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1996 (1) TMI 336 - SC - Companies LawWhat is "gambling"? What is the meaning of the expression "mere skill" in terms of section 49A of the Madras City Police Act, 1888 (the Police Act), and section 11 of the Madras Gaming Act, 1930 (the Gaming Act)? Whether the running of horse races by the club is a game of "chance" or a game of "mere skill"? Whether "wagering" or "betting" on horse races is "gaming" as defined by the Police Act and the Gaming Act ? Whether horse racing—even if it is a game of "mere skill"—is still prohibited under section 49A of the Police Act and section 4 of the Gaming Act? Whether the Madras Race Club (Acquisition and Transfer of Undertakings) Act, 1986 (the 1986 Act), gives effect to the policy under article 39(b) and (c) of the Constitution of India (the Constitution) and as such is protected under article 31(c) of the Constitution 1 If not, whether the 1986 Act is liable to be struck down as violative of articles 14 and 19(1)(g) of the Constitution? Held that:- Allow the writ petitions and the civil appeal. The impugned judgment of the High Court is set aside. We hold and declare that horse racing is a game of mere skill within the meaning of section 49 of the Police Act and section 11 of the Gaming Act. Horse racing is neither "gaming" nor "gambling" as defined and envisaged under the two Acts read with the 1974 Act and the penal provisions of these Acts are not applicable to horse racing which is a game of skill. The 1986 Act is ultra vires article 14 of the Constitution and as such is struck down. We direct the committee of management under the Chairmanship of Justice S. Natarajan, appointed by this court, to hand over the management, functioning and operation of the club to a duly constituted management committee, under the memorandum and articles of association of the club, before March 31, 1996.
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