SIRHIND TRADERS Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THE petitioner-firm through its partner Bhagat Singh has filed this petition under section 482 of the Code of Criminal Procedure for quashing First Information Report No. 177 dated 10th June, 1983 registered against it in Police Station, Jagraon, for violation of the provisions of the Prize Chits and Money Circulation Scehems (Banning) Act 1978 (for short the Act)

(2.) THE brief facts according to the first Information Report, are that one Hari Singh, after reading an advertisement about Janta Scheme, went to the office of the Firm. There Bhagat Singh and his employee Sarwan Singh were present and were selling tickets of Rs. 40/- each. Hari Singh purchased a ticket from Sarwan Singh bearing No. 3367. Sarwan Singh said at that time that after expiry of 90 days articles worth Rs. 120/- would be given to him. Hari Singh further expressed his apprehension that the aforesaid two persons wee giving false hopes by inviting persons and he alongwith others would be deceived and those persons would run away. (Note :- There is a mistake in the translation of the First Information Report reproduced in the petition. Whatever Sarwan Singh had said at the time of sale of the ticket had not been reproduced in the translation).

(3.) THOUGH the First Information Report is cryptic and appears to have been drawn up in a hurry but I am of the opinion that the conditions laid down by their Lordships of the Supreme Court are satisfied in the present case. For making quick or easy money, the Firm is enrolling members and for the receipt of money received from the members it is offering more money or valuable thing as the consideration on the happening of an event i.e. the expiry of the fixed period. Thus borrowing the words of their Lordships of the Supreme Court used in the above case it is clear that the Firm is carefully arranging a systematic programme of action between two or more persons under which the subscriber agrees to advance or lend money on promise of being paid more money on the happening of an event (i.e. the expiry of 3 months) applicable to the enrollment of the members into the programme and reciprocally the Firm which is conducting the programme, promise on receipt of an advance or loan to pay more money on the happening of the above event.