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2024 MarsdenLR 652

HIGH COURT MALAYA ALOR SETAR
LEE BAK CHUI & ORS – Appellant
Versus
KERAJAAN NEGERI KEDAH DARUL AMAN & ORS AND OTHER CASES – Respondent
[Judicial Review Application Nos: KA-25-1-02/2023 KA-25-3-03/2023 KA-25-4-03/2023 KA-25-5-03/2023 KA-25-11-04/2023 & KA-25-16-05/2023]



Petitioner Advocates:Brian Chia Wee Ye,Chang Jin Yee,Eolanda Yeo,Nurellyana ,Respondent Advocate: Dato' Nik Azhan Hakim Nik Mahmood,Norhayati Ibrahim,Nurul Liyana Mohammad Nasir

The First Respondent's decision to cease the renewal of pool betting licenses was illegal and unconstitutional, violating the Federal Constitution's provisions regarding gambling jurisdiction.

Headnote:(A) Federal Constitution – Articles 8, 74, 80, and Item 4(l) of the Ninth Schedule – Judicial review of administrative decisions – The First Respondent's decision to cease the renewal of premises licenses for pool betting in Kedah was found to be illegal and irrational, as it conflicted with the Federal Constitution and failed to consider relevant legal principles. The court emphasized that pool betting falls under the Federal List, and local authorities cannot ban it under the State List. (Paras 4, 39, 47, 88)

(B) Judicial Review – Grounds for review – The court recognized the grounds of illegality, irrationality, and procedural impropriety as valid bases for judicial review, affirming that the First Respondent's actions were ultra vires and lacked rational justification. (Paras 17, 48, 62)

Facts of the case: The Applicants, pool betting agents, challenged the First Respondent's decision to not renew their business licenses, claiming it was illegal and irrational, infringing their rights under the Federal Constitution. (Paras 2, 4, 14)

Findings of Court: The court found the First Respondent's decision to be inconsistent with the Federal Constitution, thus granting the application for judicial review. (Paras 88, 96)

Issues: The main issues included whether the First Respondent acted within its authority and whether the decision was rational and lawful. (Paras 4, 62)

Ratio Decidendi: The court ruled that the First Respondent's decision was ultra vires the Federal Constitution, emphasizing the need for harmonious construction between State and Federal laws regarding gambling. (Paras 39, 47)

Result: The application for judicial review was granted, declaring the First Respondent's decision illegal and unconstitutional. (Paras 96, 97)

JUDGMENT

Mahazan Mat Taib J:

A. Introduction

[1] Under the Order of this Court dated 6 July 2023, these six (6) applications for judicial review ("suits") were heard together before this Court. Leave to commence judicial review was later allowed by this Court on 17 October 2023.

[2] The suits relate to:

(a) the decision of the First and Second Respondent to not renew and/or issue business premises licence to the Applicants who run pool betting businesses in Kedah; and

(b) the act of the Third and Fourth Respondents who upon the First and Second Respondent's direction, refused to renew and/or issue business premises licenses to the Applicants who run pool betting businesses in Kedah.

[3] The prayers the Applicants seek in these six (6) suits are as follows:

(a) A declaration that the First Respondent had acted illegally and/or irrationally in:

(i) Deciding pursuant to the EXCO's decision on 8 December 2021 ("First Respondent's Decision") to cease the renewal of premises licenses for pool betting in the State of Kedah effective from 1 January 2023; and/or

(ii) Causing the Municipal Councils to issue the notice and/or letters ("Municipal Letters") to inform the Applicants that their respective premises licenses for pool betting will cease to be renewed effective from 1 January 2023.

(b) A declaration that the First Respondent's Decision is ultra vires to the Federal Constitution and/or unconstitutional as it is inconsistent with and in breach of, inter alia, arts 8, 73, 74, 75, Eighth Schedule and Item 4(l) and List I of the Ninth Schedule and are therefore null and void;

(c) An order for certiorari to move this Honourable Court to quash the First Respondent's decision;

(d) An order for mandamus directing the First Respondent to forthwith direct all of the local authorities in the state of Kedah to renew all applications for gambling premises licenses for the year 2023 and onwards;

(e) An order for damages for losses suffered by the Applicants to be assessed by the Deputy Registrar/Senior Assistant Registrar and thereafter to be paid by the First Respondent to the Applicants; and/or

(f) Any other orders or reliefs as deemed necessary and/or just and/or appropriate to be given by this Honourable Court.

[4] Upon hearing the application, this Court has decided that judicial review ought to be granted on the grounds of illegality and irrationality, for the following reasons:

(a) On the facts and circumstances of the present case, the Court may interfere on the grounds of illegality and irrationality if the First Respondent's Decision is inconsistent with the Federal Constitution and in any manner irrational;

(b) The First Respondent's Decision to cease the renewal of premise licence for gambling is inconsistent with art 80 reading together with art 74 and Item 4(l) of the Federal List of the Federal Constitution.

The matter in issue had been extended to the matter of local authority banning betting and lotteries under the subject matter of premise licence for gambling. This would then cause apparent conflict or overlap between the entry of Item 4 of the State List and the entry of Item 4(l) of the Federal List, where the Court should attempt to reconcile them by adopting a harmonious construction.

Undertaking the exercise of harmonious construction, it may only allow the matter of local authority in relation to the premise licence for gambling, but not to the extent of banning betting and lotteries. Otherwise, it would be including matter to override or render meaningless the entry in Item 4(l) of the Federal List.

As a result, the matter of local authority to ban betting and lotteries under the subject matter of premise licence for gambling has no rational connection to Item 4 of the State List, instead, it has the effect of overriding and rendering meaningless the entry of betting and lotteries in Item 4(l) of the Federal List.

(c) The Court is dutybound to interfere as the First Respondent's Decision is inconsistent with the Federal Constitution, where


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