Gauhati High Court
Big Star G Services Llp vs The State Of Mizoram And 7 Ors on 26 April, 2019
Author: Ujjal Bhuyan
Bench: Ujjal Bhuyan
Page No.# 1/9
GAHC010089122019
THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Case No. : WP(C) 2663/2019
1:BIG STAR G SERVICES LLP
HAVING ITS REGISTERED OFFICE AT FLAT NO. G 2, RODALEE
APARTMENT, ZOO NARENGI ROAD, GUWAHATI - 781024, ASSAM,
REPRESENTED BY ITS AUTHORISED SIGNATORY SRI M SIVA KUMAR
VERSUS
1:THE STATE OF MIZORAM AND 7 ORS
REPRESENTED BY THE CHIEF SECRETARY TO THE GOVERNMENT OF
MIZORAM, NEW SECRETARIAT COMPLEX, AIZWAL, MIZORAM, PIN -
796001
2:THE SECRETARY
FINANCE DEPARTMENT
NEW SECRETARIAT BUILDING AND NEW CAPITAL COMPLEX ROAD
KHATIA
AIZWAL
MIZORAM
PIN - 796001
3:THE FINANCE COMMISSIONER
GOVT. OF MIZORAM
FINANCE DEPARTMENT
AIZWAL MIZORAM
PIN - 796001
4:SRI ZORAMTHANGA
THE HON'BLE CHIEF MINISTER OF MIZORAM
AIZWAL
MIZORAM
PIN - 796001
5:THE ELECTION COMMISSION OF INDIA
REPRESENTED BY THE CHIEF ELECTORAL OFFICER
NIRVACHAN SADAN
Page No.# 2/9
ASHOKA ROAD
NEW DELHI - 110001
6:M/S SUMMIT ONLINE TRADE SOLUTIONS PVT. LTD.
7
RAYALA TOWERS
GR. FLOOR
781785 (NEW NO. 158)
ANNA SALAI
CHENNAI - 600002
7:M/S N.V. INTERNATIONAL
E-217
1ST FLOOR
GREATER KAILASH - I
NEW DELHI - 110048
8:M/S TEESTA DISTRIBUTORS
A REGISTERED PARTNERSHIP FIRM UNDER THE PARTNERSHIP ACT
1932
HAVING ITS OFFICE AT T-19 (D)
PEACE VILLA
BESIDES PWD BUILDING
TUIKHUAHTLANG
AIZWAL
MIZORAM - 79600
Advocate for the Petitioner : MR. I CHOWDHURY SR ADV
Advocate for the Respondent : ADDL. AG/GA
WP(C) 2669/2019
1:M/S TEESTA DISTRIBUTORS
A REGISTERED PARTNERSHIP FIRM UNDER THE PARTNERSHIP ACT
1932
HAVING ITS OFFICE AT T-19 (D)
PEACE VILLA
BESIDES PWD BUILDING
TUIKHUAHTLANG
AIZWAL
MIZORAM - 796001
AND REPRESENTED BY ITS AUTHORISED SIGNATORY SHRI RATNESH
KUMAR SHRIVASTAVA
Page No.# 3/9
VERSUS
1:THE STATE OF MIZORAM AND 7 ORS
REPRESENTED BY THE CHIEF SECRETARY TO THE GOVERNMENT OF
MIZORAM
NEW SECRETARIAT COMPLEX
AIZWAL
MIZORAM
PIN - 796001
2:THE SECRETARY
FINANCE DEPARTMENT (ADMINISTRATIVE HEAD)
NEW SECRETARIAT BUILDING AND NEW CAPITAL COMPLEX ROAD
KHATIA
AIZWAL
MIZORAM
PIN - 796001
3:THE COMMISSIONER
FINANCE DEPARTMENT
AIZWAL
MIZORAM
PIN - 796001
4:THE ADDITIONAL SECRETARY TO THE GOVT. OF MIZORAM
FINANCE DEPARTMENT
AIZWAL
MIZORAM
PIN - 796001
5:THE DIRECTOR
INSTITUTIONAL FINANCE AND STATE LOTTERY
AIZWAL
MIZORAM - 796001
6:THE ELECTION COMMISSION OF INDIA
REPRESENTED BY THE CHIEF ELECTORAL OFFICER
NIRVACHAN SADAN
ASHOKA ROAD
NEW DELHI - 110001
7:M/S SUMMIT ONLINE TRADE SOLUTIONS PVT. LTD.
7
RAYALA TOWERS
GR. FLOOR
781785 (NEW NO. 158)
Page No.# 4/9
ANNA SALAI
CHENNAI - 600002
8:M/S N.V. INTERNATIONAL
E-217
1ST FLOOR
GREATER KAILASH - I
NEW DELHI - 110048
Advocate for the Petitioner : MR. K N CHOUDHURY SR. ADV
Advocate for the Respondent : ADDL. AG/GA
WP(C) 2666/2019
1:BIG STAR G SERVICES LLP
HAVING ITS REGISTERED OFFICE AT FLAT NO. G 2
RODALEE APARTMENT
ZOO NARENGI ROAD
GUWAHATI - 781024
ASSAM
REPRESENTED BY ITS AUTHORISED SIGNATORY SRI M SIVA KUMAR
VERSUS
1:THE STATE OF MIZORAM AND 7 ORS
REPRESENTED BY THE CHIEF SECRETARY TO THE GOVERNMENT OF
MIZORAM
NEW SECRETARIAT COMPLEX
AIZWAL
MIZORAM
PIN - 796001
2:THE SECRETARY
FINANCE DEPARTMENT
NEW SECRETARIAT BUILDING AND NEW CAPITAL COMPLEX ROAD
KHATIA
AIZWAL
MIZORAM
PIN - 796001
3:THE FINANCE COMMISSIONER
GOVT. OF MIZORAM
FINANCE DEPARTMENT
AIZWAL MIZORAM
PIN - 796001
Page No.# 5/9
4:SRI ZORAMTHANGA
THE HON'BLE CHIEF MINISTER OF MIZORAM
AIZWAL
MIZORAM
PIN - 796001
5:THE ELECTION COMMISSION OF INDIA
REPRESENTED BY THE CHIEF ELECTORAL OFFICER
NIRVACHAN SADAN
ASHOKA ROAD
NEW DELHI - 110001
6:M/S SUMMIT ONLINE TRADE SOLUTIONS PVT. LTD.
7
RAYALA TOWERS
GR. FLOOR
781785 (NEW NO. 158)
ANNA SALAI
CHENNAI - 600002
7:M/S N.V. INTERNATIONAL
E-217
1ST FLOOR
GREATER KAILASH - I
NEW DELHI - 110048
8:M/S TEESTA DISTRIBUTORS
A REGISTERED PARTNERSHIP FIRM UNDER THE PARTNERSHIP ACT
1932
HAVING ITS OFFICE AT T-19 (D)
PEACE VILLA
BESIDES PWD BUILDING
TUIKHUAHTLANG
AIZWAL
MIZORAM - 796001
Advocate for the Petitioner : MR. I CHOWDHURY SR ADV
Advocate for the Respondent : ADDL. AG/GA
Page No.# 6/9
BEFORE
HONOURABLE MR. JUSTICE UJJAL BHUYAN
ORDER
Date : 26-04-2019 Heard Mr. I Choudhury, learned Senior Counsel for the petitioners in WP(C) Nos.2663 and 2666/2019 and Mr. KN Choudhury, learned Senior Counsel for the petitioner in WP(C) No.2669/2019. Also heard Mr. SS Dey, learned Senior Counsel for State of Mizoram and Mr. D Baruah, learned Standing Counsel, Election Commission of India.
In all the writ petitions, basic challenge is to the second notification dated 15.04.2019 issued by the Finance Commissioner, Government of Mizoram.
Matter relates to Mizoram State Lottery, both paper and online.
Initially, pursuant to Invitation for Expression of Interest for Appointment of Lottery Distributor/Selling Agent, four parties, namely, M/S. Teesta Distributors, M/S. Summit Online Trade Solutions Pvt. Ltd., M/S. NV International and M/S. Ecool Gaming Solutions Pvt. Ltd. were appointed as distributors/selling agents, each having six draws each, total twenty four. While M/S. Teesta Distributors was made the distributor/selling agent for paper lottery, the other three parties were granted distributorship of online lottery. Agreements entered into by the aforesaid parties with the State of Mizoram were extended from time to time.
By notification dated 10.07.2018, issued by the Addl. Secretary to the Government of Mizoram, Finance Department, draws of Mizoram State Lottery were suspended w.e.f. 09.07.2018. This notification came to be challenged by three out of four parties, excluding M/S. Ecool Gaming Solutions Pvt. Ltd. In the three writ petitions, separate interim orders were passed by the Court staying the said notification dated 10.07.2018 qua the petitioners.
Therefore two notifications were issued on 15.04.2019 by the Finance Commissioner. By the first notification, suspension order of lottery draws was revoked making it clear that all Mizoram State Lottery draws will be operative up-to 30.06.2019.
By the second notification, it was mentioned that the six online draws vacated by M/S. Ecool Gaming Solutions Pvt. Ltd. have been reallocated to the remaining three distributors at the rate of two draws each with the further clarification that the two additional Page No.# 7/9 draws could be conducted either in paper or online. Additionally, it has been mentioned that the three distributors could conduct their draws, both existing and the additional ones either in paper or online as per convenience; thus each distributor will have eight draws per day making the total draws per day 24 which will be on the same terms and conditions prior to suspension and which will be operative up-to 30.06.2019 but with the relaxation as above.
According to the petitioners, such reallocation could not have been done without fresh invitation to tender. Secondly, permitting the three subsisting distributors to conduct their lottery draws, existing and additional, either in paper or online would be unsustainable because M/S. Teesta Distributors was made the sole distributor of Mizoram State Lottery for paper lotteries whereas the other two parties were distributors of online lotteries. This has been further aggravated by the blank permission granted by the State to the subsisting distributors to conduct their lottery draws both subsisting and additional either in paper or online as per convenience which would be contrary to the agreements entered into by the parties.
Additionally, Mr. KN Choudhury, Senior Counsel representing M/S. Teesta Distributors submits that allowing the other two distributors to have lottery draws in paper would infringe upon his client's subsisting rights to conduct lottery draws in paper as the sole distributor as per agreement. In addition to the above, other contentions have also been raised regarding decision being taken by the political head of the State which would be contrary to the statute and also the impugned notification being violative of the model code of conduct now in force.
Mr. Baruah, learned Standing Counsel for the Election Commission of India submits that perhaps reallocating the six online draws amongst the three subsisting distributors would not violate the model code of conduct as it is an interim arrangement made by the State. However, if the reallocation extends to allowing drawing of lottery beyond the contract i.e., a distributor having contract to carry out paper lottery being allowed to draw online lotteries and vice versa may offend the model code of conduct.
Mr. Dey, learned Senior Counsel representing the State of Mizoram submits that none of the petitioners can claim violation of Article 14 in their respective cases which is the only fundamental right available to the petitioners in a trade of this nature. Mr. Dey further Page No.# 8/9 submits that pursuant to the impugned notification dated 15.04.2019, draws have already been held.
However, Mr. I Choudhury, learned Senior Counsel points out that such draw of lotteries would not be permissible in the absence of agreements to that effect between the parties.
On a query by the Court, Mr. Dey submits that State has decided in principle to go for fresh tender for selection of distributors/selling agents but the Notice Inviting Tender (NIT) in this regard has been stayed by the Aizawl Bench of this Court.
In the course of submissions, it is come to light that there are four writ petitions pending in the Aizawl Bench of Gauhati High Court, being WP(C) Nos.65, 67 and 99/2018 and 23/2019. Subject matter of the above four writ petitions are in one way or the other connected with the Mizoram State Lottery, including issuance of fresh NIT.
Issue raised in the writ petition would require examination by the Court. Therefore, notice is required to be issued.
Issue notice.
However, no notice need be issued to the Chief Minister, State of Mizoram.
While Mr. BJ Kapil, learned counsel assisting Mr. SS Dey, learned Senior Counsel accepts notice on behalf of the State of Mizoram, Mr. AI Ali, learned counsel accepts notice on behalf of the Election Commission of India.
Extra copies within 3 days .
Notice to the private respondents in all the cases by registered post with A/D. Steps within 3 days.
After hearing learned counsel for the parties, Court is of the view that it would be more appropriate if all the writ petitions on the same subject matter are heard together so that no contradictory orders are passed. Therefore, WP(C) Nos.65, 67, 99/2018 and 23/2019 may have to be transferred to the Principal Seat of Guwahati High Court to be heard with the present writ petitions.
Registry to place the matter before Hon'ble the Chief Justice on the administrative Page No.# 9/9 side.
In the meanwhile, second part of the notification dated 15.04.2019 to the following effect:-
" This additional 2 draws each allocated to the above mentioned Distributors are allowed to be conducted either in paper or online. In addition, the 3 (three) Distributors are allowed to conduct the 6 (six) draws allocated to each of them earlier either in paper or online as per their convenience. Hence, each Distributor will have 8 (eight) draws each per day making the total draws per day to 24 (twenty four) and the same terms and conditions prior to the suspension shall apply and will be operative up-to 30th June, 2019."
shall remain stayed till the next date.
It is clarified that the above stay order would mean that the additional six draws would be confined to online lottery only.
List on 30.05.2019.
JUDGE Biplab Comparing Assistant