DR. K.R. LAKSHMANAN ETC. ETC. versus STATE OF TAMIL NADU AND ANR.

Citation: [1996] 1 S.C.R. 395 · Decided: 12-01-1996 · Supreme Court of India · Bench: KULDIP SINGH · Disposal: Appeal(s) allowed
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Judgment (excerpt)

DR. K.R. LAKSHMANAN ETC. ETC. 
A 
v. 
STATE OF TAMIL NADU AND ANR. 
JANUARY 12, 1996 
[KULDIP SINGH, B.L. HANSARIA AND S.B. MAJMUDAR, JJ.] 
B 
Tamil Nadu Horse Races (Abolition and Wagering or Betting) Act, 
1974: Section 2. 
Madras City Police Act, 1888 : Section 49 and 49-A. 
Madras Gaming Act, 1930: Sections 3, 4 and 11. 
Madras City Police and Gaming (Amendment) Act, 1949 : Sections 2 
and4. 
Race Club-Horse racing within premises-Held neither gaming nor 
gambling-It is a game of skill where winning depends substantially and 
preponderantly on skill-Held wagering or betting on horse racing does not 
come under the definition of gaming. 
c 
D 
Madras Race Club (Acquisition and Transfer of Undertakings) Act 
E 
1986-Valiclity of 
Race club-Registration as company under Companies Act--Act ac-
quiring under taking of the club--No investigation or inquiry held by 
State--Before Acquisition Act, law was already enacted abolishing betting 
p 
on horse racing--Acquisition of club-Held violative of Article 14-ln case 
of mismanagement of club procedural safeguards under Companies Act held 
relevant-Singling out the club held discriminatory--Acquisition Act held 
not protected by Article 31-C of the Constitution-Held provisions of Act had 
no nexus with the objective contained in Articles 39(b) and (c) of the 
G 
Constitution. 
Constitution of India, 1950 : 
Article 14--Madras.Race Club (Acquisition and Transfer of Undertak-
ings) Act, 1986 held unconstitutional. 
H 
395 
396 
SUPREME COURT REPORTS 
[1996] l S.C.R. 
A 
Article 31-C-Laws giving effect to directive principles of State policy 
B 
c 
D 
Saving of-Declaration in statute-Court c::an ignolt! declaration and exam-
ine validity of law-Declaration cannot act as cloak to protect the law. 
lnterpretatiun of Statute-Presumption of Constitutionality of 
statute-Applicability of 
Woni> & Phrases: 'Gampling' .ind Gaming'-Madras Ganiing Act, 
1930. 
"Mere skill"-Meaning of-Madras City Police Act, 1888. 
The principal object of the Madras Race Club, an association 
registered as a company with limited liability under the Companies Act, 
1956, is lo carry on the business of a race club in the running of horse 
races. The club is one of the five "Turf Authorities of India", the other 
four being the Royal Calcutta Turf Club, the Royal Western India Turf 
Club Limited, the Bangalore Turf Limited and the Hyderabad Race 
Club. Race meetings are held in the club's own race course at Madras 
and at Uthagamandalam for which bets are made inside the race course 
premises. In 1949 the Tamil Nadu Legislature enacted law by which 
horse racing was brought within the definition of "gaming". The said 
E 
law, however, was not enforced till 1975. By sections 2 and 4 of the 
Madras City Police and Gaming (Amendment) Act, 1949 the defmition of 
'gaming' was amended. Although no notification enforcing Sections 2 
and 4 of the 1949 Act was ever issued by the State Government, hut the 
said provisions were brought into existence and enforced by an Act of 
F 
Legislature called the Tamil Nadu Horse Races (Abolition and Wagering 
or Betting) Act, 1974. The 1974 Act was unsuccessfully challenged before 
the High Court on the grounds that (i) the betting on the horse races not 
being gambling the State Legislature under entry 34 of list II of the 
Seventh Schedule to the Constitution, had no legislative competence le 
G 
legislate the 1974 Act; and (ii) the horse 
racing being a game of 
substantial skill, the provisions of the two Acts were not applicable to 
horse races. On leave granted by the High Court the club preferred 
appeal before this Court. Under the interim orders of this Court, issued 
from time to time, the club is functioning and the horse races are being 
H 
conducted. During the pendency of the appeal the .Tamil Nadu Legisla-
K.R. LAKSHMANAN (DR.)" STATE 
-397 
lure enacted the Madras Race Club (Acquisition and Transfer of Under-
A 
takings) Act, 1986 for a public purpose i.e. to acquire the undertaking of 
the club • The Committee members of the club, horse owners and other 
interested persons filed writ petitions before this Court challenging the 
validity of the Act. The questions involved in these cases are : 
(1) What is 'gambling' ? 
(2) What is the meaning of expression "mere skill" in terms of 
Section 49-A of the Madras City Police Act, 1888 and Section 11 of the 
Madras Gaming Act, 1930 ? 
(3) Whether the running of horse-races by the club is a game of 
11chance
11 or a
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