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IN THE HIGH COURT OF GAUHATI
PRASANTA KUMAR DEKA, J.
Big Star G Services LLP - Petitioner
Versus
State of Arunachal Pradesh and Others - Respondent
WP(C) No. 98 of 2020
Decided on : 25-03-2021
Lottery - Conversion of Distributorship - Arunachal Pradesh State Lotteries Act, 2013 - 1.11.2013 - The court discussed the lottery business, request for proposal, selection of distributors, suspension of online lottery, committee reports, and the impugned decision to convert distributorship from online lottery to paper lottery. The legal provisions of the Arunachal Pradesh State Lotteries Act, 2013 were interpreted in the context of the impugned decision and its compliance with the contractual terms.
Fact of the Case:
The petitioner, involved in the lottery business, challenged the decision to convert distributorship from online lottery to paper lottery. The respondent No. 3, the current distributor, submitted a representation for conversion, and the impugned decision was taken by the Government of Arunachal Pradesh. The petitioner sought various reliefs through a writ petition.
Finding of the Court:
The court found that the petitioner lacked locus standi to challenge the impugned decision as they did not participate in the tender process and were not a signatory to the agreement. The court dismissed the writ petition as not maintainable.
Issues: The issues involved the locus standi of the petitioner to challenge the impugned decision and the compliance of the impugned decision with the contractual terms.
Ratio Decidendi: The court held that the petitioner, being a stranger to the agreement and not participating in the tender process, lacked the legal right to challenge the impugned decision. The decision was found to be within the stipulated terms of the contract and did not injure the legal interest of the petitioner.
Final Decision: The writ petition was dismissed as not maintainable, and the interim order was vacated. No costs were awarded.
JUDGMENT :
1. Heard Mr. I. Choudhury, learned senior counsel assisted by Mr. S. Biswakarma, the learned counsel for the petitioner. Also heard Mr. S. Dutta, the learned counsel for the respondent No. 3 and Mr. B.D. Goswami, the learned Additional Advocate General, State of Arunachal Pradesh assisted by Mr. Chandran, the learned Government counsel, Arunachal Pradesh.
2. The petitioner is involved in the lottery business having its infrastructure required for performing as a distributor of lottery tickets both conventional paper lottery and online lottery in any State of India. The respondent No. 1 through its Secretary, Department of State Lottery published ‘request for proposal’ (RFP) on 1.11.2013 for selection of distributors of conventional paper and online lottery. In the said RFP, it was provided that the interested bidders may submit bid separately for each set of draws either for paper lottery or for online lottery or both. The respondent No. 3 submitted its tender for two sets of online lottery and another party, Future Gaming and Hotel Services (P.) Ltd. along with other parties participated in the said RFP. The respondent No. 3 was selected for online lottery and in terms of the offer made by the Government of Arunachal Pradesh the respondent No. 3 accepted its appointment as distributor of online lottery. Out of 3 sets of lotteries, two online sets of lotteries were allotted to the respondent No. 3 as its distributor and one set of conventional paper lottery scheme was allotted to the said Future Gaming and Hotel Services (P.) Ltd.
3. In terms of the letter of appointment, two separate agreements were executed by and between the Secretary, Department of State Lottery, Government of Arunachal Pradesh and the respondent No. 3. It is alleged that on 8.8.2016 the operation of online lottery was suspended by the State respondents due to violation of the provision and Rules by the respondent No. 3. On 15.9.2016 a committee was constituted to examine allegations connected with lottery operation and the committee submitted its report on 8.11.2016 recording its finding and making various recommendations. It is further alleged that there was specific allegation of violation in the scheme of online lottery. The respondent No. 3 allegedly admitted to such violation and volunteered to compensate the Government. The respondent No. 3 was allowed to resume its operation of online lottery on stringent condition after the said findings by the committee on 8.11.2016.
4. The Government of Arunachal Pradesh constituted another committee on 27.8.2018 to examine various complaints and allegations in respect of the lottery operation. The committee submitted its report recording multiple violation in online lottery operation as per its report dated 28.11.2018. On the other hand, the respondent No. 3 being exposed for violation of the statutory provision on 29.8.2018 submitted a representation to the Chief Minister, Arunachal Pradesh requesting conversion of the distributorship from online lottery into paper lottery.
5. The petitioner having come to know that the respondent No. 3 virtually surrendered its distributorship of online lottery submitted a representation on 11.9.2018 for being appointed as distributor of online lottery @ Rs. 20,000 per draw which was much higher than the rate of Rs. 14,000 per draw of the respondent No. 3 with an alternative prayer to invite fresh tender.
6. The petitioner submitted another representation on 14.9.2018 showing calculations and the benefit for the Government of Arunachal Pradesh which revealed that the Government stand to gain by an additional revenue of Rs. 3,57,32,000. The said two representations were not considered.
7. On 12.9.2018 at the instance of the Chief Minister, the Government of Arunachal Pradesh took decision to convert the 16 draws of online lotteries into paper lotteries. The petitioner filed this writ petition and vide order dated 19.9.2018 this court was pleased to stay the impugned decisi
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