( 1 ) THE prize chits and money circulation schemes (banning) Act, 1978, is an act brought into force for banning the promotion or conduct of prize chits and money circulation schemes and for matters connected therewith or incidental thereto with effect from 12-12-1978. It is an act enacted by the parliament. Under section 3 of the said Act, no person shall promote or conduct any prize chit or money circulation scheme or enroll as a member to any such chit or scheme, or participate in it otherwise, or receive or remit any money in pursuance of such chit or scheme. Section 4 of the act contemplates imposition of penalty for contravening the Provisions of Section 3 and Section 5 deals with penalty for other offences in connection with prize chits or money circulation schemes.

( 2 ) THE case of the petitioner is thatthe petitioner commenced a scheme called marulhi golden benefit scheme which was closed in the year 1979. It appears that at the instance of the members, the petitioner commenced another scheme in the month of April 1979 called maruthi diamond scheme and the duration of the scheme was 60 months coming to an end in the month of April 1984. It is stated that