THE STATE OF BOMBAY versus R. M. D. CHAMARBAUGWALA

THE STATE OF BOMBAY versus R. M. D. CHAMARBAUGWALA

The impugned Act is a law with respect to betting and gambling and falls within Entries 34 and 62 of List II, thus within legislative competence. There exists sufficient territorial nexus where forms and money are collected in Bombay. Gambling is not protected as 'trade, business or commerce' under Articles 19(1)(g) or 301; such activities are extra commercium. The provisions of the Act, in so far as they apply to the respondents' competitions, are valid and constitutional.

Parties
Appellant: The State of Bombay; Respondents: R. M. D. Chamarbaugwala and R.M.D.C. (Mysore) Private Limited
Jurisdiction
India
Judgment Date
09 April 1957
Procedural Posture
Civil Appeal / Appeal From Bombay High Court Decision Under Articles 132(1) and 133(1)(c) of the Constitution
Outcome
Appeal allowed. Order of the lower court set aside. Petition dismissed with costs throughout.
Legal Topics
Validity of State Tax on Cross State Prize Competitions, Meaning of 'trade, Business or Commerce' Under Constitution, Gambling Activities as Extra Commercium, Power of State Legislature—territorial Nexus, Application of Articles 19(1)(g) and 301 to Gambling
Constitutional Law Tax Law Gaming and Betting Law Validity of State Tax on Cross State Prize Competitions Meaning of 'trade, Business or Commerce' Under Constitution Gambling Activities as Extra Commercium Power of State Legislature—territorial Nexus Application of Articles 19(1)(g) and 301 to Gambling

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Parties

The State of Bombay

Appellant

R. M. D. Chamarbaugwala and R.M.D.C. (Mysore) Private Limited

Respondents

Procedural Posture

Civil Appeal / Appeal From Bombay High Court Decision Under Articles 132(1) and 133(1)(c) of the Constitution

Legal Issues

  1. 1 Whether the Bombay Lotteries and Prize Competition Control and Tax (Amendment) Act, 1952, as applied to competitions run through newspapers printed and published outside the State, is ultra vires the State Legislature and violates fundamental rights or freedom of trade
  2. 2 Whether gambling is 'trade, business or commerce' under Articles 19(1)(g) and 301 of the Constitution
  3. 3 Whether the Act has sufficient territorial nexus for the tax

Ratio Decidendi

The impugned Act is a law with respect to betting and gambling and falls within Entries 34 and 62 of List II, thus within legislative competence. There exists sufficient territorial nexus where forms and money are collected in Bombay. Gambling is not protected as 'trade, business or commerce' under Articles 19(1)(g) or 301; such activities are extra commercium. The provisions of the Act, in so far as they apply to the respondents' competitions, are valid and constitutional.

Court Disposition

Appeal allowed. Order of the lower court set aside. Petition dismissed with costs throughout.

Orders

  • The order of the lower court is set aside.
  • The petition under Article 226 is dismissed with costs.