Section 65 of The Chit Funds Act, 1982
- (1)Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963), but subject to the specific provisions contained in this Act, the period of limitation in the case of a dispute referred to the Registrar under section 64, shall
- (a)if the dispute relates to the recovery of any sum, including interest thereon, due to a foreman from a deceased subscriber, be three years, computed from the date on which such subscriber dies or ceases to be a subscriber; or
- (b)if the dispute is between a foreman and a subscriber or a past subscriber, or the nominee, heir or legal representative of a deceased subscriber, and the dispute relates to any act or omission on the part of either party to the dispute, be three years from the date on which the act or omission with reference to which the dispute arose, took place.
- (2)The period of limitation in the case of any dispute other than those referred to in sub-section (1) which are required to be referred to the Registrar under section 64 shall be regulated by the provisions of the Limitation Act, 1963 (36 of 1963), as if the dispute were a suit, and the Registrar, a Civil Court.
- (3)Notwithstanding anything contained in sub-sections (1) and (2), the Registrar may admit a dispute after the expiry of the period of limitation specified therein, if the applicant satisfies the Registrar that he had sufficient cause for not referring the dispute within such period.
Summary
- This section sets the deadlines (limitation periods) for filing a dispute with the Registrar under Section 64, overriding the general Limitation Act of 1963.
- To recover any money or interest due from a deceased subscriber, the foreman must file the dispute within three years from the date the subscriber died or ceased to be a subscriber.
- For other disputes between a foreman and a subscriber (or their heirs, nominees, or past subscribers) regarding any wrongful action or failure to act, the limit is three years from the date the act or omission occurred.
- Any other types of disputes are governed by the standard Limitation Act of 1963, treating the dispute as a lawsuit and the Registrar as a civil court.
- The Registrar has the power to accept a dispute even after the deadline has passed if the applicant proves they had a very good reason (sufficient cause) for the delay.
Practical examples
FAQ
1. What is the general deadline for filing a dispute about a wrongful act or omission under this Act?
The deadline is three years from the date on which the act or omission took place.
2. If a subscriber dies owing money, when does the three-year countdown start for the foreman to file a dispute?
The three-year period is counted from the date on which the subscriber dies or ceases to be a subscriber.
3. Can the Registrar accept a dispute after the three-year deadline has expired?
Yes, the Registrar can admit a late dispute if the applicant satisfies the Registrar that they had a sufficient cause for not filing on time.
Test yourself
Q1.Under Section 65 of The Chit Funds Act, 1982, if a foreman wants to refer a dispute to the Registrar under Section 64 to recover money due from a deceased subscriber, how is the deadline for filing determined?
Q2.Under Section 65 of The Chit Funds Act, 1982, if a dispute arises between a foreman and a past subscriber regarding an omission that took place on June 15, 2026, by what date must the dispute be referred to the Registrar?
Q3.Under Section 65 of The Chit Funds Act, 1982, what authority does the Registrar have if an applicant presents a chit dispute after the expiration of the statutory limitation period?
Q4.Under Section 65 of The Chit Funds Act, 1982, how are the limitation periods for disputes not specifically covered under sub-section (1) regulated?