The resolutions passed by the various States and the resolution passed by the Mysore Legislature will be quoted in a later part of this judgment.
During the pendency of their petition under Article 32, the appellants applied for and were granted a stay of the operation of the Central Act pending the disposal of the said writ petition.
Certain amendments were made by this in the Mysore Act as originally passed in 1951.
An Act called the Mysore Lotteries and Prize Competitions Control and Tax Act, 1951 Act 27 of 1951 , hereinafter called the Mysore Act was passed by the Mysore Legislature and came into force as from June 21, 1951.
Previous to that the Bombay Legislature had passed a similar Act called the Bombay Lotteries and Prize Competitions Control and Tax Act, 1948, which was amended in November 1952 by the Bombay Act 30 of 1952.
On January 12, 1955 the Bombay High Court held that the provisions of the Bombay Amendment Act above referred to were unconstitutional and that the taxes imposed under the provisions of that Act were hit by Article 301 of the Constitution.
They agreed to file their statements within the time allowed though under protest.
In December 1952 and January 1953 petitions under Article 226 were filed in the High Court of Bombay challenging the Bombay Act.
As the money was number paid within the time specified proceedings were taken under section 6 1 of the Revenue Recovery Act, 1890 Central Act 1 of 1890 , and certain properties moveable and immovable were attached and one of the properties was sold and the price so realised was deposited in the Government treasury.
Their reply was that the Ordinance under which the numberice was issued was unconstitutional and illegal and they also asked for thirty days in which to prepare their statements but they were granted a period of fifteen days only.
The result of that judgment was that though prize companypetitions companyld be companytrolled by the States within their respective borders, their ramifications beyond those borders companyld only be dealt with by action under Article 252 1 of the Constitution.
The Rules made thereunder came into force on February 1, 1952.
The appeal against the Bombay judgment declaring the Bombay Act to be unconstitution was brought in this companyrt and was allowed and that case is reported as State of Bombay v. R. M. D. Chamarbaugwala 1957 SCR 874, 929 .
On April 7, 1956, the appellants filed a petition under Article 32 of the Constitution in the Supreme Court challenging the validity of the Central Act but that petition was dismissed and is reported as R. M. D. C. Chamarbaugwala v. The Union of India 1957 SCR 930, 939 .
The appellants were companyducting since the month of August 1948, what were called prize companypetitions in the State of Mysore with the permission of the Government of the erstwhile State of Mysore.
On September 10, 1957, the Deputy Commissioner, Bangalore, called upon the appellants to produce accounts in respect of prize companypetitions companyducted as from April 1, 1956, up to the date of the closure of the companypetitions and three days were given to companyply with that numberice.
3, 30, 893 7 0.
The resolution passed by the States was in the following terms.
It was for that reason that the States of Andhra, Bombay, Madras, U. P. Hyderabad, Madhya Bharat, Pepsu and Saurashtra passed resolutions under Article 252 1 of the Constitution authorising Parliament to legislate for the companytrol and regulation of prize companypetitions and in pursuance thereof Parliament passed the Prize Competitions Act Act 42 of 1955 hereinafter called the Central Act which received the assent of the President on October 22, 1955, and came into force on April 1, 1956.
The Ordinance was enacted into an Act on September 28, 1957, which is Mysore Act 26 of 1957.
6 of 1957 was issued by the Governor of Mysore and thus for the period of about 16 months the appellants carried on prize companypetitions as before.
This was on April 16, 1956.
Thus the prize companypetitions which as a result of the stay of the operation of the Central Act were companyducted by the appellants became subject to the operation of the Mysore Act as amended.
The judgment of the Supreme Court in that petition was given on April 9, 1957.
The appellants on September 10, 1957, were called upon to file their returns but at their request for extension of time, they were given another 15 days in which to file their return.
They filed their return but under protest.
On August 31, 1957, the Mysore Lotteries Prize Competitions Control and Tax Amendment Ordinance, 1957 Ord.
On February 24, 1956, the Mysore Legislature passed a resolution adopting the said Act.
