Subscriber's Name and Full Address

  1. Name: {{subscriber_name}}
  2. House name: {{subscriber_house_name}}
  3. Father's / Husband's name: {{subscriber_father_or_husband_name}}
  4. Age: {{subscriber_age}} Date of Birth: {{subscriber_date_of_birth}}
  5. Place of residence: {{subscriber_residence}}
  6. Post: {{subscriber_post}}
  7. PIN code: {{subscriber_pincode}}
  8. Panchayat / Municipality: {{subscriber_local_body}} Ward: {{subscriber_ward}} House number: {{subscriber_house_number}}
  9. Village: {{subscriber_village}}
  10. Desam: {{subscriber_desam}}
  11. Taluk: {{subscriber_taluk}}
  12. District: {{subscriber_district}}
  13. Occupation: {{subscriber_occupation}}
  14. Phone number: Landline {{subscriber_landline}} Mobile {{subscriber_mobile}}
  15. Email: {{subscriber_email}}
  16. Aadhaar number: {{subscriber_aadhaar_number}}
  17. Temporary address: {{subscriber_temporary_address_line_1}} : {{subscriber_temporary_address_line_2}} : {{subscriber_temporary_address_line_3}}
  18. Nominee's name and address: {{nominee_name_and_address_line_1}} : {{nominee_name_and_address_line_2}} : {{nominee_name_and_address_line_3}}
  19. Relationship with subscriber: {{nominee_relationship}}
  20. Subscriber chit number: {{subscriber_chit_number}}
  21. Share taken: 1 (One)
  22. Chit amount: {{chit_amount}}

Subscriber's name and signature: {{subscriber_name_and_signature}}

Witnesses

  1. {{witness_1}}
  2. {{witness_2}}

Managing Director Richard Joseph Mazhuppel Chits Private Limited, Payyavoor

Chit foreman's signature and date

Assistant Registrar of Chits, Sreekandapuram Office

Place: {{place}}

(Signature and date)

Date: {{date}}