AMARJIT SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS order shall dispose of two Criminal petitions bearing Nos. 7794-M of 1995 and 4787-M of 1966, as common questions of law and facts are involved therein and have arisen out of the same First Information Report.

(2.) THE facts necessary for the disposal of these petitions are that Lok Priya General investment and Finance Limited Company, having its Head Office at S.C.O. No. 77 in Sector 40-C, Chandigarh floated a scheme. According to the tenor of the scheme, in case a person deposits Rs. 5000/- with the company he will get Rs. 1000/- per month as his pay ; in case he arranges for three more members, he will get Rs. 1200/- per month; in case workers subordinate to him do not achieve the quota thus fixed, he will get Rs. 400/- per month up till the original security of Rs. 5000/- remains deposited with the company. The prospectus containing the said scheme has been placed on this record.

(3.) AMARJIT Singh, petitioner in Criminal Misc. No. 7794-M of 1995 the Managing Director of the said company, Ravinder Kaur and Pal Singh Saini, petitioners in Criminal Misc. No. 4787-M of 1996 being the Zonal Manager and Director respectively of the said company have filed these petitions for quashing the said First Information Report on the grounds that assuming all the allegations in the complaint to be true, no criminal liability is made out and the complainant should approach the civil court for their remedy; that the company had made payments to all the depositors in question by effecting compromise with them and Annexure P.2 is an affidavit given by one of such depositors, and that the cognizance has been taken by the Magistrate after the expiry of the period of limitation.