Karnataka High Court restrains Bangalore Turf Club’s horse racing and betting activities – CNBC TV18

The Karnataka High Court on June 22, issued an order restraining the Bangalore Turf Club (BTC) from conducting any horse racing or betting activities. The stay was passed on a previous June 18 ruling by a single judge, which had temporarily authorised the club to hold both on-course and off-course horse racing and betting activities.

A Division Bench comprising Chief Justice NV Anjaria and Justice KV Aravind passed the order on a writ appeal filed by the State government challenging the single-judge order.

“The order of single-judge is hereby suspended and stayed. The respondent-original petitioner club is prohibited from conducting on-course and off-course horse racing and betting even during the pendency of the petition (challenging refusal to grant licence), subject to the outcome of the petition,” the Court said.

The Court found merit in the State’s argument, indicating strong prima facie grounds for denying a license to conduct horse racing and betting.

“From clear prima facie reading of the provisions of the Mysore Race Course Licensing Act, 1952, and Mysore Race Course Licensing Rules, 1952, it has to be observed that on one hand, there is no right to get licence for horse racing as such, unless the conditions are satisfied. On the other hand, the grant or refusal of the licence lies in the discretionary realm of the authorities, the division bench said.

The division bench also observed that the single-judge bench failed to consider that betting could be carried out by both licensed and non-licensed bookies from within or outside BTC.

The division bench said, “The pendency of criminal cases against the office-bearers of the club (BTC), the potentiality of the event degenerating into illegal activities and the grounds mentioned in the impugned order that are cogent, it cannot be said that prima facie, in refusing the grant of licence, the competent authority did not exercise its discretion properly”.

In the interim order dated June 18, Justice SR Krishna Kumar of the single-judge Bench noted that the State government’s decision to deny racing and betting licenses to the BTC was in breach of the principles of natural justice.

Justice Kumar concluded that BTC had not been granted a fair opportunity to present their case for obtaining a license, noting deficiencies in the show cause notice issued to them, which lacked essential details.

Consequently, the single-judge granted interim relief to the petitioners, allowing BTC to resume both on-course and off-course horse racing and betting activities while their petition is pending.

The State government challenged this interim order before a Division Bench, which has now suspended the order.