( 1 ) ON a reference made by one of us (Puttaswamy, J.) these cases were posted before us for disposal.

( 2 ) AS the petitioners in these cases have challenged the validity of one and the same Act. we propose t dispose of them by a common order.

( 3 ) AS early as on 31-12-1932, the then maharaja of Mysore, who was the sovereign ruler of the then Princely State of Mysore, a model Princely State aided by a representative assembly and a legislative council, gave Ins assent to a fairly simple enactment called the mysore Betting Tax Act, 1932 (Mysore Act 9 of 1932) (hereinafter referred to as the 1932 Act) providing for the imposition of taxes on certain forms of betting in that State. Even alter the merger of that Princely State in the Indian union, the promulgation of the Indian constitution, the formation of the new State of mysore, now called as Karnataka, under the states Reorganisation Act, 1956, the 1932 Act has continued on the statute book of the new state with its operation in the area referred to in section 1 (2) of that Act.

( 4 ) IN 1952 the then Part-B State of Mysore enacted the Mysore Race Courses Licensing act, 1952 (Mysore Act 8 of 1952) (hereinafter referred to as the 1952 Act) providing for licensing, regulation, control and management of horse racing in licensed race courses and matters connected therewith in that State. As in the case of 1932 Act, this Act also has continued on the Statute Book of the new State cf Karnataka.

( 5 ) UNDER the 1952 Act, a public limited company called Bangalore Turf Club Limited, bangalore (hereinafter referred to as the BTC) incorporated under the Companies Act of 1956 holds a licence issued and renewed from time to time for running horse races in the race course area of Bangalore City. With the said licence in its favour, the BTC organises horse races in the city and also off-course betting in the race course area. The BTC operates what are called as totalisators and directly pays the taxes due to government under the 1932 Act on its totalisators collections. The BTC also licenses book makers' in the area allotted to them on payment of certain license fee by them to it. The book makers accept bets in cash or credit basis from their customers who are called as punters and directly pays the taxes due to Government under the 1932 Act.

( 6 ) PRIOR to 30-5-1980 the term 'turf commission agent' (hereinafter referred to as the agent) though included in the definition of the term 'licensed book maker' of the 1932 Act, was not expressly defined in either of the two acts and their activities in the State or any part thereof was not expressly prohibited. Evidently taking advantage of that lacuna in the two acts, the petitioners were carrying on their activity or business as they describe as 'agents' in different parts of the City under different trade names.

( 7 ) WE will briefly notice the modus operandi or the activities or the business operations of the petitioners.

( 8 ) ALL the petitioners have their regular shops or offices or activity centres in the City with phone connections and a regular establishment to heid the punters that are otherwise busy and cannot and do not attend the race course or purchase tickets inside the race course or outside window counters of the race course operated by the BTC. The punters visit their shops, pay the required amounts to purchase tickets or lay bets in the race course or at the counters of the race course in accordance with their instructions. To render such service to their punters, the petitioners charge commission or service charges. After such collection the petitioners purchase tickets from inside and outside the race course, collect the winning amounts, if any, on the winning tickets of the punters and pay those amounts to them after collecting a further commission at the agreed rate. When a punter visits the shop and pays the amount, the punter and the agent enter into a written agreement or contract in a printed form setting out the term

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