definition of "Prize chit" in Prize
Chits and Money Circulation Scheme (Banning) Act, 1978 are
to be read disjunctively--Phrase ... name called should be banned. Since prize
chits were called differently, "prize chits" benefit/ sav-
ings schemes, "lucky draws
names, such as price
chit, lucky-draw, benefit scheme or money circulation
scheme. They offered prizes to attract subscribers. The
basic features, however, remained ... bank at the
instance of the company, the scheme is an investment scheme
and not prize chit. We are unable to accept this submission
Rules state that a "scheme means a money circulation
scheme or as the case may be a prize chit as defined ... money circulation scheme' by shaping its
definition in this form:
133
'money circulation scheme' means any scheme, by
whatever name called
possess the vices of private
prize chits. What are exempted are prize chits and money
circulation schemes promoted by or controlled by the State
Governments ... succumbing (perhaps astrologically) to the prize
mania:
....It was observed that several companies
conducting prize chits, benefits or savings schemes or
lucky draws claimed themselves
allied schemes. The report devoted a whole chapter to prize chits, savings schemes, and others of their ilk and exposed the modus operandi of such ... possess the vices of private prize chits. For one thing, what are exempted are prize chits and money circulation schemes promoted by or controlled
prize will have to face difficulty in getting the
prize which would help the company in evading the
responsibility to give the prize. Azad Singh ... prizes; that this trade practice
of offering prizes would lead to excessive purchases and
consumption by the customers in the expectation of getting
prizes; that
Company. Since the Company's business of floating prize chit
schemes came to a stand still, the moment the Company was
ordered ... Centre Pvt. Ltd.
The Company had undertaken the business of floating prize
chit schemes. The nature of business in modern times is
sufficiently well known
which Company took the decision to hold the Hidden Wealth Prize Scheme.
3. Details of level at which the decision was taken in the Company ... scheme together with complete printed material about the scheme;
5. Total expenditure incurred on the scheme with requisite break-up such as Expenditure on Prizes
which company took the
decision to hold the Hidden wealth
Prize Scheme.
3. Detail of level at which the
decision was taken in the Company ... scheme together with
complete printed material about the
scheme;
5. Total expenditure incurred on
the scheme with requisite break-up
such as Expenditure on Prizes
Peerless
Company a Prize Chit within the meaning of Section 2(e) of
the Prize Chits and Money Circulation Schemes (Banning)
Act?'' This ... court held that section 2(e) does not
contemplate a scheme without a prize and, therefore, the
Endowment Certificate Scheme of the Peerless Company
