41. Sale by sealed tender as alternative to auction

The sale of the chit fund amounts may, if the terms and conditions of the agreement provided therefor, be effected by way of sealed tenders as an alternative to an auction if, at a duly convened meeting of the subscribers held before the sale of the first chit fund amount, the subscribers by a majority representing three-quarters of the chit fund amount resolve to adopt the method of sealed tenders; and the method adopted for the sale of the first chit fund amount must be followed at each subsequent sale in connection with that chit fund.

However, in every case where the tenders of 2 or more subscribers are of the same value, the chit fund amount must be put up for sale by auction among those subscribers, and the initial bid at every such auction must be the amount set out in the tenders of those subscribers.