M/s. Sunrise Associates vs Govt. of NCT of Delhi

 M/s. Sunrise Associates vs Govt. of NCT of Delhi - Important Supreme Court Cases 2006

On 28th April, 2006, a Constitution Bench in M/s. Sunrise Associates vs Govt. of NCT of Delhi & Ors. [Civil Appeal No.4552 of 1998] held that the sale of a lottery ticket does not involve a sale of goods and at the highest amounts to transfer of an actionable claim. The Bench said “a lottery ticket has no value in itself. It is a mere piece of paper. Its value lies in the fact that it represents a chance or a right to a conditional benefit of winning a prize of a greater value than the consideration paid for the transfer of that chance. It is nothing more than a token or evidence of this right.” It further said that “on purchasing a lottery ticket, the purchaser would have a claim to a conditional interest in the prize money which is not in the purchaser’s possession. The right would fall squarely within the definition of an actionable claim and would therefore be excluded from the definition of ‘goods’ under the Sale of Goods Act and the Sales Tax statutes.”

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