VOICE CONSUMER CARE COUNCIL Vs. COMMISSIONER OF POLICE

JUDGEMENT

(1.) THE petitioner who is a voluntary consumer organisation has filed this writ petition in public interest, seeking for a writ of mandamus directing the respondent No.1 herein to take appropriate legal measures against some of the Tamil Dailies and Weekly Magazines viz., respondents 3 to 8 herein, inter alia contending that they have developed a deplorable conduct in selling their 'Deepavali' issues and for improving the circulation by announcing huge prizes, and also for a further direction preventing such activities to put a quietus to their unjust enrichment in the process of sale.

(2.) THE petitioner has stated that the provisions of the Prize Competition Act, 1955, and the Prize Chits and Money Circulation (Banning) Act, 1978 (hereinafter referred to as 'THE Acts' in short) prohibit any Scheme by which money is collected announcing huge prizes. Amongst both the Acts, in the former Act, the contravention is non-cognisable and in the latter Act, it is cognisable. Apart from the aforesaid legal prohibitions, even under the Contract Act, such practice is declared illegal and opposed to public policy. In fact, Section 36 of the MRTP Act describes it as a restrictive trade practice. It is his contention that in the recent years, particularly, this year, Tamil Dailies, like Dinaboomi, Dinamalar and weeklies like Kungumam and Devi have announced huge prizes starting from couple of Honda Cars, Maruthi Cars and ending with thousands of consumer items for purchasing 'Deepavali' Malars at the cost of Rs.65/- and Magazines like kumudam and Vikatan paper announced prizes for improving circulation. Though Section 3 of the Prize Competitions Act, 1955 contemplates licence to carry out any such activity within the scope of that Act, no such licence was obtained by any of the promoters and there was no proof that a subscriber will be assured of prize so announced as regulated in the case of lottery tickets.

(3.) UNDER Section 2(c) of the Price Chits and Money Circulation Schemes (Banning) Act, 1978, "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrollment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions. UNDER Section 2(e), "prize chit" includes any transaction or arrangement by whatever name called under which a person collects whether as a promoter, foreman, agent or in any other capacity, monies in one lumpsum or in instalments by way of contributions or subscriptions or by sale of units, certificates or other instruments or in any other manner or as membership fees or admission fees or service charges to or in respect of any savings, mutual benefit, thrift or any other scheme or arrangement by whatever name called, and utilises the monies so collected or any part thereof or the income accruing from investment or other use of such monies for all or any of the following purposes, namely: -