B.N. Sapru, J. - (1.) In writ petitions Nos. 6336 and 6338 of 1981, the petitioner No. 1 is a partnership firm and the petitioner No. 2 is a partner thereof.
(2.) The petitioners, in Writ Petition No. 6336 of 1981, carry on the business of purchase and sale of electrical goods including refrigerators. The petitioners claim that in order to promote their sale of refrigerators and in order to encourage the buyers to make purchases, it has started the sale of promotional advance instalment scheme on certain terms and conditions. Its apprehension is that since the Prize Chits and Money Circulation Schemes Banning) Act. 1978 thereinafter to be referred to as the Act has come into force with effect from 13-2-1978 and the Act has put a ban on prise chits and money circulation schemes the authorities are likely to prosecute ,the petitioners if they continue with their scheme. They claimed that they had certain correspondences with the authorities but the authorities are not agreed with the petitioners that their scheme is not covered by the Act. In these circumstances, the petitioners have sought relief from this Court under Article 226 of the Constitution of India and prayed that a suitable writ, order or direction in the nature of mandamus be issued commanding the respondents not be enforce the provisions of the Act and the Rules framed under the Act against the petitioners.
(3.) The petitioners' case is that the firm sells the aforesaid articles on the basis of total cash payment or on credit in full or part or on payment in instalments and in order to promote its sale and to encourage the buyers to make purchases in instalments, the firm started a sale promotional advance instalment scheme on certain terms and conditions. The aforesaid scheme was called a benefit scheme and provided for certain benefits as incentives to persons who want to buy the said articles on monthly instalments and in order to ensure prompt and regular payment of their monthly instalments. The benefit scheme provides, inter alia, that a person who joins the scheme shall pay the initial instalment and continue to pay the further monthly instalments before the specified date. In order to offer incentive to the customers, there is a provision for a lucky draw every month. A person who is a winner in any lucky draw, will not be required to pay any further instalment. Those who are not 'winners of monthly lucky draws will get the articles after the payment of last instalment but if any one wants the article at any time during the continuance of the scheme, he can get it by paying the balance instalments in full and still he will be entitled to participate in the monthly lucky draws. In case such a person is a winner in any monthly lucky draw an amount equal to subsequent instalments shall be refunded to him and he can purchase any article available with the firm for a price equivalent to the said amount. This scheme is described by the petitioners as 'Instalment Sale Promotion Scheme.';