R.B.I. vs PEERLESS GENL. FIN. & INVEST.CO.

The Supreme Court interpreted Section 2(e) of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, clarifying that the clauses defining 'Prize Chit' should be read disjunctively. The Court held that the Endowment Certificate Scheme of the Peerless Company does not attract the provisions of the Act, emphasizing the need for financial institutions to better serve poorer sections of society as mandated by Articles 38, 39, 41, and 43 of the Constitution of India. The judgment underscores the importance of equitable income distribution and the responsibilities of financial entities in this regard.