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2012 Supreme(AP) 212

2012 (3) ALT 393
THE HONOURABLE MR. JUSTICE RAMESH RANGANATHAN
Beyond Basiks Infotech Pvt. Ltd.,
Versus
State of Andhra Pradesh, represented by the Principal Secretary, Home (General-A) Department, A.P. Secretariat, Hyderabad. & Others
WRIT PETITION NOs. 4430 of 2009, 5474, 6086, 6565 of 2009; 19020 AND 20357, 25403 OF 2011
Decided On: 27-02-2012

Advocates appeared:
For the Petitioner:P. Kamalakar, Advocate. For the Respondents:G.P. for Home, S. Sriram, The Advocate General; Gurrala Arun, Advocates.

Headnote:A) A.P. CINEMAS (REGULATION) ACT, 1955, Sections 4 and 5 - A.P. Cinemas (Regulation) Rules, 1970, Rule 17-A:- Government has no jurisdiction to issue a G.O. in permitting the GEPL to operate on-line booking system of cinema tickets, as it is the appellate authority in matters of granting licenses under the Act and as an appellate and revision authority cannot directly deal with the parties. Hence the G.O. is set aside.

       B) CONSTITUTION OF INDIA, Articles 19 (l)(g) and 14 - A.P. Cinemas (Regulation) Act, 1955, Section 11 A.P. Cinemas (Regulation) Rules, 1970, Rule 17-A:-The G.O. issued by Government conferring monopoly rights to a single agency GEPL for on-line booking is violative of the fundamental rights under Article 19(1)(g) and is also beyond the scope of Rule 17-A by any stretch of imagination. (Para 51)

       C) CONSTITUTION OF INDIA, Articles 226 and 14 - A.P. Cinemas (Regulation) Act, 1955, Sections 4 and 5 A.P. Cinemas (Regulation) Rules, 1970, Rule 17-A :-The mere fact that the writ petitioners have participated in the process of selection for awarding the license of on-line booking cinema tickets does not preclude the right of the petitioners from filing this writ petition when the procedure is contrary to Article 14 and also ultra vires of Section 4 and 5 of the Act. (Para 5.5)

Judgment :

COMMON ORDER:

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


















































































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