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Issues Involved:
1. Validity of the Prize Competitions Act, 1955, and its provisions under Articles 19(1)(g) and 19(6) of the Constitution. 2. Definition and scope of "prize competition" under Section 2(d) of the Act. 3. Reasonableness and enforceability of Sections 4 and 5 of the Act and Rules 11 and 12. 4. Severability of valid and invalid provisions of the Act. Issue-wise Detailed Analysis: 1. Validity of the Prize Competitions Act, 1955, and its provisions under Articles 19(1)(g) and 19(6) of the Constitution: The petitioners argued that Sections 4 and 5 and Rules 11 and 12 of the Act unreasonably encroached on their fundamental right to carry on business under Article 19(1)(g) and could not be justified under Article 19(6). The respondent contended that "prize competition" as defined in Section 2(d) included only gambling activities, which are not protected under Article 19(1)(g). The Court held that gambling is not trade or business within the meaning of Article 19(1)(g) and thus, the petitioners could not seek protection under this article for gambling competitions. However, for competitions involving substantial skill, the Court would need to determine if Sections 4 and 5 and Rules 11 and 12 were reasonable restrictions in the public interest. 2. Definition and scope of "prize competition" under Section 2(d) of the Act: The petitioners contended that the definition of "prize competition" in Section 2(d) included both skill-based and chance-based competitions. The Court noted that the definition was broad and unqualified, potentially covering both types. However, considering the legislative intent, history, and purpose, the Court concluded that the Act aimed to regulate only gambling competitions. The legislative history indicated that the resolutions under Article 252(1) and the preamble focused on controlling gambling activities, not skill-based competitions. 3. Reasonableness and enforceability of Sections 4 and 5 of the Act and Rules 11 and 12: The Court examined whether Sections 4 and 5 and Rules 11 and 12 were reasonable restrictions under Article 19(6) for skill-based competitions. The respondent conceded that on the current record, these provisions could not be justified as reasonable and in the public interest for skill-based competitions. Therefore, the Court had to determine if the Act applied to skill-based competitions and, if so, whether the impugned provisions were severable. 4. Severability of valid and invalid provisions of the Act: The Court analyzed whether the invalidity of the provisions concerning skill-based competitions rendered the entire Act void. The principle of severability was considered, which depends on whether the valid parts are distinct and separable from the invalid parts. The Court referred to American jurisprudence and previous Indian cases, concluding that the Act's provisions could be severed. The impugned provisions were intended to regulate gambling competitions, which formed a distinct category from skill-based competitions. The Act could still operate effectively for gambling competitions without the invalid parts. Conclusion: The Court held that the impugned provisions (Sections 4 and 5 and Rules 11 and 12) were severable and could be enforced against gambling competitions. The petitions were dismissed with costs, and only one set of counsel's fee was awarded.
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