O P CHIRANIA Vs. DIRECTOR OF LOTTERIES

JUDGEMENT

(1.) BY this judgment it is proposed to resolve the divergence of opinion that has arisen on account of the views expressed by two learned judges of this court in their respective judgments in Crl. M. (Main) No. 2153/1996 O. P. Chirania and Anr. vs. The Director of Lotteris, Haryana and Ramrichhpal Gupta vs. M/s DCM shri Ram Consolidated Limited reported in (1995) DLT 284. This Bench for the sake of brevity has limited the scope of its opinion to the question/issue referred to it.

(2.) THE brief facts which have led to present reference are as follows. One Shri Gauri Shankar Mittal and the two petitioners, namely, Shri O. P. Chirania and Shri Binod Kumar Chirania, were the partners of M/s. Deep Mayank and Associates, the respondent No. 3, having its branch offices in New Delhi and patna and its Head Office at Calcutta. The firm was dealing in lottery business. In 1992, the State of Haryana was running seven weekly lotteries, namely, Jai Durga, Mahadev, Hari Om, Jai Vishnu, Shri Ganesh, Maha Laxmi and mahabali. On June 29, 1992, the Govt. of Haryana, represented by the Director of Haryana State Lotteries, Chandigarh, entered into an agreement with M/s. Deep mayank and Associates whereby the former constituted the latter as its main stockists of lottery tickets of the above said weekly lotteries w. e. f. July 1, 1993. As per one of the terms and conditions of the agreement, the firm was required to furnish a bank guarantee for a sum of Rs. 3. 71 crores and was also required to deposit a sum of Rs. 3,78,000/- as payment on account of royalty, printing, publicity and administrative charges along with the amount of first prize in respect of 24 lakh lottery tickets of one draw per scheme. Before lifting the tickets the partnership firm issued fourteen cheques in favour of the Director of Haryana State Lotteries as per the following details:- <FRM>JUDGEMENT_1837_ILRDLH17_2008Html1.htm</FRM>

(3.) THESE cheques were presented by the respondent to the Reserve Bank of india, New Delhi, in three lots on August 19, 1992, August 24, 1992 and August 25, 1992 for securing the credit of the amounts mentioned therein into the accounts of the Haryana Government. However, the cheques were returned by the concerned bank, i. e. , Dena Bank, New Delhi, with the remarks ?funds insufficient and not arranged for?. The five cheques presented on August 19, 1992 as per the following details were returned by separate memos of the bank dated August 20, 1992:- <FRM>JUDGEMENT_1837_ILRDLH17_2008Html2.htm</FRM>