Clause 40

on the expiry of the chit fund period as specified in the agreement or where it is curtailed by reason of any voluntary reduction of membership duly effected under section 33 of this Act;

on the failure of the chit fund company to conduct the chit fund in accordance with the provisions of this Act, the regulations made thereunder or the terms and conditions of the agreement;

on the chit fund company going into liquidation or being wound up, whether voluntarily or involuntarily, or otherwise being dissolved;

on steps being taken for the winding up of the company either voluntarily or by order of the Commissioner or the Minister;

on the licence being revoked by the Commissioner under section 14 of this Act.

to recover from the chit fund company the aggregate of the actual amounts contributed by each subscriber as contributions under the agreement prior to the termination of the chit fund; or

to apply to a court of competent jurisdiction for an order —

directing each subscriber who has drawn a prize amount in that chit fund to deposit in court upon the due dates the several contributions, which, if the chit fund had not terminated, would have been payable by such subscriber to the chit fund company, until the aggregate of the amounts paid to the chit fund company by that subscriber before the termination of the chit fund and of the amounts so deposited in court become equal to the chit fund amount at the time of the sale at which that subscriber was declared the purchaser; and

declaring that all amounts so deposited in court shall be divided rateably among the subscribers who have not drawn a prize amount in that chit fund, and setting out for that purpose any scheme of distribution that may be necessary.