GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
Office of the Registrar of Companies
Block No. 6, B' Wing, 2nd Floor Shastri Bhawan 26, Chennai, Tamil Nadu, India, 600034
Certificate of Incorporation pursuant to change of name
[Pursuant to rule 29 of the Companies (Incorporation) Rules, 2014]
Corporate Identification Number (CIN): U65991TN1993PLC025555
I hereby certify that the name of the company has been changed from TOWN BENEFIT FUND (KUMBAKONAM)
LIMITED to TBF NIDHI (KUMBAKONAM) LIMITED with effect from the date of this certificate and that the
company is limited by shares.
Company was originally incorporated with the name TOWN BENEFIT FUND (KUMBAKONAM) LIMITED.
Given under my hand at Chennai this Eighteenth day of October two thousand sixteen.
Digitally signed by DS Ministry of Corporate Affairs -
DS Ministry of (Govt of India) 15
DN: c=IN, o=Ministry of Corporate Affairs - (Govt of
India), ou=CID - 958945, postalCode=600006, st=Tamil
Corporate Affairs - Nadu, street=26 HADDOWJ ROAD
NUNGAMBAKKAM, 2.5.4.51=2ND FLOOR B WING
SHASTRI BHAWAN, cn=DS Ministry of Corporate
(Govt of India) 15 Affairs - (Govt of India) 15
Reason: I attest to the accuracy and integrity of this
document
Date: 2016.10.18 10:33:05 +05'30'
Vineet Rai
Authorizing Officer - RoC
Registrar of Companies
RoC - Chennai
Mailing Address as per record available in Registrar of Companies office:
TBF NIDHI (KUMBAKONAM) LIMITED
20 / 38A, DR. BESANT ROAD, KUMBAKONAM, Tamil Nadu, India, 612001
TBF NIDHI (KUMBAKONAM) LIMITED
The Companies Act, 2013 Company Limited By Shares
Memorandum of Association of
TBF NIDHI (KUMBAKONAM) LIMITED
1. The name of the company is TBF NIDHI (KUMBAKONAM) LIMITED
2. The Registered office of the company will be situated in the State of Tamil Nadu.
3. (a) The objects to be pursued by the company on its incorporation are :
1. To encourage and afford all facilities for cultivating thrift, saving habits and to render all financial
assistance to its members by receiving long and short-term deposits and in particular recurring,
fixed and other deposits from the members as are allowed by law. The Company however, shall
not do banking business as defined in Banking Regulation Act, 1949, and also business in the form
of chits.
2. To lend, grant loans to the Members/Shareholders of the company on the security of immovable
properties such as Land & Buildings and Movable Properties such as Gold, Silver, Jewellery, Fixed
Deposits, Kisan Vikas Patras, Deposits under National Saving Certificates, Insurance Policies and
Government Securities and on such other Securities as may be permitted by the Regulatory
Authorities of the Government of India from to time and upon such terms and conditions
including rate of interest as may, from time to time, be decided by the Board of Directors and to
sell, dispose off, transfer such securities as and when necessary
3. *** To let out the company’s premises to the members
(b) Matters which are necessary for furtherance of the objects specified in clause 3(a) are :
1. To make and alter the rules as may be determined from time to time by the Board of Directors for
carrying on the business of the company more profitably and efficiently;
2. To remunerate any person or person or Company for any services rendered or to be rendered in or
about the formation, or promotion of the company or the conduct of its business:
3. To pay out of the capital of the company or otherwise all expenses incurred in connection with the
formation, registration and advertising of the company;
4. To draw, make, accept, endorse, discount, execute, issue, buy, sell or deal in promissory notes, bills
of exchange, hundies, cheques, drafts, and other negotiable instruments and to undertake bills
collection work from its members, subject to the Banking Regulation Act 1949.
5. To open current or deposits accounts with any bank or banks and to pay money into and draw
money from such accounts.
***Altered in the AGM held on 26.09.2019
6. To borrow, raise or secure money from members in such manner as the company may think fit in
particular by the issue of debentures and cash certificates and by the execution of promissory
notes, by arranging overdraft with Banks, charged upon all or any of the company’s properties,
both present and future, including its uncalled capital and to redeem or pay off the same;
7. To negotiate loans and advances, collect and transmit money and security and to accept deposit
and pay interest on them to deal on them;
8. To purchase or otherwise acquire lands and buildings or to construct buildings hold, maintain,
improve, demolish, and reconstruct an dispose off in such manner as the company may deem fit
for the purposes of the company;
9. To acquire land and construct roads and buildings equip and maintain and let on hire- purchase
such buildings to members as the Board of Directors of Company may from time to time
determine;
10.To receive monies, securities or valuables on deposit at interest or for safe custody on any terms
whatsoever from members;
11.To render advise or investment of monies, in shares and debentures, bonds and securities for the
benefit of members only.
12.To enter into working arrangements of all kinds with other companies, firms, associations,
individuals or other persons engaged in similar business and also to make and carry into effect
arrangements for amalgamation either in whole or in part with such companies, firms,
associations, individuals or other persons on such terms and conditions for such consideration as
may be agreed upon between them;
13.To make and carry into effect arrangements for takeover of assets and / or liabilities, business
undertaking either in whole or in part of companies, firms, associations, individuals or other
persons engaged in similar business on such terms and conditions for such consideration as may
be agreed upon between them;
14.To sell, dispose off, transfer, exchange, lease, mortgage or otherwise deal with any business
undertakings, property or rights in which the company is concerned;
15.To subscribe or contribute or otherwise deal to assist or to guarantee money to charitable
benevolent, religious, scientific, national, public or any institution objects or purpose or for any
exhibition;
16.To enter into arrangements with any Government, State or Municipal, Local or any authority and to
obtain any advantages for the company;
17.To indemnify members, officers, directors and other staff of the company against proceedings,
costs claims and demands in respect of any thing done or ordered to be done by them for and in
the interest of the company;
18.To pay, satisfy or compromise claims made against the company, which it may be necessary or
seem expedient to pay, satisfy of compromise;
19.To distribute any of the assets of the company in specie among the members as may be
permissible under law in the event of winding up;
20.The foregoing ancillary and incidental objects arising there from mentioned in III B shall be limited
and confined to the members of the company only and shall not be available to the general public;
21.To do all or any one or more of the above things as are considered to be conductive to the
attainment the Main Objects of the company in such areas or District(s) within the State of Tamil
Nadu and on such terms conditions as permitted or fixed by the Regulatory Authorities from time
to time.”
a. To undertake the business as Insurance brokers and allied services, provide advisory services and
such other business consisting of Generation of Aadhaar Number - a social Security Identification
Number of the future, Acting as Point of Service for National Pension System and other Finance
related services (like Insurance, SIP and Other Investment products, providing Tax Related
Services, processing PAN / TAN applications, accepting eTDS / eTCS/ eTBAS / AIR and Annual Tax
Statements 26AS) to members as may be permitted by the Competent Authority to Nidhi
Companies from time to time.
b. To Provide Service to the members Acting as Point of Service for paying their dues (Tax dues like
Income Tax, Wealth Tax, Property Tax, Water Tax, Professional Tax and Service dues like Electric
Bills, Telephone Bills, Insurance premium and alike) as may be permitted by the Competent
Authority to Nidhi Companies from time to time.
4. The liability of the member(s) is limited and this liability is limited to the amount unpaid, if any, on
the shares held by them.
5. The share capital of the company is Rs.20,00,00,000/- ((Rupees Twenty crores only) divided into
20,00,00,000 equity shares of Re.1/- each.
6. We, the several persons, whose names and addresses are subscribed, are desirous of being formed
into a company in pursuance of this memorandum of association, and we respectively agree to
take the number of shares in the capital of the company set against our respective names
SL. Name, Address, Description and Number of Signature Signature of
NO Occupation of Subscribers equity shares of the the Witness
1. M. Raman, F.C.A., taken by Subscribers
S/O.P.S. Muthuswamy iyer, each
Palayavalam House, Sd.
71, Kamakshi Josier Street, 50S0u0bscriber
Kumbakonam-612001
CHARTERED ACCOUNTANT 5000 Sd.
2. Dr. P. Ravichandran, 5000 Sd.
M.S., S/O.K.G. Pattabiraman, 5000 Sd.
41, G.K. Venkatraman Street,
Kumbakonam 5000 Sd. M.SIVASANKAR,
DOCTOR 5000 Sd. SDASSDSDS/O P.S. MUTHUSWAMY
IYER, 71, KAMAKSHI JOSIER STREET,
3. T. Manickavasagam, 5000 Sd.
S/O. Sri.P.V. Thangappa Nadar, 34, 5000 Sd. KUMBAKONAM – 612 001.
Dabir Middle Street, AGRICULTURALIST
Kumbakonam-612001. BUSINESS
5000 Sd.
4. S.M. Swaminathan
S/O.S.Muthuvelpillai, 5000 Sd.
Srinivasa Nallur,
Tirunageswaram (po), Kumbakonam TK 5000 Sd.
BUS OPERATOR
55,000 Sd.
5. S.R. Sridharan. S/O.S.
Rajagopalan, 18,
Yagasalai Street,
Kumbakonam-612001 BUSINESS
6. B.Mukuntharamanujam,
S/O.K. Bhujangaraman,
15, Kumarappa Naik Street,
Kumbakonam-612001
BUSINESS
7. Y. Kanniga W/O.R.
Yogesan,
2, Ayeekulam Road,
Kumbakonam-612001. BUSINESS
8. S.H.Abubacker,
S/O. S. Habeeb Mohamed, 19,
Chakrapani South Street,
Kumbakonam-612001
AGRICULTURALIST
9. G.Baskaran,
S/O.M. Govindasamy, 4,
Nageswaran South,
Kumbakonam-612001 BUSINESS
10. R.Vijayakumar,
S/O.N.S.Radhakrishan,
Noor Nagar,
Kumbakonam-612001 AGENT LIC
11. N.Rangasamy,
S/O.V.Nallasamy Naidu,
117,A.R.Ramasamy Road,
Kumbakonam-612001 BUS OPERATOR
TOTAL
ARTICLES OF ASSOCIAION
OF
TBF NIDHI (KUMBAKONAM) LIMITED
1. The Regulations contained in Table “F” of the First Schedule to the Companies Act, 2013 or any
statutory modifications thereof, shall apply to this Company as far as applicable to a Public
Company except to the extent they said regulations have been expressly altered, varied and
omitted in these Articles. These articles and wherever required the said regulations contained in
Table “F” shall be the regulations for the management of the Company.
2. The transactions of the company shall be restricted to its shareholders only except to the extent
of investing surplus cash balances. For the purpose of these Articles, and applicant for shares in
the fund, whose application has been accepted by the Secretary or an officer authorized by the
Board shall be deemed to be shareholder eligible to enter into transactions with the fund
INTERPRETATION
In these presents, unless excluded by the subject or context, words or expressions defined
hereunder shall bear the meaning assigned to them as given below and words or expressions
not defined hereunder but which have been defined in the Companies Act, 2013 or any statutory
modifications thereof shall bear the meaning assigned to such words or expressions in the said
Act or any statutory modifications thereof.
a. “The Act” or “The Companies Act” means, the Companies Act, 2013, including any statutory
modifications thereof from time to time and any other statute for the time being in force
relating to the companies in India and affecting the Company.
b. “The Common Seal” shall mean the common seal of the Company approved by the Board of
Directors from time to time.
c. “The Board” or “The Board of Directors” means, as the case may be, the Directors of the
Company referred to collectively or a meeting of the directors duly called and constituted or the
directors, assembled at a board or the requisite number of Directors entitled to pass a circular
Resolution in accordance with these articles.
d. “This Company” or “The Company” when used with reference to this company shall mean TBF
NIDHI (KUMBAKONAM) LIMITED
e. “Dividend” includes Interim Dividend.
f. “In Writing” or “Written” means printed or partly printed / written and partly written or
lithographed or cyclostyled or typewritten or other mode(s) of representing or reproducing
words in a visible form.
g. “Member” means a duly registered shareholder of the Company holding one or more shares
of any class, but does not include the bearer of a share warrant.
h. “The Office” means the Registered Office for the time being of the Company.
i. “Special Resolution” shall have the meaning assigned thereto by Section 114 (2) of the Act.
j. Words importing the singular shall, include, unless repugnant to the context, the plural
number and vice versa.
k. Words importing the masculine gender shall include the feminine gender.
l. Shareholder means a registered holder of one or more Equity Shares in the fund,
m. Arrears means and includes interest default due on loans, recurring deposits, interest and
default interest due thereon and other amounts due and payable monthly to the fund.
3. Public company means a company which‐(a) is not a private limited company (b) has a
minimum paid up share capital of five Lacks rupee or such higher paid up capital, as may be
prescribed.
CAPITAL
1. The Authorized Share Capital of the Company shall be such amount as may from time
to time be authorized by Clause V of the Memorandum.
2. The Company may be an ordinary resolution increase the Share Capital of the
c ompany by the issue of new Shares of such amount as it thinks expedient or
reduced the Share Capital by a special resolution of the General Body or divide the
Shares into Shares of different classes.
3. Subject to the provisions of and Act and these Articles, the shares in the Capital of the
Company for the time being (including any shares forming part of any increased capital
of the company) shall be under the control of the Board of Directors who may allot the
same to such persons, on such terms and conditions, in such proportion and at such
time as the Board may, from time to time, think fit. Provided that shares shall always
first be offered to persons who are members at the time of issue without any
preference or priority to any member unless otherwise decided by the members in a
general meeting by a special resolution
4. All persons of either sex may become Shareholders.
5. A Share may be allotted to one or more persons jointly or severally.
6. Application for admission as a Shareholder of the Company shall be made to the Secretary
in the prescribed form with the Share application money, Non cumulative
redeemable Preference Shares shall be allotted to only to those persons who are not
already Shareholders of the fund.
7. Any person intending to have any transaction with the company shall first become a
member of the company by subscribing minimum of ten equity shares or shares
equivalent to Rs.10/‐ whichever is higher.
8. The board of directors may accept or reject any application for shares without
assigning reasons
9. The right conferred upon the holders of shares of any class issued with preferred or
other rights, shall not, unless otherwise expressly provided by the terms of issue of the
shares of that class, be deemed to be varied by the creation or issue of further shares
ranking pari‐passu therewith.
10. The Board may issue and allot shares in the capital of the Company within 60 days
from the date of receiving share application money or as full or part payment of
consideration for any property (including goodwill) sold or transferred, goods or
machinery supplied, or for services rendered to the Company in or about the formation
or promotion of the Company or the conduct of its business and any shares which may
be so allotted may be either. fully paid up or partly paid up and if so allotted shall be
deemed to be fully paid up or partly paid up shares as the case may be.
11. Every person whose name is entered as a shareholder in the register of
shareholders is entitled to receive within three months after allotment or
registration of transfer a certificate under the Common Seal of the Fund specifying
the share or shares held by him and the amount paid thereon; provided that in
respect of share or shares held jointly by several persons, the fund shall not be
bound to issue more than one certificate. The share certificate shall be signed by 2
Directors and the Secretary/authorized person.
12. If a Share Certificate is defaced, lost or destroyed, it may be renewed on payment of such
fee not exceeding Five Rupees for up to 1000 Shares and Twenty Five Rupees for more than
1000 Shares and on such terms, as to evidence and indemnity and the payment of out of
pocket expenses incurred by the company in investigating evidence as the Directors
think fit
13. If issue of consolidated and split certificate fee will be Rs.25/‐ for up to 10000 shares
and Rs.100/‐ for more than 10000 Shares.
14. Any attempt on the part of a shareholder, his nominee or his legal representative
to defraud the Fund or to deceive the Board of Directors by false representation or
otherwise shall subject such shareholder
15. Nominee or legal representative or other persons to expulsion from the Fund with
forfeiture of all claims by the decision of the Board of directors.
16. On such removal, the Directors shall dispose of the shares held by him and pay him the
sale proceeds in due course, less arrears due from him, if any
17. The Board may also allot shares to the employees or directors of the Company Sweat
equity.
18. If two or more persons be registered as joint holders of any share, such persons shall
be entitled by an unanimous application to require that their names shall stand in the
register in the order specified by them in the application, and they shall for the
purpose of these Articles be treated as a single shareholder and dealings with any
one such joint owner shall be considered to have been done on behalf of all of them.
19. Save as herein otherwise provided, the Company shall be entitled to treat the person
whose name appears on the Register of Members as the holder of any share, as the
absolute owner thereof and shall not (except as ordered by a court of competent
jurisdiction or as by law required) be under any obligation to recognize any trust, other
equitable or contingent or claim to or to any interest any share or any part thereof of
any person other than the person whose name is borne by the said Register whether
or not the company shall have express or constructive notice thereof.
20. Subject to the provisions of Act, the Company may issue any shares in the original or
new capital as Equity share and to attach to any classes of such shares, any preference,
rights, privileges or priorities in payment of dividends or distribution of assets or
otherwise over any other shares or to subject them to any restrictions, limitations or
conditions.
LIEN
21. The Fund shall have first and par amount Lien upon all the shares and dividends of any
shareholder, for all money from time to time due or payable to the Fund, from him
alone or jointly with any other person and where a shareholder in the joint account
with others, the Fund shall have a lien thereon, in respect of all money due to them
from all or any of the holders thereof. The shares over which the Fund has a lien as
aforesaid for any money alleged by the Fund satisfy the Fund’s lien thereon, and
transferred to the name of the purchaser without any consent, not withstanding any
opposition on the part of the holder of such shares, and a complete title to such shares
shall be acquired by the purchaser by virtue of such sale and transfer. Any such
transfer may be signed on behalf of the any two Directors and the
Secretary/authorized person.
TRANSFER OF SHARES
22. A shareholder may transfer his shares subject to the sanction of the Directors.
Application for transfers shall be in the prescribed form and shall be forwarded with
the share certificate together with the requisite stamp fee and a fee of twenty five
paise for each share to be transferred. The Directors shall have power to refuse to
register the transfer of any share or shares. They shall within two months after the
date on which the instrument of transfer was lodged with the fund send to the
transferee and the transferor notice of the refusal.
23. The transferor shall be deemed to remain a shareholder of the Fund until the name of
the transferee is entered in the register of shareholders in respect thereof.
24. On the death of a shareholder, the survivor or survivors where the shareholder was a
joint holder and his legal representatives where he was a sole holder shall be the only
persons recognized by the Fund as having any title to his interest in the shares but
nothing herein contained shall release the estate of the deceased joint holder from any
liability in respect of any share jointly held by them. But if the name of the nominee, or
nominees. The Directors may at any time dispense with the production of Succession
Certificate, probate of the will or Letter of Administration in respect of any share
interest and monies belonging to the estate of a deceased share holder if they are
otherwise satisfied, and pass such orders as they deem fit and proper.
25. Any person becoming interested in a consequence of death, bankrupty or insolvency of
any shareholder or by any lawful means other than by a transfer in accordance with
these presents, may be registered in the register of shareholders as proprietor of such
share, subject to the provisions herein contained and upon his producing such
evidence as to title and otherwise, as the Directors may deem sufficient. The Board
shall in either case, have the same right to decline or suspend registration as it would
had if the deceased or insolvent shareholder and transferred the share before his
death or insolvency.
26. The Fund shall incur no liability or responsibility whatsoever in consequence of their
registering or giving effect to any transfer of shares, made or purporting to be made by
any apparent legal owner thereof to the prejudice of persons having or claiming any
equitable right, title or interest to, in the same shares
27. notwithstanding that the Fund may have had notice of such equitable right, title or
interest or notice of prohibiting registration of such transfer and may have entered
such notice or referred thereto in any book of the fund and the Fund shall not be
bound or required to attend or to give effect to any notice which may be given to them
of any equitable right, title or interest or be under any liability whatsoever for refusing
or neglecting to do so, though it may have been entered or referred to in some book of
the fund, but the Fund shall nevertheless be at liberty to regard and attend to any such
notice and give effect thereto, if the Directors shall so think fit.
MANAGEMENT
28. The management of the Fund shall be vested with its Board of Directors whose
strength shall be not less than 3 and not more than 15 Directors. The Qualification of
Directors shall be holding of 5000/‐ Equity shares of the Fund in his name. Such share
Qualifications shall be obtained within two months from the appointment of the
respective director. The Directors shall every year elect within a month after the
Annual General Meeting from among members the following office bearers to hold
office until the next election of such office bearers.
1. Chairman
2. President
3. Advisor
4. Three Trustees
(a). The following shall be the first Directors of the company:
1. M. Raman
2. Dr. P. Ravichandran
3. T. Manickavasagam
4. S. M. Swaminathan
5. S.R. Sridharan
6. S.H. Abubacker
7. B. Mukuntharamanujam
8. Y. Kanniga
9. G. Baskaran
10. R. Vijayakumar
11. N. Rangasamy
29. The Directors shall meet ordinarily once in a month or oftener, if necessary, for
conduct of business and may adjourn or otherwise regulate their meeting as they think
fit.
30. Three Directors shall form a quorum. If there is no quorum within half an hour of the
time fixed, the meeting shall stand adjourned to the same day and hour of the
following week, when no quorum shall be necessary.
31. The meeting of the Directors shall be convened by the Secretary/authorized person
under the orders of the Chairman on requisition made by three Directors the Chairman
shall convene a meeting of the Directors for the business specified in the requisition
within a week from the receipt of such requisition.
32. Subject to the provisions of the companies Act, 2013, the Board of Directors shall be
fully empowered to decide on all matters connected with the Fund in strict conformity
with the principles laid down in these Articles every decision passed by them in their
monthly or special meeting being duly recorded in their proceedings books with their
signatures in full. The directors may convene a meeting of the General of shareholders
whenever they deem it necessary.
33. All the matters connected with the Fund shall ordinarily be disposed of by the Directors
at their meetings, but they may dispose of any particular class of business by
circulation of the papers connected therewith provided the following matters shall be
disposed of only at a meeting of the Directors;
(a) Framing of bye‐law.
(b) Framing of regulation (not being bye‐laws) in connection with the management of
the office of the Fund.
(c) Authorising of an action or defence to an action or other proceedings‐civil or
criminal, provided that in urgent matters the President in consulations with the Legal
Advisor, may take the necessary action in anticipation of authorization by the Directors.
(d) Appointment of Secretary/authorized person Estimators, Legal Advisors, jewel and
building Appraisers, removal of any member of the permanent of temporary establishment.
(e) Appointment of office bearers among the Directors.
(f) Orders for re‐sale of property purchased by the Fund.
(g) Raising Loans to meet urgent demands.
34. The chairman shall preside at the meetings of the Directors. If at any meeting the
chairman be not present, the Directors present shall choose one among themselves to
be the chairman of such meetings.
35. At the meeting of the Directors, all matters shall be decided by a majority of votes. In
case of any equality of votes, the chairman shall have second of casting vote.
36. In case of death or resignation of any Director, the Board of Directors shall fill up the
vacancy. The directors so appointed shall hold office only for the period for which the
Director for whom he is appointed would hold the office.
37. The continuing Directors may act not withstanding any vacancy in the Board, but if
their number is reduced below the required minimum number of Directors, the
continuing Directors may act only for the purpose of electing Directors to make up the
quorum or for summoning a General Meeting of the Fund for that purpose.
38. Any vacancy among the office bearers for more than a month, occurring during the
course of a year may be filled up by the Board of Directors. In case of such vacancy for
a month or less, the president may fill up the same.
39. All Directors are liable to retire. One third of the Directors shall retire by rotation
annually, but the retiring Directors shall be eligible for re‐election. Their places shall be
filled up by the General Body of Shareholder at the Annual General Meeting. The
election of Directors shall be held for each seat individually.
40. A person who is not a retiring Director, shall subject to provision of the Companies Act,
2013, be eligible for appointment to the Office of Director at any General Meeting, if
he or some member intending to propose him has, not less than fourteen days before
the meeting left at the office of the Fund a notice in writing under his hand signifying
his candidature for the purpose of proposing him as a candidate for that office, as the
case may be, along with a deposit of Rs.500/‐
41. A Director shall be deemed to have vacated his office in any of the circumstances set
out in the Act. In addition to the circumstances, set in the Act, a Director shall be
deemed to have vacated his office, if he, by notice in writing to the Company, resigns
his office and such resignation is accepted by the Board of Directors, provided that the
office shall be deemed to be vacated only upon the acceptance of the resignation as
aforesaid.
42. The Directors shall be paid a sitting fee as may be determined by the shareholder in general
meeting from time to time for every meeting of the Board or of any committee of the Board
attended by them and all travelling, hotel and other expenses properly incurred by them in
attending and returning from such meetings of the Board or of any committee of the Board.
43. Subject to the provisions of the Act, remuneration which may be by way of salary,
bonus, commission, share in profit or otherwise and allowances in the nature of house
rent allowance, car allowances and entertainment allowances or any other allowances
as business warrants, shall be paid to one or more of the Directors in consideration of
the services rendered by them, by devoting their time and attending to business of the
Company, in general or for performing extra service as an expert or otherwise. Such
remuneration shall be fixed by the shareholder in general meeting from time to time.
44. Notwithstanding anything contained in these Articles, and subject to such bye‐laws as may
be framed in this behalf, it shall be competent for the Directors to lodge any surplus funds in
their hands in Scheduled Banks
45. The Directors shall when necessary for the Funds transactions have power to raise
temporary loans from or to arrange for overdrafts with any.
(a) Bank or Banks.
(b) Any financial or non‐financial institution or individuals who are shareholders.
On the security of Fund’s properties or the Fund’s interest in any of the properties of the
shareholders mortgaged or pledged with fund or the outstanding due to the Fund at such
rate of interest as may be deemed proper by them.
46. The directors may delegate any of their powers to a Committee consisting of such
number of their body as they think fit and may from time to time revoke such
delegation. Any committee so formed shall in the exercise of the powers so delegated
conform to any regulations that from time to time be imposed upon it by the Directors.
The meetings and proceedings of any such committee consisting of two or more
members shall be governed by the provisions herein contained for regulating the
meetings and proceedings of the Directors, so far as they are applicable thereto, and
are not superseded by any regulation made by the Directors under this clause.
47. The Board of Directors may frame any bye‐law or bye‐laws for the effective and
beneficial working of the Fund and it shall have power to alter, amend or conceal any
such bye‐law and substitute others where difficulty is experienced in the actual
working of the said bye‐ law provided such bye‐laws do not contravene the Articles of
Association of the Fund or the Companies Act, 2013.
48. All acts done at any meeting of the Directors or of a Committee of Directors, shall
notwithstanding that it shall afterwards be discovered that there was some defect in
the appointment of such Directors acting as aforesaid or that they or any of them were
disqualified, be valid as if every such person has been duly appointed and was qualified
to be a director.
49. The Directors shall maintain the necessary establishment to carry on the work
connected with management of the Fund.
50. The Board of Directors are empowered to frame suitable service regulations regarding
the strength, duties, scale of pay of the different categories of employees,
appointment, retirement, suspension, dismissal and other disciplinary actions against
the members of the establishment, the security to be furnished by specified
employees, grant of leave, gratuity, provident fund and other amenities and all other
matters relating to the members of the establishment.
51. The Board of Directors may appoint a Legal Advisor on such terms and conditions, as
they think fit. The Legal Advisor shall examine the Documents such as title deeds, etc.
tendered as security and report thereon to the Directors and advise on all legal matters
connected with the Fund.
52. The office of the Fund shall be managed under the direction of the Board of Directors
by a Secretary/authorized person appointed by them on such terms and conditions as
determined by the Board of Directors from time to time. He shall not be a Director of
the Fund. He shall have control and supervision over the members of the staff and
perform such duties and exercise such powers as may be delegated by the Board of
Directors from time to time. He shall with the previous sanction in writing of the
President, or of the Board be entitled to sue and be sued on behalf of the name of the
Fund, carry on all proceedings in such suit in the name of the Fund and engage any
advocate for this purpose.
53. The Secretary/authorized person shall convene the Monthly meeting of the Directors
and shall have power at his discretion to convene special meetings of the Directors. He
shall place before the Directors at their monthly meetings such matters requiring
sanction or confirmation of the Directors. He shall conduct all correspondence and
send papers for circulation for the disposal of the Directors.
54. The Branch manager / General Manager/ Deputy General Manager shall hold the keys
of the safe in which bonds, conveyances, title deeds, jewels and other valuable
properties are lodged for the safe custody of which they are responsible.
55. Title Deeds, Bonds, Jewels etc, pledged with belonging to the Fund shall be in the
custody of the Secretary/authorized person and the two Trustees who shall be Key‐
Guardians of the Fund. All the Title Deeds, Bonds, Jewels etc., pledged or deposited
with or belonging to the Fund shall after the necessary disposals regarding them are
made, be lodged in boxes or iron safe, each of them being secured by two locks, each
key‐guardian being the custodian of the key of one of the locks. The said boxes or safe
shall be opened on Saturdays. Mondays and Wednesdays in the morning or afternoon
as may be necessary to place in and take out documents and jewels. All the key‐
guardians shall attend the meeting of the key‐guardians whenever the boxes or safe
are opened and shall record the proceedings in the book kept for the purpose. If at any
such meeting any Branch Manager/ Authorized Person unable to be present, he may
depute any other Director on his own responsibility. The boxes or safe shall not be
opened when both the Key‐guardians are absent. Each Key‐ guardian Director shall
receive a conveyance allowance of Rupees twenty for each meeting attended.
56. Every mortgager who wants the safe and boxes to be opened on any day except on
those days or opening by the Key‐guardians, shall pay a fee of Rupees Five to each Key‐
guardian and on payment of such fee, the boxes and safe shall be opened. The fee so
collected shall be paid to the Director Key‐guardians as allowance. Any applicant
entitled to inspect the title deeds or jewels on Key‐guardians day, shall on the previous
Sunday, Tuesdays, or Thursdays pay an inspection fee of Rupees Five which shall be
credited to the Fund.
57. All documents in favour of the Fund shall be executed in the name of the Fund, and
those by the Fund shall be executed by two Trustees and the Secretary/authorized
person. In the absence of any of them the Board of Directors may nominate others
from among themselves for the purpose. All expenses connected with the execution
and registration of documents shall be borne by the parties concerned.
58. The Secretary/authorized person shall have all collections deposited in the name or
the Fund with such Bank or Banks which the Board of Directors consider safe and
advantageous.
59. All disbursements by the Fund shall invariably be made by cheque bearing signatures
of the two trustees and Secretary/authorized person, but payments or sums of
Rs.500/‐ and below may be made in cash by the Secretary after obtaining proper
vouchers from the parties. In the absence of any one of the Trustees, one of the
directors authorised in this behalf by the Board of Directors may sign the cheques
along with other trustee. In the absence of both the trustees, two directors authorised
in this behalf by the Board of Directors may sign the cheque. The Board may authorize
any officer of the Fund to sign the cheques in the absence of the Secretary/authorised
person.
60. The account Books shall be kept at the registered office of the Fund and shall always be
open to the inspection of the Directors.
61. The Directors shall from time to time determine whether and to what extent and at
what time and place and under what conditions or regulations the accounts and books
of the Fund or any of them shall be open to the inspection of shareholders being
Directors and no shareholder (not being a Director) shall have right of inspecting any
account or books or document of the Fund, except as conferred by law or authorised
by the Directors or by the Fund in General Meeting.
62. The books and accounts of the Fund shall at all times be under the control of the
secretary/ authorised person and shall be produced by the Secretary/authorised
person whenever required by the Directors.
63. One or more committees, each consisting of a Director and a Shareholder who is not a
Director shall be appointed by the Board of Directors every year, for examining and
reporting on the correctness or the jewels, and the title deeds, bonds and promissory
notes secured in the Fund’s safe after verifying them with the Registers maintained on
such occasions.
64. Another set of one or more committees, each consisting of a Director and a
Shareholder who is not a Director shall be appointed by the Board of Directors every
year to examine and report on the conditions and value of immovable properties
mortgaged with the Fund. The committees shall submit their report not later than two
months following the date of such appointment.
65. The shareholders appointed for annual inspection of the immovable properties, jewels
and title deeds shall be entitled to be paid such remuneration as may be fixed by the
Board at the time of their appointment. Each member of the committee appointed
shall be entitled to and be paid his out of pocket expenses for travelling, boarding and
lodging etc.
66. All shareholders shall be bound to confirm to the Articles of Association and bye‐laws
as shall thereafter be duly made, and to submit to the decision of the General body in
case of an appeal.
67. If shall be incumbent on every shareholder to abide by the decision of the Board of
Directors but if he considers himself aggrieved by such decision, he shall be at liberty to
make an appeal to the General Body within two months from the date of
communication of such decision to him; and when appeal is countersigned by not less
than one tenth of the number of shareholders, the Board of Directors shall convene
and extraordinary general meeting of shareholders and which the matters shall be
finally decided by a majority of votes. If the Board of Directors do not proceed within
twenty one days from the date of the receipt of the requisition to cause a meeting to
be called, the requisitionists may themselves call the meeting; but in either case any
meeting so called must be held within one month from the date receipt of the
requisition.
68. An auditor shall be appointed annually and his duties regulated in accordance with
Sections 139 of the Companies Act, 2013 or any statutory modification thereof.
GENERAL MEETING
69. A General Meeting of shareholders shall be convened once a year when a report of the
Board of Directors as required by Section 96 of the Companies Act, 2013 and Profit and
Loss Account on the operation of the Fund together with the Balance Sheet for the
proceeding year audited and certified by the Auditor shall be laid before them.
a. The Profit and Loss Account shall show, arranged under the most convenient heads, the
amount of gross income distinguishing the several sources from which it has been derived,
and the amount of gross expenditure, distinguishing the expenses of the establishment,
salaries and other like matters. The profit shall be ascertained annually after providing for:
i. Such bonus that the directors may think fit to grant to the establishment.
ii. Such additional sums as they may think fit to the existing Recurring Deposit Holders.
iii. Such other sums as they may deem fit for the financial carrying on the business.
b. Dividend shall be declared out of the balance to shareholders at period based pro‐rata
that may be recommended by the Directors and Appropriate or Equal amount of dividend
will be transferred from Reserves and Surplus. The surplus if any be appropriated in the
manner that the Directors may further recommend and carry forward the balance.
c. A copy of the balance sheet and profit and loss account with the report of the Board of
Directors shall, twenty‐one days prior to the meeting, be sent to the persons entitled to
receive notice of general meeting in the manner in which notices are ordinarily given.
d. The Board of Directors may whenever they think fit and they shall on the requisition of
such number of members who hold at the date of the deposit of the requisition not less than
one‐tenth of the paid up capital of Fund, convene an Extraordinary General Meeting.
e. The requisition shall set out the matters for the consideration of which the meeting is to
be called, shall be signed by the requisitionist and shall be deposited at the registered office
of the Fund.
f. If the Directors do not within twenty one days from the date of the deposit of valid
requisition proceed duly to call a meeting on a day not less than forty five days from the
date of the deposit of requisitions, the requisitionist as representing not less than one‐tenth
of the paid up share capital of the Fund may themselves call the meeting, but any meeting
so called not be held after the expiration of three months from the date of the deposit of the
requisition.
g. Twenty‐one days notice in writing for the General Meetings specifying the place, the day
and the hour of the meeting and in case of special meeting the nature and purpose of such
business shall be given to the members but non‐receipt of such notice by any member shall
not invalidate the proceedings at any General Meeting.
h. The Directors shall place before the ordinary General Meeting any motion or proposition
of the shareholders, provided notice of such motion or preposition be left at the Registered
Office of the Fund, two clear months before the date of such General Meeting. No business,
not already provided for in the agenda shall be transacted at any General Meeting.
i. In the case of Extra‐ordinary General Meeting if within half an hour from the time
appointed for the meeting a quorum is not present, the meeting if called upon the
requisition of the shareholders shall be dissolved.
j.In any other case, it shall stand adjourned to the same day in the following week at the
same time and place or to such other day and at such other time and place as the Board may
determine. If at such adjourned meeting, a quorum is not present within half an hour from
the time appointed for holding the meeting, the shareholders present shall be quorum
k. The General meeting shall be presided over by the President and in his absence the
Chairman of the Board of Directors shall preside over the meetings.
l. The Chairman may, with the consent of the meeting, adjourn any meeting from time to
time, and from place to place; but no business shall be transacted other than the business
left unfinished at an adjourn meeting from which the adjournment took place. When a
meeting is adjourned for 30 days or more, notice of the adjourned meeting shall be given as
in the case of an original meeting. Save as aforesaid, it shall not necessary to give any notice
of an adjournment or the business to be transacted at an adjourned meeting.
m. At any General Meeting a resolution put to the vote of the Meeting shall unless a poll is
demanded be decided on a show of hands.
n. A declaration by the Chairman that on a show of hands a resolution has or has not been
carried either unanimously or by a particular majority and an entry to that effect in the book
containing the minutes of the proceedings of the Fund, shall be conclusive evidence of the
fact without proof of the number or proportion of the cast in favour of or against such
resolution.
o. Before or on the declaration of the result of the voting on any resolution on a show of
hands, a poll may be ordered to be taken by the Chairman of the meeting on his own motion
and shall be ordered to be taken by him on a demand made in that behalf by at least five
members having the right to vote on the resolution and present in the proxy.
p. Every shareholder shall have a right to vote and his voting right on a poll shall be in
proportion to his share of paid up equity capital of the Fund. Any shareholder of the Fund
entitled to attend and vote at a meeting of the Fund shall be entitled to appoint another
person (Whether a member or not) as his proxy to attend and vote instead of himself, but a
proxy so appointed shall not have any right to speak at the meeting but shall be entitled to
vote except on a poll.
q. In the case of joint‐holders, the vote of the senior who tenders a vote shall be accepted to
the exclusion of the votes of the other joint holders; and for this purpose seniority shall be
determined by the order in which the names stand in the register to shareholder.
r. In the case of an equality of votes, whether on a show of hands or on a poll, the Chairman
of the meeting at which the show of hands takes places or at which the poll is demanded
shall be entitled to a second or casting vote.
s. The Chairman shall exercise an absolute discretion in regard to the inclusion or non‐
inclusion of any matter in the minutes on the grounds specified in section 188 of the
Companies Act,2013.
t. The Fund in its General Meeting may declare a dividend to be paid to the members
according to their rights and interest in the profit but no dividend shall exceed the amount
recommended by the Directors. The Fund in General Meeting may however declare a
smaller dividend and the same shall be paid within forty two days from the date of
declaration and shall be credited to the account of a members, if not claimed within that
date.
u. No dividend shall be payable except out of the profits of the Fund and no dividends shall
carry interest against the Fund.
v. The declaration of the Directors as to the amount of the net profit of the Fund shall be
conclusive.
w. The Directors may retain any dividends, may apply the same in or towards the
satisfaction of any debt, liabilities or lien which the Fund may have.
(A) Unclaimed dividend to be transferred to General Reserve. Any amount declared as
dividend under article 83 which remains unpaid or unclaimed for a period of 6 years
from the date of declaration, shall be transferred to the General Reserve account of the
Fund and no claim against the Fund for such dividend shall be entertained after the date
of such transfer to the general account.
DEPOSITS
70. The Deposits shall be of following kinds.
1. Fixed.
2. Savings.
3. Recurring.
4. Deposits against Cash Certificates and Such Other Schemes as may be frame From
time to time by the board.
71. It shall be optional with the Board of Directors to receive or refuse any deposit without
assigning any reasons therefore.
72. All deposits whether Fixed, Savings or Recurring shall be made only on written
application in the prescribed form.
73. A Deposit may be opened in the names of one or more shareholders and be made
payable to any one or more of them or to any one or more of the survivors or to the
last survivor.
FIXED DEPOSIT
74. A Fixed Deposit is a deposit of fixed sum of money for a fixed period of time. The
amount shall not be less than Rs.100/‐ and as far as possible multiples of ten. Interest
on such deposits shall be paid at such rates as the Board of Directors may fix time to
time.
75. It shall be optional with a depositor to draw interest monthly.
76. The Board of Directors may suspend the acceptance of any deposit for such time, as
they may think fit.
77. The receipt for the Fixed Deposit shall be signed by Branch Manager/ Authorised
Person.
78. The Deposit Receipts are not transferable.
79. Refund of fixed deposits will be made on the due date, but if funds are not available,
interest at the same rate will be allowed till date of payment.
80. Fixed Deposit receipt shall be surrendered duly discharged when the deposit is
withdrawn.
When a loan on the security of the deposit is raised, the Deposit receipt shall be lodged
with the Fund after making a blank endorsement. The loan amount, if any due to the Fund
will be adjusted from the proceeds of the Fixed Deposit on the due date; and the balance
amount, if any, will be disposed of according to the instructions of the Depositor.
81. A Deposit made for any fixed term shall on the expiry of the said term cease to carry
interest. If however it is renewed within a month, it shall carry interest at the prevailing
rate from the date of maturity.
82. It shall be optional with the fund to accept any application for the renewal of a deposit.
83. Any depositor wishing to withdraw his Fixed Deposit before maturity, may at the
discretion of the Board, be allowed to do, but he shall forfeit such interest as may be
fixed by the Board from time to time.
84. Issuing Duplicate Deposit Certificate fee will be Rs.10/‐ for up to 10000 (Rupees) and
fee will be Rs.50/‐ for more than 10000 Rupees.
85. If a depositor dies during the currency of deposit and his representatives have not
signified their intention to continue the same for the remainder of the term, the
representative shall be paid the deposit amount together with interest accrued up to
the date of the death of the depositor.
86. The Fund shall have a first charge on deposits in respect of any dues outstanding
against the depositor, and if any lien, arrears of interest or other dues be outstanding
by him on the day on which the deposit amount is closed, such amount thereof shall be
deducted from the sum payable to him under these Articles.
SAVING DEPOSIT
87. Any shareholder may open an account in his own name for any sum not less than
Rs.10/‐ and shall maintain balance to keep the account running.
88. Interest will be allowed at such rates as fixed by the Board of Directors from time to
time on daily product and such interest will be credited once in six months on or about
the 30th September and 31st March. If the amount of deposit at any time falls below
Rs.25/‐ the reduced amount shall bear no interest.
89. Withdrawals may be made by withdrawal slips provided by the Fund.
90. The minimum amount which can be drawn from or deposited at any time shall be
Rs.25/‐.
The total amount to be withdrawn by any one individual during an one calendar week
shall not exceed Rs.5000/. All withdrawals over Rs.5000/‐ during one week are subject to
ten days notice but thisconditions may be waived at the discretion of the Secretary/
authorised person.
91. In the event of the death of the depositor his registered nominee can withdraw unless
disputes are notified to the Fund as to the right to receive the deposit or prohibited by
an order of the Court.
92. All payments made into or by the Fund will be entered in a Passbook supplied by the
Fund at the time when the account is opened. But if the passbook is spoiled or lost, a
duplicate will be supplied on payment of Five Rupees. All entries in the passbook will
be made only by the fund’s official and no entries should be made by the Depositor or
anybody else.
93. Issuing of duplicate Saving Account Pass book and Recurring Deposit Pass book fee will
be Rs.5/‐
94. No Saving Bank Deposit account can be closed until the expiry of three months after it
was opened.
95. Accounts in respect of which no transactions have taken place for a period of three
years will be closed and taken to suspense account and shall carry no interest.
96. The Fund reserves to itself the right to adjust the whole or part of the amount due to
the fund from the Depositor on any account whatsoever out or any moneys standing to
his credit, depositor, if in the opinion of the Board of Directors, it is not desirable to
keep such account for any reason whatsoever.
RECURRING DEPOSIT
97. A Recurring Deposit may be made by a shareholder agrees to pay to the Fund every
month a minimum sum of Rs.5/‐ for such number of months as may be decided upon
from time to time by the Board of Directors.
(a) By a shareholders on his own behalf.
(b) By more than one shareholder in their joint names, payable to any one of them or
survivor or survivors.
98. The amount due under the foregoing rule shall be paid before the end of the
succeeding months; if however funds are not available for payment within the said
period. The amount shall carry interest at such rates as fixed by the board of directors
from time to time from the date on which such amount is payable until payment.
99. Every Recurring Depositor shall arrange to remit his monthly deposit and interest on
loans and other money due to the Fund at the Registered Office of the Fund on or
before the last working day of the months, failing which interest at two paise per rupee
per men sum shall be charged on arrears
100. The depositor who withdraws his deposit before the period chosen by him will be
paid on his paid up subscription such proportionate rate of interest as may be decided
upon from time to time by the Board of Directors determined with reference to the
period for the deposit has actually remained below. No interest shall be allowed for
the month of withdrawal. Any other balance due from or due to the depositor will be,
recovered from or paid to him as the case may and the amount to which each
depositor may become entitled to shall if funds permit be paid within a month from
the date on which withdrawal is sanctioned. Otherwise interest of 6% will be allowed
on the amount payable till the date of payment.
101. The Fund shall have a first charge on deposit amount in respect of any dues
outstanding against the depositor, if any loan or any other amount is due from such
depositor, the amount thereof shall be deducted from the amount payable to him.
102. A recurring Depositor may transfer his deposit or deposits on payment of a fee of
Rupee One each account, provided he shall have paid all dues payable to the Fund in
respect of the account before effecting such transfer.
103. No Recurring depositor shall be allowed to transfer his recurring deposit unless the
transfer be of the total number of recurring deposit units held under a register number
and not merely a portion thereof and unless the transfer is a shareholder.
104. The application for transfer of recurring deposit shall be in the prescribed form.
105. The account of a Recurring depositor, who has not availed of any loan other than
Recurring Deposit loan and whose arrears should at any time aggregate to six months
deposits, may be closed after a month’s notice calling on him to pay up all arrears and
on default, the amount of paid up deposits shall be returned to him with or without
interest as the case may be after deducting the amount due by him to the Fund.
106. In the event of the death of a recurring depositor who has not availed of any loan,
the nominee or the legal representative of the deceased may have the recurring
deposit account transferred to him and may continue paying the monthly contribution.
If however, the nominee or the legal representative desires to have the Recurring
Deposit account closed, the amount of Recurring Deposit paid up to the date of closing
with simple interest provided under Article 118 minus the arrears then due to the Fund
shall be paid to him within 3 months from the date of the closing of the account. The
transfer of payment could only be made at the request of the nominee or the legal
representative of the deceased, provided his claim is not opposed by other claimants.
If it is opposed, the Directors may make such enquiries and pass such orders, as they
deem fit.
107. Whether it is transfer to or closure by the nominee or the legal representative, the
Director, may require in the later case the production of a succession certificate,
probate of deposit, interest and monies belonging to the Estate of the deceased
Recurring Depositor.
108. No person shall ordinarily be entitled to a transfer or closure of the account unless
an application for a transfer or closure of the account is made to the Fund, by the
nominee or the legal representative of the deceased Recurring Depositor.
109. Subject to other regulations of the Fund, no closure of a deceased Recurring
Depositor’s account shall be made, no payment made to the nominee or the legal
representatives before expiry of three months from the date of receipt the fund of
intimation in writing of the death of a recurring depositor unless the Directors decide
otherwise.
110. The account of a Recurring Deposit who has availed of a mortgage loan and is in
arrears for 3 months deposit and interest, may be closed after a month’s notice calling
upon him to pay up all arrears, and on his failure to do so, the property mortgaged by
him may be sold by private sale or public auction, provided that the Secretary may at
any time before the commencement of the sale at his discretion withdraw from sale
any property, movable or immovable, the arrears of call and interest on which shall be
less than what all be due as calls and the interest for 3 months, if the net sale be
recovered from him with default interest at two paise per rupee per men sum up to
date of realization. Should there be a surplus, it will be paid to the defaulter or his legal
representative. All expenses in connection with the sale and such charges as may be
determined by the Board of Directors shall be recovered from the defaulter or his
representative.
111. In the event of the death of a recurring Depositor who has availed of a loan, his
nominee or the legal representative may continue paying the monthly deposit and
interest; but should he be unable to continue the payment the Fund shall have power
to sell the property under mortgage by private sale or public auction and adjust the
account allowing interest as provided under article 118. If there be a surplus, it the
deceased; but if there be a deficit, it shall be recovered from the nominee or the legal
representative or surety, if any, with default interest at two paise per rupee per men
sum up to the date of realization.
112. All payments made into or by the fund will be entered in Pass Books but if the Pass
Book is spoiled or lost, a duplicate book will be issued on payment of Five Rupees for
each book for the cost thereof, and also a fee of one Rupee for every year of part
thereof for copying entries therein from the register.
113. A Recurring Depositor shall be informed of the monies falling due to him and three
months thereafter, the amount due shall be carried to a separate head of account
called “Unclaimed sums”.
114. Upon a Recurring Depositor’s account being closed, all the deeds, conveyance,
mortgage deeds, rental agreements and other papers relating to such account that
may remain in the name and custody of the Fund shall be returned and retransferred,
if necessary, to the proper parties at their cost, provided they have paid the arrears
due to Fund.
115. Promissory note which have ceased to be securities and other records connected
therewith shall be returned to the parties concerned, it they apply for them or if not
claimed, may be destroyed one year after the closing of the accounts.
116. (a) The directors may receive fixed amounts from shareholders against issue of cash
certificates for consolidated amounts inclusive of interest payable at the end of
specified periods, as may be fixed by the Board of Directors from time to time.
LOANS
117. The Board of Director may in their discretion grant loans to shareholders subject to
such conditions and limitations as the Directors may impose from time to time.
118. Loans shall be granted on the security of movable and immovable properties
situated within the State of TAMILNADU not exceeding in percentage give below.
(a) 80 percent on the recurring deposit on the date of the application for loan, less
arrears due on any account on the date,
(b) 90 percent on fixed Deposit with Fund. Interest will be charged for half a month only
if the loan granted on Fixed Deposits is adjusted by the maturity of the deposits before the
10th of a month.
(c) 75 percent of the estimated value on gold jewels and 65 percent on gold jewels set
with precious stones.
(d) 75 percent on Government securities, and other Securities approved by the
Directors, on the market value or face value whichever is less at the time of granting the
loan.
(e) 66 2/3 percent of the estimated value by the surveying Directors on immovable
properties, provided the mortgage shall be a first mortgage.
119. Appraisers shall be employed by the Directors for the purpose of valuation of jewels
and making plans and estimates of the immovable properties tendered as securities for
loans and they shall indemnify and Fund from losses if any arising from their valuation.
120. Loans shall be of two kinds: (a) Simple Loans and Special Loans.
121. A Simple loan is a loan taken on the security or immovable properties, gold jewels,
Government promissory notes and on other securities mentioned in section 23 of the
Indian Trust Act 11 of 1882 or approved by the Directors.
122. Application for loans shall be made in the prescribed forms and documents, etc, as
stipulated by the Directors shall be executed in favour of the fund before the loans are
granted.
123. The Government Promissory notes, gold jewels and the title deeds and other
documents relating to the properties proposed to be mortgaged shall be deposited
with the Fund along with the applications in the prescribed forms.
124. All charges incidental to the grant of loans such as execution of documents, valuation
of jewels, appraisement and survey of immovable properties and all expenses
incidental to the sale of jewels pledged or immovable properties mortgaged shall be
borne by the loan borrowers. The Board of Directors shall have power to fix from time
to time the fee payable by the applicants for loans on security of jewels for valuation of
jewels.
125. Interest shall be charged on loans at such rates as determined by the directors from
time to time.
126. Interest on loans availed of after the 16th day of every month shall be charged only
for half month. On Loans refunded in full on or before 15th day of the month interest
shall be charged only for a month.
127. Interest on loans shall be paid before the last working day of every month, failing
which default interest at two paise per rupee men sum will be charged on arrears.
128. Applicants for jewel loans may be required to take Recurring Deposit of at least Rs.2/‐
for every Rs.100/‐ of part thereof on loan availed by them Subject to clause 144 of
article.
129. If shareholders who have obtained loans on pledge of jewels fail to pay the monthly
interest regularly and allow these months interest it remain arrears, 30 days notice
shall be given to them by the Secretary and the jewels shall be liable to be sold by
public auction, provided however that the Secretary at his direction may withdraw
from sale any jewel the arrears of interest on which shall on the date of such sale be
less than what shall be due as interest for three months and provided also that of the
sale be advertised, a fee of 1% on the estimated value of the jewel subject to maximum
of Rs.25/‐ on each transaction shall be levied.
130. The Branch Manager / Authorised Person shall be the Commissioners to conduct the
sale of jewels in auction. The Fund shall have the right to bid for and buy in any jewels
etc. during the sale without being liable or responsible for any loss on resale. To meet
the expenses incidental to the sale of jewels inclusive of charges for printing, hand bills
etc., a commission of 2% shall be charged on the proceeds of all jewels sold. The
commissioners may stop the sale of any jewel on receipt of all arrears of interest due
together with a commission of 1% on the estimated value of the jewel subject to a
maximum of Rs.3/‐ on each transaction. The power of buying in at such sales vested in
Fund shall be exercised by the Secretary. The sale proceeds less the commission shall
be credited to the parties and the deficiency, if any shall be recovered from them with
interest at the rate originally agreed upon and the surplus, if any, shall be refunded to
the party.
131. Applicants for loans shall specify the nominee to whom the jewels pledged should
be delivered in the event of his or her death on the discharge of the loan. The delivery
of the said jewels to such nominee shall be a sufficient discharge of the Fund’s liability.
132. In the case of loans on the security of immovable property the mortgage shall
always be a first mortgage, unless prior mortgage is in favour of the Fund. The granting
of further loan shall be at the discretion of the Board of Directors. Every person who
receives a loan from the Fund on the security of immovable property shall pay all rate,
quitrent and taxes in respect of the mortgaged property as they may due and in
default, the Fund may pay the same charging the amount to his account and recover
the arrears.
133. Applicants for loans on the security of immovable properties shall pay all such fees
as fixed by the Board of Directors from time to time examination of title deeds and
valuation.
134. From the amount of loan granted to the applicants all arrears of recurring deposit
amount and interest and other charges due from them up to the date of the loan shall
always be deducted.
135. Borrowers who have mortgaged their immovable properties with the Fund, who are
desirous of making any alteration, addition or improvement to them, shall be allowed
to do so at their own expenses but only with the previous sanction of the Directors and
subject to such terms and conditions as they may impose. They shall also inform the
Fund any change in the Municipal Door No. thereof, from time to time.
136. Wherever the Directors have reason to believe that the properties mortgaged with
the Fund have either depreciated or are depreciating or likely to depreciate in value to
the prejudice of the interest of Fund, they shall cause the Secretary to issue a notice to
the mortgager calling upon him or her to improve the securities to their satisfaction.
137. Should any such borrower fail to obtain such sanction or to confirm to the terms and
conditions imposed by the Directors, the borrowers shall, unless the Directors
otherwise decide, be liable at once to be proceeded against for the recovery of the full
amount due.
138. The alterations, additions and improvements to the mortgages premises, whether
made with or without the sanction of the directors, shall also form an additional
security for the loan.
139. If borrowers, fail to pay recurring deposit and interest for three consecutive months,
or fall in arrears either or recurring deposit or of subscription and interest for six
months the amount standing to the credit of such borrowers shall be applied for in the
instrument of mortgage etc., The Board of Directors shall be at liberty to cause the
property mortgaged with the fund to be sold by public auction or by private sales, at
any time they may deem proper to do so after giving due notice.
140. Notwithstanding anything contained in any of the Article to the contrary, it shall be
competent to the Board of Directors to increase or reduce the rate of interest on loans
granted by the Fund.
141. Subject to other terms in the instruments or Mortgage for demanding repayment
before the period fixed therefore special loans are payable within the period fixed by
the Board of Directors from the date of each loan.
142. If arrears of interest on these loans accumulate to three months, the whole of the
Principal and interest accrued shall become immediately payable notwithstanding any
stipulated period contained in the instrument of Mortgage.
143. When payment is made, it shall be appropriated in the following order:
(a) Interest including arrears on loans
(b) Subscription and
(c) The balance if any shall be credited towards the loan account unless otherwise
instructed.
144. Fractional parts of a rupee from fifty paise and upwards shall be reckoned as a
whole rupee in all transactions of the Fund for purpose of calculation of interest.
GENERAL
145. Money due to any shareholder in one account shall be liable to be adjusted towards
his dues in other accounts.
146. The following books and forms shall be purchased by shareholders at the rates
mentioned below:
1. Recurring Deposit book Rs.5/‐
2. Regular and Special Loan on property Receipt Book. Rs.5/‐
SL. Name, Address, Description and Occupation of Signature of Signature of the
NO Subscribers the Witness
1. M. Raman, F.C.A., Subscribers
S/O.P.S. Muthuswamy iyer, Palayavalam House, 71, Sd.
Kamakshi Josier Street, Kumbakonam‐612001
CHARTERED ACCOUNTANT Sd.
2. Dr. P. Ravichandran, M.S., S/O.K.G. Pattabiraman, 41,
G.K. Venkatraman Street, Kumbakonam DOCTOR
3. T. Manickavasagam, Sd. M.SIVASANKAR,
S/O. Sri.P.V. Thangappa Nadar, 34, Dabir Middle Sd. S/O P.S. MUTHUSWAMYIYER, 71,
Street, Kumbakonam‐612001. Sd.
BUSINESS Sd. KAMAKSHI JOSIER STREET,
Sd. KUMBAKONAM – 612 001.
4. S.M.Swaminathan S/O.S.Muthuvel Pillai, Srinivasa Sd.
Nallur, Tirunageswaram (po), Kumbakonam TK BUS Sd. AGRICULTURALIST
OPERATOR Sd. Sd.
Sd.
5. S.R. Sridharan. Sd.
S/O.S. Rajagopalan, 18, Yagasalai Street,
Kumbakonam‐612001
BUSINESS
6. B.Mukuntharamanujam,
S/O.K. Bhujangaraman,
15, Kumarappa Naik Street, Kumbakonam‐612001
BUSINESS
7. Y. Kanniga W/O.R.
Yogesan,
2, Ayeekulam Road, Kumbakonam‐612001.
BUSINESS
8. S.H.Abubacker, S/O. S. Habeeb Mohamed,
19, Chakrapani South Street, Kumbakonam‐612001
AGRICULTURALIST
9. G.Baskaran, S/O.M. Govindasamy,
4, Nageswaran South, Kumbakonam‐612001
BUSINESS
10. R.Vijayakumar, S/O.N.S.Radhakrishan,
Noor Nagar, Kumbakonam‐612001 AGENT
LIC
11. N.Rangasamy, S/O.V.Nallasamy Naidu,
117,A.R.Ramasamy Road, Kumbakonam‐612001 BUS
OPERATOR
TOTAL