JUDGMENT B.N. Sapru, J. - In writ petitions Nos. 6336 and 6338 of 1981, the petitioner No. 1 is a partnership firm and the petitioner No. 2 is a partner thereof. 2. The petitioners, in Writ Petition No. 6336 of 1981, carry on the business of purchase and sale of electrical goods including refrigerators. The petitioners claim that in order to promote their sale of refrigerators and in order to encourage the buyers to make purchases, it has started the sale of promotional advance instalment scheme on certain terms and conditions. Its apprehension is that since the Prize Chits and Money Circulation Schemes Banning) Act. 1978 thereinafter to be referred to as the Act has come into force with effect from 13-2-1978 and the Act has put a ban on prise chits and money circulation schemes the authorities are likely to prosecute ,the petitioners if they continue with their scheme. They claimed that they had certain correspondences with the authorities but the authorities are not agreed with the petitioners that their scheme is not covered by the Act. In these circumstances, the petitioners have sought relief from this Court under Article 226 of the Constitution of India and prayed that a suitable writ, order or direction in the nature of mandamus be issued commanding the respondents not be enforce the provisions of the Act and the Rules framed under the Act against the petitioners. 3. The petitioners' case is that the firm sells the aforesaid articles on the basis of total cash payment or on credit in full or part or on payment in instalments and in order to promote its sale and to encourage the buyers to make purchases in instalments, the firm started a sale promotional advance instalment scheme on certain terms and conditions. The aforesaid scheme was called a benefit scheme and provided for certain benefits as incentives to persons who want to buy the said articles on monthly instalments and in order to ensure prompt and regular payment of their monthly instalments. The benefit scheme provides, inter alia, that a person who joins the scheme shall pay the initial instalment and continue to pay the further monthly instalments before the specified date. In order to offer incentive to the customers, there is a provision for a lucky draw every month. The benefit scheme provides, inter alia, that a person who joins the scheme shall pay the initial instalment and continue to pay the further monthly instalments before the specified date. In order to offer incentive to the customers, there is a provision for a lucky draw every month. A person who is a winner in any lucky draw, will not be required to pay any further instalment. Those who are not 'winners of monthly lucky draws will get the articles after the payment of last instalment but if any one wants the article at any time during the continuance of the scheme, he can get it by paying the balance instalments in full and still he will be entitled to participate in the monthly lucky draws. In case such a person is a winner in any monthly lucky draw an amount equal to subsequent instalments shall be refunded to him and he can purchase any article available with the firm for a price equivalent to the said amount. This scheme is described by the petitioners as `Instalment Sale Promotion Scheme.' 4. The petitioners' assertion is that the scheme is not a scheme of prise chits. It is said that the customers do not receive the article as a consideration for a promise to pay the money on any event or contingency or i Sic I applicable to persons who want to purchase the article on instalments. 5. A copy of the scheme has been filed as Annexure 1 to the writ petition. The scheme. inter alia, provides, in clause 13, that the membership fee or any subscription to the scheme shall not be refunded to the subscriber. It also provides that if any person who has paid two instalments, wants to leave the scheme, he may do so subject to the condition that the firm will forfeit Rs. 200/- and return the balance money to the subscriber provided he buys any goods available with the Company with that amount. The scheme also provides that the price of the refrigerator has been kept keeping in view the present price of the refrigerators including the excise and sales tax, and if there is any change in it, the subscriber will have to pay for it. 6. The scheme also provides that the price of the refrigerator has been kept keeping in view the present price of the refrigerators including the excise and sales tax, and if there is any change in it, the subscriber will have to pay for it. 6. "Prize Chit" has been defined in section 2(e) of the Act as follows :- "Prize Chit" includes any transaction or arrangement by whatever name called under which a person collects whether as a promotor, foreman, agent, or in any other capacity, monies in one lump sum or in instalments by way of contributions of subscriptions or by sale of units, certificates or other instruments or in any other manner or as membership fees or admission fees or service charges to or in respect of any savings, mutual benefit, thrift, or any other scheme or arrangement by whatever name called, and utilises the monies so collected or any part thereof or the income accruing from investment or other use of such monies for all or any of the following purposes, namely : (i) giving or awarding periodically or otherwise to a specified number of subscribers as determined by lot, draw or in any other manner, prizes or gifts in cash or in kind, whether or not the recipient of the prise or gift is under a liability to make any further payment in respect of such scheme or arrangement; (ii) refunding to the subscribers or such of them as have not won any prise or gift, the whole or part of the subscriptions. contributions or other monies collected, with or without any bonus, premium, interest or other advantage by whatever name called, on the termination of the scheme or arrangement or on or after the expiry of the period stipulated therein, But does not include a conventional chit." It is submitted that in view of the provisions of S. 5 of the Sale of Goods Act, there is only a contract of sale between the petitioners and the subscriber. It is further stated that the essence of a contract for sale is the transfer of title in goods or a price paid or promised to be paid and the transferee in such a case is liable to the transferor as a debtor for a price to be paid. It is further stated that the essence of a contract for sale is the transfer of title in goods or a price paid or promised to be paid and the transferee in such a case is liable to the transferor as a debtor for a price to be paid. It is contended that the sale is complete and ownership of the goods would pass to the buyer in accordance with the terms of the contract and delivery of goods may be made at a future date to be determined by the terms of the contract. 7. The instalment scheme was considered a 'prize chit' in M/s. Northern India Refrigerators Company v. State of U.P., 1984 All LJ 441, There a scheme provided for a lucky draw in each month. The winners of the Lucky draw were to get the articles immediately thereafter and were not required to pay remaining instalments. The remaining members who have not been declared winners would get their articles only after paying the last instalments. It was held that even if the scheme is treated as a sale promotion scheme, it did not amount to a contract of sale within the meaning of S. 5 of the Sale of Goods Act but was a mere agreement to sell. It was further held that the intention appears to be that the title in goods passes to the member of the scheme only when the last instalment is paid. Since the passing of the title of goods is to take at a future date subject to certain conditions, the scheme would come within the definition of an agreement to sell and not a contract of sale. 8. The Bench went on to hold that the money so deposited by the members with the promoters of the scheme by way of contributions or subscriptions is the money which the promoters are required to hold in trust for the members till the payment of the last instalment when the agreement to sell matures into a completed sale. The Bench also held that if the promoters are trustees of the money so deposited and that money is utilised in drawing lots, it is the money of the members which is being utilised. That being the position, the scheme comes within the definition of the `Prize Chit' as defined in S. 2(e) of the Act. 9. The Bench also held that if the promoters are trustees of the money so deposited and that money is utilised in drawing lots, it is the money of the members which is being utilised. That being the position, the scheme comes within the definition of the `Prize Chit' as defined in S. 2(e) of the Act. 9. A case relied upon by the petitioners is M/s. Secured Investment Company. Lucknow v. Registrar, Firms, Societies and Chits, Lucknow, AIR 1984 All 28 , The scheme in that case was not considered to be one of prise chit. The facts of that case are entirely different and have no relevance for determination of the present case. 10. The definition of the `Prize Chit' has been quoted above. A prise chit is defined as a transaction or arrangement under which a person collects money in a lump sum or in instalments by way of contribution of subscriptions or any other scheme or arrangement by whatever name called, and utilises the money so collected or any part thereof or the income accruing from investment or other use of such money for all or any of the purposes specified in S. 2(e) of the Act which includes giving or awarding periodically or otherwise to a specified number of subscribers, as determined by lot, draw or in any other manner, prizes or gifts in cash or in kind, whether or not the recipient of the prise or gift is under a liability to make any further payment in respect of such scheme or arrangement. 11. It will be immediately seen that a drawer of a lucky draw in the petitioners' scheme would have been under no liability to make further payment of instalment to get a refrigerator. There is, thus, a gift in kind to the drawer of a Lucky number and consequently there is a prise chit. 12. The argument of the learned counsel for the petitioners is that there is a contract of sale of refrigerator, is true in the sense that a subscriber who draws a lucky number, gets the refrigerator on the payment of a specified number of instalments. 12. The argument of the learned counsel for the petitioners is that there is a contract of sale of refrigerator, is true in the sense that a subscriber who draws a lucky number, gets the refrigerator on the payment of a specified number of instalments. The contract then becomes a sale but the petitioners get the contribution and the petitioners scheme will fall within the definition of `Prize Chits' in S. 2(e) of the Act as they collect money in any other manner' within the meaning of S. 2(e) of the Act. 13. It is true that a sale by instalment is not prohibited by the Act but the petitioners' scheme is not a scheme providing for only a contract of sale in instalment. It has an element of 'prize chits' and an element of chance in it. The chance is that if a subscriber dawn lucky number, he gets the goods at a reduced price. The intention of the Act is to prohibit such a scheme and the petitioners' scheme squarely comes within the prohibition of the Act. 14. In the result, we are satisfied that there are no merits in Writ Petitions Nos. 6336 and 6338 of 1981. 15. Now taking up the Writ Petition No. 10067 of 1980, the questions of law are identical with the questions raised in Writ Petitions Nos. 6336 and 6338 of 1981 and this petition can also be conveniently disposed of along with the aforesaid two writ petitions. 16. The factual difference is that there are more varieties of goods offered and the schemes which run for 16 months, have different rates of subscription. The other difference is that whenever there is a lucky draw, the subscribers whose numbers are immediately preceding and succeeding, are given a remission of one instalment. In other words, they will get the goods on payment of 15 instalments only instead of 16. Lastly, if the subscribers have to pay all the 16 instalments and they did not draw the lucky number, they will get a cash prise of Rs. 50/- by drawing the lucky number. 17. We do not find that any of these features establish that the scheme is not a `prize chits' which has been banned under the Act. This petition also cannot succeed. 18. In the result, the writ petitions are dismissed with costs. 19. 50/- by drawing the lucky number. 17. We do not find that any of these features establish that the scheme is not a `prize chits' which has been banned under the Act. This petition also cannot succeed. 18. In the result, the writ petitions are dismissed with costs. 19. We are informed at the Bar that the last scheme of the petitioners in Writ Petition No. 6336 of 1981 will come to an end in August, 1986 and the last scheme of the petitioners in Writ Petition No. 6338 of 1981 will come to an end in April, 1986. If the petitioners are stopped from continuing that scheme, the subscribers to the scheme would suffer considerable financial loss. In the circumstances, we direct that the respondents will not interfere with the petitioners' continuing the scheme which ends in August 1986 (in Writ Petition No. 6336 of 1981) and in April 1986 (in Writ Petition No. 6338 of 1981). They will, however, be not entitled to start any other similar schemes.