JUDGMENT

V. Kameswar Rao, J. (Oral)

CM. Nos. 6142/2019 and 6143/2019 (for exemption) in LPA 92/2019

CM. Nos. 6145/2019 and 6146/2019 (for exemption) in LPA 93/2019

Exemption is allowed subject to all just exceptions.

Applications stand disposed of.

LPA 92/2019 & LPA 93/2019

1. These two appeals have been filed by the appellants against a common order dated February 04, 2019 passed in three writ petitions including two writ petitions filed by the appellants herein being W.P.(C) No. 1029/2019 (9X Media Pvt. Ltd. and Ors.) and W.P.(C) No. 1030/2019 (B4U Broadband (India) Pvt. Ltd. and Anr.) whereby the learned Single Judge has dismissed the writ petitions.

2. The challenge of the appellants in the writ petitions was to the "Policy Guidelines for Allotment of Slots of DD Free Dish Direct-To-Home Platform to Satellite TV Channels" dated January 15, 2019 of the respondent Prasar Bharati and the respective disconnection notices dated January 18, 2019 sent to the appellants informing that the respondent would conduct the 38th e-auction on February 11, 2019.

3. The appellants herein are broadcasters who own and operate television channels airing music of various genres and in various languages. From the impugned order, it is noted the primary grievance of the appellants was related to the reserve price fixed for the slots for music channels under the Impugned Guidelines.

4. In all, four submissions were made on behalf of the appellants, which are; (i) that the music channels were free to air channels and the appellants were not collecting any subscription amount, thus the appellants could not be classified in the same bucket as General Entertainment Channels (GEC) and other channels; (ii) that music channels were loss making channels and yet the reserve price of the prospective slots to such channels was higher than the reserve price for news channels; (iii) paragraph 2.3 of the impugned guidelines, which provided that differential pricing for genre (language) will be based on principle of higher reserve price for genre (language) with greater commercial potential, which principle was not followed, inasmuch as, the music channels have been placed in bucket "B" along with sports and GEC channels. It was also submitted that the commercial potential of sports channels is greater than music channels and, therefore, classifying the same in one category is arbitrary and unreasonable; (iv) that the commercial potential of music channels was much lower than the commercial potential of news channels and yet, the reserve price for news channels has been fixed at Rs.7 crores and music channels have been fixed at Rs.10 crores.

5. The learned Single Judge has, while dismissing the writ petitions, in paras 18, 19 and 20 held as under:

"18. In view of the aforesaid, this Court is unable to accept that the Impugned Guidelines or the reserve price fixed thereunder would amount to disabling an entrepreneur from carrying on the business of broadcasting a music channel. It is also relevant to note that the `DD Free-Dish' is not the only platform for airing or broadcasting a TV Channel and there are multiple platforms, which are now available. Thus, even if it is accepted that the reserve price fixed by respondent is on the higher side, the same would not amount to excluding the petitioners from the business of broadcasting. It cannot, by any stretch, be construed as violative of Article 19(1)(g) of the Constitution of India.

19. Although, Prasar Bharti is a State within the meaning of Article 12 of the Constitution of India, nonetheless, it is fully entitled to carry its affairs on a commercial basis to fix the prices for its facilities. Prasar Bharti's commercial decision to fix the prices is not amenable to judicial review under Article 226 of the Constitution of India, unless it is established that the same is so arbitrary or so unreasonable that no reasonable person could possibly take such a decision (Wednesbury Test).

20. The scope of judi