BEYOND BASIKS INFOTECH PVT LTD Vs. STATE OF ANDHRAPRADESH REPRESENTED BY THE PRINCIPAL SECRETARY HOME GENERAL-A DEPARTMENT A P SECRETARIAT HYDERABAD

JUDGEMENT

(1.) Except in W.P.Nos.20357 and 25403 of 2011, G.O.Ms. No.110 Home (General-A) Department dated 19.2.2009 is under challenge in all the other Writ Petitions which form part of this batch. While the relief sought for in W.P. No.20357 of 2011 is to declare the action of the respondents in not considering the petitioner's request for grant of an on-line licence, and in preventing them from conducting their business as an on-line agency, as arbitrary and illegal; the relief sought for in W.P. No.25403 of 2011 is to declare the action of the respondents in interfering with the business carried on by the petitioner in conducting on-line booking through e-ticketing system of tickets in respect of theatres within the State of Andhra Pradesh, and in insisting on a separate licence, as arbitrary and illegal. However both Sri S.Niranjan Reddy, Learned Counsel for the petitioner in W.P. No.20357 of 2011, and Sri P.Sriraghuram, Learned Counsel for the petitioner in W.P. No.25403 of 2011, would submit that it would be suffice for disposal of these two Writ Petitions also if this Court were to restrict its examination to the validity of G.O.Ms. No.110 dated 19.2.2009.

(2.) The Andhra Pradesh Cinemas (Regulation) Rules, 1970 (hereinafter called the "Rules") were amended by G.O.Ms. No.47, Home (General-A) Department dated 10.3.2006 whereby an online booking system was statutorily introduced in the State of Andhra Pradesh. Proposals were received from five agencies to operate the online ticket booking system in cinema theatres in the State of Andhra Pradesh. Galaxy Entertainers Private Ltd, (hereinafter called GEPL), also submitted a proposal to the Government on 5.2.2004 expressing interest in operating the online ticket booking system. THE Government, vide G.O.Ms. No.48 Home (Gen A) Department dated 10.3.2006, accorded permission to GEPL to operate the said online ticket booking system. In view of adverse newspaper reports, G.O.Ms. No.48 dated 10.3.2006 was cancelled by G.O.Rt. No.837 Home (Gen A) Department dated 4.5.2006. THEreafter the Government issued G.O.Rt.No.1966, Home (General-A) Department dated 21.11.2006 constituting a committee, as computerized ticketing in cinema theatres in the State of A.P. would facilitate disclosure of sales volumes so as to prevent tax evasion; this system would bring transparency in ticket booking, and improvement in the entertainment tax collection system; and thereby black marketing of cinema tickets would be prevented to a great extent. THE Government deemed it proper, therefore, to entrust the same to a suitable agency for selecting and short listing firms to operate such a system after duly examining their technical expertise, financial background etc. THE Committee, constituted by G.O.Rt. No.1966, Home (General-A) Department dated 21.11.2006, was required to finalize agencies for providing the on-line cinema ticket booking system in cinema halls in the State of Andhra Pradesh. THE committee was directed to examine in detail the scheme for its implementation either through a single agency or through multiple agencies. THEreafter the Committee submitted its report making 29 recommendations for implementation of the on-line ticket booking system. It recommended multiple agencies. THE Government, by G.O.Rt. No.1571, Home (General-A) Department, dated 25.8.2008, constituted another committee to examine whether to have a centralized single state level operating system with one agency instead of multiple agencies, and to consider the representations received by it. THE three member Committee heard the President, A.P. Film Chambers of Commerce, the Hyderabad State Film Chambers of Commerce, the Telugu Film Producers Council and five online ticket agencies including GEPL, and submitted its report dated 3.11.2008 to the Government. It is seen from the said report that the Home Department had forwarded the applications, along with the proposals and representations submitted by eight agencies including three trade bodies, for scrutiny and examination; the representatives of the trade bodies were heard on 25.09.2008; the trade bodies stated that the service charges, payable to the agency, would be a burden on the cine-goer; they desired the system to be fool-proof, exhibitors be allowed to introduce the system on their own, and the system be implemented at the behest of the theatre owners. THE Committee report also notes that proposals were received from five agencies for implementing the on-line ticket booking system. THE Committee considered the proposals made by each of these five agencies. While determining the service charges, and the period of operation, the Committee took into consideration the cost of setting up infrastructure at the theatres; payment to retail outlet stores for selling tickets; the cost of setting up telephone operators for selling tickets over phone; cost of setting up central infrastructure for maintaining information of all ticket sales across the State; and the cost of maintaining the web portal. Based on the information placed before it, the Committee was of the view that a service charge of Rs.6/- per ticket would enable the agency to break-even over a period of 7 to 10 years.

(3.) M/S Beyond Basiks Infotech Pvt. Ltd. (the petitioner in W.P. No.4430 of 2009), had submitted a representation for grant of an online-booking licence for the year 2008 and, as the licence was not granted, they filed W.P. No.17744 of 2008 before this Court. The said Writ Petition was disposed of, by order dated 26.8.2008, directing respondents 2 and 3 therein to pass appropriate orders. The 2nd respondent, by order dated 16.9.2008, rejected the petitioner's application holding that the Government had not formulated and communicated the terms and conditions envisaged in Rule 17-A of the Rules. M/s Beyond Basiks Infotech Pvt. Ltd., by their representation dated 20.9.2008, again requested the 2nd respondent to accord permission. They filed W.P. No.21723 of 2008 and, by order in W.P.M.P. No.28354 of 2008 dated 23.10.2008, interim directions were passed permitting them to continue sale of online cinema tickets subject to the terms and conditions imposed for the previous years.