B R ENTERPRISES Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) Special leave granted in all the special leave petitions.

(2.) We are witnessing in this case exhibition of Federalism in true spirit. Contrary to the usual pouring in of citizen's writ petitions for vending their grievances against the States, here we are drawn to decide issues inter se between two distinct sets of States, one challenging and the other upholding certain provisions of The Lotteries (Regulation) Ordinance, 1997 (Ordinance No. XX of 1997) (hereinafter referred to as the "Ordinance No. 20") and now The Lotteries (Regulation) Act, 1998 (hereinafter referred to as the "1998 Act"). The Union Government, of course, has joined this issue with one such set of States for upholding its Act. The issue here is confined to the State lotteries under Entry 40, List 1 of the Seventh Schedule of the Constitution of India. As a consequence of the order passed by the State of U. P., banning State lotteries of other States by virtue of power entrusted under Sec. 5 of the impugned Ordinance Act, various affected States, challenged the provisions in different High Courts. In some of them interim orders were passed and in others, the High Courts finally disposed of the petitions. The Gujarat High Court upheld the validity, while the Guwahati High Court struck down some of its provisions as ultra vires. Against all the aforesaid orders and judgments, the aforesaid appeals have been filed. One writ petition under Art. 32 has also been filed raising the same issue. Some of the aforesaid petitions are transfer petitions seeking transfer of petition pending in the various High Courts raising similar issues. We permitted learned Counsel for the petitioners in these transfer petitions to argue the common points which, in fact, is the bone of contentions of all the parties. As in all these petitions, common issues are raised, we are disposing of all, after hearing learned Counsel for the parties, by this composite judgment. Apart from the common issues, we are not disposing of nor propose to dispose of any of the individual residuary points, if any, remain after our this adjudication.

(3.) Before taking up for consideration the various points raised, it is necessary to dwell certain bare facts to reveal the resulting cause of filing of various petitions in the various High Courts before finally reaching this Court for adjudication. The whole gambit of sale of lottery tickets in India, both private and State lotteries, from the very inception is drawing with concern attention of various authorities and Government including Courts, as to how to control the evil effects of lotteries on its people at large, more so, when in complete banning, it effects in times of need, the very useful source of State revenue. Basically, lotteries are gambling and its business is res extra commercium; but to shed off this, the State in the interest of State revenue has been finding avenues to legitimate it through some legitimisations under the law to eliminate the impediments in collecting the State revenue and dilute, if possible, the exploitation of the people. The details of which we shall be referring hereinafter. The immediate reference to which we are concerned is Ordinance No. 20 of 1997 which was issued on 1st October, 1997, which came into force on 2nd October, 1997 which restricted the lottery business organised by the States and enabled the State Governments to prohibit sale of tickets of lotteries of other States. Under the said Ordinance, the State of U. P. issued notification dated 7th October, 1997 banning sale of lottery tickets of the State of Nagaland in the State of U. P. This notification and the aforesaid Ordinance was challenged by the State of Nagaland in the Guwahati High Court in Civil Rule No. 4986 of 1997. The High Court stayed this notification. This Ordinance was also subject-matter of challenge in the High Court of Gujarat, where in Special Civil Appeal No. 7903 of 1997 {The Gujarat Lottery Sellers Association v. State of Gujarat reported in 1998 (1) GLR 10) the High Court upheld this Ordinance and the notification of Gujarat Government which banned the State lotteries within the State of Gujarat. Against this, Civil Appeal arising out of S.L.P. (C) No. 22423 of 1997 has been filed which we are considering and disposing of by means of this judgment. The State of U. P. filed Civil Appeal arising out of S.L.P. (C) Nos. 21304-21307 of 1997 as against the aforesaid interim order passed by the Guwahati High Court staying the Ordinance in which this Court directed the State of U. P. to move the Guwahati High Court. This order was passed as an interim measure. In a Writ Petition No. 2200 of 1997 filed before the Allahabad High Court (Lucknow Bench) by M/ s. Ganga Agencies (Manipur State Lotteries), the High Court ordered that so long the interim order of the Guwahati High Court is operative the sale of lottery tickets shall be permitted to be sold in U. P.