Karnataka High Court Stays Single Bench Order, Halts All Racing And Betting Activities At Bangalore Turf Club

The Karnataka High Court on Saturday stayed a single judge bench order which had permitted carrying on all on-course and off-course horse racing and betting activities at the Bangalore Turf Club, subject to provisions of the Mysore Race Course Licensing Act 1952 and the Rules framed thereunder.

A division bench of Chief Justice N V Anjaria and Justice K V Aravind stayed the operation of the order passed on June 18. Thus no races scheduled for this weekend can be held.

The bench said, “Learned Single Judge rested upon irrelevant consideration in his reasoning to stay the licence and permit the horse racing event to take place.”

The petitioners, Bangalore Turf Club and others in support of the interim order had argued that there is no good reason to prevent the petitioner-Turf Club from conducting the on-course and off-course horse racing event which it has been organising continuously for years and that allegations of irregularities would be taken care of by the supervising and regulatory authorities.

The state government in appeal argued that an FIR concerning the offences and illegal activities which was registered had now culminated into the chargesheet. It was highlighted that the accused persons include the Chairman and other office bearers of the Club and that they filed a petition under Section 482 of the Code of Criminal Procedure to quash the FIR, and the investigation was directed to be continued against them.

It was submitted that the Chairman in his statement conceded that it was his responsibility to supervise and curb the illegalities committed in the racing and betting events and activities at the club.

The division bench found that by permitting the carrying on of on-course and off-course betting activities and the related events, the Single Judge had granted the relief of final nature, and no relief for the petitioners would be left in the petition, once the events were held.

Findings:

While allowing the appeal against the single bench's order, the court said: “For the above highlighted aspects and circumstances about the pendency of criminal cases against the office bearers of the Club, all potentiality for the event degenerating into the illegal activities and the grounds mentioned in the impugned order which are cogent, it cannot be said that prima facie, in refusing the grant of licence, the competent authority did not exercise its discretion properly.”

It noted that the discretion was properly exercised by the authority, and there was no prima facie case for the petitioners to seek any interim relief.

The court opined “The writ court commits a jurisdictional error, when proceeds to interfere with judicious exercise of discretion by the administrative authority which has passed the order on relevant considerations. Restoring the due and better part of discretion by the Appellate Court is also a jurisdictional exercise necessary to be adverted to, in order to set right such error and infirmity.”

Thus it held that a strong prima facie case was made by the appellant-State, and the order of the Single Judge was accordingly suspended and stayed.

It was held that the respondent-original petitioner-Club would be prohibited from conducting the on-course and off-course horse racing and betting event during the pendency of the petition and would be subject to the outcome of the petition.

Following this it posted the appeal for a final hearing on 13th August 2024.

Case Title: STATE OF KARNATAKA AND OTHERS VS. BENGALURU TURF CLUB LIMITED AND OTHERS

Case No: WA NO. 919/2024

Click Here To Read/Download Order

Link to Previous report: Karnataka High Court Issues Interim Order Permitting Bangalore Turf Club To Conduct Horse Races, Betting Activities (livelaw.in)