In a latest development, the Bombay High Court has quashed the Maharashtra government’s decision to prohibit multiplexes and cinema operators from charging convenience fees from customers when they book movie tickets via online platforms marking a major win for PVR and BookMyShow.
Big Win For PVR and BookMyShow – A Fundamental Right
This seems to be a big win for PVR, BookMyShow as Bombay HC permits convenience fees on online movie tickets, calling it ‘fundamental right’.
Moving ahead, a bench of Justices MS Sonak and Jitendra Jain observed that the Indian government has no authority under the Maharashtra Entertainment Duty Act (MED Act) to issue orders banning convenience fees, reportedly.
Further, the judges said that these directives issued by the government were in violation of the fundamental right to carry on business under Article 19(1)(g) of the Constitution, on Thursday.
Hence, the bench came to this conclusion and therefore struck down part of Government Orders (GOs) issued by Maharashtra that barred multiplexes from charging such fees.
Moreover, the Bombay HC ruled, “Therefore, in our view, the impugned G.O.s, to the extent that they prohibit collection of convenience fees on the tickets booked online, violates Article 19(1)(g) of the Constitution of India, and therefore, the impugned G.O.s to the extent challenged herein is required to be quashed and set aside.”
How Did This Happen?
While passing its order, the Bombay High Court said that the state cannot restrain adding if a customer finds it convenient to book the ticket online and pay the fees, the state cannot restrain the online platforms and movie theatres.
The high court said, “Suppose the customer feels it convenient to book the tickets online by not going to the theatre and paying the convenience fees. In that case, the respondents cannot restrain the petitioners from collecting the convenience fees since for providing this facility of online booking, the theatre owners/ petitioners have to invest in the technology.”
Earlier, PVR Limited and Big Tree Entertainment Private Limited (Book My Show) had filed a petition at the Bombay HC while challenging two Government Orders issued between April 2013 and March 2014.
The Bombay High court has given its ruling in favour of PVR and Big Tree Entertainment.
Further, the bench said that the government cannot micromanage economic activity in this way.
Adding,“If business owners are not permitted to determine the various facets of their business (in accordance with law), economic activity would come to a grinding halt.”
The story started with the Maharashtra government’s order which directed multiplexes and online platforms to not charge customers any additional fees other than the ticket price and applicable entertainment duty.
