Clause 54

As soon as practicable after the making of an order for the winding up of a chit fund company, the liquidator of such company shall publish in the Gazette a notice requiring every debtor of the chit fund company to redeem any property he has deposited with the company as security for any loan that he has obtained from the chit fund company, and shall also send by registered post such notice to every debtor whose security is held by the chit fund company and whose name is mentioned in the statement of affairs made out under section 234 of the Companies Act (Cap. 185).

The notice shall specify the latest date up to which any security may be redeemed, which date shall not be less than three months from the date of the notice.

After the latest date for redeeming any security held by the chit fund company specified in the notice, the liquidator may proceed to realise any security held by the chit fund company forthwith, notwithstanding any agreement setting out any other period of redemption previously entered into between the chit fund company and the debtor.