STATE OF MEGHALAYA Vs. UNION OF INDIA

JUDGEMENT

(1.) By way of these proceedings, registered as Original Suit No. 1 of 2021, the State of Meghalaya seeks to invoke the original jurisdiction of this Court under Article 131 of the Constitution of India for a declaration that Ss. 5, 6, 7, 8 and 9 of the Lotteries (Regulation) Act, 1998 ['the Act of 1998'], and Rule 5 of the Lotteries (Regulation) Rules, 2010 ['the Rules of 2010'], are ultra vires and unconstitutional, and for other reliefs.

(2.) Sec. 5 of the Act of 1998 is to the effect that a State Government may prohibit the sale of tickets of a lottery organized, conducted or promoted by every other State within its territories. Sec. 6 thereof empowers the Central Government to prohibit a lottery organized, conducted or promoted in contravention of Sec. 4 or where tickets of such lottery are sold in contravention of Sec. 5, by an order published in the Official Gazette. Sec. 7 of the Act of 1998 deals with penalties, which may extend to rigorous imprisonment for 2 years or with fine or both. Sec. 8 states that offences under the Act of 1998 shall be cognizable and non-bailable. Sec. 9 of the Act of 1998 deals with offences by companies and identifies those within the management who would be deemed guilty of the offence and liable to be proceeded against and punished. The State of Meghalaya assails Ss. 6, 7, 8 and 9 of the Act of 1998, insofar as they pertain to contraventions of Sec. 5 of the Act of 1998. Rule 5 of the Rules of 2010 details the procedure to prohibit sale of lottery tickets, in terms of the provisions of the Act of 1998.

(3.) In addition to the declaratory reliefs, the State of Meghalaya has also sought a perpetual injunction restraining the Union of India from issuing orders under Sec. 6 of the Act of 1998 in relation to the lotteries organized by it; a perpetual injunction restraining the Union of India from initiating or taking any penal action under Ss. 7, 8 and 9, for violation of Ss. 5 and 6 of the Act of 1998, in relation to the lotteries organized by it; and a perpetual injunction restraining the States and Union Territories, viz., defendant Nos. 2 to 36, from prohibiting the sale of lottery tickets organized by it in their respective jurisdictions. Lastly, the State of Meghalaya has also sought the suit costs against the contesting defendants.