Section 49(1) in Uttar Pradesh Chit Funds Act, 1975
(1)Where during the pendency of the proceedings for the winding up of a chit, the foreman is adjudicated an insolvent or when the foreman is a company, the company has been ordered to be wound up under· the Companies Act, 1956, the winding up proceedings under this Act, shall cease, and the distribution of the chit assets shall subject to the provisions contained in section 36 and 44, be made by the insolvency court or the court winding up the company; as the case may be.
