1984 (1) TMI 336 - SC - Indian Laws

Summary

Issues Involved:
1. Legality of the ban imposed by the Government of Maharashtra on the sale of lottery tickets of other States within Maharashtra.
2. Legislative competence concerning lotteries organised by the Government of India or a State.
3. Executive power of the State and Union Government in relation to lotteries.

Summary:

1. Legality of the Ban:
The petitioners, agents for the sale of lottery tickets from various States, challenged the ban imposed by the Government of Maharashtra on the sale of these tickets within Maharashtra. They sought a writ of Mandamus directing Maharashtra to refrain from interfering with the sale or distribution of such tickets. The ban was inferred from a press release dated September 24, 1969, and a communication dated August 24, 1981, from the Maharashtra Finance Department, which declared the sale of lottery tickets from other States as unlawful.

2. Legislative Competence:
The petitioners argued that u/s 246(1) and (3) of the Constitution, "Lotteries organised by the Government of India or the Government of a State" falls under the exclusive legislative competence of Parliament. Entry 40 of List I of the VIIth Schedule to the Constitution covers this subject, while Entry 34 of List II pertains to "Betting and gambling," which includes lotteries. The Maharashtra legislature acknowledged this in Sec. 32 of the Bombay Lotteries (Control and Tax) and Prize Competitions (Tax) Act, 1958, which exempts lotteries organised by the Central or State Government from its provisions.

3. Executive Power:
The Government of Maharashtra claimed the ban was justified by the entrustment of executive power by the President u/s 258(1) of the Constitution. However, the Court found that the entrustment was limited to lotteries organised by the Government of Maharashtra itself and did not extend to banning lotteries from other States. The Court noted that Article 298 of the Constitution allows States to carry on any trade or business, including lotteries, subject to Parliamentary legislation. The executive power of the Union, as per Article 73, is subject to the provisions of the Constitution, including Article 298.

The Court concluded that the Government of Maharashtra could not enforce a ban on the sale of lottery tickets from other States based on the entrustment of power u/s 258(1). The Court also dismissed the argument that the condition imposed by the President's permission could be enforced by another State, noting that only Parliament could legislate on this matter.

Conclusion:
The Court allowed the writ petitions and directed the State of Maharashtra to forbear from enforcing the ban on the sale or distribution of lottery tickets organised by other States. The appeal was allowed with no order as to costs.