O P CHIRANIA Vs. DIRECTOR OF LOTTERIES

JUDGEMENT

(1.) This is a petition under section 482 of the Code of Criminal Procedure seeking to quash the criminal complaint No. 289/1 of 1996 pending before Shri V.K. Maheshwari, Metropolitan Magistrate, Patiala House, New Delhi.

(2.) Shri Gauri Shankar Mittal and the two petitioners, namely, Shri O.P. Chirania and Shri Binod Kumar Chirania, are the partners of M/s. Deep Mayank and Associates, respon- dent No.3 (for short 'the firm') having its branch offices in New Delhi and Patna and Head Office at Calcutta. The firm is doing a 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, and M/s. Deep Mayank and Associates entered into an agreement 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.3,78,000.00 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_537_DRJ46_1998Html1.htm</FRM> These cheques were presented 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 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_537_DRJ46_1998Html2.htm</FRM>

(3.) By a notice dated August 25, 1992, the Sales Officer of the Haryana State Lotteries notified M/s. Deep Mayank and Associates the factum of dishonour of the above said cheques. He also required the firm to deposit a sum of Rs.18,31,386.00 with the Haryana State Lotteries. Besides, the firm was asked to ensure that the remaining cheques were honoured which had been deposited for clearance and collection on August 24, 1992 and August 25, 1992. Despite the above notice, the remaining cheques were dishonoured and were returned by the Dena Bank, New Delhi, with the remarks "funds insufficient and not arranged for" by its memos dated August 26, 1992 and August 29, 1992. Under memo dated August 26, 1992 the following four cheques for a total value of Rs.15,12,320.00 were returned :- <FRM>JUDGEMENT_537_DRJ46_1998Html3.htm</FRM>