SIKRI - (1.) THIS appeal by special leave by the State of Madhya Pradesh is against the judgment of the High Court allowing the appeal of the respondents. Mir Basit Ali Khan, Mir Shahniwaz Ali Man and Mir Sarfaraz Ali Khan, and setting aside the conviction and sentences passed on them by the learned First Additional Sessions Judge. Bhopal, who had convicted them under Section 120-B and Section 420. I. P. C. The respondents were, however, acquitted of the charge under Section 406, I. P. C. We may mention that there were two committal orders made by the learned Magistrate, First Class. Bhopal, on 5/04/1965 and on 12/10/1965, respectively, which gave rise to two Sessions Trials. Nos. 90 of 1965 and No. 98 of 1965. The learned Sessions Judge disposed of both the trials by a single judgment as he was of the view that both the trials were in effect a single trial of a single conspiracy and of several incidents of cheating. The respondents also filed one appeal before the High Court and the High court disposed of that appeal by one Judgment.
(2.) THE facts are not very much in dispute. THE prosecution case, in brief, was that Mir Basit Ali Khan the father, and his two sons. Mir Shahniwaz Ali Khan and Mir Sarfaraz Ali Khan, entered into a partnership which was registered on 21/09/1959, under the Indian Partnership Act of 1932 in the State of Andhro Pradesh at Hyderabad. THE registration number of the firm was 1468. Mir Basit Ali Khan started a money circulation scheme known as Multi-Purpose Constructive Circulation Scheme with its head office at Hyderabad, in the year 1960. He, along with others, was prosecuted in the City Magistrate's Court at Hyderabad, but they were acquitted and the acquittal was maintained in the High Court. THE Magistrate had come to the conclusion that though the scheme appeared to be speculative yet it could not be said that the accused were running the said scheme with a dishonest intention to cheat the public. It is alleged that Mir Basit Ali Khan again organised the Multipurpose Constructive Circulation Scheme on 20/09/1961, at Bhopal with its principal office at Bungalow No. 59, Roshanara Naka, T. T. Nagar, Bhopal. The firm issued policies and printed pamphlets and handbills representing that it was a Government of India Registered firm No. 1468. We may reproduce the pamphlet. Ex. P.9/1, which was one of the pamphlets issued by the firm: "1. Perform the marriage of marriageable girls by spending only 5.50 np. 2. Only after spending once Rs. 5.50 np. send your promising children to America or England for Education 3. By spending Rs. 5.50 np. only once, you can meet your daily necessities. 4. By spending Rs. 5.50 np. only once make provision for education, and books, stationery, etc., etc..
(3.) BY spending Rs. 5.50 np. get a big sum of Rs. 2309.00 for the progress of your business. For obtaining all the above mentioned things you can get a big sum of Rs. 2309.00 by spending only Rs. 5.50 np. Please do come and meet on the address noted below so that you may know how to do it and how to utilise this golden opportunity Otherwise please do not say that you did not get intimation." 5. It is necessary to reproduce another pamphlet, Ex. P-12, because according to the State there were clear misrepresentations of fact which amounted to cheating: "phone: 1266. M. C. C. Bhopal, M. p. Grams: "Jansewak" Govt. of India's Registered Firm, 1468. The Government of India after establishing the social service Department are doing a great service for the public and to the nation as a whole by spending lacks of rupees. The public have also been exerting manual labour in addition to giving their valuable time. But this Public Service Scheme of ours is so unique that without any difficulty every individual of the country receives direct benefit to the extent of Rs. 23,09/50 by sitting at home. That is, remit your admission fee once through the dep. T. T. (sic) and the Government postman will knock down at your doors several times to pay you up the amount. The Founder of this unique formula has placed before you in such a way that a person with ordinary intelligence will be pleased to understand it. HOW THIS IS POSSIBLE : Collect Rs, 5/50 from each of your three friends, and out of this keep Rs. 5.50 for yourself and this remaining Rs. 11/00 may be remitted according to the schedule. It is thus clear that you have received your original amount of Rs. 5/50 in full immediately after the sale of three Policies. From the Procedure explained above, it is very clear that this is neither a Gambling lottery, Riddle nor Satta. There is not the least possibility of your losing the amount. Of course, such persons will be losers who will not be in a position to sell their three policies. Therefore, those persons who do not have the capacity of selling their 3 Policies need not join this scheme. But in our opinion we are confident that there is no such an unfournate person who is not having even three well wishing friends, or relatives in this vast world. But the question of selling 3 policies by an individual is most important. How- You should purchase one Policy by paying Rs. 5/50 np. from any person who has already enrolled in this scheme or write to the Firm for the policy, by sending M. O. of Rs. 5/Now select three energetic and enthusiastic friends, collect Rs. 5/50 from each of them and remit the M. Os. to the members and the Firm as shown in the schedule. Write down the names of your selected 3 friends with their address in full in BLOCK LETTERS ONLY. Send the Policy along with the M.O. receipts to the firm by EXPRESS DELIVERY ONLY. Never send M. Os. to persons in column No. 2 they will not get any amount to the extent of THIS POLICY ONLY BUT as and when this Policy goes in circulation they will automatically change their places and enjoy with their expected amount. FIRM'S RESPONSIBILITY: The firm will sent you 3 policies in which you will stand in Column No. 2 and that of the new member in Column No. 1 Hand over these policies immediately to your friends carefully. As soon as you finish this job, YOUR RESPONSIBILITY IS OVER. The chain of M. Os. will be continued in such a way that your neighbours will be fed up with postman's voice. Became the beauty of our scheme is that we allow 15 days period for the sale of the policy to each of our member after the expiry of the period we cancel such slack members and the same cancelled policy in which you stand in No. 2 is sold to other new members through our authorised agents and field officers who are spread all over India thereby we try our utmost to continue your chain. The cause of failure of other previous Schemes is only due to not having this wonderful arrangement of continuation of Chain to which we give much importance. For this reason only we are having a very good response and our todays membership number is more than a lack all over India. Under unavoidable circumstances, extension of one week can be given on payment of extension fee of 0.37 np. SCHEDULE JUDGEMENT_96_2_1971Html1.htm MOST IMPORTANT: If your chain of M. Os. are discontinued for two weeks please inform us immediately so that they may be continued. Author of Bukhi Kisan approved by the Ministry of Agr. Govt. of India, Founder of full House Talkie Formula Regd. by Govt. of India No. 104 Proprietor M .C. C. Govt. of India's Regd. Firm No. 1468, Bhopal. TIME IS MONEY: If you are inclined to become agent, contact us and enjoy with the commission of 3.50 np. per member. The Chief Agent will get 75 P. M. salary as well as commission of Rs. 3.50 per member. The advertisement expenses will also be borne by the firm." The learned Sessions Judge had come to the conclusion that the respondents by using the expression "Government of India Registered Firm No. 1468" in their policies and pamphlets misled the public into believing that the scheme was sponsored by the Government of India or it had its approval. He also came to the conclusion that there was a misrepresentation in the pamphlet that the scheme was neither a gambling, lottery, riddle or a satta, but was an ordinary financial scheme. The learned Sessions Judge had further found that as the remitter of the money-orders was always Mir Basit Ali Khan, respondent No. 1 and the Proprietor of M. C. C., the member of the policy was left only with a small piece of paper. Ex. P-69, the scheme contained a misrepresentation and suppression of material facts which made the respondents liable for conspiracy to cheat and cheating.;