The requirement for prior leave under Article 4(4) of the Federal Constitution is mandatory for proceedings to declare state laws invalid, failure of which renders such actions void.

[1] This is an appeal by the appellants/defendants against the decision of the learned High Court Judge dismissing the appellants' application to strike out the whole of the respondents' Originating Summons (OS) dated 6 June 2011 under O 18 r 19(1)(d) of the Rules of the High 1980 (RHC), on the ground that the said application was an abuse of the process of the Court.

Factual Background

[2] On 26 February 2011 officers from the 2nd appellant, Majlis Perbandaran Kota Bharu, Bandaraya Islam, raided the bookshops of the 1st and 2nd respondents in Kota Bharu and seized "Big Sweep" sweepstake lottery tickets from each of the 1st and 2nd respondents' bookshops and later they were compounded for the offence of "trading without a MPKB-BRI Licence (Big Sweep)" under the Trade, Business and Industry (Municipal Council of Kota Bharu) Bye-laws 1989.

[3] The "Big Sweep" tickets affected by the said raid are sweepstakes made lawful and permitted under the Racing Club (Public Sweepstakes) Act 1965 (federal law). In carrying out the raid, the appellants relied on the authority of their general powers pursuant to s 9 and also s 102 of the Local Government Act 1976 to issue any orders and/or policies to prohibit and/or ban the sale of lotteries and sweepstakes in the State of Kelantan.

[4] Section 9 (1) of the Local Government Act 1976 states:

"(1) The State Authority may from time to time give the local authority directions of a general character, and not inconsistent with the provisions of this Act, on the policy to be followed in the exercise of the powers conferred and the duties imposed on the local authority by or under this Act in relation to matters which appear to the State Authority to affect the interests of the local authority area, and the local authority shall as soon as possible give effect to all such directions."

[5] Section 102 (i) of the same Act, provides:

"In addition to the powers of making by-laws expressly or impliedly conferred upon it by any other provisions of this Act every local authority may from time to time make, amend and revoke by-laws in respect of all such matters as are necessary or desirable for the maintenance of the health, safety and well-being of the inhabitants or for the good order and government of the local authority area and in particular in respect of all or any of the following purposes:

(i) to define the streets or areas within which shops, warehouses, factories or business premises may not be erected, or within which specified trades, businesses or callings may not be established or carried on."

[6] The respondents filed an OS against the appellants on 6 June 2011 and prayed for the following orders, namely:

(a) a declaration that the State of Kelantan, acting through the appellants or otherwise, may not enact, issue, pass or make any:

(i) laws or enactments to make illegal, ban or prohibit activities involving betting and lotteries, including sweepstakes;

(ii) orders or policies to make illegal, ban or prohibit activities involving betting and lotteries, including sweepstakes;

(b) a declaration that matters involving betting and lotteries, including sweepstakes fall within the exclusive jurisdiction of Parliament to the exclusion of the State Legislative Assembly of Kelantan;

(c) a declaration that the appellants have no jurisdiction or power under the Federal Constitution to enact, issue, pass or make any laws, bye-laws, regulations, o