Judgment

KASLIWAL, J.:- Special leave granted in all the petitions.

2. This litigation is an upshot of the earlier case Reserve Bank of India v. Peerless General Finance and Investment Company Ltd. ((1 987) 1 SCC 424) decided on January 22, 1987. In 1978 the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 (in short the Banning Act) was enacted to ban the promotion or conduct of prize chits or money circulation schemes and for matters connected therewith or incidental thereto. The question which arose in the above case was whether the Endowment Scheme piloted by the Peerless General Finance and Investment Company Ltd., (hereinafter in short the Peerless) fell within the definition of Prize Chits within the meaning of S. 2(e) of the above Banning Act. By a letter dated July 23, 1979, the Reserve Bank of India pointed out to, the Peerless that the schemes conducted by it were covered by the provisions of the Banning Act which had come into force w.e.f. December 12, 1978. On September 3, 1979 the Peerless filed a writ petition in the Calcutta High Court for a declaration that the Prize Chits Banning Act did not apply to the business carried on by the Peerless. A similar wri