STATE BY PUBLIC PROSECUTOR Vs. KALYANASUNDARAM

JUDGEMENT

(1.) THE State is the Appellant, and the appeal is directed against the acquittal of the accused in C C. No. 324 of 1973 on the file of the Additional First Class Magistrate, Mayuram, of an offence punishable under Section 53(2)(b) read with Section 20(2) of the Tamil Nadu Chit Funds Act, 1961.

(2.) THE brief facts of the case which are not in controversy are as follows: The Respondent is conducting chit business at Mayuram and the bye -laws of the Chit Fund have been duly registered with the Chit Registrar. In Chit Fund No. 12 which was commenced on 27th September, 1971, one Ramakrishnan consented to be a subscriber and he was assigned Ticket No. 13. He had also entered into an agreement in respect of the contributions to be made by him to the chit. Notwithstanding the agreement, Ramakrishnan defaulted in paying the very first instalment which fall due on 9th October, 1971. Therefore, the Respondent removed him from the rolls of the Chit and substituted in his place one Venkatesan and took a fresh agreement from the new entrant. On the ground that the Respondent had failed to intimate the removal of Ramakrishnan from the list of subscribers within 14 days from the date of removal, the Chit Registrar, Mayuram, preferred a complaint against the Respondent. The defence of the Respondents that Ramakrisinan, having failed to subscribe even the first instalment and thus becoming incompetent to partake in the first auction held on 11th October, 1971, was not a non -prized subscriber as contemplated under the Tamil Nadu Chit Funds Act, and therefore, he (the Respondent) was not under a legal obligation to give notice of his removal from the list within 14 days. This defence was accepted by the Trial Magistrate and the Respondent was acquitted.

(3.) SECTION 2(2) of the Act defines what a chit is For the purpose of this case it is not necessary to make a detailed reference to that definition. Section 2(3) defines a "defaulting subscriber" to be a subscriber who has defaulted in the payment of subscriptions due according to the terms of the chit agreement. Section 2(12) refers to "non -prized subscriber" and says that the words do not include a subscriber who has defaulted in the payment of subscriptions due according to the terms of the chit agreement. Section 2(14) defines a "prized subscriber" to be a subscriber who has either received or is entitled to the prize amount. "Prize amount" is defined in Section 2(13) and is said to mean the difference between the chit amount and the discount. Reference is also made in this definition clause to fractional holders of tickets and contributions payable in kind etc. But a reference to a them is necessary so far as the instant case is concerned. Ss.20(1) and 20(2) of the Act read as follows: