REVA KHETRAPAL, J.

1. By this judgment it is proposed to resolve the divergence of opinion that has arisen on account of the views expressed by two learned judges of this Court in their respective judgments in Crl.M. (Main) No.2153/1996 O.P. Chirania and Anr. vs. The Director of Lotteris, Haryana and Ramrichhpal Gupta vs. M/s DCM Shri Ram Consolidated Limited reported in (1995) DLT 284. This Bench for the sake of brevity has limited the scope of its opinion to the question/issue referred to it.

2. The brief facts which have led to present reference are as follows. One Shri Gauri Shankar Mittal and the two petitioners, namely, Shri O.P. Chirania and Shri Binod Kumar Chirania, were the partners of M/s. Deep Mayank and Associates, the respondent No.3, having its branch offices in

New Delhi and Patna and its Head Office at Calcutta. The firm was dealing in lottery business. In 1992, the State of Haryana was running seven weekly lotteries, namely, Jai Durga, Mahadev, Hari Om, Jai Vishnu, Shri Ganesh, Maha Laxmi and Mahabali. On June 29, 1992, the Govt. of Haryana, represented by the Director of Haryana State Lotteries, Chandigarh, entered into an agreement with M/s. Deep Mayank and Associates whereby the former constituted the latter as its main stockists of lottery tickets of the above said weekly lotteries w.e.f. July 1, 1993. As per one of the terms and conditions of the agreement, the firm was required to furnish a bank guarantee for a sum of Rs.3.71 crores and was also required to deposit a sum of Rs.3,78,000/- as payment on account of royalty, printing, publicity and administrative charges along with the amount of first prize in respect of 24 lakh lottery tickets of one draw per scheme. Before lifting the tickets the partnership firm issued fourteen cheques in favour of the Director of Haryana State Lotteries as per the following details:- S. No. Cheque No. Date Amount 1. 284134 18.08.1992 Rs.3,19,066/- 2. 284135 18.08.1992 Rs.3,78,080/- 3. 284136 18.08.1992 Rs.3,78,080/-4. 284137 18.08.1992 Rs.3,78,080/- 5. 284138 18.08.1992 Rs.3,78,080/-6. 284139 18.08.1992 Rs.3,78,080/- 7. 284140 18.08.1992 Rs.3,78,080/-8. 284141 18.08.1992 Rs.3,78,080/- 9. 284142 18.08.1992 Rs.3,78,080/- 10. 284143 18.08.1992 Rs.3,78,080/- 11. 284144 18.08.1992 Rs.3,78,080/-12. 284145 18.08.1992 Rs.3,78,080/- 13. 284146 18.08.1992 Rs.3,78,080/-14. 284147 18.08.1992 Rs.3,78,080/- Total amount = Rs.52,34,106/-

3. These cheques were presented by the respondent to the Reserve Bank of India, New Delhi, in three lots on August 19, 1992, August 24, 1992 and August 25, 1992 for securing the credit of the amounts mentioned therein into the accounts of the Haryana Government. However, the cheques were returned by the concerned bank, i.e., Dena Bank, New Delhi, with the remarks “funds insufficient and not arranged for”. The five cheques presented on August 19, 1992 as per the following details were returned by separate memos of the bank dated August 20, 1992:- S. No. Cheque No. Date Amount 1. 284134 18.08.1992 Rs.3,19,066/- 2. 284135 18.08.1992 Rs.3,78,080/- 3. 284136 18.08.1992 Rs.3,78,080/-4. 284137 18.08.1992 Rs.3,78,080/- 5. 284138 18.08.1992 Rs.3,78,080/-4. By a notice dated August 25, 1992, the Sales Officer of the Haryana State Lotteries notified M/s. Deep Mayank and Associates of the factum of dishonour of the above said cheques. The firm was also required to deposit a sum of Rs.18,31,386/-with the Haryana State Lotteries. Besides, the firm was asked to ensure that the remaining cheques were honoured which had been deposited for clearance and collection on August 24, 1992 and August 25, 1992. Despite the above notice, the remaining cheques were also dishonoured and returned by the Dena Bank, New Delhi, with the remarks “funds insufficient and not arranged for” by its memos dated August 26, 1992 and August 29, 1992. Under memo dated August 26, 1992 , the following four cheques for a total value of Rs.15,12,320/- were returned:- S. No. Cheque No. Dat