(1)Subject to the provisions of sub-section (4) of section 58 any person desiring to start or conduct any chit tinder this Act shall make an application to the Registrar. The application shall be accompanied by the prescribed fee and two copies of the proposed bye-laws of the chit signed by the Foreman and attested by at least two witnesses.(2)Subject to the provisions of sub-section (4) of this section, if the Registrar, is satisfied that the proposed chit has complied with the provisions of this Act and the rules, and that its proposed by-laws are not contrary to the provisions of this Act or the rules, he may as soon as possible register the chit and its by-laws, and issue to the Foreman a certificate of registration. Such certificate shall be conclusive evidence that the chit together with by-laws relating thereto is duly registered.(3)The Registrar shall retain one copy of the by-laws of the chit, and return the duplicate copy of the by-laws to the Foreman, with an endorsement that the chit and its by-laws have been registered.(4)The Registrar may by an order in writing for reasons to be recorded therein refuse to register the chit and its by-laws which do not comply with the provisions of this Act and the rules, or on any of the following grounds, namely :-(i)that the security offered by the Foreman under section 13 is insufficient;(ii)that the Foreman has been convicted of any offence under this Act, or(iii)that the Foreman has defaulted in the payment of fees, filing of statements or records, required to be paid or filed under this Act or has violated any of the provisions of this Act or the rules made thereunder :Provided that, before refusing to register a chit, the Foreman shall be given an opportunity of being heard.
