JOHN ROSE Vs. STATE OF KERALA

JUDGEMENT

(1.) SOME of the points that arise for decision in these cases are common and therefore, they are heard and disposed of together, by this common Judgment. These cases arise under the Kerala Tax on Paper Lotteries Act, 2005 (Act No. 20 of 2005). The writ petitioners are engaged in the sale of tickets of paper lotteries, conducted by the State of Sikkim and the Royal Government of Bhutan respectively. They are having registration as promoters under the above Act. The said registration is sought to be cancelled, on the ground that their lotteries are run in violation of S.4 of the Lotteries Regulation Act, 1998 (Central Act 17 of 1998). The cancellation of the registration will result in prohibition of sale of their lottery tickets in the Kerala State. Hence these Writ Petitions, seeking appropriate reliefs. The pleadings in them are summarised below : Writ Petition (C) No. 30355/06

(2.) THE petitioner is engaged in the distribution and marketing of the tickets of lotteries, organised by the State of Sikkim, in the State of Kerala. M/s. Martin Lottery Agencies Limited, is the sole distributor of the lotteries of the State of Sikkim. The said agency has appointed M/s. Best and Co., as the main stockist of the said Lotteries, which, in turn, has appointed the petitioner as the Marketing Agent of those lotteries in Kerala. Ext. P1 would show that the petitioner is the stockist for selling the Sikkim State Lotteries in the State of Kerala. It is a certificate, issued by the Director of Lotteries, Government of Sikkim. The petitioner submits, the lottery run by the State of Sikkim is conducted, strictly in accordance with the provisions of the Lotteries (Regulation) Act, 1998. The State of Kerala is a competitor in the field of sale of tickets of lotteries. The State is running its own lotteries. So, it has been trying to stop the sales of the tickets of lotteries of other States in Kerala. The Kerala Government, in exercise of its power under Regulation 12 of the Lotteries (Regulation) Act, 1998, framed Kerala State Lotteries and On line Lotteries (Regulation) Rules, 2003. Sub -rules (3) and (10) of R.24 of the said Rules enabled the Kerala Government to interfere with and suspend the sale of tickets of lotteries, run by other State Governments. The affected parties challenged the said provisions in the Rules, before this Court. Though, the Writ Petition was dismissed, a Division Bench of this Court, in WA No. 2044/03 passed Ext. P2 interim order dated 19/12/2003, staying the operation of the above said sub -rules. Later, the Writ Appeal itself was dismissed. On appeal, the Apex Court admitted the appeal and restored Ext. P2 interim order, as the interim order of the Apex Court. When the Police Officials of the State tried to prosecute the agents, selling the tickets of the lotteries of Sikkim and Bhutan Governments, the Supreme Court intervened and restrained the State of Kerala from prosecuting them.

(3.) NOW , for the sale of lotteries in Kerala, it is mandatory to get registration under the Kerala Tax on Paper Lotteries Act, 2005 (hereinafter referred to as the Kerala Act). The petitioner applied for registration under S.7 of the Kerala Act. Ext. P9 is the registration certificate dated 07/07/2005, granted to him. Thereafter, he was paying tax regularly and selling the tickets of the lotteries of the State of Sikkim in the State of Kerala. Ext. P10 is the statement, showing the payments made by the petitioner from time to time.