STATE OF MAHARASHTRA Vs. SHIVAJI KESRA PATEL

JUDGEMENT

(1.) -Against an order of acquittal from an offence of promoting a "prize chit" in contravention of Section 3 and punishable under Section 4 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 ("the Act"), the State has filed the present appeal with leave under Section 378 of the Code of Criminal Procedure. The complainant H.R.Pahuja at whose instance the police machinery was moved, has also filed a criminal revision. Both the matters are heard together.

(2.) The basic facts are not in dispute. The firm-M/s. Ganesh Traders - (described as Company) sponsored a gift scheme for getting a Rajdoot Motor Cycle. Eleven ingredients and conditions of the scheme printed overleaf the application form for membership are : (i) the membership fee will be Rs 11/- and each group shall consist of 200 members ; (ii) every member will have to deposit a sum of Rs. 330/- per month for a period of 30 months; (iii) instalment will have to be deposited in the office every month between 1st to 10th. In the event of a member not depositing the instalment in time he would be declared as a defaulter and the rule applicable to a defaulter member would be applicable to him ; (iv) lot will be drawn in the presence of the members every month on 15th and lucky member would not be required to deposit further instalments ; (v) defaulter members will not be entitled to receive the benefit of the gift scheme. If a defaulter is found to be a lucky winner, the company will have right to receive the benefit;(vi) the defaulter member will be refunded on the expirv of 30 months his dues after deducting the amount equivalent to two instalments; (vii) the defaulter member, in order to become a regular member will have to pay Rs. 10/- per month as penalty ; (viii), the membership number of a member who is defaulter for three months can be allotted to another member by the company and the membership can be changed with the consent of the company; (ix) the lucky winner will be presented with Rajdoot Motor Cycle (as per price of the manufacture). All expenses over and above the manufacturer's actual price of the motor cycle will be borne by the lucky winner ; (x) on the expiry of the scheme after 30 months, the remaining members will be given Rajdoot Motor Cycle at the price then prevalent. The difference will be paid by the member; (xi) the company will have a right to change the rules from time to time and so also the date of lucky draw.

(3.) The complainant had applied for the membership, had deposited a sum of Rs.11 as subscription and paid six instalments immediately. Payment of seventh instalment is disputed. At the time of the 7th draw, Pahuja was the lucky winner. Delivery of the motor cycle was, however, not given to him on the ground that he had not paid the 7th instalment The complainant reported to the police that the scheme was illegal and that he was cheated. Police presented charge-sheet in the Court of Judicial Magistrate. Complainant also filed a private complaint. Both cases were merged No charge under Section 420, Indian Penal Code was framed. In the criminal trial application form for membership with conditions printed overleaf (Ex. 49) was filed and oral evidence of as many as 6 witnesses including the complainant, other members, police officer. Bank officer, dealer of Rajdoot Motor Cycle was recorded. It is in the evidence that the scheme was sponsored with the concurrence of the Manufacturer and local dealer of the vehicle. Waiting period for getting the vehicle was nearly two years and it was not available on instalments.