LAWS(DLH)-1979-11-9

ISHERDAS SAHNI AND BROS Vs. DELHI ADMINISTRATION

Decided On November 29, 1979
ISHERDAS SAHNI AND BROTHERS Appellant
V/S
DELHI ADMINISTRATION Respondents

JUDGEMENT

(1.) The petitioner herein as also the petitioners in the connected writ petitions are holders of licences to run cinemas under the Cinematograph Act, 1952 (hereinafter referred to as the Act) and the Delhi Cinematograph Rules, 1953 (the rules) made thereunder. For some years, the Delhi Administration has been regulating the rates at which cinema tickets could be sold by the holders of the licences for running the cinema theatres in Delhi. In 1975, there was a general cut of 10% in the rates which had been already fixed by the Delhi Administration tor the sale of cinema tickets. The holders of these licences felt aggrieved by the said cut. They made representations to the Delhi Administration pointing out that already the expenses of exhibiting films and maintaining the cinema theatres had gone up for a number of years and the rates which had already been fixed were already proving unbearable and on top of it, the cut of 10% was making it uneconomical for the licensees to run the cinemas. The representation of the National Associaion of Motion Picture Exhibitors was considered by the Lt. Governor and the Administration agreed to allow the licensees to add to the existing number of seats in the cinema theatres to make good the loss caused to the licensees by the reduction in the rates by 10% which was made in 1975. Accordingly, the Administration consulted the Chief Fire Officer whose duty it was to ensure that the number and arrangement of seats is such that in case of fire evacuation of theatres would not be impeded. They also consulted the Municipal authorities whose duty was to ensure that considerations of public health are satisfied in the number of seats and in the way they are arranged as also the provision of other facilities to the spectators in these cinema theatres. Thereafter, a series of orders were issued by the Administration granting relaxations to the different licensees in compliance with the Delhi Cinematograph Rules, 1953. In accordance with these relaxations, different licensees were allow to increase or change the number and arrangement of seats in their respective theatres as allowed by the orders of relaxation.

(2.) Subsequently, in C. W. No. 173 of 1979 and the connected writ petitions (Reported in AIR 1979 Delhi 249), tha licensees challenged the power of the Administration to regulate the rates at which tickets for the cinema shows were sold by these licensees. It was held by this Court that under the Act or the Rules framed thereunder the Government did not have the power to regulate the rates of admission in the cinema theatres. As a result of this decision, which was given on 15-5-1979, the licensees were free to fix such rates of admission to their cinema theatres as they thought fit without being constrained in doing so by any regulation on the part of the Government While it was appreciated that the action of the Government in regulating the rates of admission was motivated by concern for the common man who should be able to recreate and educate himself by being made able to see the films exhibited in the cinema theatres, the power to regulate the rates was not contained in the Act and the Rules and, therefore, the power had to be negatived even though the consequences were such that the rates were enhanced by the licensees to the detriment of the public interest which always exists in the recreation and education of the common man living in a city like Delhi.

(3.) Since the main reason for the grant of relaxation to the licensees had disappeared inasmuch as the licensees were now free to charge such rates of admission to their cinema theatres as they pleased and also because the licensees did take advantage of this freedom and did increase the rates of admission to their respective theatres, the Lt. Governor issued an order on the 27th July, 1979 by which he cancelled with immediate effect five notifications dated 30-9-1976. 24-11-1977, 22-7-1977, 28-12-1977 and 29-3-1978 by which relaxations had been granted to the different licensees who were thereby allowed to increase the number of seats in their theatres.