1982 (2) TMI 301 - SUPREME COURT

Whether the F.I.R.. Lodged by the commercial Tax officer,Bureau of Investigation, against the firm and its partners discloses an offence under section 3 of "The Prize Chits and Money Circulation Schemes (Banning) Act", 43 of 1978?

Held that:- Appeal dismissed. As no offence under the Act is at all disclosed, it will be manifestly unjust to allow the process of criminal code to be issued or continued against the firm and to allow any investigation which will be clearly without any authority.

In the view that I have taken, I do not consider it necessary to deal with other aspects namely, as to whether the searches and seizures were lawfully and properly done. I, therefore, hold that the proceedings against the firm and its partners arising out of the F.I.R. must be quashed as the F.I.R. and the other materials do not disclose any offence under the Act and as such no investigation into the affairs of the firm under the Act can be permitted or allowed to be continued. I, accordingly, quash the proceedings against that firm and its partners and order that no investigation under the Act into affairs of the firm is to be carried on or continued. I agree with the final order proposed by the learned Chief Justice in regard to the return of the documents, books and cash.