s 38 Liability of chit fund company to subscribers
38.—(1) The chit fund company is liable to each subscriber for any amount due to that subscriber in respect of the chit fund. (2) The chit fund company is not entitled to withdraw from the management of the chit fund without the written consent of all the subscribers. (3) Where the chit fund company is in liquidation or is being wound up, whether voluntarily or otherwise, any debt owing by the company to any subscriber under the terms and conditions of the agreement relating to the chit fund is, despite anything in any other written law to the contrary, to be a first charge upon any property acquired or held by it for the purposes of that chit fund, including property held by the Authority as security pursuant to the regulations made under this Act.