AI Drafter 
TaxTMI 
TaxTMI 
1988 (1) TMI 365
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....in Form F prescribed by the Rules. The Rules and conditions contained in the Licence (Form F) do not prescribe any restriction on the number of shows of films which a licensee can exhibit in his theatre. Condition No. 11 of the licence, however, provides that : "No cinematograph exhibition shall continue after such time not later than 1.00 a.m.". Normally, the cinema owners were holding four shows but later on, they increased it to five shows in a day starting from 10 a.m. to 12 noon, 12 noon to 3 p.m., 3 p.m. to 6 p.m., 6 p.m. to 9 p.m., 9 p.m. to 12 a.m. Thus the cinematograph films were being exhibited continuously from 10 a.m. to mid-night, which caused a number of problems. The State Government in exercise of its powers under Section 19 of the Act framed Rules 41-A directing that no licensee shall exhibit more than four cinematograph shows in a day. Rule 41-A is as under: 41-A. Number of shows permissible in a day: No licensee shall exhibit more than four cinematograph shows in a day. 3. In pursuance of Rule 41-A the appellants were directed to exhibit cinematograph films for four shows only in a day. The appellants challenged validity of the aforesaid rule placing....
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....n of cinematograph films and the restriction placed by it was reasonable and in the interests of the general public. Since there was difference of opinion between the two learned Judges the matter was placed before M. Rama Jois J., who agreed with the opinion expressed by N.R. Kudoor J. Rama Jois J. held that the State Government had power to frame Rule 41-A under Section 19 of the Act and the Rule did not place any unreasonable restriction on the appellants' right, to carry on business of exhibiting cinematograph films. The learned Judge ruled that the impugned Rule was not ultra vires the Act and it did not violate appellants' fundamental rights under Article 19 of the Constitution. In view of the majority opinion, all the writ petitions were dismissed. Aggrieved by the decision of the High Court the appellants have challenged the correctness of the High Court Judgment in these appeals. Some of the aggrieved cinema owners have also filed writ petitions before this Court under: Article 32 of the Constitution challenging validity of Rule 41-A. The appeals and writ petitions raise common questions of law, and they are being disposed of by a common order. 5. Mr. A....
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....he Act from the express provisions of the Act it is permissible to refer to the title and preamble of the Act to find out the legislative object, and the purpose of the Act. In the instant case the title of the Act is "The Karnataka Cinemas (Regulation) Act 1964" and its preamble declares that it is "an Act to provide for regulating exhibition by means of cinematographs and the licensing of places in which cinematograph films are exhibited in the State of Karnataka." It further provides that "whereas it is expedient to provide for regulating exhibition by means of cinematograph and the licensing of places in which cinematograph films are exhibited in the State of Karnataka and for other allied matter," the Act is being enacted. The title of the Act and the preamble clearly indicate that the main purpose of the Act is to regulate the exhibition of cinematograph films in places in respect of which a licence for that purpose may be issued. The extent of control and regulation is evidenced by the provisions of the Act. Section 4 of the Act provides that no person shall exhibit cinematograph films in a place except in accordance with the licence issued under the Act. Section 5 provides ....
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....is likely to cause a breach of the peace. Section 16 provides for penalties and Section 17 confers power to revoke or suspend a licence. Section 18 confers power on the State Government to call for and revise orders passed by the licensing authority. Section 19 confers power on this State Government to make rules after previous publication, to carry out the purposes of the Act. the relevant provisions of Section 19 are as under: 19. Powers to make rules - (1) The State Government may, by notification, after publication, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for- (a) the particulars to be given in an application for a licence and the terms, conditions and restrictions, subject to which a licence may be granted under this Act and the fees to be paid in respect of such licence; (d) the regulation of cinematograph exhibitions for securing public safety; (e) regulating the means of entrance and exit at places licensed under this Act? and providing for prevention of disturbance thereat; (3) Subject to any modification m....
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....racter which it may consider necessary in respect of any matter relating to the exhibition of the cinematograph films. Such directions issued by the State Government are binding on the licensee. These directions may be in the form of rules or instructions directing the licensee to limit the number of shows if the State Government considers it necessary to do so, in the public interest. The Act confers wide powers on the State Government for the regulation of the exhibition of the cinematograph films which includes power to regulate hours during which cinematograph films may be exhibited, the seating arrangements for the members of the public, and any other allied matters pertaining to public safety, health, sanitation and incidental matters. Rule 41-A which limits the number of shows in a day regulates the exhibition of the cinematograph films, and it carries out the purposes of the Act. It is, therefore, referable to the State Government's general powers under Section 19(1) of the Act. Rule 41-A is further referable to Clauses (a) and (d) of Section 19(2) of the Act. Clause (a) confers powers on the State Government to frame rules prescribing terms, conditions and restrictions....
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.... further provisions that there would be an exit after every sixth row of seats. Rule 50 requires the licensee to provide for passages, corridors and their use and ventilation. Rule 54 provides for water closets and urinals and water facilities. Rule 55 provides for regulation of ticket booths, reservation of seats and other incidental matters, so that there may not be over-crowding near the ticket booths. Rules 77 to 93 contained in Chapter X of the Rules provide for maintenance of cleanliness and prevention of over-crowding in the cinema hall. It is not necessary to refer to the entire set of Rules regulating matters incidental to the exhibition of cinematograph films. Validity of none of these Rules has been challenged by the appellants/petitioners although they place a number of restrictions of their right of exhibiting cinematograph films. The restrictions placed by the Rule 41-A is similar to the restrictions already placed on their right to exhibit cinematograph films. It is incidental to the general power of regulating the exhibition of cinematograph films, and it is connected with the regulation of exhibition of cinematograph films. 9. The question arises whether Rule 41....
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.... and 13 for want of time as the licensees were interested in exhibiting the main film within the short period at their disposal for completing each show. On receipt of reports from various authorities the State Government found that the licensees were not exhibiting the approved films and slides as required by the existing Rules and direction issued from time to time. It was also brought to its notice that the holding of continuous five shows from 10 a.m. caused great inconvenience to the incoming and out going cine-goers 'and endangered public safety. After the end of one show the next show followed shortly within 15 minutes, and on account of shortage of time in between the two shows there was little time left for cleaning the cinema halls and there was also rush by the cine-goers to occupy the seats. The licensees generally started exhibiting approved films and slides before the cine-goers could occupy their seats with the result they could not have the benefit of the same. The reports further disclosed that the absence of interval between the shows resulted in denial of fresh air, ventilation and cleanliness in the cinema halls. The State Government was satisfied that these....
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....med could have been achieved if the relevant authorities carried out their duties in making inspections and securing the compliance of the existing Rules. He urged that the impugned Rule does not prescribe the duration of four shows or the intervals between them and each one of the reasons set out by the State to justify the impugned Rules, could be fully achieved by the enforcement of the existing Rules. We find no merit in these submissions. Indisputably, the licensees had only 15 hours in a day for the exhibition of films as condition number 11 of the licence prohibits exhibition of films beyond 1 a.m. Ordinarily, no show of cinema takes place earlier to 10 a.m. If five shows are permitted within a span of 15 hours commencing from 10 a.m. of a day to 1 a.m. of the next day, it would be impossible to find reasonable time to comply with the requirement of cleanliness and exhibition of approved films and slides. The appellants' petitioners' own case is that one show of cinematograph film consumes two to two and a half hours' time. They further admit that approved documentary films and slides are exhibited for about ten minutes, and in addition to that the licensees exhi....
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....issue further detailed directions regulating the time gap between the shows and also for curtailment of noon show or the mid-night show but before these directions could be issued the validity of Rules 41-A was challenged and no further action could be taken in the matter. Learned counsel appearing on behalf of the State Government stated before us that further instructions in the matter would be issued by the State Government. Having regard to the facts and circumstances as discussed earlier we have no doubt in our mind that the restriction placed by Rule 41-A placing limit on the appellants/petitioners' right to exhibit cinematograph films to four shows is in the public interest. 12. The appellants/petitioners' contention that restriction under Rule 41-A is unreasonable is founded on the premise that Rule 41-A is not regulatory in nature instead it totally prohibits exhibition of cinematograph films for one show and its impact is excessive as it reduces appellants/petitioners' income to the extent of one-fifth. The appellants/petitioners have no unrestricted fundamental right to carry on business of exhibiting cinematograph films. Their right to carry on business i....
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....teed by Article 19(1)(g) of the Constitution. The High Court struck-down Rule 67 on the ground of it being made in excess of statutory power conferred on the State Government. The High Court held that the Act contained no prohibition against making of an application for licence more than once and it did not confer power for refusing to entertain or considering the application merely on the ground that during the same year, the applicant had been once granted licence for the purpose. We do not agree with the view taken by the Bench, in that case, as in our opinion Rule 67 regulated the grant of licence in respect of travelling cinemas. We do not consider it necessary to pursue the matter further as in the instant case Rule 41-A carries out the purposes of the Act in regulating the exhibition of cinematograph films in licensed premises. In Vishnu Talkies v. State of Bihar MANU/BH/0007/1975 : AIR1975Pat26 , a Division Bench of the Patna High Court considered the validity of condition 8-B of the licence which required a licensee to hold only four shows in a day and it further directed that no other show in any circumstances without obtaining the prior permission of the licensing author....