COMMITTEE (CHIT) AGREEMENT
This Committee (Chit) Agreement (this "Agreement") is made at __________ on __________.
BY AND AMONG
__________, __________, of __________, PAN __________ (the "Foreman"),
AND
The Subscribers listed in Schedule I, each of whom executes this Agreement in respect of the ticket or tickets shown against their name (each a "Subscriber" and together the "Subscribers").
The Foreman and the Subscribers are each a "Party" and together the "Parties".
RECITALS
A. The Foreman has obtained the previous sanction required by s.4 of the Chit Funds Act, 1982 to commence and conduct this chit. Particulars of that sanction: __________
B. The Foreman proposes to conduct a chit of __________, divided into __________ tickets of __________ each per month, for __________ months, on the terms of this Agreement, and the Subscribers have each agreed to take one or more tickets in it.
NOW THIS AGREEMENT WITNESSES as follows.
- THE CHIT
1.1 The chit amount is __________, divided into __________ equal tickets. Each Subscriber shall pay __________ for each ticket held, every month, for __________ months, being the duration of the chit.
1.2 The first instalment is due on __________, and each subsequent instalment is due on the __________ of the following calendar months until the chit is completed.
1.3 This Agreement is governed by the Chit Funds Act, 1982 and the Rules made under it as applicable in __________, and every clause of this Agreement is subject to that Act and those Rules; where any clause of this Agreement conflicts with the Act or the Rules, the Act and the Rules prevail.
- THE FOREMAN'S COMMISSION
2.1 The Foreman is entitled to a commission of __________% of the chit amount, being not more than the 5% permitted by s.21 of the Chit Funds Act, 1982, deducted from the discount at each instalment in the manner stated in clause 4.
- CONDUCT OF THE DRAW OR AUCTION
3.1 __________
3.3 The monthly meeting, draw or auction is held at __________, or at such other place as the Foreman notifies to the Subscribers in writing at least three days in advance.
3.4 A Subscriber unable to attend may authorise another person in writing to bid or represent them at the draw; a Subscriber neither present nor so represented is bound by the result of that meeting in the same way as one who attended.
3.5 A Subscriber who has already been prized under this chit is not entitled to bid or be drawn again for a further prize in the same chit.
- THE DISCOUNT
4.1 __________
4.2 The Foreman shall prepare and make available to every Subscriber, after each meeting, a statement showing the chit amount, the prize amount paid out, the commission deducted, and the discount distributed, together with the running account of each Subscriber's instalments and dues.
- PAYMENT OF THE PRIZE AMOUNT
5.1 The Foreman shall pay the prize amount to the Subscriber prized at a meeting only after that Subscriber has furnished the security required by clause 6 and after deducting the Foreman's commission for that instalment under clause 2.
5.2 The Foreman shall pay the prize amount within the time the Chit Funds Act, 1982 or the Rules made under it prescribe, and in any event without unreasonable delay once the security under clause 6 is furnished.
- SECURITY FROM A PRIZED SUBSCRIBER
6.1 Before the prize amount is paid to a Subscriber prized at any meeting, that Subscriber shall furnish, for the due payment of the instalments remaining on that ticket, the following security: __________
6.2 Security furnished under clause 6.1 is released once every remaining instalment on that ticket has been paid in full.
- DEFAULT
7.1 A Subscriber who does not pay an instalment by its due date shall pay interest on the overdue amount at __________% per annum from the due date until payment.
7.2 __________
7.3 Where a prized Subscriber defaults on a remaining instalment, the Foreman may recover it from the security furnished under clause 6 without prejudice to any other remedy available to the Foreman or to the other Subscribers under the Chit Funds Act, 1982.
- FOREMAN'S OBLIGATIONS
8.1 The Foreman shall conduct every meeting, draw or auction transparently and in the presence of the Subscribers or their authorised representatives, shall keep true and accurate accounts of the chit, and shall make them available for inspection by any Subscriber on reasonable request.
8.2 The Foreman shall not commence a further chit using the instalments collected under this chit, and shall keep the funds of this chit identifiable and separate from the Foreman's own funds and from any other chit the Foreman conducts.
- TERMINATION AND WINDING UP
9.1 This Agreement, and the chit it records, continues until every ticket has been prized and every instalment has been paid, unless it is earlier discontinued or wound up in accordance with the Chit Funds Act, 1982.
9.2 If the chit is discontinued before every ticket is prized, the Foreman shall account to every Subscriber for the instalments paid and the discount and commission position as at the date of discontinuance, in accordance with the Act and the Rules made under it.
- FILING AND REGISTRATION
10.1 The Foreman shall file this Agreement for registration with __________ before the first instalment is collected, together with the security the Act and the Rules require, and shall furnish the Subscribers with the registration particulars once available.
- STAMP DUTY
11.1 This Agreement is executed in __________. The Foreman shall bear the fee and any stamp duty payable on filing and registering this Agreement, and may recover a proportionate share from each Subscriber as part of the Foreman's commission under clause 2, and not as a separate charge.
- NOTICES
12.1 A notice to a Subscriber under this Agreement is sufficient if sent to the address shown against that Subscriber's name in Schedule I, or handed to the Subscriber or their authorised representative at a meeting under clause 3.
- DISPUTE RESOLUTION AND GOVERNING LAW
13.1 __________
13.2 The seat and venue of any arbitration under this Agreement, and the place of any court proceedings, is __________, and the courts at __________ have exclusive jurisdiction, subject to any arbitration agreed above and to the jurisdiction the Chit Funds Act, 1982 gives to the Registrar of Chits.
13.3 This Agreement is governed by the laws of India as in force in __________.
- GENERAL
14.1 This Agreement, with Schedule I, is the entire agreement among the Parties about the chit described in it.
14.2 No amendment is effective unless made in writing and signed by the Foreman and by every Subscriber affected by it.
14.3 If any provision is held invalid or unenforceable, the rest of this Agreement continues in effect.
SCHEDULE I — THE SUBSCRIBERS
__________
IN WITNESS WHEREOF the Parties have executed this Agreement at __________ on __________.
SIGNED AND DELIVERED by the FOREMAN
__________
Signature: ______________________________
SIGNED by each SUBSCRIBER named in Schedule I, against their own name in the Foreman's register of signatures maintained for this chit.
WITNESSES
- __________
Signature: ______________________________
- __________
Signature: ______________________________