Y. K. Sabharwal, J.

( 1 ) THE challenge in this petition is to the constitutional validity of the decision of the respondent - Government of National Capital Territory of Delhi ( for short- delhi Government ) prohibiting draw of lotteries organised by Delhi Government. The Delhi Government with the approval of the Lieutenant Governor passed the order directing that Delhi Lotteries be closed down w. e. f. 3rd January, 1995. The impugned decision of the Delhi Government, it has been urged by the petitioners, is ultra vires the Constitution of India and also the provisions of the Government of National Capital Territory of Delhi Act 1991 ( for short the Act ). It has been claimed that the impugned action is without jurisdiction and void ab initio since neither the provisions of the Constitution nor of the Act vest any power with the Delhi Government or Lieutenant Governor to take the impugned decision. According to the petitioners the power to prohibit organising of lotteries in Delhi vests only in the President of India as Delhi is a Union Territory, which is administered by the President under Part-VIII of the Constitution.

( 2 ) ACCORDING to the respondents, power to close down Delhi Lotteries vests in Delhi Government by virtue of Article 298 of the Constitution. It has been urged that on insertion of Article 239-AA in the Constitution by 69th Amendment, the provisions of Article 298 have become applicable to Delhi and, therefore, the impugned decision is intra vires.

( 3 ) THERE is no serious dispute about facts which lie in a narrow compass.

( 4 ) IT appears that by a letter dated 17th April, 1969 addressed to Lieutenant Governor, Delhi on behalf of Government of India, Ministry of Home Affairs, the permission of the President of India was conveyed to the occasional running of lotteries by Delhi Development Authority, subject to the following conditions:

(I) Tickets of the lotteries will not be sold in another State without the express consent of the State Government concern.

(II) The net proceeds of lotteries will be spent only on such welfare schemes as have received the approval of Government of India.

( 5 ) IN view of the aforesaid, lotteries were being organised by Delhi Development Authority. However, the Chief Secretary by order dated 31st March, 1992 directed that pursuant to the decision of the Government of India, the Administrator, Union Territory, of Delhi is pleased to order the transfer of Delhi Lotteries from Delhi Development Authority to the Delhi Administration w. e. f. 1st April, 1992 on "as is where is basis" and that the Finance Secretary, Delhi Administration, Delhi shall function as Director, Delhi Lotteries and shall exercise all such powers as hitherto vested in the Finance Member, Delhi Development Authority. It was ordered that the existing staff of the Delhi Lotteries shall continue to perform the duties and responsibilities assigned to them till further orders and their service conditions shall be decided in due course. Later, as stated above, the Delhi Government decided to close down the lotteries w. e. f. 3rd January, 1995, which action is under challenge before us.

( 6 ) IT is necessary to examine the relevant provisions of the Constitution of India to appreciate the respective contentions particularly the contention about applicability of Article 298 after enforcement of 69th Constitutional Amendment. Article-1 (1) of the Constitution of India stipulates that India shall be a Union of States. The States and the Territories thereof shall be as specified in the First Schedule ( Article-1 (2) ). The Territory of India shall comprise: a) the Territories of the States; b) the Union Territories specified in the First Schedule; and c) such other Territories as may be acquired (Article- 1 (3) ). delhi is one of the Union Territories mentioned in the First Schedule to the Constitution of India. The Union Territory of Delhi had neither an Assembly nor power to legislate prior to the enforcement of 6

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