Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1999 (7) TMI 713

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ery is in the nature of an agreement by way of wager which is void and cannot be enforced by civil suit due to prohibition contained in Section 30 of the Contract Act. The learned trial Judge has placed reliance on a decision of Division Bench of this Court in the case of Shekhar Chand Jain v. Ramnarayan Gend (F.A. No. 10 of 1975 decided on 3-2-1977 and shortnoted in 1977 (2) M.P. W.N. 118). The Division Bench in the said case upheld dismissal of a similar suit based on a lottery ticket by relying on a decision of Bombay High Court in the case of Sir Dorabji Jamsetji Tata Ltd. v. Edward F. Lance : (AIR 1917 Bom 138) : (1918) ILR Bom 676. Learned counsel Shri G.C. Bhatia, appearing for the plaintiff-appellant, submits that the lottery was .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rson who wins a lottery cannot sue for recovery of the prize money. Learned counsel for the appellant submits that the Division Bench in the case of Shekharchand (supra) relied on an old decision of the High Court of Bombay of the year 1917. It is submitted that now the lotteries are organised by the State and private parties with permission of the State under State and Central enactment and refusal to decree such suits for recovery of prize money on a lottery ticket was not justified in law. Reference is made to M.P. Lottery (Niyantran Tatha Kar) Adhiniyam, 1973. We have looked into the provisions of the above Adhiniyam of 1973 in which we find that the lottery has been defined in Sec. 2(a) thus: 'lottery' means a scheme fo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f chance with no skill involved in it. It is observed that the measures provided in the State and Central legislations are only to inculcate faith to the participants of the State Lotteries that it is being conducted fairly with no possibility of fraud, misappropriation or deceit and assure the hopeful recipients of high prizes that all is fair and safe. The Supreme Court, however, refused to recognise it as a trade or profession and observed: The lotteries authorised by the State also has a sanction in law. As we have said, a gambling may be taxed and may be authorised for a specified purpose, but it would not attain the status of trade like other trades or becomes res commerclum. The principle and purpose behind Section 30 of the C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erprises (1994 (4) SCC 217) (supra), adopted through Section 4 of the impugned Act, does it lose its original character of being pernicious. Even if it could be said to have diluted it, could it still be classified as commercium and equated with every other form of trade and commerce? Its effect on its citizens has been cause of concern which had drawn attention of the kings and his subject since ancient time, the Government and the Courts of various countries Including ours. From the above observations and the other discussion made by the learned Judges in the Supreme Court case of M/s. B.R. Enterprises (supra), it is clear that the nature of the agreement for payment of a prize won on a lottery ticket continues to be in the nature of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates