1999 (5) TMI 498 - SUPREME COURT

What is the character of State lotteries?

If lotteries are gambling in nature, does it lose its character as such when it takes on the cloak of State lotteries?

Whether such cloak dissolves its character as res extra commercium?

Held that:- In view of the findings recorded holding lotteries organised by the State is also gambling in nature. Thus, State lotteries cannot be construed to be a “trade and business” within the meaning of articles 301 to 303 of the Constitution of India. We also hold that the impugned provisions are not violative of article 14 nor the delegation of power by the Parliament to the State Government could be said to be delegation of its any essential legislative power or a delegation, which is unguided or unbridled. Thus, we uphold section 5 and various sub-clauses of section 4 to be valid piece of legislation.

Accordingly, the decision of the Gauhati High Court which holds the provisions of the Ordinance to be ultra vires and consequently staying the provisions of the impugned Act cannot be sustained which is hereby quashed. Any decision of any court or any interim order contrary to the decision, as aforesaid, are hereby set aside. The various petitions which have been transferred and which are subject-matter of decision, as aforesaid, stand disposed of in terms of this decision.