Judgment

K. JAYACHANDRA REDDY, J.:- This appeal by Union of India and Delhi Special Police Establishment, Chandigarh Branch and its two officials is filed against the judgment of the Punjab & Haryana High Court allowing a petition under S. 482, Cr. P.C. filed by Shri B. R. Bajaj, I.A.S., Finance Secretary, Union Territory of Chandigarh, who figured as an accused in the F.I.R. registered against him and some others. The appeal arises under the following circumstances.

2. In the Union Territory of Chandigarh, a Unit of Indian Council of Child Welfare (hereinafter referred to as the "Council"), a registered Society was established. Shri B. R. Bajaj, respondent No. 1 being the Finance Secretary was the Ex-officio Vice-President of the said Council. Shri K. Banerjee, the Chief Commissioner of the Union Territory was the President of the said Council. On 23-4-1985 the Council sought permission of the Union Territory to run a lottery in order to raise funds for opening a rehabilitation centre for handicapped children and the Union Territory granted permission to the Council by its letter dated l0-7-l985. The funds thus raised were meant to be used for the welfare of the handicapped children. The Government of India, Ministry of Home Affairs issued guidelines on the running of lotteries to all the State Governments including the Union Territory of Chandigarh. As per the guidelines the maximum number of bumper draws in a year can be 12 and the minimum revenue accruing from the lottery can be at least 15% of the.gross value of the tickets printed for sale.

3. During the second week of August, 1985, advertisements were given by the Council in the Tribune, Indian Express and other newspapers inviting tenders for running Decision of Punjab and Haryana High the said lottery. As per this advertisement the Court, Reversed. (Para 8) prescribed form which also contained the terms and conditions of the tender could be obtained from the Secretary, Bal Bhavan, Chandigarh on payment of Rs. 20/-. The terms and conditions indicated that tenders were invited in respect of 156 draws covering a period of three years namely 52 draws per year. For ensuring that the payments were made regularly by the tenderer whose tender is ultimately accepted, securities were to be furnished as per Condition Nos. 8 & 9 which lay down that the organiser should deposit Rs. 5 lacs as security in a nationalised bank duly pledged in the name of the Council and also a bank guarantee of the equal amount of security which shall be forfeited in full or in part at the discretion of the Council in case a breach of any of the terms and conditions of the agreement; and that the organiser shall pay a net guaranteed profit to the Council for the three contractual years in 12 equal instalments and each instalment would be payable before the printing of the tickets is ordered for a draw and if the organiser fails to pay any instalment during the stipulated period, he shall be liable to pay interest @ 12% p.a. for each day of default. Eight parties submitted their tenders. The Tender Committee of the Council opened the tenders on 29-8-85 and sent their recommendations to Shri B. R. Bajaj, Finance Secretary. The Tender Committee in its note recommended that the tender of M/s. V. Kumar Lotterywala who was the second highest tenderer should be accepted since the first highest tenderer had withdrawn his offer before the Committee took up the tenders for consideration. The file remained with Shri B. R. Bajaj and he accepted the recommendations of the Tender Committee on 23-9-85 and markd the file to the President of the Council. On 21-10-85 Shri Bajaj recorded a note purported to have been made after discussion with the President, stating that he was informed that M/ s V. Kumar Lotterywala was not a reliable and suitable party and that the next highest tenderer M/ s. Swastik Distributor had withdrawn and M/ s Om Prakash & Co. is the next highest tenderer who has been running a lottery currently