A proceeding under Article 131 cannot be likened to a civil suit under CPC; it requires a liberal interpretation based on whether a legal right is at stake.

JUDGMENT :

1. By way of these proceedings, registered as Original Suit No. 1 of 2021, the State of Meghalaya seeks to invoke the original jurisdiction of this Court under Article 131 of the Constitution of India for a declaration that Sections 5, 6, 7, 8 and 9 of the Lotteries (Regulation) Act, 1998 [‘the Act of 1998’], and Rule 5 of the Lotteries (Regulation) Rules, 2010 [‘the Rules of 2010’], are ultra vires and unconstitutional, and for other reliefs.

1.1. The reliefs claimed in the plaint read as under: -

“The plaintiff, therefore, prays that this Hon’ble Court may be pleased to pass a judgment and decree granting following relief:

a) Declare and hold Section 5 of the Lotteries (Regulation) Act, 1998 (Act No. 17 of 1998) and the Rules framed thereunder as being ultra-vires to the Constitution of India and unconstitutional; and

b) Declare and hold Section 6 of the Lotteries (Regulation) Act, 1998 as being ultra-vires to the Constitution of India and unconstitutional as being violative of Article 14, to the extent it empowers the Central Government to pass orders prohibiting a lottery organized in contravention of provisions of Sections 5 of the Lotteries (Regulation) Act, 1998; and

c) Declare and hold Section 7, 8, 9 of the Lotteries Regulation Act, 1998 as being ultra-vires to the Constitution of India and unconstitutional as being violative of Article 14 to the extent they provide for penal consequences for violation of Section 5 of the Lotteries (Regulation) Act, 1998; and

d) Declare and hold Rule 5 of the Lotteries (Regulation) Rules 2010 as ultra-vires to the Constitution of India and unconstitutional as violative of Article 14; and

e) Grant permanent injunction, restraining the Defendant Union of India from issuing orders under Section 6 of the Lotteries (Regulation) Act, 1998 prohibiting sale of tickets of a lottery organized in contravention of provisions of Sections 5 of the Lotteries (Regulation) Act, 1998, in relation to the lotteries organized by the Plaintiff; and

f) Grant permanent injunction, restraining the Defendant Union of India from initiating or taking any penal action under Section 7, 8 and 9 of the Lotteries (Regulation) Act, 1998 against any person for violation of Section 5 and 6 of the Lotteries (Regulation) Act, 1998 to the extent it relates to the lotteries organized by the Plaintiff; and

g) Grant permanent injunction, restraining the Defendant Nos. 2 to 36 States and Union Territories from prohibiting sale of tickets of lottery organized by the Plaintiff State in their respective jurisdiction; and

h) Award costs against such Defendant who may contest the Plaintiff’s claim to relief; and/or

i) Pass such further or other orders as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.”

2. Section 5 of the Act of 1998 is to the effect that a State Government may prohibit the sale of tickets of a lottery organized, conducted or promoted by every other State within its territories. Section 6 thereof empowers the Central Government to prohibit a lottery organized, conducted or promoted in contravention of Section 4 or where tickets of such lottery are sold in contravention of Section 5, by an order published in the Official Gazette. Section 7 of the Act of 1998 deals with penalties, which may extend to rigorous imprisonment for 2 years or with fine or both. Section 8 states that offences under the Act of 1998 shall be cognizable and non-bailable. Section 9 of the Act of 1998 deals with offences by companies and identifies those within the management who would be deemed guilty of the offence and liable to be proceeded against and punished. The State of Meghalaya assails Sections 6, 7, 8 and 9 of the Act of 1998, insofar as they pertain to contraventions of Section 5 of the Act of 1998. Rule 5 of the Rules of 2010 details the procedure to prohibit sale of lottery tickets, in terms of the provisions of the Act of 1998.

3. In addition to the declaratory reliefs, the State of Meghalaya h