RMD Chamarbaugwalla and Another v. UOI, SC: Analysis

Saptaparni Raha
Aug 10, 2022
2 min read

Written by Saptaparni, Lawyer

Introduction:

The right to carry out businesses in one's interest comes under the Fundamental Rights. However, prize competition as a means of one's occupation is governed by the Prize Competition Act, 1955. The question of whether an act that is based on the nature of gambling or on skills that affect others' fundamental rights will be struck down as invalid or not was discussed in the famous case of R.M.D. Chamarbaugwalla and Another Vs Union Of India (UOI).

Facts:

In the subsequent case, the petitioners were advertising and running prize tournaments in various states. They challenged the constitutionality of Section 4 and Section 5 of the Prize Competition Act, 1955, and Rules 11 and 12 framed under Section 20 of the act.
The petitioners contended that the Act included not only acts of a gambling nature but also the ones where the success depended to a significant degree upon skill.
Therefore, the petitioners asserted in their argument that their fundamental right to carry their business was violated under Art. 19(6) of the Constitution.

The Union of India argued that the act dealt only with gambling competitions and, even if that was not the case, the provisions in question under the present scenario were severable from the act as the content in their application was admissible.

Judgment:

It has been held that the difference between two classes of competitions is as clear as the difference between the commercial and the waging contract. The contentions raised were clearly against the petitioners. Therefore, the petitions were dismissed with a cost that they did not have any merit.

Conclusion:

The Honorable Supreme Court concluded that the provisions challenged by petitioners as invalid were indeed valid. Therefore, it was held that competitions that have skills as the main deciding factor of the outcome of the competition do not fall under the ambit of the Prize Competition Act, 1955.

References:

Ayushi Kumari, Gambling and Fundamental rights with reference to R.M.D Chamarbaugwalla v.Union of India, retrieved from https://blog.ipleaders.in/gambling-and-fundamental-rights-with-reference-to-r-m-d-chamarbaugwalla-v-union-of-india-1957/ ( November 17, 2021)
Law Insider, R.M.D. Chamarbaugwalla Vs.The Union of India, retrieved from https://www.lawinsider.in/judgment/r-m-d-chamarbaugwalla-vs-the-union-of-india (May 23, 2021)