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A.K. Mathur, D Misra C.J.
Dinesh Gurjar
vs
Union Of India (Uoi) And Ors.
DECIDED ON : 5 May, 1999
LOTTERY - INTERNATIONAL AGREEMENT - IMPLEMENTATION - STATE LAW - CONFLICT - SALE OF LOTTERY TICKETS - PROHIBITION BY STATE - VALIDITY - LOTTERIES (REGULATION) ACT, 1998 - RELEVANCE.
Fact of the Case:
The appellant, a distributor of lotteries of the Royal Government of Bhutan, challenged the validity of the Madhya Pradesh Lotteries Pratibandh Act, 1993, which prohibited the sale of lottery tickets in the state. The appellant argued that the Act violated the international trade agreement between India and Bhutan, which allowed for the sale of Bhutan lottery tickets in India.
Finding of the Court:
The court held that the Act was valid and that the state had the power to prohibit the sale of lottery tickets, even if it conflicted with an international agreement. The court reasoned that the agreement was subject to the relevant laws of both India and Bhutan, and that the Act was a valid exercise of the state's power to regulate gambling.
Issues: 1. Whether the Madhya Pradesh Lotteries Pratibandh Act, 1993, violated the international trade agreement between India and Bhutan, which allowed for the sale of Bhutan lottery tickets in India. 2. Whether the state had the power to prohibit the sale of lottery tickets, even if it conflicted with an international agreement.
Ratio Decidendi: 1. The court held that the Act did not violate the international trade agreement because the agreement was subject to the relevant laws of both India and Bhutan. The court found that the Act was a valid exercise of the state's power to regulate gambling. 2. The court held that the state had the power to prohibit the sale of lottery tickets, even if it conflicted with an international agreement. The court reasoned that the state's power to regulate gambling was a valid exercise of its police power.
Final Decision: The court dismissed the appellant's challenge to the Act.
A.K. Mathur, C.J.
1. This is a Letters Patent Appeal directed against judgment dated 22-1-1999 passed by the learned single Judge in W. P. No. 2495 of 1998, whereby the petition filed by the appellant has been dismissed.
2. In order to dispose of this appeal, it is relevant to mention a few facts of the case. The appellant/petitioner filed writ petition under Article 226 of the Constitution of India and prayed for a writ of mandamus restraining the respondents 2 and 3 in creating hindrance in sale of lottery tickets of the Royal Government of Bhutan in the State of Madhya Pradesh. The petitioner/appellant is the Manager of M/s Surya Enterprises, which is the distributors of lotteries of Royal Government of Bhutan. It is alleged that an agreement was entered into between the Government of India and the Government of Bhutan on 29-2-1995 on Trade and Commerce between the Royal Government of Bhutan and the Government of Republic of India. Article-I of the agreement contemplates free trade and commerce between the territories of the Kingdom of Bhutan and the Republic of India. Protocol to the agreement on Trade and Commerce further stated that for the purposes of the agreement, the term 'free Trade and Commerce' in Article-I shall be understood to include within its scope sale of Bhutan lottery tickets in India and the sale of Indian Government or State Lottery tickets in Bhutan subject to the relevant laws which may be in force in the territory of Kingdom of Bhutan and India, as the case may be.
3. In pursuance of the agreement between the two nations, a protocol agreement in trade and commerce between the Government of the Kingdom of Bhutan and the Government of the Republic of India was entered into with reference to Article-I of the Agreement, which, reads as under :
"For the purpose of this Agreement, the term 'free trade and commerce' in Article I shall be understood to include within its scope sale of Bhutan lottery tickets in India and the sale of Indian Government of State lottery tickets in Bhutan, subject to the relevant laws which may be in force in the territory of the Kingdom of Bhutan and India, as the case may be."
The agreement came into force with effect from 2nd March, 1995 and it was for a period of ten years. The State of Madhya Pradesh prevented the petitioner/appellant to sell lottery tickets of the Royal Government of Bhutan because of the M. P. Lottery Pratibandh Act, 1993. The petitioner/appellant therefore approached this Court by filing present Writ Petition No. 2495/98. The contention of the petitioner/appellant was that since it is an international trade agreement between the two nations, therefore, the State Government cannot prevent the sale of Royal Government of Bhutan lottery tickets. The learned single Judge after referring to Entry 40 of List I of the Seventh Schedule of the Constitution of India, which relates to lotteries organised by the Government of India or the Government of a State, and Entry 34 List II of the Seventh Schedule of the Constitution relating to State which speaks of betting and gambling, came to the conclusion that by virtue of the powers of the State, the sale of lottery in the State of Madhya Pradesh can be prohibited by the State. Hence, the present appeal has been filed by the appellant/petitioner.
4. Before we advert to the various contentions raised by the learned counsel for the appellant/petitioner, it would be relevant to mention here relevant provisions. Entries 14 and 41 of List I of the Seventh Schedule of the Constitution of India read as under :
"14. Entering into treaties and agreements with foreign countries and implementing of treaties, agreements and conventions with foreign countries."
"41. Trade and commerce with foreign countries; import and export across customs frontiers; definition of customs frontiers."
Entry 34 of List II of Seventh Schedule of the Constitution reads as under :
"34. Betting and gambling."
State of Madhya Pradesh in pursuance of Entry 34
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