( 1 ) IT is an unfortunate case. Petitioners who are German National came to this country to do business but instead landed themselves in jail for having flouted the Indian Law against "money Circulation Scheme" and Prize Chits"for attracting innocent people into pumping money with them in a Scheme floated by them showing greed of a Canadian Golden Coin known as "maple Leaf"

( 2 ) SHORT question involved for determination in this petition is whether terms of the agreement for contract of sale fall within the mischief of "money Circulation Scheme" as contemplated by Section 2 (c) of the Price Chits and Money Circulation Scheme (Banning) Act, 1978 or falls within the ambit of "price Chit" as envisaged in clause (e) of Section 2 of the Act.

( 3 ) ACCORDING to the petitioner, he was engaged in the business of sale and distribution of Canadian Gold Coins which are referred as "maple Leaves". This agreement was thrown open to the persons who were desirous of entering into agreement for sale of gold coins in accordance with the terms of marketing plan of the seller. The relevant terms of the agreement for contract of sale are as under:-

"and whereas the Seller and the Purchaser have agreed to enter into this Agreement for a minimum of four (4) contracts of sale of gold coins amounting to Rs. 49,300. 00 each. Now it is agreed by and between the parties hereto as follows :-

1. PARTIES conclude ---------- (minimum 4) contracts of sale whereby the purchaser each time purchases gold coins amounting to Rs. 49,300. 00 each. 2. The purchaser makes a down payment of Rs. 15,000. 00 towards each contract of sale amounting to a total of Rs.-------------- -. The balance of the purchase price is deemed to have been paid by the purchaser the moment 14 (fourteen) contracts of sale have linked up with the contract of sale in question, as fully described in detail in the marketing Plan of the seller, Phase 1, Which is Schedule 1 to this Agreement. 3. The seller grants the purchaser a right of option to convert, after the purchase price of a contract of sale referred to in article 1 has been fully paid, the relevant contract of sale, in conformity with the provisions set forth in the marketing Plan into Phase II and Phase III of the marketing Plan. This option is subject to the following terms which are detailed in the Marketing Plan. A part of the gold to be paid out in Phase I, will be deducted and laid down as a down payment on the purchase price of gold in Phase II and respectively Phase III, in Phase II, the down payment amount to Rs. 37,500. 00 on a purchase price of Rs. 1,04,500. 00 and in Phase III, the down payment amounts to Rs. 75,000. 00 on a purchase price of Rs. 2,35,000. 00. Exercising the right of option will be effected via an unilateral declaration from the purchaser to the seller. The balance remaining of the purchase price in Phase II and Phase III will be deemed to have been paid the moment (6) contracts of sale have been linked up with the relevant contract of sale, this is described in more detail in the marketing Plan of the seller. 4. The Purchaser declares that he will not, will make the use of the option as referred to in articile 3, to also continue his contract in Phase II and III of the Marketing Plan. 5. The Purchaser declares that he has read and understood the terms and conditions which are above and on the reverse of this Agreement. In WITNESS WHEREOF the parties have put their hands the day and year first hereinabove written. Applied for in (Town) ------- (date)--------- Purchaser Signature of purchaser signed, accepted, delivered and drawn up in triplicate (Town) ---- (date) -------- Seller Maple Leaf trading International Pvt. Ltd. The Agreement has a transitional period whereby the Purchaser can cancel this Agreement within eight days of the Agreement being accepted by Maple Leaf Trading International Pvt. Ltd. Cancellation shall be effected by the way of a registered letter. It is best for t