Case Law Details
State of Kerala Vs Future Gaming & Hotel Services (P) Ltd. (Kerala High Court)
The Hon’ble High Court of Kerala in State of Kerala & Ors Vs. Future Gaming & Hotel Services (P) Ltd [WA.No.78 of 2021], declared that a host state (where lottery is selling) has legislative competence to make appropriate rules to scrutiny and to monitor in its territory, the conduct of lottery organised by some other state (organising state) and distributed by private agencies.
Facts of the case
The Lotteries (Regulation) Act, 1998 is a central Act, enacted by the Parliament having the source of legislative power is traced to Entry 40 of List 1 of the VII Schedule to the Constitution of India. While so, the Government of Kerala enacted the Kerala Paper Lotteries (Regulation) Rules, 2005, in exercise of the powers under section 12 of the Act. The Kerala Rules as originally enacted applied only to lotteries organised by the Government of Kerala. Thereafter, the Central Government enacted the Lotteries (Regulation) Rules, 2010.
Future Gaming & Hotel Services (P) Ltd. is a company with its registered office at Coimbatore, Tamil Nadu, is an authorised agent of the State of Nagaland [ operating in Kerala] who challenged the Amended Rules through W.P.(C) No.34025 of 2019. It was pleaded that the Amended Rules were unconstitutional and beyond the legislative competence of the State, apart from being ultra vires the Act. Specific challenges were raised against the validity of Rules 2(3A), 2(6A), 4(4), 4(5), and Rule 9A of the Amended Rules. Communications issued by the Government of Kerala to Future Gaming & Hotel Services (P) Ltd, in this connection, were also challenged in the writ petition. Disposing the writ petition, the learned Single Judge declared that the Amended Rules were ultra vires and unenforceable. The learned Single Judge also set aside the communications and restrained the appellants from interfering with the marketing and sale of lottery tickets of the State of Nagaland against which, the State of Kerala and its officers have filed a writ appeal.
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