N V MARKETING PVT LTD Vs. STATE OF ARUNACHAL PRADESH

JUDGEMENT

(1.) Being adventurist by nature, man has, generally, opted to take risks. Being unable to bring under control his instinct for greed, man has been indulging in adventurist activities, which may make him own wordly materials. Thus, a combined instinct of adventurism and greed has always drawn man to gambling and betting. Though detested from time immemorial, gambling and betting have continued, sometimes, on account of man/ s failure to win over his instinct of adventurism and greed and, sometimes, at the initiative taken by others to draw man to gamble in order to reap benefits. Lottery has been one of such forms of gambling since 100 B.C. It was Cheung Leung of China's Hun Dynasty, who created game of lottery to keno to raise funds for his army in the year 100 B.C. By drawing his war tried people to indulge in this game of chances, he not only made them contribute to his army, but also helped fund the Great Wall of China. As a game of chance, lottery became nothing but a kind of gambling. Unable to bear the resultant ruinous effects on human families, a hue and cry was raised against organized private lotteries. The State had to become alive to the situation. Thus, began banning of lotteries by States, which brought the subject of lottery of an effective decision to the precincts of the Courts.

(2.) In the State of Haryana Vs. M/S. Suman Enterprises and others, (1994) 4 SCC 217, while dealing with banning of private lotteries by some States, the Apex Court held that the concept of lottery organized by a State would require certain basic and essential concomitants to be satisfied, because members of the public, when investing their money in such a lottery, proceed on a trust and on certain assumptions as to genuineness, bonafides, safety, security, etc. If some of the basic functions characterising a State organized lottery are delegated or abdicated by State, this public trust, according to the Apex Court, will stand impaired. The Apex Court, therefore, while laying down some guidelines for running of lotteries, observed and held as follows:-

(3.) Acting upon the guidelines so issued by the Apex Court, the lotteries (Regulation) Act, 1998 (hereinafter referred to as "the said Act"), came into force for enabling States to organise lotteries in accordance with the guidelines and conditions precedent laid down in Suman Enterprises (supra). No wonder, therefore, that in order to remove lottery completely from being treated as a gambling or betting. Section 2(b) of the said Act defines lottery as a scheme far the distribution of prizes by lot or chance to those persons, who participate in the chances of receiving prizes by purchasing tickets. The definition of lottery, contained in Section 2(b), also clarifies that it is immaterial in what form and by what name a lottery is run.