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2006 Supreme(Ker) 252

Judges : V.K.BALI,J.B.KOSHY
All Kerala Online Lottery Dealers Association - Appellant
Versus
State of Kerala, Represented by its Chief Secretary - Respondent
Case No : W.A.Nos.2011, 2012 & 2235 of 2005
Decided On : 05/23/2006
Advocates Appeared :
For the Appellants: Sudhir Chandra Agarwal (SR.), P. Sanjay, A. Parvathi Menon, Advocates. For the Respondents: Nageswara Rao (SR.), Rajan Joseph, Addl. Advocate General, P.I. Davis, I/B. Government Pleader.

Headnote:

Lotteries (Regulation) Act 1998 - Sections 4, 5 & 12 - Kerala Lotteries and On line Lotteries (Regulation) Rules 2003 - Rule 24 - Kerala Paper Lotteries (Regulation) Rules 2005 - Whether Ban of Online and Internet lotteries in the State is not illegal or unconstitutional - Held, Centre has delegated its power on legislation with regard to lotteries to States and there is specific delegation with regard to ban of lotteries of other States - When the State of Kerala may prohibit a particular kind of lottery from its own State and also other States, it can prohibit sale of such lottery from any other State as that would not be unsustainable in the eye of law, nor could it be against law as held by the Supreme Court.

Judgment :-

V.K. Bali, C.J.

The challenge posed by the appellants who were the petitioners in the original lis to notifications issued by the Government of Kerala dated 13.1.2005 and 22.4.2005 issued in exercise of the power under Section 5 of the Lotteries (Regulation) Act, 1998 (hereinafter referred to as “the Act 17 of 1998”) failed. Three Writ Petitions filed for the said purpose bearing Nos.14495, 16063 and 19582 of 2005 were dismissed by the learned Single Judge of this Court by order dated 27th July, 2005. The appellants in reiterating the challenge to the impugned notifications have thus called in question the impugned judgment recorded by the learned Single Judge in the present appeals which need to be disposed of by a common order.

2. By notification dated 13.01.2005 the Government of Kerala in exercise of the powers conferred by Section 5 of the Act 17 of 1998 prohibited the sale of all Computerized and Online lottery tickets marketed and operated through vending machines, terminals, electronic machines and tickets sold through Internet in Kerala with immediate effect and declared that Kerala shall be a free zone from Online and Internet lotteries. The notification dated 13th January, 2005, the subject matter of challenge reads as follows:

“In exercise of the powers conferred by Section 5 of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998), the Government of Kerala hereby prohibit the sale of all Computerized and Online lottery tickets marketed and operated through vending machines, terminals, electronic machines and tickets sold through Internet in Kerala with immediate effect and declare that Kerala shall be the free zone from Online and Internet lotteries.”

A perusal of the notification reproduced above would manifest that what was prohibited was sale of computerized and online lottery tickets and it is with regard to such type of lottery that Kerala was declared to be the free zone. In short, prohibition pertained to online and internet lotteries. In a matter of less than a fortnight, to be precise on 27th January, 2005, the Government of Kerala came up with yet another notification, whereby the sale of tickets of all lotteries organized, conducted or promoted by every other state government including lotteries organized, conducted or promoted by the Government of Kerala in the State of Kerala were prohibited. The State of Kerala was declared to be completely lottery free zone. The relevant part of the notification dated 27th January, 2005 which is not under challenge reads as follows:

“Now THEREFORE, in exercise of the powers conferred by Section 5 of the Lotteries (Regulation) Act 1998 (Central Act 17 of 1998) and all other powers enabling for it, the government of Kerala hereby prohibit the sale of tickets of all lotteries organized, conducted or promoted by every other state government including lotteries organized, conducted or promoted by the Government of Kerala in the State of Kerala with immediate effect and declare that the State of Kerala shall hereafter be a Lottery Free Zone”.

Almost on heels of notification dated 27th January, 2005 followed yet another notification dated 22nd April, 2005 by virtue of which the Government of Kerala lifted the prohibition partially and permitted the sale of paper lotteries organized, conducted or promoted by every State Government including the State of Kerala. Government, however, confirmed its stand with regard to prohibition of sale of computerized and online lottery tickets organized, conducted or promoted by every State Government, thus making the State of Kerala to be a lottery free zone, in so far as online, internet and computerized lotteries were concerned. This notification too is under challenge. The relevant part of the notification dated 22nd April, 2005 reads as follows:

“NOW, THEREFORE, in exercise of the powers conferred by Section 5 of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998) and in partial modification of the Notification











































































































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