Section 37 of the Chit Funds Act, 1982: Entry of Transferee's Name in the Books
Section 37 prescribes the record-keeping and Registrar-filing requirement after a transfer covered by Section 34 or Section 35 of the Chit Funds Act, 1982.
Text and meaning of Section 37
Section 37 - Entry of transferee's name in the books.
Every transfer under Section 34 or Section 35 must be entered by the foreman in the books of the chit forthwith. The foreman must also file a true copy of that entry with the Registrar within fourteen days from the date on which the entry is made.
In practical terms, the provision creates two connected duties for the foreman: first, promptly record the qualifying transfer in the chit books; second, send a true copy of that entry to the statutory Registrar within the prescribed fourteen-day period.
Which transfers are covered?
Transfer under Section 34
Section 34 deals with restrictions on the transfer by a foreman of his rights to receive subscriptions from prized subscribers. Section 37 expressly requires a transfer falling under Section 34 to be reflected in the chit books.
Transfer under Section 35
Section 35 concerns the transfer by a non-prized subscriber of his or her rights in the chit. Such a transfer must satisfy the statutory requirements of Section 35, and Section 37 then requires the relevant transfer to be entered in the books and reported to the Registrar.
Compliance requirements under Section 37
The statutory sequence is straightforward: a qualifying transfer occurs under Section 34 or Section 35; the foreman enters it in the books of the chit forthwith; and a true copy of that entry is filed with the Registrar within fourteen days from the date of making the entry.
Important: The fourteen-day period under Section 37 runs from the date the entry is made in the chit books. Section 37 should therefore be read together with Sections 34 to 36 when determining the legal requirements applicable to a particular transfer.
Why Section 37 matters
The provision supports an up-to-date documentary record of transfers affecting a chit and ensures that the Registrar receives a copy of the recorded transaction. This facilitates statutory supervision and provides an official compliance trail concerning changes in rights connected with the chit.
Official statutory source
The current text of the Chit Funds Act, 1982 should be checked from the Government of India's India Code portal, particularly where a transaction may also be affected by applicable rules, notifications, State administration, or later amendments.