31. Prized subscriber to furnish security.—Every prized subscriber shall, if he has not offered to
deduct the amount of all future subscriptions from the 1
[net chit amount] due to him, furnish, and a
foreman shall take, sufficient security for the due payment of all future subscriptions and, if the foreman
is a prized subscriber, he shall give security for the due payment of all the future subscriptions to the
satisfaction of the Registrar.
32. Prized subscriber to pay subscriptions regularly.—Every prized subscriber shall pay his
subscriptions regularly on the dates and times and at the place mentioned in the chit agreement and, on his
failure to do so, he shall be liable to make a consolidated payment of all the future subscriptions
forthwith.
33. Foreman to demand future subscriptions by written notice.—A foreman shall not be entitled
to claim a consolidated payment from a defaulting prized subscriber under section 32 unless he makes a
demand to that effect in writing.
(2) Where a dispute is raised under this Act by a foreman for a consolidated payment of future
subscriptions from a defaulting prized subscriber and if the subscriber pays to the foreman on or before
the date to which the dispute is posted for hearing the arrears of subscriptions till that date together with
the interest thereon at the rate provided for in the chit agreement and the cost of adjudication of the
dispute, the Registrar or his nominee hearing the dispute shall, notwithstanding any contract to the
contrary, make an order directing the subscriber to pay to the foreman the future subscriptions on or
before the dates on which they fall due, and that, in case of any default of such payments by the
subscriber, the foreman shall be at liberty to realise, in execution of that order, all future subscriptions and
interest together with the costs, if any, less the amount, if any, already paid by the subscriber in respect
thereof:
Provided that if any such dispute is on a promissory note, no order shall be passed under this
sub-section unless such promissory note expressly states that the amount due under the promissory note is
towards the payment of subscriptions to the chit.
(3) Any person who holds any interest in the property furnished as security or part thereof, shall be
entitled to make the payment under sub-section (2).
(4) All consolidated payments of future subscriptions realised by a foreman shall be deposited by him
in an approved bank mentioned in the chit agreement before the date of the succeeding instalment and the
amount so deposited shall not be withdrawn except for payment of future subscriptions.
(5) Where any property is obtained as security in lieu of the consolidated payment of future
subscriptions, it shall remain as security for the due payment of future subscriptions.