7. [ Commencement of chit business. [The provisions of the principal Act as amended by Tamil Nadu Act 14 of 1975 shall apply only to chits in respect of which the certificate of commencement under section 7 of the Principal Act as amended by the latter Act; and in relation date of the commencement of the latter Act; and in relation to chits in respect of which a certificate of commencement has been obtained before such date, the provisions of the principal Act shall apply as if the latter Act had not been passed. vide section 7 of Tamil Nadu Act 14 of 1975.]
(1)No person shall commence any auction or drawing of any chit unless he has obtained a certificate of commencement [in respect of each such chit] from the Registrar.(2)The Registrar shall, on being satisfied that the by-laws of the chit have been registered and the chit agreement has been filed and the security required under section 12 has been furnished by the foreman, grant a certificate of commencement.]
