(2)"chit" means a transaction whether called chit fund, chit, kuri, or by any other name, by which its foreman enters into an agreement with, a number of subscribers that every one of them shall subscribe a certain sum or a certain quantity of grain by instalments for a definite period and that each subscriber in his turn as determined by lot or by auction or by tender or in such other manner as may be provided for in the agreement, shall be entitled to a prize amount;Explanation. - A transaction is not a chit within the meaning of this clause, if in such transaction-(a)some alone but not all of the subscribers get the prize amount without any liability to pay future subscribers; or(b)all the subscribers get whole of the chit amount by turns with a liability to pay future subscriptions.Illustration.-There are 100 subscribers to a chit and the subscription by each of them is Rs. 10. All and subscribers get by turn Rs. 1,000 being the whole of the chit amount and are liable to pay future subscriptions. The transaction falls within Clause (b) of the above Explanation and is not a chit;
