Kerala Chitties Act, 1975
No: 23 Dated: Jul, 25 1975
THE KERALA CHITTIES ACT, 1975
(Act 23 of 1975)
An Act to define, amend and consolidate the law relating to chitties in the State of Kerala;
Preamble. - Whereas it is expedient to define, amend and consolidate the law relating to chitties in the State of Kerala;
BE it enacted in the Twenty-sixth Year of the Republic of India as follows: "
PART I
Preliminary
1. Short title, extent and commencement. - (1) This Act may be called the Kerala Chitties Act, 1975.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.
2. Definitions. - In this Act, unless the context otherwise requires,"
(1) "approved bank" means a bank approved by the Government, from time to time, for the purposes of this Act;
(2) "chitty" means a transaction, whether called chitty or kuri, by which one or more persons, hereinafter called the "foreman" or "foremen", enter into an agreement with a number of persons that every one of the contracting party shall subscribe a certain amount of money or quantity of grain or other commodity by periodical instalments for a certain definite period and that each in his turn, as determined by auction or both, shall be entitled to the prize amount, whether payable in cash, kind or any other article of value or in such other manner as may be provided for in the agreement;
(3) "chitty amount" means the sum total of the subscriptions payable by all the subscribers for any instalment without any deduction for discount;
(4) "discount" means the amount of money or quantity of grain or other commodity, which a prize winner has, under the terms of the variola, to forego for the payment of veethapalisa, foreman's commission or such other expense; as may be prescribed;
(5) "drawing" includes the mode of ascertaining the Prize winner at any instalment of the chitty by lot or by auction or in such other manner as may be provided for in the variola;
(6) "foreman" means the person who, under the variola, is responsible for the conduct of the chitty and includes all persons taking his place under section 35;
(7) "non-prized subscriber" does not include a defaulter subscriber ;
(8) "prescribed" means prescribed by rules made under this Act;
(9) "prize amount" means the chitty amount, whether payable in cash, kind or any other article of value, less the discount; it includes, in the case of a fraction of a ticket, the difference between the proportionate chitty amount and the discount on the particular fraction of the ticket; when the prize is payable in movables it means the value thereof at the time it becomes payable;
(10) "Registrar" means a Registrar appointed by the Government under section 57 ;
(11) "special resolution" means a resolution which is passed at a meeting specially convened for the purpose of the general body of subscribers, by a majority of not less than two-thirds of the subscribers present at the meeting in person or by proxy, such majority being also of subscribers representing not less than three-fourths in value of the amount subscribed by the general body of non-prized and unpaid prized subscribers, if any;
(12) "subscriber" includes a person who holds a fraction of a ticket and also a transferee by assignment in writing or by operation of law ;
(13) "ticket" means the share of a subscriber in a chitty which entitles the holder thereof to the chitty amount at any one instalment with or without any deduction by way of discount;
(14) "variola" means the document containing the articles of agreement between the foreman and the subscribers relating to the chitty, and includes vaimpu and kurippattika or other similar instrument;
(15) "veethapalisa" means the share of a subscriber in the discount available under the variola for rateable distribution among the subscribers at each instalment of the chitty.