JUDGMENT

Kuldip Singh, J.-The Madras Race Club (the Club) is an Association registered as a company with limited liability under the Companies Act, 1956. The club was formed in the year 1896 by taking over the assets and liabilities of the erstwhile unincorporated club known as Madras Race Club. According tto its Memorandum and Articles of Association, the principal object of the club in the running of horse races. The club is one of the five "Turf Authorities of India", the other four being the Royal Calcutta Turf Club, the Royal Western India turf Club Limited, the Bangalore Turf Club Limited and the Hyderabad Race Club. Race meetings are held in the club s own race course at Madras and at Uthagamandalam (Ooty) for which bets are made inside the race course premises. While horse races are continuing in the rest of the country, the Tamil Nadu Legislature, as back as 1949, enacted law by which horse racing was brought within the definition of "gaming". The said law, however, was not enforced till 1975, when it was challenged by the club by way of a writ petition before the Madras High Court. The writ petition was dismissed by the High Court. These proceedings before us are sequel to