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Section40
The Chit Funds Act, 1982

Termination of chits

In force From 02 Apr 1984 Act 40 of 1982 As on 17 Oct 2026

Act 40 of 1982 Ministry Finance Enacted 19 Aug 1982 In force 02 Apr 1984 Cited by 3 provisions

Section 40 of the Chit Funds Act, 1982 deals with termination of chits. A chit shall be deemed to have terminated, (a) when the period specified therefor in the chit agreement has expired provided the payment of dues to all the subscribers has been completed; The Act came into force on 02 Apr 1984.

A chit shall be deemed to have terminated,

(a) when the period specified therefor in the chit agreement has expired provided the payment of dues to all the subscribers has been completed; or

(b) when all the non-prized and unpaid prized subscribers and the foreman consent in writing to the termination of the chit and a copy of such consent is filed with the Registrar as required under section 41; or

(c) where a foreman dies or becomes of unsound mind or is otherwise incapacitated and the chit is not continued in accordance with the provisions of the chit agreement:

Provided that, in a case where the foreman is a firm, if a partner thereof dies or becomes of unsound mind or is otherwise incapacitated, the chit shall not be deemed to have terminated and the surviving partner or partners shall conduct the chit in the absence of any provision to the contrary in the chit agreement.

Section 40, The Chit Funds Act, 1982 (Act 40 of 1982).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 41 Copy of assent or consent to be filed with Registrar

Referred to by 3

  1. s. 41 Copy of assent or consent to be filed with Registrar
  2. s. 42 Refund of non-prized subscribers' subscriptions
  3. s. 48 Circumstances under which chits may be wound up

Questions about Section 40

What does Section 40 of the Chit Funds Act deal with?

Section 40 of the Chit Funds Act is headed "Termination of chits". A chit shall be deemed to have terminated, (a) when the period specified therefor in the chit agreement has expired provided the payment of dues to all the subscribers has been completed;

How do I find court cases under Section 40 of the Chit Funds Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Chit Funds Act 1982 40, section 40 Chit Funds Act 1982, section 40 of the Chit Funds Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 40 of the Chit Funds Act, and has it changed?

Its own text turns on section 41 (Copy of assent or consent to be filed with Registrar), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it.

When did Section 40 of the Chit Funds Act come into force?

Section 40 of the Chit Funds Act, cited as Chit Funds Act 1982 40, came into force on 02 Apr 1984, having been enacted on 19 Aug 1982. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.