(1)The foreman shall, on a prized subscriber furnishing security as provided for in clause (d) of sub-section (1) of section 16 for the payment of the future subscriptions, be bound to pay him the prize amount and shall be entitled to get from him an acknowledgment in writing evidencing such payment:Provided that the foreman shall, on demand by a prized subscriber, pay him on the due date the amount which represents the difference between the prize amount and the amount of the future subscriptions without any security whatsoever, and in such case the foreman shall, before the date of the next succeeding instalment, deposit in an approved bank mentioned in the vaiola the amount of future subscriptions and he shall not withdraw the amount so deposited except for payment of future subscriptions.(2)If, owing to default of a prized subscriber, the prize amount due in respect of any drawing remains unpaid before the date of the next succeeding instalment, the foreman shall deposit the same forthwith in any approved bank mentioned in the variola and intimate in writing the fact of such investment together with the following particulars of the investment to the prized subscriber, namely: "(a)the number, year and office of registration of the chitty;(b)the particular instalment of the chitty;(c)the amount due to the subscriber;(d)the approved bank in which the amount is deposited;(e)the date of deposit;(f)the reason for the deposit; and(g)the conditions of disbursement.(3)Payment of the prize amount or the investment of the amount of future subscriptions under sub-section (1) or the investment of the prize amount under sub-section (2) shall be intimated to the subscribers at the next succeeding instalment and such payment or investment entered in the minutes of proceedings of that instalment.(4)The foreman shall not admit any person as a subscriber to a chitty if, by such admission, the total number of tickets mentioned in the variola is increased.(5)If the amount of future subscriptions or the prize amount has not been invested in accordance with the provisions of sub-section (1) or sub-section (2), or if the amount so invested has been withdrawn for purposes other than those for which the same has been held in deposit, or if the requirements of sub-section (3) have not been complied with, the foreman shall be punishable with fine which may extend to five hundred rupees.(6)Any foreman who contravenes the provisions of sub-section (4) shall be punishable with imprisonment for a term which may extend to three months and with fine which may extend to five hundred rupees.
