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2022 Supreme(Kar) 326

IN THE HIGH COURT OF KARNATAKA
Ritu Raj Awasthi, Dixit Krishna Shripad, JJ.
ALL INDIA GAMING FEDERATION, THANE – Appellant
Vs.
STATE OF KARNATAKA – Respondent
Writ Petition Nos. 18703, 18729, 18732, 18733, 18738, 18803, 18942, 19241, 19271, 19322, 19450, 22371 of 2021
Decided On : 14-02-2022

Advocates:
Advocate Appeared:
C. Aryama Sundaram, D.L.N. Rao, V. Srinivasa Raghavan, Mukul Rohtagi, Sajjan Poovayya, Abhishek Manu Singhvi, Lakshmy Iyengar, Gopal Jain, Pradeep Nayak, Anupama Hebbar, Sankeerth Vittal, Siddharth Aiyanna, Dheeraj Murthy, Rohini Musa, Vidushpat Singhania, P.K. Arjun, Shambhavi Sinha, Akhil Anand, Pratibhanu Khadra, T.S. Suresh, Akash B. Shetty, Shrishail Shivabasappa Navalgund, A.S. Vishwajith, Vikram Unni Rajagopal, Gautam Shreedhar Bharadwaj, H.M. Siddharth, Sahan Mukherjee, Ravi Sehgal, Abhishek Malhotra, Ricab Chand, Prabhuling K. Navadagi, Rohan Veeranna Tigadi.

Headnote:(A) Karnataka Police Act, 1963 - Amendment Act No. 28 of 2021 - Criminalization of online gaming - Challenged for legislative competence, violation of Articles 14, 19, and 21 of the Constitution - The Amendment Act was found to violate fundamental rights by equating games of chance with games of skill, thus imposing an unreasonable restriction on personal liberty and freedom of speech and expression. (Paras 4, 6, 7, 8, 9, 21, 22, 23)

(B) Legislative Competence - The court reaffirmed that the Amendment Act did not fall within the intended legislative powers under Entry 34 of the State List, noting judicial precedents distinguishing games of skill from games of chance. (Paras 30, 31, 32, 33)

(C) Fundamental Rights - The amendment unconstitutionally restricted the right to play games of skill, infringing upon rights protected under Articles 19(1)(a) and 19(1)(g), leading to excessive governmental control. (Paras 49, 50, 51)

(D) Manifest Arbitrariness - The broad definition of gaming adopted by the Amendment was deemed to lack clarity, making it manifestly arbitrary and thus unconstitutional under Article 14. (Paras 68, 69, 70)

Table of Content
1. identifies the petitioners and their association with online gaming. (Para 2 , 3)
2. outlines grounds of challenge against the amendment act. (Para 4)
3. summarizes respondents' objections. (Para 6)
4. details the impact of the amendment act on online gaming and freedoms. (Para 7 , 8)
5. explains the history and legislative competence regarding gaming laws. (Para 9)

JUDGMENT :

Dixit Krishna Shripad, J.

1. The tickling tone for this judgment can be set by what Lord Denning had humoured in Tote Investors Ltd. vs. Smoker (1968) 1 QB 509:

    "..The defendant has in the past occasionally had a wager on a horse-race. Today she has been taking part in another game of chance or skill - the game of litigation."

2. All these petitions by the companies and individuals involving substantially similar questions of law and facts seek to lay a challenge to the validity of the Karnataka Act No. 28 of 2021 (hereafter 'Amendment Act') whereby the KARNATAKA POLICE ACT , 1963 (hereafter 'Principal Act') has been amended; the cumulative effect of these amendments, according to them, is the criminalization of playing or facilitating online games. After service of notice, the respondents having entered appearance through the learned Advocate General have filed their common Statement of Objections and Addl. Statement of Objections resisting the challenge.

II. A BRIEF DESCRIPTION AS TO WHO THE PETITIONERS ARE:

3. Petitioners in W.P. No. 18703/2021 and W.P. No. 19322/2021 are the societies registered under the Societies Registration Act. Petitioners in W.P. No. 18729/2021, W.P. No. 18732/2021, W.P. No. 18733/2021, W.P. No. 18738/2021, W.P. No. 18803/2021, W.P. No. 18942/2021, W.P. No. 19241/2021 and W.P. No. 22371/2021 are the companies incorporated under the Companies Act. Petitioners in W.P. No. 19271/2021 and W.P. No. 19450/2021 are the individuals. Some of the petitioners in the petitions filed by the companies happen to be Directors. All the petitioners are associated with online gaming in one or the other way. These games are rummy, carom, chess, pool, bridge, cross-word, scrabble and fantasy sports such as cricket, etc.

III. GROUNDS OF CHALLENGE BRIEFLY STATED:

4. The challenge to the Amendment Act is structured inter alia on the following grounds:

    (i) Lack of legislative competence since the Amendment Act does not fit into Entry 34, List II, Schedule VII of the Constitution of India vide Chamarbaugwala-I AIR 1957 SC 628, Chamarbaugwala-II AIR 1957 SC 874, K. Satyanarayana vs. State of Andrha Pradesh AIR 1968 SC 825 and K.R. Lakshmanan vs. State Of Tamil Nadu (1996) 2 SCC 226.

    (ii) Violation of Article 21 since playing games and sports falls within the umbrella of 'right to life and liberty' that has been stretching precedent by precedent and violation of doctrine of privacy vide K.S. Puttaswamy vs. Union of Inida (2019) 1 SCC 1.

    (iii) Violation of fundamental right to freedom of speech and expression guaranteed under Article 19(1)(a) since playing games and sports of skill is a facet of speech and expression and that criminalizing apart from amounting to unreasonable restriction, is incompetent under Article 19(2).

    (iv) Violation of fundamental right to profession/business guaranteed under Article 19(1)(g) read with Article 301 i.e., incompetent and unreasonable restriction vide Chintaman Rao vs. State of Madhya Pradesh (1950) SCR 759, Mohd. Farooq vs. State of Madhya Pradesh (1969) 1 SCC 853, game of skill not being a res extra commercium (Chamarbaugwala-II, supra) and embargo being de hors Article 19(6).

    (v) Manifest arbitrariness Shayara Bano vs. Union of India (2017) 9 SCC 1 since the Amendment Act fails to recognize the blatant normative difference between a 'game of skill' and a 'game of chance', in gross derogation of Chamarbaugwala Jurisprudence of more than six decades.

    (vi) The impugned legislative measure is a result of exces

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