Section 55 of the Chit Funds Act, 1982 – Suits, etc., to be stayed on winding up order

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Section 55: Suits, etc., to be stayed on winding up order

When a winding up order has been made or a receiver has been appointed, no suit or other legal proceedings shall be continued or commenced against the foreman by a subscriber for the realisation of amounts due to him in respect of the chit except with the leave of the Registrar winding up the chit and on such terms as he may impose.

Source: official text of The Chit Funds Act, 1982 as published on India Code (PDF). All sections of the Chit Funds Act, 1982.