Judgment

SIKRI, CJI.: - 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 April 5, 1965 and on October 12. 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 September 21, 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.

3. It is alleged that Mir Basit Ali Khan again organised the Multipurpose Constructive Circulation Scheme on September 20. 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.

4. 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..

5. By spending Rs. 5.50 np. get a big sum of Rs. 2309/- for the progress of your business. For obtaining all the above mentioned things you can get a big sum of Rs. 2309/- 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