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Madhya Pradesh High Court
G. P. SINGH,K. K. ADHIKARI
Restaurant Lee - Appellant
Versus
State of M.P. - Respondent
Decided On : 04/28/1983
CINEMAS (REGULATION) ACT - CINEMATOGRAPH - VCR AND TV SETS - EXHIBITION OF MOVIES - LICENSING REQUIREMENT - ENTERTAINMENT DUTY ACT - ADMISSION FOR PAYMENT - COPYRIGHT ACT - VIOLATION.
Fact of the Case:
Petitioners, proprietors of cafes and restaurants in Madhya Pradesh, installed VCR and TV sets in their establishments to show motion pictures to customers. They charged customers for tea, coffee, or snacks, and entry was sometimes by purchase of coupons or tickets. The petitioners had commercial licenses for their VCR and TV sets under the Licensing of Wireless Receiving Apparatus Rules, 1965 and the Indian Wireless Telegraphy (Possession) Rules, 1965, but they did not have licenses under the Madhya Pradesh Cinemas (Regulation) Act, 1952 or the Madhya Pradesh Entertainment Duty Act, 1936.
Finding of the Court:
The court held that the use of VCR and TV sets by the petitioners in their restaurants to exhibit movies contravened the provisions of the Madhya Pradesh Cinemas (Regulation) Act and the Madhya Pradesh Entertainment Duty Act. The court found that the petitioners were required to obtain a license under the Cinemas (Regulation) Act because their activity fell within the definition of "cinematograph" and "exhibition" under the Act. The court also found that the petitioners were liable to pay entertainment duty under the Entertainment Duty Act because they were admitting customers for payment to view the movies.
Issues: 1. Whether the use of VCR and TV sets by the petitioners to exhibit movies in their restaurants contravened the provisions of the Madhya Pradesh Cinemas (Regulation) Act, 1952 and the Madhya Pradesh Entertainment Duty Act, 1936. 2. Whether the petitioners were required to obtain a license under the Cinemas (Regulation) Act. 3. Whether the petitioners were liable to pay entertainment duty under the Entertainment Duty Act.
Ratio Decidendi: 1. The court held that the use of VCR and TV sets by the petitioners to exhibit movies in their restaurants contravened the provisions of the Madhya Pradesh Cinemas (Regulation) Act and the Madhya Pradesh Entertainment Duty Act. 2. The court found that the petitioners were required to obtain a license under the Cinemas (Regulation) Act because their activity fell within the definition of "cinematograph" and "exhibition" under the Act. The court held that a VCR, when used for playing pre-recorded cassettes of movies, falls within the definition of "cinematograph" in the Act, and that the activity of exhibiting movies by playing pre-recorded cassettes in VCRs in their restaurants comes within the ban contained in Section 3 of the Act, which prohibits the exhibition by means of a cinematograph elsewhere than in a place licensed under the Act. 3. The court also found that the petitioners were liable to pay entertainment duty under the Entertainment Duty Act because they were admitting customers for payment to view the movies. The court held that the definition of "entertainment" in the Act includes any exhibition to which persons are admitted for payment, and that the petitioners' activity of exhibiting movies in their restaurants fell within this definition.
Final Decision: The petitions were dismissed, and the petitioners were ordered to obtain licenses under the Cinemas (Regulation) Act and to pay entertainment duty under the Entertainment Duty Act.
G. P. SINGH, C.J. : - This order shall also dispose of Miscellaneous Petitions 676, 677, 678, 679, 680, 835, 902, 923, 968, 995, 998, 1008, 1011, 1012, 1013, 1014, 1154 and 1180, all of 1983. The petitioners in all these petitions except M.P. No. 1180 are proprietors of cafes and restaurants in different parts of Madhya Pradesh. They have their association bearing the name Madhya Pradesh Video Vyawasai Sangh. This association is the petitioner in M.P. No. 1180. The petitioners have installed in their restaurants Video Cassette Recorder (VCR) and Television (TV) sets. With the help of these the customers coming to their restaurants are shown motion pictures at particular timings. These timings of the 'show' and the pictures are advertised in bigger towns in daily newspapers or on boards. In smaller towns the advertisement is by word of mouth. The customer is ostensibly charged ranging between Rs. 8/- to Rs. 1.50 for tea or coffee or similar other drinks and/or some snacks. Entry in some cases is by purchase of coupons or tickets. In other cases payment is made against a bill The motion pictures shown are prerecorded on cassettes of magnetic tape which are relayed by the VCR on TV screen. The VCR and TV sets of the petitioners are licensed under the Licensing of Wireless Receiving Apparatus Rules. 1965 and the Indian Wireless Telegraphy (Possession) Rules, 1965 which have been respectively made under S.7 Telegraph Act, 1885, and S.10. Wireless Telegraphy Act. 1933. The licences held by the petitioners are commercial licences as distinguished from domestic licences. On these facts which were admitted by the learned counsel for the parties during the course of arguments, the common question that arises in these petitions is whether the use of VCR and TV sets by the petitioners in their restaurants in the manner stated above contravenes the provisions of the Madhya Pradesh Cinemas (Regulation) Act 1952 and the Madhya Pradesh Entertainment Duty Act, 1936.
2. With the consent of the learned counsel appearing for the parties return filed by the respondents i.e. the State of Madhya Pradesh and the district authorities in Misc. Petition No. 556 of 1983 has been accepted as return in all the petitions. The Central Circuit Cine Association, Bhusawal, was allowed to intervene in M. P. No. 556 of 1983 and it has filed a separate return.
3. Before proceeding to discuss the contention raised in these petitions, it is convenient to notice first the relevant statutory provisions. To begin with the Constitution : Parliament has exclusive power to legislate with respect to "Posts and Telegraph, telephones, wireless, broadcasting and other like forms of communication" under Entry 31 of List I of Schedule VII. Parliament has also exclusive power on the subject of "Sanctioning of Cinematograph films for exhibition" under Entry 60 of List I. The State Legislature, on the other hand, has exclusive power to legislate on the subjects of public order and public health under Entries (1) and (6) of List II. It has also exclusive power with respect to "theatres and dramatic performances, cinemas subject to the provisions of Entry 60 of List I, sports, entertainments and amusements" under Entry 33 of List II. Further, it has also exclusive power under Entry 62 of List II to impose "taxes on luxuries, including taxes on entertainments, amusements, betting and gambling." At the time when the Constitution was framed, television was not introduced in India. With the introduction of television Parliament enacted the Telegraph Laws (Amendment) Act, 1961 to amend the definition of "telegraph" in the Telegraph Act, 1885 and the definition of "wireless communication" in the Wireless Telegraphy Act, 1933 to put the matter beyond controversy that these definitions are wide enough to cover transmission and reception of visual images by television. Section 4 of the Telegraph Act which controls the establishing, maintaining and working of telegraphs enacts that the
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