TaxTMI 
TaxTMI 
1991 (12) TMI 262
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....981 the division bench reversed the judgment and upheld the power of the licensing authority. It also held that the regulation does not offend the right under Article 19(1)(g) of the Constitution. This appeal arises on leave under Article 136 of the Constitution. 2. The licensing authority by proceeding dated February 26, 1975 classified the seats into Box, First Class, Second Class/Ladies and Third Class and prescribed the rates of admission of Rs. 2.75, Rs. 1.75, Rs. 1.30 and Rs. 0.80 P. respectively. On obtaining interim stay of the order, the appellant, pending the writ petition unilaterally enhanced the rates of admission. The question is whether the 2nd respondent has power under the Act. The preamble of the Act provides that "an act to make provision for 'regulating' exhibition of cinematographs in the Punjab". The purpose of the Act, therefore, is to regulate the cinema trade or business in exhibiting the cinematograph in the theatre being run on the licence duly obtained from the licensing authority. Section 5 gives power to the licensing authority thus :- 5. Restrictions on powers of licensing authority:- (1) The licensing authority shall not grant a licence under this....
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.... the business in a proper and orderly manner. It also includes the authority to prescribe the reasonable rules, regulations or conditions subject to which the business may be permitted or conducted. A conjoint reading of Section 5, Section 9, Rule 4 and condition 4A gives, therefore, the power to the licensing authority to classify seats and prescribe rates of admission into the cinema theatre. 6. Article 19(1)(g) of the Constitution accords fundamental rights to carry on any profession, occupation, trade or business, but would be subject to reasonable restrictions on the exercise of the said right imposed by a law, in the interest of the general public. This court in Minerva Talkies, Bangalore v. State of Karnatka and Ors. [1988] (Supp) SCC 176 considered that the right to carry on business of exhibiting cinematograph films by the provisions of the Karnataka Cinemas Regulation Act and the rules framed thereunder. It was held that the Government have power to limit the exhibiting number of shows in a day. These provisions are necessary to ensure public safety, health and other allied matters. The rules do regulates exhibition of cinematograph film by providing that, instead of fiv....
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....e are in agreement with the view taken by the Andhra Pradesh High Court. 7. Witnessing a motion picture has become an amusement to every person; a reliever to the weary and fatigue; a reveler to the pleasure seeker; an importer of education and enlightenment enlivening to news and current events; disseminator of scientific knowledge; perpetrator of cultural and spiritual heritage, to the teeming illiterate majority of population. Thus, cinemas have become tools to promote welfare of the people to secure and protect as effectively as it may a social order as per directives of the State Policy enjoined under Article 38 of the Constitution. Mass media, through motion picture has thus become the vehicle of coverage to disseminate cultural heritage, knowledge, etc. The passage of time made manifest this growing imperative and the consequential need to provide easy access to all sections of the society to seek admission into theatre as per his paying capacity. Though the right to fix rates of admission is a business incident, the appellant having created an interest in the general public therein, it has become necessary for the State to step in and regulate the activity of fixation of m....
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....ner/licence, has no unrestricted power or freedom to fix rates of admission at his whim. Therefore, fixation of rates of admission, though has, its inception in the womb of private contract, but clothed with a public interest to be regulated under the Act, rules and conditions of the licence. The division Bench in Prasada Rao's Case, therefore, held:- It is clothed with a public interest as cine going public acquired direct and positive interest to have easy access of admission into the theaters. Thereby the business ceased to 'juris private' and the business tends to a common charge and became a thing of public interest and use. The business became a sort of public office nearing monopolisation. The legislature seeks to avoid this tendency in the interest of the public welfare. It becomes absolutely necessary to over-ride the private rights of persons and property so as to effectuate the public order for the general welfare of the citizens. 10. Thus classification of seats and fixation of rules of admission have direct and inevitable effect on the public welfare. For its effectuation the division bench in Prasada Rao's case further held that fixation of the rates of admission ha....