AREGISTRAR OF FIRMS, SOCIETIES AND CHITS, UTIAR PRADESH vs SECURED INVESTMENT COMPANY, LUCKNOW AND ANOTHER.

The Supreme Court held that the investment scheme operated by the respondent firm constituted a 'prize chit' as defined under Section 2(e) of the Prize Chits and Money Circulation Scheme (Banking) Act, 1978, which prohibits participation in such schemes. The Court emphasized that the Act aims to protect individuals from exploitation by banning arrangements where participants risk losing their money for the chance of receiving prizes. The High Court's decision was overturned, and the Registrar's action was upheld, reinforcing the prohibition against prize chits.