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2025 Supreme(Bom) 724

HIGH COURT OF BOMBAY
G. S. KULKARNI, ADVAIT M. SETHNA
Dyuthbhumi Hotels And Resorts Pvt Ltd. Thr Its Director - Appellant
Versus
State of Maharashtra - Respondent
WP/7921/2024
Decided On : 26-02-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr. Anil Sakhare a/w. Mr. Manish Kelkar
For the Respondent: Ms. S.D. Vyas, Addl. G.P. a/w. Ms. Tejas Kapre, AGP

A law that is never brought into force cannot create legal rights, and the legislature's power to repeal such a law is constitutionally valid.

Headnote:

(A) Maharashtra Casinos (Control and Tax) Act, 1976 - Maharashtra Casinos (Control and Tax) (Repeal) Act, 2023 - Petition challenging the repeal of the Maharashtra Casinos Act, 1976 as ultra vires the Constitution - The Act was never brought into force and thus did not confer any legal rights to the petitioner. (Paras 1, 7, 8)

(B) Legislative Competence - The legislature has the prerogative to enact and repeal laws, and a law not brought into force cannot create legal rights. (Paras 8, 9)

(C) Grounds for declaring legislation ultra vires - A legislation can be declared ultra vires if it is beyond legislative competence, violates fundamental rights, or is manifestly arbitrary. (Para 10)

Facts of the case:
The petitioner, engaged in hospitality, sought to operate casinos under the Maharashtra Casinos Act, 1976, which was never enforced and was repealed by the Repeal Act, 2023.

Findings of Court:
The court found that the petitioner had no legal rights under the Maharashtra Casinos Act, 1976, as it was never brought into force, and thus the petition was misconceived.

Issues: The main issues were whether the petitioner had any rights under the Maharashtra Casinos Act, 1976, and whether the Repeal Act could be declared unconstitutional.

Ratio Decidendi: The court ruled that a law not brought into force cannot create legal rights, and the legislature's decision to repeal the Act was within its powers.

Result: Petition rejected.

ORDER :

G.S. Kulkarni, J.

1. The petitioner, formerly known as Mumbai Gambling Management Pvt. Ltd., has filed this petition under Article 226 of the Constitution of India praying for a relief that Maharashtra Casinos (Control and Tax) Act, 1976 (for short the “Maharashtra Casinos Act 1976”), which was never notified and brought into force, and which in fact stood repealed by the Maharashtra Casinos (Control and Tax) (Repeal) Act, 2023, be directed to be brought into force, by declaring that the said Repeal Act, 2023 is ultra vires the Constitution of India.

2. The relief as prayed for is too far-fetched for more than one reason. It is completely within the domain of Legislature to enact a particular law as also to repeal such law. About 49 years back, the State Legislature enacted the Maharashtra Casinos Act in the year 1976. Admittedly, the State as a matter of public policy never thought it appropriate to bring the said legislation into force.

3. The petitioner is engaged in hospitality business and is running hotels and resorts and was desirous to open and operate casinos in the State of Maharashtra. In this regard, the petitioner is stated to have made a proposal to the State authorities including the Maharashtra Tourism Development Corporation.

4. Mr. Sakhare, learned senior counsel for the petitioner has drawn our attention to an order dated 9 October, 2015 passed by this Court on Public Interest Litigation No. 19 of 2015 whereby the State Government was granted six months time to take an appropriate decision on the question whether the State Government intends to bring the provisions of Maharashtra Casinos Act, 1976 into force. The said order reads thus:

“1. By an order dated 4 September, 2015, we had directed the State Government to decide within a reasonable time the question whether it intends to bring the provisions of the Maharashtra Casinos (Control & Tax)act, 1976 (Maharashtra Act No. XXXI of 1976) into force.

2. We are informed that the decision has not been taken by the State Government so far. We give six months time to take an appropriate decision accordingly. The PIL is disposed of in the aforesaid terms. Liberty is granted to the petitioner to apply.”

5. Mr. Sakhare’s grievance is that no decision was taken by the State Government although the aforesaid order was passed by this Court. It is submitted that the State Government in fact took a decision, not to bring the Maharashtra Casinos Act, 1976 into force as seen from a departmental note dated 19 July, 2023, which was moved upto the highest office of the Chief Minister. A copy of such note is annexed at page 102 of the petition.

6. Mr. Sakhare submits that thereafter the State Government decided that the Maharashtra Casinos Act, 1976 be repealed. Accordingly, the State Legislature passed the Repeal Act, 2023. The petitioner being aggrieved by such action on the part of the respondents has filed the present petition praying for the following substantive reliefs:

“(a) That this Hon'ble Court may be pleased to issue Writ in the nature of Mandamus or such other appropriate writ, order or direction thereby holding and declaring that the Maharashtra Casinos (Control & Tax) (Repeal) Act, 2023 is ultra vires the Constitution of India;

(b) That this Hon'ble Court may be pleased to issue a Writ in the nature of Mandamus or such other appropriate writ, order or direction, thereby directing the Respondent to issue the notification as contemplated under Section 2 of the Maharashtra Casinos (Control and Tax) Act, 1976 and notify the date from which such Act would come into force;

(c) That this Hon'ble Court may be pleased to issue a Writ in the nature of Mandamus or such other appropriate writ, order or direction to the Respondent directing the Respondent to decide the applications made by the Petitioner for running casinos in hotels, floating hotels, cruises and independent resorts in accordance with the provisions of the Maharashtra Casinos (Control and Tax), 1976;”

7. Having he

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