{"id":116918,"date":"2003-01-14T00:00:00","date_gmt":"2003-01-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/in-the-high-court-of-judicature-at-vs-unknown-on-14-january-2003"},"modified":"2016-06-04T01:02:27","modified_gmt":"2016-06-03T19:32:27","slug":"in-the-high-court-of-judicature-at-vs-unknown-on-14-january-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/in-the-high-court-of-judicature-at-vs-unknown-on-14-january-2003","title":{"rendered":"In The High Court Of Judicature At &#8230; vs Unknown on 14 January, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">In The High Court Of Judicature At &#8230; vs Unknown on 14 January, 2003<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n IN THE HIGH COURT OF JUDICATURE AT MADRAS\n\nDated: 14\/01\/2003\n\nCORAM\n\nTHE HONOURABLE THE CHIEF JUSTICE\nAnd\nMALAI SUBRAMANIAN, J\n\nW.A.M.P.No. 6057 OF 2002\nAND W.A.M.P.NOS. 6056, 6205, 5729, 5730, 5731 of 2002 in W.A.Nos. 3358,\n3627, 3446 of  2002 and W. P.M.P.Nos. 1728, 1729, 1739, 1740,  1741, 1742,\n1756, 1263, 1264, 1777 , 1950 of 2003, 64894, 64895,  63909, 63910, 63840,\n63841, 63831, 638 32, 64599, 64600, 63395, 63397, 67740, 67755 of\n2002 in W.P.Nos. 1390 , 1391, 1401, 1402, 1403, 1404, 1405, 1012, 1013, 1560\nof 2003, 44221 , 43469, 43417, 43409, 44041, 43026, 43028, 46599, 46614 of\n2002\n\n:ORDER\n<\/pre>\n<p>(Order of the Court was made by the Honourable the Chief Justice)<\/p>\n<p>These writ appeals and writ petitions arise out of the Lotteries  (Regulation)<br \/>\nAct, 1998, hereinafter referred to as the Lotteries Act.\n<\/p>\n<p>2.      The  first batch of cases filed before 8.1.2003 relate to the power of<br \/>\nthe State Government to monitor the sale of lottery tickets organised by other<br \/>\nStates.  The State  Government  had  framed  Rules  titled  Tamil  Nadu  State<br \/>\nLotteries  (Regulation)  Rules,  2002,  in exercise of the powers conferred by<br \/>\nsub-Sections (1) and (2) of Section 2 of the Lotteries Act.  The Lotteries Act<br \/>\nis a Central piece of  legislation  and  the  pre-8.1.2003  cases  impugn  the<br \/>\nState\u2019s  intervention  in the sale of tickets organised and conducted by other<br \/>\nStates through the agencies, by acting under Rule 20, contending that Rule  20<br \/>\nis arbitrary  and  ultra vires the Act.  The first of the orders was passed on<br \/>\n13.11.2002 to the effect that all  tickets  shall  be  processed  through  the<br \/>\ncentralised  person nominated in that regard and on the said person submitting<br \/>\nthe application with pre-paid challan evidencing  the  payment  of  compounded<br \/>\nsales  tax  and  there upon, directing the concerned Commercial Tax Officer to<br \/>\nissue a certificate enabling the said agent or the persons nominated by him to<br \/>\nsell the tickets with enumerated numbers.    Again  an  order  was  passed  on<br \/>\n17.12.2002  continuing  the above order to operate, by adding a rider that the<br \/>\nagent or agents shall not indulge in sale of single digit lotteries.\n<\/p>\n<p>3.      It is pertinent to note that the State of Tamil Nadu had been  selling<br \/>\nits lotteries.   There  was  no Act operating in the field of lotteries.  Each<br \/>\nState was organising and conducting its lotteries, either within the State  or<br \/>\nbeyond.   Lotteries  is  a  legislative filed provided in Item 40 of List 1 of<br \/>\nSeventh Schedule of Indian Constitution.  Any provision of law made  by  State<br \/>\nLegislature  relating to lotteries, which is repugnant to Lotteries Act, would<br \/>\nbe infractive of Article 254 (1) of the Constitution.   The  constitutionality<br \/>\nof  Rule 20 of the Lotteries Rule of 2002 framed by the State of Tamil Nadu is<br \/>\nto be tested on the  touchstone  of  the  above  constitutional  provision  in<br \/>\nArticle 2 54 (1) of the Constitution.  But meanwhile, the State Government has<br \/>\nissued impugned G.O.    Ms.    No.20  (Home  \u2013  Courts \u2013 II) Department, dated<br \/>\n8.1.2003 in exercise of the powers conferred by Section 5 of the Lotteries Act<br \/>\nprohibiting the sale of tickets within the territory  of  Tamil  Nadu  of  all<br \/>\nlotteries organised, conducted or promoted by every State, including the State<br \/>\nof Tamil  Nadu.    The  above  notification is challenged as being illegal and<br \/>\narbitrary.  But the  above  G.O.    is  apparently  conforming  to  the  legal<br \/>\nprinciples enunciated by  the  Supreme Court in V.R.  ENTERPRISES v.  STATE OF<br \/>\nU.P.  (1999) 9 S.C.C.  700).  Repelling the contention raised on behalf of the<br \/>\npetitioners therein that Lotteries Act is ultra vires  the  Constitution,  the<br \/>\nSupreme  Court  held that the Act is intra vires the Constitution and that the<br \/>\nState Government may organise, conduct or promote a  lottery  subject  to  the<br \/>\ncompliance of the conditions enumerated in Section 4 of the Act.  Interpreting<br \/>\nSection  5  of  the  Act,  the  Supreme Court held that a State is entitled to<br \/>\nprohibit the sale of tickets of a lottery organised, conducted or promoted  by<br \/>\nother States  provided that State does not run a lottery of its own.  As such,<br \/>\nwe prima facie hold that the State Government has got power to issue the above<br \/>\nGovernment Order.\n<\/p>\n<p>        4.      With regard to the argument focussing on the arbitrariness  in<br \/>\nthe exercise of the above delegated power under Section 5 of the Act, they can<br \/>\nonly be  considered  on  merits  in  the final hearing.  But pending the final<br \/>\nadjudication, we have to dispose of these  interlocutory  applications  basing<br \/>\nupon the prima facie case made out.\n<\/p>\n<p>        5.      Before  imposing  the  ban  by the impugned G.O., the State of<br \/>\nTamil Nadu was running its  lottery  and  consequently,  the  tickets  of  the<br \/>\nlotteries  organised  by  other States are also being sold in the territory of<br \/>\nTamil Nadu.  In the impugned G.O., no date is set for its commencement.   Then<br \/>\nthe ban  comes  into  effect from 9.1.2003.  Section 5 of the Act empowers the<br \/>\nState Government to  prohibit  the  sale  of  tickets  of  a  lottery,  either<br \/>\norganised by  it  or  other  States.    The State prohibition can operate only<br \/>\nprospectively from 9.1.2003 and the prohibition being on sale of tickets,  any<br \/>\nsale of  tickets  made upto 8th January 2003 cannot be nullified.  The sale of<br \/>\ntickets, which was permissible under law  upto  8th  January  2003,  conferred<br \/>\nvested   right  on  the  persons  dealing  with  the  same  who  had  obtained<br \/>\ncertificates from the concerned Commercial Tax Officer on the deposit  of  the<br \/>\nadvance  sales  tax,  as contemplated by Section 7-D of the Tamil Nadu General<br \/>\nSales Tax Act with a right to conduct the draws on the dates scheduled.  There<br \/>\nis no provision in the Act to impose a ban on the draw of the lottery  tickets<br \/>\nonce the tickets are allowed to be sold.\n<\/p>\n<p>        6.      In view of the same, the petitioners shall be entitled for the<br \/>\ndrawal  of  the  lottery  tickets  for  which  there is a certification by the<br \/>\nconcerned Commercial Tax Officer.  Only such certified  lottery  tickets  with<br \/>\nthe enumerated  numbers can be sold by the petitioners.  The sale of the above<br \/>\ncertified lottery tickets shall be  completed  within  one  week  from  today.<br \/>\nThereafter,  the authorities under the Rules framed by the Government of Tamil<br \/>\nNadu mentioned above shall  conduct  the  draws.    All  the  W.A.M.Ps.    and<br \/>\nW.P.M.Ps.  are thus disposed of.<\/p>\n<pre>\n\n(B.S.R, CJ) (M.S., J)\nbh\/\n14.01.2003\n\n\nInternet        :       Yes\n<\/pre>\n<p>\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff\u00ff <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court In The High Court Of Judicature At &#8230; vs Unknown on 14 January, 2003 IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated: 14\/01\/2003 CORAM THE HONOURABLE THE CHIEF JUSTICE And MALAI SUBRAMANIAN, J W.A.M.P.No. 6057 OF 2002 AND W.A.M.P.NOS. 6056, 6205, 5729, 5730, 5731 of 2002 in W.A.Nos. 3358, 3627, 3446 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-116918","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>In The High Court Of Judicature At ... vs Unknown on 14 January, 2003 - Free Judgements of Supreme Court &amp; 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