ACHAMMA CHACKO Vs. GOVT OF KERALA

JUDGEMENT

(1.) A partnership firm with the name and style "M/s. LIS, Ernakulam" is said to be conducting the business of making available Government lottery tickets to the public under the Multi Level Marketing principle in partnership. As per its own showing, the partnership has registered three lakhs members in the scheme evolved by it. Though it is not mentioned in sufficient details in the writ petitions or criminal miscellaneous case, but as revealed during the investigation and not disputed during the course of arguments, the managing committee of the trust stated to be P. V. Chacko, Kuriachan Chacko and Joy John met on 11-11 -2002 and decided to permit Kurian Chacko to conduct lottery ticket business in the brand name LIS. Kurian Chacko was to conduct the business of his own either as a proprietary concern or as a partnership or as a limited company. Kuriachan Chacko had to make available necessary funds for the trust and its members. In pursuance of the resolution, Kuriachan Chacko along with one Achamma Chacko and Linu Joy who are wives of the trustees of the trust formed a partnership vide Deed dated 12-11-2002. The name of the firm as per the deed is M/s. LIS, Ernakulam and the registered office of the firm is stated to be that of the office of the trust itself. The partnership deed further provides that the main business of the firm shall be arranging online and paper lottery tickets to the public. The firm is seen registered with the Registrar of Firms, Trivandrum qn 26-11-2002 with No. 1741/ 02 and the duration of the firm is stated to be five years. As per the certificate issued by the Registrar of Firms the name of the firm is M/s. LIS with three partners Kuriachan Chacko, Achamma Chacko and Linu Joy. The firm LIS (Regd.) is conducting Prize Chits and Money Circulation Scheme throughout the State of Kerala in the name LIS Deepasthambam Project. The business of these persons is claimed to be genuine, even though styled by the investigating agency as under the bogus name LIS (Regd.), is making advertisement in all leading dailies and through visual medias offering fabulous returns for deposits from the public. The nature of business is that an individual has to deposit Rs. 625/- per unit or multiplies thereof. For each unit a member is given lottery ticket worth Rs. 350/- purchased over 35 weeks at Rs. 10/- per week and subscribes Rs. 275/- to a magazine called Trikalam' alleged to be published by LIS Printers and Publishers. Besides the above, they offer Rs. 1052/- to every member holding one unit, the details of which are as follows : <FRM>JUDGEMENT_4391_CRLJ_2006Html1.htm</FRM> The firm is purchasing lottery tickets, preserving the same, Informing its members the particular ticket numbers and the results thereof and also making arrangements for disbursement of prize amount and irrespective of as to whether a member enrolled by the firm gets any prize on the tickets purchased on his name or not is assured of an amount of Rs. 1250/- in the manner mentioned above.

(2.) The facts as mentioned above led to registration of an FIR against the members of the firm under various sections of different statutes to be mentioned hereinafter. In asmuchas, the activities Indulged in by the offending partners of the firm is covered under various statutes, with a view to curb it, a ban order naturally resulting into closure of the business of the partnership firm has also been passed.

(3.) Achamma Chacko, wife of P. V. Chacko, the managing partner of the firm, and P. V. Chacko, the chairman of the same firm, have filed W. P. (C) No. 12775 of 2006 calling in question Ext. P4 dated 10-5-2006 issued by Bernard Dev, A. C. P., Crime Detachment, Kochin City directing the chairman of the firm to stop collection of money in any way from depositors until further direction from the investigating officer, by mentioning that he is collecting money from depositors in violation of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, hereinafter referred to as 'the Act of 1978', and a case has been registered at Ernakulam Central Police Station which is under investigation. Achamma Chacko and Linu Joy, the partners of the firm, and P. V. Chacko, the trustee thereof, have jointly filed Crl. M. C. No. 1377 of 2006 seeking to quash the FIR Annexure-B in Crime No. 672/2006 of the Central Police Station, Ernakulam and all proceedings pursuant thereto. Linu Joy, wife of Joy John, yet another partner of the same firm, has filed W. P. (C) No. 13152 of 2006 seeking a writ in the nature of mandamus commanding the respondents not to harass her and the firm of the petitioner and also commanding the respondents not to interfere with the peaceful and proper functioning of her firm.