Section 80 of The Chit Funds Act, 1982
- (1)All offences under section 11 shall be cognizable.
- (2)No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try an offence punishable under this Act.
Summary
- Offences relating to the improper use of terms like chit, chit fund, chitty, kuri, fraternity fund, or Rotating Savings and Credit Institution in a business name are cognizable (meaning the police can arrest the accused without a warrant).
- No court lower than a Metropolitan Magistrate or a Judicial Magistrate of the First Class is allowed to try any offence punishable under this Act.
- This ensures that only higher-level criminal courts handle offences arising under the Act.
- It links criminal enforcement powers directly to name-use violations under Section 11 of the Act.
Practical examples
FAQ
1. What does it mean when Section 80 says offences under Section 11 are cognizable?
It means that if someone illegally uses words like chit or chit fund in their name, the police have the authority to arrest them without a warrant.
2. What specific words are protected under Section 11 and trigger cognizable offences under Section 80 if misused?
The protected words are chit, chit fund, chitty, kuri, fraternity fund, and Rotating Savings and Credit Institution.
Test yourself
Q1.Under Section 80 of The Chit Funds Act, 1982, which of the following courts has the jurisdiction to try an offence punishable under the Act?
Q2.Under Section 80 of The Chit Funds Act, 1982, which category of offences under the Act is explicitly declared to be cognizable (allowing arrest without a warrant)?
Q3.If a company named "National Fraternity Fund" does not carry on chit business and refuses to remove "Fraternity Fund" from its name, how does Section 80 of The Chit Funds Act, 1982 affect law enforcement?
Q4.Under Section 80 of The Chit Funds Act, 1982, what is the lowest criminal court authorized to try an offence under the Act in a metropolitan area?