- A chit may be wound up by the prescribed authority having jurisdiction over the place where the chit has been registered-(a)if the chit has terminated under clause (c) of section 33; or(b)if the foreman fails to give the security specified, in section 14 or it he commits any such act in respect thereto as is calculated to impair materially the nature of the security or the value thereof; or(c)if he fails to deposit the chit money in accordance with the provisions of this Act; or(d)if it ispr6vedto the satisfaction of the prescribed authority that the foreman is unable to pay the amounts due to the subscribers ; or(e)if execution or other process issued on a decree or order of any court in favour of any subscriber in respect of amounts due to him from the chit is returned unsatisfied in whole or in part ; or(f)if it is proved that there has been fraud or collusion on the part of the foreman in the matter of taking securities from prized subscriber; or(g)if the foreman has appropriated the prize amount in his capacity as a subscriber without furnishing sufficient security for future subscriptions; or(h)if it Is otherwise just and equitable that the chit should be wound up.Explanation. - For the purposes of clause (d), in determining whether the foreman is unable to pay the amounts due to the subscribers, the prescribed authority, shall take into account his contingent and prospective liabilities in respect of the chit :Provided that a chit conducted by a company within, the meaning of the Companies Act, 1956, may be wound up only by the Court having jurisdiction under that Act.
