STATE OF GUJARAT Vs. JIVANLAL BHIMJIBHAI

JUDGEMENT

(1.) This is an appeal filed by the State of Gujarat and directed against the order of acquittal passed by the learned Judicial Magistrate First Class Ankleshwar acquitting the accused of the charge of having committed an offence under sec. 4 of the Bombay Lotteries (Control and Tax) and Prize Competitions (Tax) Act 195 (hereinafter referred to as the Act). Respondent No. 1 in this appeal was original accused No. 1 and respondent No. 2 was original accused No. 2. The prosecution case is that the accused No. 1 is the owner of Rajhans Benefit Company (hereafter referred to as the Company) and the accused No. 2 is its Manager. The Company has its head office at Ahmedabad and branches at Surat Rajkot Ankleshwar Junagadh etc. The accused No. 1 had rented a shop at Ankleshwar. The shop was situated on the station road and on the way to Goya Bazar. The shop was rented since October 28 1963 for the purpose of running of the business of the Company. The Police Sub-Inspector Ankleshwar received an information that the accused were running a prize scheme which was contrary to the provisions of the Act. The Police Sub-Inspector therefore obtained a search warrant under sec. 18 of the Act and carried out a search of the premises on December 9 1965 Various documents consisting of account books receipt books files etc. were seized by the police. On examination of this record it was found that both the accused were running a prize scheme in which 200 members were listed by the accused. Under the scheme a person who wished to become a member had to pay an admission fee of Re. 1/-. He had further to pay a sum of Rs. 5.00for the first month and 25 Paise more i. e. Rs. 5-25 Rs. 5-50 Rs. 5-75 etc. for each subsequent month for 30 months. The total amount of contribution of a member would come to Rs. 260.00. The member is given a receipt for the payment. Each member is also given a pass book bearing his membership number. Under the scheme on 17th of every month a draw for a lucky number card is to be arranged. Each member is informed of this draw. The lucky number card is to be chosen by drawing of a lot and this was to be carried out by keeping two batches of cards one batch having cards bearing the number of each member and other batch consisting of blank cards. The batch of blank cards will contain one card on which Rajhans Benefit Company is written. A member is asked to pick up a card from the batch consisting of cards bearing the number of each member. lIe has to place the card on the table. Then he has to pick up one card from the batch of blank cards and place it over the numbered card. This process is to be continued till the card on which Rajhans Benefit Company is written is picked up and the prize is given to the member whose number is found on the card which is drawn immediately thereafter from the batch consisting of cards bearing the number of each member. The winner is given a prize of either a cycle or radio or sewing machine of the value of Rs. 200.00. The rules Relating this scheme are produced at Ex. 16. The rules are in Gujarati language. The relevant rules are 1 2 3 4 5 6 7 9 11 and 12. The rules are translated in English and are as follows:

(2.) The defence of the accused was that he was not guilty of the charge. The accused did not dispute the manner in which the scheme was run but contended that the scheme was not a lottery and that the prize of the value of Rs. 200.00was given to the winner free of charge as an advertisement of the Rajhans Benefit company.

(3.) The facts proved by the prosecution as to the manner in which the scheme was run by the accused are not disputed in this Court. Shortly stated the scheme was that R member had to contribute in all Rs. 260.00 by instalments at the rate of Rs. 5.00and 25 paise more every month i. e. Rs. 5-25 nP. Rs. 5-50 nP and Rs. 5-75 nP till the 30th month. On the 17th of the each month there was a draw and the member who was successful was given either a cycle or a radio or a sewing machine worth Rs. 200.00. This process of distributing the prize was to be respected every month till the 30th month. Thus in all 30 prizes were distributed amongst the members. the main features of the scheme were as follows: