State governments can allow the horse racing competition if local laws permit. In such cases, a subscription or contribution valued at or above Rs.500 for a prize or amount of money to be paid to the winner of a horse race is not illegal. In other words, agreements to subscribe to that price or a sum or to contribute to a contribution are also valid and applicable. As mentioned above, a number of Indian companies make an argument in the event of losses on foreign exchange transactions in which derivatives transactions are unenforceable in the nature of betting agreements and, therefore, in Indian courts under Section [xxi] and therefore do not create any financial liability or obligation with respect to the repayment of loans to the bank. As a result, many conservative Indian banks, such as the State Bank of India, have long given up on derivatives trading with their customers. In Gherulal Parakh v. Mahadeodas Maiya[xxii], the question arose as to whether a partnership established to enter into futures contracts for the purchase and sale of wheat to speculate in the future on the rise and fall in the price of wheat was a gamble and whether it was concerned with Section 30 of the Contracts Act. But the Supreme Court ruled that such a partnership was not illegal, although the case for which the partnership was created was considered a wage. It stated: after the adoption of the Gambling Act of 1845, a bet was cancelled, but it was not illegal under a law prohibited by law, and subsequently a primary gambling agreement was invalid, but a collateral agreement was applicable; There was a conflict as to whether the second part of Section 18 of the Gaming Act, in 1845, would cover a case of forfeiture of money or valuables that would have been earned on a wage of bets under a replacement contract between the same parties: the House of Lords in Hill[xxiii] had finally resolved the dispute by being part of the case that such a claim is not viable , whether as part of the initial betting agreement between the parties or as part of an agreement that has been replaced between the parties; Therefore, under the Gaming Act 1892, ancillary contracts, including partnership agreements, are not applicable, given its broad and extensive phraseology; Since Section 30 of the Indian Contract Act is based on the provisions of Section 18 of the Gaming Act of 1845 and a bet is certainly null and unworkable, it is therefore not prohibited by law and, therefore, the subject of an ancillary agreement under Section 23 of the Contract Act is not illegal; and the partnership is an agreement within the meaning of Section 23 of the Indian Contract Act, it is not illegal, although its purpose is to conduct betting operations. VariationWagers Distinguished From Insurance ContractA insurance transaction is equivalent to a bet.