Facts
The Petitioner No. 1 operates 'The Deltin', a five-star hotel in Daman.
Source reference: para 10In 2007, the Petitioners sought permission to install electronic amusement/slot machines, relying on Section 13A of the Goa Public Gambling (Amendment) Act, 1992, which they claimed was extended to the UT of Daman and Diu.
Source reference: para 10The Respondent No. 1 issued an "in-principle" NOC on 12.10.2007, citing the 1992 Amendment Act as applicable.
Source reference: para 11In 2008, the UT Administration published a notification outlining the application procedure for licenses.
Source reference: para 13Acting on these representations, the Petitioners invested approximately ₹450 Crores to build the hotel, completing it in 2010.
Source reference: para 18When the Petitioners formally applied for 140 slot machine licenses in 2014, the authorities delayed and eventually rejected the application on 31.08.2018, stating all casino-related applications were rejected as a matter of policy.
Source reference: para 22The Respondents later contended that the 1992 Amendment Act was never actually brought into force in Daman and Diu.
Source reference: para 24Issues
1. Whether the Goa Public Gambling (Amendment) Act, 1992 (specifically Section 13A) was legally in force in the Union Territory of Daman and Diu.
Source reference: para 82. Whether the Petitioner is entitled to the grant of a license based on the principles of promissory estoppel and legitimate expectation.
Source reference: para 293. Whether the 2008 notification prescribing license rules could take effect if the parent Amendment Act had not been notified for commencement.
Source reference: para 46Law Applied
The court primarily applied Section 1(2) of the Goa Public Gambling (Amendment) Act, 1992 as modified by the 1998 extension notification, which mandated that the Act would come into force only on a date appointed by the Central Government via the Official Gazette.
Source reference: para 58Section 22 of the General Clauses Act, 1897, which stipulates that rules or bye-laws made before the commencement of an Act do not take effect until the Act itself commences.
Source reference: para 65Principle from Viraj Impex Pvt. Ltd. v. Union of India, establishing that publication in the Gazette is a condition precedent for the enforceability of law.
Source reference: para 61Doctrine from Hero Motocorp Limited v. Union of India, which holds that promissory estoppel cannot be invoked against the legislature or against larger public interest/policy.
Source reference: para 40Reasoning
The court found that while the 1992 Amendment Act was extended to Daman and Diu in 1998, the Central Government—and not the Administrator—retained the exclusive power to "appoint" the commencement date by notification.
Source reference: para 63, 74Since no such notification was ever published by the Central Government, Section 13A (which permits slot machines) never became law in the territory.
Source reference: para 61Consequently, the 2008 Rules issued by the Administrator were void ab initio under Section 22 of the General Clauses Act because the parent provision (Section 13A) had not commenced.
Source reference: para 66Regarding promissory estoppel, the court reasoned that any promise made by the Administrator was unauthorized and "ultra vires" because he lacked the legal authority to bypass the Central Government’s notification requirement.
Source reference: para 74, 83The court held that the 2014 withdrawal of the licensing scheme was a valid policy decision in the public interest, which overrides equitable claims of estoppel.
Source reference: para 81-82Holding
The court answered the issues in the negative, holding that Section 13A of the 1992 Amendment Act was never legally operational in Daman and Diu.
The prayer for a writ of mandamus was refused because the court cannot direct an authority to act in violation of the current law—specifically the Dadra and Nagar Haveli and Daman and Diu Public Gambling Act, 1976 (as of 2022), which prohibits such machines.
Source reference: para 75, 83The principles of promissory estoppel and legitimate expectation were held inapplicable against statutory prohibitions and public policy.
Source reference: para 82The Writ Petition was dismissed.
Source reference: para 84Original Court PDF
Delta Corp LomitedvsU. T. Administration Of Damn And Diu Thru The Dept. Of Tourism And Ors
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