1967 (11) TMI 109 - SC - Indian Laws

Summary

Issues Involved:
1. Whether the premises of "Crescent Recreation Club" were being used as a common gambling house.
2. Whether the respondents were gambling at the time of the police raid.
3. Whether the game of Rummy constitutes a game of skill or chance.
4. Whether the club was making a profit or gain from the gaming activities.
5. Whether the presumption under Section 7 of the Hyderabad Gambling Act was successfully rebutted.

Detailed Analysis:

1. Common Gambling House:
The main issue was whether "Crescent Recreation Club" was being used as a common gambling house under the Hyderabad Gambling Act. The definition of a "common gambling house" includes any place where instruments of gaming are kept or used for the profit or gain of the person owning, occupying, or using the premises. The court found that there was no sufficient evidence to prove that the club was making a profit or gain from the gaming activities. The charges for playing cards, sitting fees, and late fees were considered usual for club management and did not constitute profit-making.

2. Gambling at the Time of Raid:
During the police raid, respondents were found playing Rummy for stakes, with money and counters on the table. The Circle Inspector, based on credible information, raided the premises and found evidence of gambling. However, the High Court accepted the reference from the Sessions Judge, who recommended quashing the conviction, as there was no conclusive proof that the club was a common gambling house.

3. Game of Skill or Chance:
The Sessions Judge referred to Section 14 of the Act, which exempts games of mere skill from the Act's provisions. The court noted that Rummy involves a significant amount of skill, such as memorizing the fall of cards and strategic holding and discarding. Therefore, Rummy cannot be classified as a game of pure chance but is preponderantly a game of skill.

4. Profit or Gain from Gaming Activities:
The court examined whether the club was making a profit from the gaming activities. The evidence presented, including account books, did not show any extravagant charges that would indicate profit-making. The charges for playing cards, sitting fees, and late fees were deemed reasonable and necessary for the club's management and maintenance. The court concluded that these charges did not transform the club into a common gambling house.

5. Presumption under Section 7:
Section 7 of the Hyderabad Gambling Act allows for a presumption that a place is a common gambling house if instruments of gambling are found during a search. However, the court found that this presumption was successfully rebutted by the evidence, which showed that the charges were usual for club management and not indicative of profit-making from gambling activities.

Conclusion:
The court concluded that the "Crescent Recreation Club" was not a common gambling house as defined under the Hyderabad Gambling Act. The game of Rummy was determined to be a game of skill, and the charges levied by the club were usual and necessary for its management. The presumption under Section 7 was successfully rebutted, and thus, the High Court's decision to quash the conviction was upheld. The appeal was dismissed.