Section 56 of the Chit Funds Act, 1982 - Notification of Winding Up Order
Section 56 forms part of Chapter X of the Chit Funds Act, 1982, which deals with winding up of chits. The provision requires the Registrar to formally record a winding up order and to give public notice of the order through the Official Gazette.
Text of Section 56 - Notification of winding up order
On the making of a winding up order, the Registrar shall make an entry in his book relating to the chit and shall notify in the Official Gazette that the order has been made.
Meaning and effect of Section 56
Section 56 prescribes the statutory notification step that follows the making of a winding up order in relation to a chit. Once such an order has been made, the Registrar has two express duties: first, to make an entry concerning the order in the book relating to that chit; and second, to notify in the Official Gazette that the winding up order has been made.
- Winding up order: The obligation under Section 56 arises after a winding up order has been made under the provisions governing winding up of chits.
- Registrar: The Registrar must record the order in the official record relating to the chit.
- Official Gazette: The Registrar must also publish a notification stating that the winding up order has been made.
- Purpose: The provision creates an official record and a public notification of the winding up order.
Section 56 in the winding up framework
Section 56 should be read with the surrounding provisions in Chapter X. Sections 51 to 55 address matters such as the commencement and effect of a winding up order, injunctions, powers of the Registrar, vesting of chit assets, and stay of suits or other legal proceedings. Section 56 then requires official recording and Gazette notification of the winding up order. The succeeding provisions deal with matters including cessation or transfer of winding up proceedings, compensation, appeal and limitation.
Official text and current law
The Chit Funds Act, 1982 is Act No. 40 of 1982 and is administered by the Department of Financial Services, Ministry of Finance. The India Code text should be consulted for the official central enactment and available legislative updates.
India Code - Chit Funds Act, 1982