Section 23 in The Maharashtra Chit Funds Act, 1974
23. Amount due to defaulting subscriber how dealt with.
- When a substituted subscriber draws the prize amount, the defaulting subscriber shall be entitled to recover from the Foreman his contributions subject to such deductions as may be provided for in the chit agreement. The Foreman shall, on demand made by the defaulting subscriber and on his executing an acknowledgement duly signed, be bound to pay to the defaulting subscriber the amount due to him within fifteen days from the date of such demand. If the defaulting subscriber fails to furnish the acknowledgement as aforesaid, the Foreman shall, before the date of the next succeeding instalment, deposit in an approved bank the amount due to the defaulting subscriber. The amount so deposited shall not be withdrawn by the Foreman for any purpose other than for payment to the defaulting subscriber.
