- A chit registered in the Presidency-town may be wound up by the Madras City Civil Court and a chit registered elsewhere may be wound up by the District Court having jurisdiction over the place where the chit has been registered-(a)if the chit has terminated under clause (c) of section 31, or(b)if the foreman fails to give the security specified in section 12 [* * *] [The words 'or if he commits any such act in respect thereto as are calculated to impair materially the nature of the security or the value thereof' were omitted by section 4 of the Tamil Nadu Chit Funds (Amendment) Act, 1975 (Tamil Nadu Act 14 of 1975).], or(c)if he fails to deposit the chit moneys in accordance with the provisions of this Act, or(d)if it is proved to the satisfaction of the court 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 subscribers, 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 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 court 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 (Central At I of 1956), shall be wound up only by the court having jurisdiction under that Act.
