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1997 Supreme(Ker) 95
Judges : J.B.KOSHY
Commercial Corporation of India (P) Lid. - Appellant
Versus
State - Respondent
Case No : O.P. No. 917 of 1990 & Connected Cases
Decided On : 03/12/1997
Advocates Appeared :
M.R. Rajendran Nair & P.V. Asha For Petitioners Addl. Advocate General 1 Legy Abraham & Roy Thomas For Respondents
The central legal point established is that Kerala State cannot prohibit the sale of lotteries organized by other States, as per the parameters set by the Supreme Court. The distinction between instant and single-digit lotteries was also considered, and the requirement of permission for lotteries organized by foreign governments was emphasized.
Headnote:
Lottery - State's Power to Prohibit Sale - Indian Penal Code, S.294A - Constitution of India, Entry 40 List I, Entry 34 List II - Supreme Court's Parameters for State-Organized Lottery - Kerala State's Prohibition of Lottery Tickets - Goa, Nagaland, Mizoram, Manipur, Meghalaya - Instant Lottery - Single Digit Lottery
Fact of the Case:
The Government of Kerala banned the sale of lottery tickets not directly conducted or authorized by the State, citing punishment under S.294A of the Indian Penal Code. Various State lotteries were permitted for sale, while others were disallowed without clear reasons. Several writ petitions were filed challenging the prohibition of lottery tickets organized by other States.
Finding of the Court:
The Court found that Kerala State cannot prohibit the sale of lotteries organized by other States, as per the parameters set by the Supreme Court. It held that instant lotteries and other lotteries organized by State Governments cannot be prohibited by Kerala State. However, lotteries organized by foreign governments require permission for sale in Kerala.
Issues: The issues involved the power of Kerala State to prohibit the sale of lottery tickets organized by other States, the distinction between instant and single-digit lotteries, and the requirement of permission for lotteries organized by foreign governments.
Ratio Decidendi: The Court relied on the Indian Penal Code, Constitution of India, and Supreme Court's parameters for state-organized lotteries to determine the legality of Kerala State's prohibition of lottery tickets. It emphasized that lotteries organized by other States cannot be prohibited by Kerala State, except for those organized by foreign governments.
Final Decision: The Court disposed of the petitions, allowing the sale of lotteries organized by other States in Kerala, except for those organized by foreign governments. It directed the State Government to provide reasons for disallowing specific lotteries and allowed new lotteries to be sold only with prior permission.
Koshy, J.
Government of Kerala by Ext. P1 G.O.(Ms) No. 4/90/TD dated 6.1.1990, banned sale of all lottery tickets in the State of Kerala which are not directly conducted by the State or authorised by the State or by the Administration of a Union Territory or by the Government of India. According to the above notification, violation of the same shall entail punishment under S.294A of the Indian Penal Code. After the pronouncement of the order of the Supreme Court in State of Haryana v. Suman Enterprises & Ors. ((1994)4 SCC 217), Government issued G.O. (Ms)No.160/94/TD dated 12.12.1994.
It was very specifically mentioned that only State organised lottery tickets will be allowed for sale in Kerala. It was further stated that lottery tickets of the Government of Maharashtra, TamilNadu, West Bengal, Uttar Pradesh and Karnataka which satisfy the basic and essential concomitants of lottery organised by a State as laid down by the Supreme Court will be permitted for sale within the State of Kerala. With regard to the other lottery tickets, it was stated that such State should make an application to the Director of State Lotteries, Vikas Bhavan, Thiruvananthapuram so as to verify whether those lotteries conform to the norms specified in the interlocutory order of the Supreme Court. Later it can be seen that Circular dated 17.5.1995 Director of State Lotteries informed that apart from the above lotteries conducted by Maharashtra, TamilNadu, West Bengal, Uttar Pradesh and Karnataka, Government have given permission to seven weekly lotteries of the State of Nagaland, two monthly lotteries and 24 weekly lotteries of the State of Sikkim and 'Jai Mathrubhumi" lottery of the State of Goa Government. By G.O. (Ms) No. 50/95/TD dated 9.3.1995, Government have considered the application filed by Nagaland and Sikkim Governments. It was stated that Government will not allow single digit lotteries owing to various complaints as single digit lotteries are purely a form of gambling and betting. While disallowing the single digit lotteries the instant lotteries conducted by the State of Nagaland was also disallowed. But, no reasons are stated why instant lotteries are disallowed. Even though Jai Mathrubhumi lottery of the Goa Government was allowed by Government Order dated 23.3.1995 no permission was granted for Jai Mathrubhumi Bumber organised by the State of Goa. It may also be pointed out that the order of the Supreme Court reported in 1994(4) SCC 217 is interlocutory and final judgment is not yet so far pronounced.
2. S.294A of the Indian Penal Code provides as follows:
"294A. Keeping lottery office: Whoever keeps any office or place for the purpose of drawing any lottery not being a State lottery or a lottery authorised by the State Government, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine, or with both.
And whoever publishes any proposal to pay any sum, or to deliver any goods, or to do or forbear from doing anything for the benefit of any person on any event or contingency relates or applicable to the drawing of any ticket, lot, number or figure in any such lottery shall be punished with fine which may extend to one thousand rupees."
Therefore if the lottery organised or authorised by the State is sold, it will not be an offence under the Indian Penal Code unless such sales are prohibited by law.
3. Next question is whether sale of lottery tickets authorised or organised by other States or Union of India can be prohibited by the State Government. Entry 40, List I of Seventh Schedule to the Constitution of India reads as follows:
"Lotteries organised by the Government of India or the Government of a State".
Therefore, power to regulate to conduct of lotteries organised by the State Government comes in List I, that is, Union List, and State cannot prohibit a lottery which is organised by a State or Government of India. Entry 34 List II of Seventh Schedule to the Constitution o
