TAMIL NADU FILM EXHIBITORS ASSOCIATION Vs. BRANCH MANAGER FILM DIVISION DEPARTMENT OF MINISTRY OF INFORMATION AND BROADCASTING

JUDGEMENT

(1.) THIS writ appeal is directed against the order of the learned Single Judge made in W.P.No.17729 of 1999 dated 22.11.2002 dismissing the writ petition filed by the appellant herein.

(2.) THE brief facts necessary for disposal of this writ appeal are as follows.

(3.) THE learned Assistant Solicitor General, appearing for the respondents submitted that supply of approved films to the Film Exhibitors for compulsory screening continued without interruption and the respondents are entitled to recover the rental for the said supply of short films. Proof of mere supply of short films to the Exhibitors is sufficient to fix liability of rental under the provisions of section 65 and section 70 of the Indian Contract Act and no written agreement is essential. THE challenge made by the Film Exhibitors of other states having been not accepted by the Honourable Supreme Court, the respondents are entitled to recover the rental arrears for the disputed period i.e., 1% of the turnover of its collection for the above period. THE members of the petitioner association having not chosen to pay the said rental charges in spite of rejection of similar claim by the Supreme Court. Hence demand notices were issued to pay the same. THE learned counsel also submitted that the members of the petitioner association having applied for licence and obtained licence to exhibit the films, they are bound by the directions issued by the Government and the same shall be deemed to be additional condition under restriction, subject to which the licence were granted and the same is made clear under section 6 of the Tamil Nadu Cinema Regulation Act, 1955 and Rule 41(2). THE learned counsel further submitted that the Honurable Supreme Court having dismissed the challenge by its judgment reported in (1999) 6 SCC 150 (Union of India and others v. Motion Picture Association and others), has a natural corollary that the exhibitors are bound to pay one percentage of the collection as rent as agreed earlier. Learned counsel finally submitted that similar issue with regard to payment for the same period was considered by the Andhra Pradesh High Court in W.P.No.21402 of 1999, etc., batch and upheld the right of the respondents to demand rental charges by order dated 17.7.2000 and therefore there is no illegality in the order of the learned single Judge and the writ appeal is liable to be dismissed.