2017 (4) TMI 1507 - HC - Indian Laws

Validity of the orders passed by the Government in G.O.Ms.No.181, dated 11.7.2011 - constitution of fresh committee with the Chief Secretary as Chairperson and with some other members for the purpose of suggesting the factors to be considered while fixing or increasing the rates of tickets in various classes of Cinema Theatres - main grievance of the petitioners herein is that the rates fixed by the Government by the impugned G.O. to the areas like Corporation, Municipalities and Grampanchayats are discriminative in nature since the expenditure in all the theatres in Corporations, Municipalities and Grampanchayats is one and the same. HELD THAT - It is pertinent to note that there are many changed circumstances coupled with the conversion of some of the theatres to that of multi complexes by raising advanced infrastructure and by meeting the highest maintenance of theatres and in view of the same, the G.O. does not appear to be proportionate, so that it warrants revision in consonance with the changed circumstances as well as the provisions of A.P. Cinema (Regulation) Act 1955. Hence, the present G.O. challenged in the writ petitions can be set aside. Considering the facts and circumstances of the case and the interim orders passed by this Court earlier in some of the writ petitions, this Court is of the view that the present writ petitions can be disposed of with the directions imposed i) G.O.Ms.No.100, Home (General.A1) Department, dated 26.4.2013 is set aside. ii) Both the Governments are directed to constitute their respective committees headed by the respective Principal Secretaries for Home. Insofar as the other members of the Committees are concerned, it is left open to the respective Principal Secretaries for Home to choose the exhibitors, distributors and other members to participate in the committee so as to adjudicate the issues involved in all the writ petitions. iii) While taking decision, the committees are directed to consider the welfare of the cine-goers primarily and also the grievance of the exhibitors and distributors and frame the rules in accordance with law on or before 30.3.2017; iv) If any decisions are taken and any G.O, is issued prior to 30.3.2017, the same shall become operative in nature. iv) The petitioners-theatres are permitted to run their respective theatres by collecting their proposed fares. However, it is made clear that the petitioners shall inform to the Authorities concerned as to the ticket rates, which they intend to collect in respect of all classes till adjudication of the issues in question by the respective committees. v) In some of the writ petitions, this Court issued interim orders permitting the petitioners therein to collect the rates as proposed in their applications, and to maintain separate account with regard to the difference amount in the rates collected by them. Those interim orders passed by this Court earlier in some of the writ petitions shall stand superseded. Petition disposed off.

Summary

Issues Involved:
1. Validity of G.O.Ms.No.100, Home (General.A) Department, dated 26.4.2013.
2. Alleged discrimination in ticket pricing among different areas.
3. Compliance with interim orders during the pendency of writ petitions.
4. Changed circumstances post-bifurcation of Andhra Pradesh.
5. Directions for future actions by the government.

Issue-wise Detailed Analysis:

1. Validity of G.O.Ms.No.100, Home (General.A) Department, dated 26.4.2013:
The petitioners challenged the validity of G.O.Ms.No.100, issued by the Government of Andhra Pradesh, which revised the rates of cinema tickets. The petitioners argued that the impugned G.O. deviated from the recommendations of the High Power Committee, particularly concerning the lowest class ticket prices, which led to an unfair situation where air-conditioned theatres were allowed to charge the same minimum price as non-air-conditioned theatres. The court noted that the G.O. was issued following the directions of the High Court in a previous batch of writ petitions, which required the government to constitute a committee to suggest factors for fixing ticket rates.

2. Alleged Discrimination in Ticket Pricing Among Different Areas:
The petitioners contended that the rates fixed by the government for different areas (Corporation, Municipalities, and Grampanchayats) were discriminatory, as the operational costs in all theatres were similar. The court observed that the government had classified areas into five grades and fixed ticket rates accordingly. However, the petitioners argued that this classification caused financial loss to exhibitors due to the uniformity in operational expenses across different areas.

3. Compliance with Interim Orders During the Pendency of Writ Petitions:
During the pendency of the writ petitions, interim orders were issued, allowing petitioners to collect proposed ticket rates while maintaining separate accounts for the difference in rates. The court directed theatre owners to file representations to the authorities, informing them of the rates they intended to charge and to pay taxes proportionate to these rates. The court also emphasized that the interim orders permitting the collection of proposed rates would stand superseded by the final decision.

4. Changed Circumstances Post-Bifurcation of Andhra Pradesh:
The court acknowledged that the impugned G.O. was issued before the bifurcation of Andhra Pradesh and that there were significant changes in circumstances, including the conversion of some theatres into multiplexes with advanced infrastructure. Both the petitioners' counsel and the government pleaders for Telangana and Andhra Pradesh conceded that the G.O. could not be made operative in light of these changes.

5. Directions for Future Actions by the Government:
The court set aside G.O.Ms.No.100 and directed both governments to constitute respective committees headed by their Principal Secretaries for Home. These committees were to include exhibitors, distributors, and other relevant members to address the issues raised in the writ petitions. The committees were instructed to consider the welfare of cine-goers and the grievances of exhibitors and distributors while framing new rules. The court mandated that the new rules be framed by 30.3.2017 and that any decisions or G.O.s issued before this date would become operative. Theatre owners were permitted to collect proposed fares, provided they informed the authorities of the ticket rates they intended to charge and paid taxes proportionate to these rates.

Conclusion:
The writ petitions were disposed of with specific directions to the governments of Telangana and Andhra Pradesh to reconstitute committees and re-evaluate ticket pricing in light of the changed circumstances. The court emphasized the need for a balanced approach that considers both the welfare of cine-goers and the financial viability of theatre exhibitors. No costs were imposed, and all pending miscellaneous petitions were closed.