Licensing authorities must adhere to explicit rules without imposing additional restrictions; failure to provide procedural fairness invalidates license cancellations.

Headnote:(A) Madhya Pradesh Cinemas (Exhibition of Films by Video Cassette Recorder) Licensing Rules, 1983 - The rules govern the exhibition of films on television screens and licensing criteria - Rules do not specify screen size restrictions, thus licensing authority cannot impose such limits arbitrarily. (Paras 6, 7, 11, 12)

(B) Licensing Authority - Obligation to provide an opportunity to show cause against license cancellation or refusal - Proper enquiry mandated upon complaints and any action must comply with procedural fairness and not take place without evidence against licensee. (Paras 4, 12)

Facts of the case:
Petitioners are film exhibitors through V.C.R. and have faced cancellations or renewals of licenses due to the use of screens larger than a standard 27" size, leading to enforcement of entertainment duty demands erroneously. The basis of action against them often lacked proper legal grounding as per the current licensing rules.

Findings of Court:
The screening limitations imposed by authorities were found in violation of the existing rules as they were not explicitly mentioned; hence, the licensing authority's demands were quashed, and applications for renewals should be reconsidered without restrictions on screen size unless amended into the regulations.

Issues: The primary legal issue revolves around whether there are limits on screen sizes under the licensing rules and the procedural fairness in license cancellations.

Ratio Decidendi: The court held that the absence of explicit rules regarding screen dimensions affords licensees the right to use any legitimate size, and any cancellation or refusal without due process is invalid.

Result: Petitions allowed.

Table of Content
1. overview of petitions regarding film exhibition licenses in madhya pradesh. (Para 1 , 2 , 3)
2. discussion on the legality and implications of the existing licensing rules. (Para 4 , 5)
3. importance of clear regulations around screen sizes in licensing. (Para 6 , 7 , 8)
4. final verdict on licensing renewals and procedural fairness. (Para 9 , 12 , 13)
5. outcome of claims regarding improper demands for entertainment duty. (Para 10 , 11)

1. The order in this petition shall also govern the disposal of Miscellaneous Petition No. 2944 of 1984 (Sushil Kumar Sharma v. State of M.P. and another), Miscellaneous Petition No. 1319 of 1985 (Sushil Kumar Sharma v. State of M.P. and another), Miscellaneous Petition No. 3784 of 1985 (Santosh Kumar Jain v. State of M.P. and another), Miscellaneous Petition No. 3785 of 1985 (Vishwaraj Singh Thakur v. State of M.P. and another), Miscellaneous Petition No. 5 of 1986 M/s. Sanjay Singh Parihar and Brothers v. State of M.P. and 2 others), Miscellaneous Petition No.68 of 1986 (Pyaralal v. State of M.P. and another), and Miscellaneous Petition No. 977 of 1986 (Sanjay Singh Parihar and 2 others v. State of M.P. and 5 others) as in all common question of law arises for decision.

2. The petitioner in all these cases are exhibiters of films through Video Cassette Recorder (V.C.R.). They have been issued due licenses to exhibit, films through V.C.R. on a television screen under Madhya Pradesh Cinemas (Exhibition of Films by Video Cassette Recorder) Licencing Rules, 1983. Noticing that the petitioners are exhibiting films on a wider screen than the one ordinarily found fixed in a television set, directions have been issued to the petitioners not to exhibit films on wider screens by playing pre-recorded cassettes on a V.C.R. Licences have either been suspended or not renewed and the exhibition of films on wider screen has been stopped. In Miscellaneous Petition No. 2657 of 1985, the exhibition of films on a wider screen through V.C.R. has been stopped and licencing has not been renewed.
In Miscellaneous Petition No. 68 of 1986, the petitioner has been granted licence to run the exhibition on 27" screen only and his application for grant of licence for exhibition on 72" wide screen has not been disposed of. He seeks a direction for permission to run the exhibition on a 72" wide screen. In Misc. Petition No. 2944 of 1984 and 1319 of 1985, the licence issued has been cancelled because the place of exhibition of film adjoins the Tahsil Office and causes inconvenience in the working of that office. In Misc. Petition Nos. 3784 of 1985, where the petitioner was found exhibiting films on a 72" wide screen entertainment duty at an enhanced rate as chargeable in cases of exhibition of films in big cinema halls through the projector, has been demanded and the apparatus has been seized. Consequently, the exhibition of films has been stopped. In Misc. Petition No. 5 of 1986 and 977 of 1986, the apparatus has been seized because the petitioners there used 15' wide screen and neither issued tickets nor maintained account register. The exhibition of films thus has been stopped.

3. Although in all these cases, licences were issued under the M.P. Cinema (Exhibition of Films by Video Cassette Recorder) Licencing Rules, 1983, the licences granted have been suspended or revoked or not renewed and entertainment duty at different rates under different criteria has been demanded and the apparatus has been seized principally because the exhibiters/petitioners are using screens wider than the ordinary 27" screen which is found fixed in the television set. The basis for all the impugned actions against the petitioners seems to be that the permission granted for exhibition of films on a television screen through the V.C.R. does not permit exhibition on a screen wider than the ordinary 27" screen ordinarily used in a television set. Use of a wider screen is said to be contravention of the terms of licence granted for exhib

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1987 Supreme(Online)(MP) 6

Licensing authorities must adhere to explicit rules without imposing additional restrictions; failure to provide procedural fairness invalidates license cancellations.

Cases Referred (1)