Section 26 in The Maharashtra Chit Funds Act, 1974
26. Foreman to demand future subscription by written notice.
(1)The Foreman shall not be entitled to claim consolidated payment of all the future subscriptions from a defaulting prized subscriber, unless he shall have demanded the same in writing.(2)If in a suit by a Foreman for consolidated payment of future subscriptions from a defaulting prized subscriber, the defendant pays into court, on or before the date to which the suit is posted for hearing, the arrears of subscription till that date together with interest thereon at the rate provided for in the chit agreement or at twelve per cent, per annum simple interest, whichever is lower, and the costs of the suit for payment to the plaintiff, then, notwithstanding any contract to the contrary, the court shall pass a decree directing that the defendant shall deposit in court for payment to the plaintiff, the future subscriptions on or before the dates on which they fall due and that, in default of payment by the defendant of any future subscription on or before the due date, the plaintiff shall be at liberty to realise in execution all the future subscriptions and interest thereon less the amount, if any, already deposited by the defendant :Provided that, if any such suit is upon a promissory note, no decree shall be passed under this sub-section, unless such promissory note expressly states that the amount due under the promissory note is towards payment of subscriptions to the chit.(3)Any person, who holds an interest in the property or any part thereof furnished by the subscriber as security shall be entitled to make payment under sub-section (2) of this section.(4)All consolidated payments of future subscriptions realised by a Foreman shall be deposited by him in an approved Bank within seven days of their realisation. The amount so deposited may be withdrawn only for payment of future subscriptions. Where any property is acquired in lieu of the consolidated payment, it shall remain as security for the due payment of future subscriptions.
