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(1) Where an application for the winding up of a chit is
dismissed and the Registrar is satisfied that the petition is frivolous or vexatious, he may, on the
application of the foreman, award against the petitioner such amount, not exceeding one thousand rupees,
as he deems reasonable as compensation to the foreman for the expenses or injury caused to him by the
presentation of the application and the proceedings thereon, and such amount may be realised as if the
award were a decree of a Civil Court.
(2) On the making of an award under sub-section (1), no suit for compensation in respect of an
application for any winding up of the chit shall be entertained.
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