P.N.Goel - (1.) THIS is an application under Section 482 CrPC.
(2.) THE police is prosecuting the applicants who are Managing Directors of a Private Ltd. Company styled "Lords Mutual Benefit Financial (P) Ltd.", Bareilly, under Section 294-A IPG for floating a lottery without the permission of the State Government. This section punishes the person who keeps any office or place for the purpose of drawing any lottery. This section also punishes the person who publishes any proposal of drawing lottery. THE police has submitted charge sheet against the applicants. THE contention of the applicants is that they have not floated any lottery, that they have floated four super savings schemes, that the maximum number of members in any scheme is 2000, that the terms and conditions of membership of this scheme do not amount to drawing of lottery and that as such they have not committed any offence under Section 294-A IPC. THE applicants further alleged that before starting the schemes they applied for approval of the schemes to the Reserve Bank and that Reserve Bank raised no objection. THE applicants have filed a form of the application for membership on the back of which terms and conditions of one of the schemes are printed. Sri M. L. Dwivedi, Assistant Special Intelligence Officer, Special Branch Intelligence Department, has filed counter affidavit. He has attempted to show in this affidavit that the alleged scheme amounts to lottery and, therefore, the applicants are liable to be punished under Section 294-A. In this affidavit he has referred to G. O. No. 3176/5-751-1969, dated 15-12- 1969 sent secretly to the District Magistrates of Uttar Pradesh. A copy of this G. O. is Annexure 1 to this counter affidavit. This G. O. contains instructions to the District Magistrates. It is not a part of law. THErefore, the case has to be decided, not on the basis of the instructions contained in the G. O. but on the basis of the provisions of law contained in Section 294-A IPC. Vinai Kumar Thapar has filed rejoinder affidavit. It has been stated above that Section 294-A punishes the person who keeps an office or place for drawing lottery as well as who publishes any proposal for drawing lottery.
(3.) BEFORE indicating the meaning of the term lottery which is not defined in the Indian Penal Code or in any other Act, it is appropriate to reproduce the relevant terms and conditions here :- "2. The applicants shall become a Member or subscriber only on acceptance by the Company. The Company reserves its rights to reject any application for membership without assigning any reason whatsover. 3. The 'Super Savings Scheme' (hereinafter called 'Scheme') has a face value of Rs. 500/-. The maximum membership of a scheme is 2000 at any time. The monthly subscription or instalment is Rs. 10/- payable by the 15th day of each English calender month . The tenure of the scheme is unlimited. A member can join the scheme at any time qua him the tenure of the scheme is 50 months. A member may complete his 50 months within a maximum period of 75 months commencing with the month of his joining the scheme subject to availability of membership, clause 14th below and discretion of the company, in case the company is not able to allot any member a ticket (within a maximum of 2000) and so certifies in writing then the maximum period of 75 months may be extended by the Company to that extent. 4. The object of the scheme is to help the members to save regularly every month and to invest their small savings for profitable return. 5. Every month the company will hold a draw in which 10 prizes of Rs. 1500/-in all divided into 1st Rs. 500/- 2nd Rs. 200/-, 3rd Rs. 100/- 4th Rs. 100/- 5th Rs. 100/-, 6th Rs. 100/-, 7th Rs. 100/-, 8th Rs. 100/-, 9th Rs. 100/-, 10th Rs. 100/- Total 1500/- would be declared draws shall take place by digit system or by such process as the Company may from time to time decide. The prizes are offered by the company only as an added Incentive to members but they do not form a part of the scheme. If during the continuance of the actual numbers of members is considerably reduced, the Company may in its discretion reduce the amount of prizes after publication in a local newspaper. The Company however guarantees a minimum prize of Rs. 500/- every month. 6. A member winning any prize/s in any draw/s shall continue to be a member and would be required to pay all further instalments. A member thus has to pay Rs. 500/- In 50 monthly instalments of Rs. 10/- each irrespective of the fact whether he wins prize/s or not.;