The Prize Competitions Act, 1955
# THE PRIZE COMPETITIONS ACT, 1955

ARRANGEMENT OF SECTIONS

SECTIONS

1. Short title, extent and commencement.

2. Definitions.

3. Interpretation.

4. Prohibition of prize competitions where the prize offered exceeds one thousand rupees a

month.

5.Licensing of prize competitions where the prize offered does not exceed one thousand
rupees a month.

6. Licences for prize competitions.

7.Promoters of prize competitions to keep accounts and submit the same to the licensing
authority.

8. Power to cancel or suspend licences.

9. Penalty for promoting or conducting any prize competition in contravention of the

provisions of sections 4 and 5.

10. Penalty for failure to keep and submit accounts.

11. Penalty for other offences in connection with prize competitions.

12. Offences by Corporations.

13. Power of licensing authority to call for and inspect accounts and documents.

14. Power of entry and search.

15. Forfeiture newspapers and publications containing prize competitions.

16. Appeals.

17. Licensing authority and other officers to be public servants.

18. Jurisdiction to try offences.

19. Protection of action taken under this act.

20. Power to make rules.

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# THE PRIZE COMPETITIONS ACT, 1955
 ACT NO. 42 OF 1955[1]

 An Act to provide for the control and regulation of prize competitions.



[22nd October, 1955.]


WHEREAS it is expedient to provide for the control and regulation of prize Competitions;

AND WHEREAS the Legislatures of the States of Andhra, Bombay, Madras, Orissa, Uttar Pradesh,

Hyderabad, Madhya Bharat, Patiala and East Punjab States Union and Saurashtra have passed
resolutions in terms of clause (1) of article 252 of the Constitution in relation to the above-mentioned
matter and matters ancillary thereto in so far as such matters are matters enumerated in List II in the
Seventh Schedule to the Constitution;

BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:―

**1.** **Short title, extent and commencement.―(1) This Act may be called the Prize Competitions**

Act, 1955.

(2) It extends to [2][the territories which, immediately before the 1st November, 1956, were

comprised in] the States of Andhra, Bombay, Madras, Orissa, Uttar Pradesh, Hyderabad, Madhya
Bharat, Patiala and East Punjab States Union and Saurashtra and all Part C States.

(3) It shall come into force on such date[3] as the Central Government may, by notification in the

Official Gazette, appoint.

**2.** **Definitions.―In this Act, unless the context otherwise requires,―**

(a) “licensing authority” means any officer or authority appointed by the State Government,

by notification in the Official Gazette, for the purpose of granting licences under this Act;

(b) “money” includes a cheque, postal-order or money-order;
(c) “prescribed” means prescribed by rules made under this Act;
(d) “prize competition” means any competition (whether called a cross-word prize

competition, a missing-word prize competition, a picture prize competition or by any other name)
in which prizes are offered for the solution of any puzzle based upon the building up,
arrangement, combination or permutation, of letters, words, or figures.
**3.** **Interpretation.―For the purposes of this Act,―**

(a) references to printing shall be construed as including references to writing and other

modes of representing or re-producing letters, words or figures in a visible form; and

(b) documents or other matters shall be deemed to be distributed if they are distributed to

persons or places within or outside the territories to which this Act extends and the word
distribution' shall be construed accordingly.

**4.** **Prohibition of prize competitions where the prize offered exceeds one thousand rupees a**

**month.―No person shall promote or conduct any prize competition or competitions in which the**
total value of the prize or prizes (whether in cash or otherwise) to be offered in any month exceeds
one thousand rupees; and in every prize competition, the number of entries shall not exceed two
thousand.

1. Extended to and brought into force in Dadar and Nagar Haveli (w.e.f. 1.7.65) by Reg. 6 of 1963, s. 2 & Sch. I.

Extended to Goa, Daman and Diu by Reg. 11 of 1963, s. 3 & sch. (w.e.f. 1-2-1965) Extended to the Union territory
of Pondicherry by Act 26 of 1968, s.3 and Schedule. 2. 1st April, 1956, vide Notification No. S.R. O. 766, dated 31st
March, 1956, Gazette of India, Extraordinary, Part II, sec. 3,

2. Ins. by A. O. (No. 3), 1956.
3. 1st April, 1956, vide Notification No. S.R.O. 766, dated 31st March, 1956, Gazette of India, Extraordinary, Part II,

sec. 3.

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**5.** **Licensing of prize competitions where the prize offered does not exceed one thousand**

**rupees a month.―Subject to the provisions of section 4, no person shall promote or conduct any**
prize competition or competitions in which the total value of the prize or prizes (whether in cash or
otherwise) to be offered in any month does not exceed one thousand rupees unless he has obtained in
this behalf a licence granted in accordance with the provisions of this Act and the rules made
thereunder.

**6.** **Licences for prize competitions.―(1) Every person desiring to obtain a licence referred to in**

section 5 shall make an application in writing to the licensing authority in such form and manner as
may be prescribed.

(2) On the receipt of such application, the licensing authority, after making such inquiry as it

considers necessary, shall, by order in writing, either grant the licence or refuse to grant the licence.

(3) Where the licensing authority refuses to grant a licence it shall record a brief statement of the

reasons for such refusal and furnish a copy thereof to the applicant.

(4) The fees on payment of which, the period for which, the conditions subject to which, and the

form in which, a licence may be granted shall be such as may be prescribed.

**7.** **Promoters of prize competitions to keep accounts and submit the same to the licensing**

**authority.―Every person who promotes or conducts a prize competition in accordance with the**
provisions of this Act and the rules made thereunder shall keep accounts relating to such competition
and submit to the licensing authority a statement of accounts in such form and at such intervals as
may be prescribed.

**8.** **Power to cancel or suspend licences.―(1) The licensing authority may, after giving the**

holder of any licence under this Act a reasonable opportunity of being heard, cancel or suspend the
licence on any one or more of the following grounds, namely:―

(a) that there has been a breach of any of the conditions subject to which the licence was

granted;

(b) that the holder of the licence has contravened any of the provisions of section 7.

(2) Whenever a licence is cancelled or suspended the licensing authority shall record a brief

statement of the reasons for such cancellation or suspension and furnish a copy thereof to the person
whose licence has been cancelled or suspended.

**9.** **Penalty for promoting or conducting any prize competition in contravention of the**

**provisions of sections 4 and 5.―If any person promotes or conducts any prize competition in**
contravention of the provisions of section 4 or section 5, he shall be punishable with imprisonment for
a term which may extend to three months, or with fine which may extend to one thousand rupees, or
with both.

**10.** **Penalty for failure to keep and submit accounts.―If any person liable under section 7 to**

keep accounts or to submit statements of accounts fails to keep accounts or to submit statements of
accounts as required by that section or keeps accounts or submits statements of accounts which are
false and which he either knows or believes to be false or does not believe to be true, he shall be
punishable with imprisonment for a term which may extend to one month, or with fine which may
extend to five hundred rupees, or with both, but nothing contained in this section shall affect the
provisions contained in section 8.

**11.** **Penalty for other offences in connection with prize competitions.―If any person with a**

view to the promotion or conduct of any prize competition except in accordance with the provisions
of a licence under this Act or in contravention of the provisions of this Act or in connection with any
prize competition promoted or conducted except in accordance with such provisions―

(a) prints or publishes any ticket, coupon or other document for use in the prize competition;

or

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(b) sells or distributes or offers or advertises for sale or distribution, or has in his possession

for the purpose of sale or distribution any ticket, coupon or other document for use in the prize
competition; or

(c) prints, publishes or distributes, or has in his possession for the purpose of publication or

distribution,

(i) any advertisement of the prize competition, or

(ii) any list (whether complete or not) of prize winners in the prize competition, or

(iii) any such matter descriptive of, or otherwise relating to, the prize competition as is

calculated to act as an inducement to persons to participate in that prize competition or any
other prize competition ; or

(d) brings, or invites any person to send, into the territories to which this Act extends, for the

purpose of sale or distribution, any ticket, coupon or other document for use in, or any
advertisement of, the prize competition ; or

(e) sends, or attempts to send, out of the territories to which this Act extends any money or

valuable thing received in respect of the sale or distribution of any ticket, coupon or other
document for use in the prize competition ; or

(f) uses any premises, or causes or knowingly permits any premises to be used, for purposes

connected with the promotion or conduct of the prize competition ; or

(g) causes or procures or attempts to procure any person to do any of the above-mentioned

acts,

he shall be punishable with imprisonment for a term which may extend to three months, or with fine
which may extend to five hundred rupees, or with both.

**12.** **Offences by Corporations.―(1) If any person guilty of an offence under this, Act is a**

company, every person who at the time the offence was committed was in charge of, and was
responsible to, the company, as well as the company, shall be deemed to be guilty of that offence and
shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any

punishment provided in this Act if he proves that the offence was committed without his knowledge
or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has

been committed with the consent or connivance of, or is attributable to gross neglect on the part of,
any director, manager, secretary or other officer of the company, such director, manager, secretary or
other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.

_Explanation.―For the purposes of this section,―_

(a) “company” means a body corporate and includes a firm or other association of

individuals ; and

(b) “director” in relation to a firm means a partner in the firm.

**13.** **Power of licensing authority to call for and inspect accounts and documents.―The**

licensing authority may―

(a) require any person promoting or conducting a prize competition to produce before it the

accounts and other documents kept by such person or to furnish to it such other information
relating to the prize competition as it may require;

(b) inspect at all reasonable times the accounts and other documents kept by such person.

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**14.** **Power of entry and search.―(1) It shall be lawful for any police-officer not below the rank**

of Sub-inspector authorised by the State Government in this behalf by general or special order in
writing,―

(a) to enter if necessary by force, whether by day or night, with such assistants as he

considers necessary, any premises which he has reason to suspect, are being used for purposes
connected with the promotion or conduct of any prize competition in contravention of the
provisions of this Act;

(b) to search the premises and the persons whom he may find herein;

(c) to take into custody and produce before a Magistrate all such persons as are concerned or

against whom a reasonable complaint has been made or credible information has been received or
a reasonable suspicion exists of their having been concerned with the user of such premises for
purposes connected with, or with the promotion or conduct of, any prize competition in
contravention of the provisions of this Act; and

(d) to seize all things found therein which are intended to be used or reasonably suspected to

have been used in connection with such prize competition.

(2) All searches under this section shall be made in accordance with the provisions of the Code of

Criminal Procedure, 1898 (5 of 1898).

**15.** **Forfeiture newspapers and publications containing prize competitions.―Where any**

newspaper or other publication contains any prize competition promoted or conducted in
contravention of the provisions of this Act or except in accordance with the provisions of licence
under this Act or any advertisement in relation thereto, the State Government may, by notification in
the Official Gazette, declare every copy of the newspaper and every copy of the publication
containing the prize competition or the advertisement, to be forfeited to Government.

**16.** **Appeals.―Any person aggrieved by the decision of the licensing authority refusing to grant a**

licence or cancelling or suspending a licence may, within such time as may be prescribed, prefer an
appeal to the State Government and the decision of the State Government on such appeal shall be
final.

**17.** **Licensing authority and other officers to be public servants.―The licensing authority and**

any other officer acting under this Act shall be deemed to be public servants within the meaning of
section 21 of the Indian Penal Code (45 of 1860).

**18.** **Jurisdiction to try offences.―No Court inferior to that of a Presidency Magistrate or a**

Magistrate of the first class shall try any offence under this Act.

**19.** **Protection of action taken under this act.―No suit, prosecution or other legal proceeding**

shall lie against the licensing authority or any other officer of the Government for anything which is in
good faith done or intended to be done under this Act or the rules made thereunder.

**20.** **Power to make rules.―(1) The State Government may, by notification in the Official**

Gazette, and subject to the condition of previous publication, make rules for carrying out the purposes
of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may

provide for all or any of the following matters, namely:―

(a) the form and manner of application for a licence and the fees, if any, for such licence;
(b) the period for which, the conditions subject to which and the form in which, a licence may

be granted;

(c) the form in which and the intervals at which statements of accounts shall be submitted to

the licensing authority;

(d) the time within which an appeal against a decision of the licensing authority may be

preferred to the State Government;

(e) any other matter which is to be or may be prescribed.

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