JUDGEMENT
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(1.)This is an appeal from a judgment, dated 5th February, 2003, rendered
by the High Court of Delhi at New Delhi in CWP
No. 2278/2002. By the impugned judgment, the High Court has upheld the
validity of the Delhi Race Course Licensing (Amendment) Rules, 2001.
(2.)On 19th October, 1984, the Central Government in exercise of its
powers under Section 2 of the Union Territories (Laws) Act, 1950,
extended the Mysore Race Courses Licensing Act, 1952 (for short "the
Act") to the Union Territory of Delhi, as it existed then, with
certain amendments. The Preamble to the said Act reads thus:
"Whereas it is expedient to make provision for the licensing
regulation, control and management of horse-racing on race-course and
all matters connected therewith in the Union Territory of Delhi"
Further, Section 3 of the Act reads as follows:
"3. Prohibition of horse-racing on unlicensed race- courses- No horse-
race shall be held save on a race course for which a licence for horse
racing granted in accordance with the provisions of this Act, is in
force. "
Section 4 which lays down the procedure for issuing the licences for horse
racing reads as follows:
"4. Licences for horse-racing-
(1) The owner, lessee or occupier of
any race course may apply to the Government for horse-racing on such
race-course or for arranging for wagering or betting in such race-
course on a horse, race run or some other race-course either within
the Union territory of Delhi or Outside the Union territory of Delhi.
(2) The Government may (if in its opinion public interest so requires)
withhold such licence or grant it subject to such conditions and for
such period as they may think fit.
(3) In particular and without prejudice to the generality of the
foregoing power, such conditions may provide for-
(a) the payment of a licence fee;
(b) the maintenance of such accounts and furnishing of such returns as
are required by the United Provinces Entertainment and Betting Tax
Act, 1937 as extended to the Union territory of Delhi;
(c) the amount of stakes which may be allotted for different kinds of
horses;
(d) the measures to be taken for the training of persons to become
Jockeys;
(e) the measures to be taken to encourage Indian bred horses and
Indian Jockeys;
(f) the inclusion or association of such persons as the Government may
nominate as Stewards or members in the conduct and management of horse-
racing;
(g) the utilisation of the amount collected by the licensee in the
conduct and management of horse-racing;
(h) such other matters connected with horse-racing and the maintenance
of the race-course for which in the opinion of Government it is
necessary or expedient to make provision in the licence.
Sections 5, 6 and 7 respectively enumerate penalties for taking part in
horse races on unlicensed race-course and for contravention of conditions
of licence. Section 9 envisages that cognizance of the offences under the
Act can be taken by a court not inferior to that of a Metropolitan
Magistrate. Section 11, the pivotal provision, which empowers the
Government to make rules, reads as follows:
"11. Power to make rules-
(1) The Government may, by notification in
the Delhi Gazette, make rules for the purpose of carrying into effect
the provisions of this Act.
(2) In particular and without prejudice to the generality of the
foregoing powers; such rules may provide for all or any of the
following matters, namely:-
(i) the form and manner in which applications for licences are
to be made;
(ii) the fees payable for such licences;
(iii) the period for which licences are to be granted;
(iv) the renewal, modification and cancellation of licences. "
(3.)In furtherance of the power conferred under Section 11 of the Act, by
a notification dated 1st March 1985, the Administration of the Union
Territory of Delhi, notified the Delhi Race Course Licensing Rules,
1985 [for short "1985 Rules"]. Rules 4 and 5 of the 1985 Rules lay
down the procedure for submission of application for grant of licence
for horse racing and the validity period of such licence respectively.
Rule 6 prescribes the rate of 'Licence fee'. It reads as follows:
"6. Licence fee-The fee for the grant or renewal of a licence for
horse racing on the race course shall be a sum of rupees two
thousand (Rs. 2000/-) per day on which race is held. The fee for the
grant or renewal of a licence for arranging for wagering or betting
on a horse race run on any other race course, within or outside the
Union Territory of Delhi, shall be rupees five hundred (Rs. 500/-)
per race day on which race is held. "
Rule 12 of the 1985 Rules, material for our purpose, confers power of
inspection and states as under:
"12. Inspection- The District Officer or any other officer not below
the rank of Entertainment Tax Inspector shall have access to the
licensed race course at all reasonable times with a view to satisfy
himself that the provisions of the Act and these Rules are being
complied with and that the conditions of the licence are duly
observed. "