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H.R Club v. State Of Bihar And Others

Patna High Court
Nov 12, 1984
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Structured Summary of the Court Opinion

Factual and Procedural Background

The writ petition challenged a directive issued by the Officer-in-charge of Fatuha police station ordering the H.R. Club, Fatuha (a society registered under the Societies Registration Act, 1860) to stop exhibition of films by means of a video cassette recorder (VCR) on a television screen in the club premises. The petitioner stated that the VCR shows were for the entertainment of members and not subject to any specific charge, and contended that such exhibitions did not attract the Bihar Cinemas (Regulation) Act, 1954 (the Act) or the Central Cinematograph Act, 1952. The Executive Magistrate and State respondents maintained that the club's exhibitions amounted to public display and fell within the licensing requirements of S. 3 of the Act. The Chief Justice (S.S. Sandhawalia) heard the matter and delivered the principal opinion; S.K. Jha, J. concurred. The petition was dismissed and there was no order as to costs.

Legal Issues Presented

  1. Whether the exhibition of films by means of a video cassette recorder in the premises of a club (registered under the Societies Registration Act, 1860) falls within the licensing provisions of Section 3 of the Bihar Cinemas (Regulation) Act, 1954.
  2. More narrowly, whether an exhibition in the premises of a club (as opposed to a private home or a cinema hall) would come within the scope of Section 3 of the Act.

Arguments of the Parties

Petitioner's Arguments

  • The club is a restricted-access premises (analogous to a private home) where entry is limited to members and their families; therefore an exhibition there should not be treated as a public exhibition requiring licensing.
  • There was no specific charge for the film shows; the exhibitions were for members' entertainment and thus did not attract the Act or the Central Cinematograph Act, 1952.
  • Reliance was placed on authorities and dictionary meanings to support the proposition that a club is not a "public place" and that private showings are outside the Act (including reliance on Commr. of Income-tax v. Bankipur Club Ltd. and Stroud's Judicial Dictionary).

Respondents' / State's Arguments

  • The fact that the club is a registered society indicates it is not a purely domestic setting; membership is generally open and the club charges fees which could cover the showing of films.
  • Exhibitions were made to members and guests (and their families) in numbers that could be large, by displaying pre-recorded cassette films on a large television screen — constituting a public display.
  • Such showings fall within the meaning of "exhibition" and the definition of "cinematograph" under the Act; to hold otherwise would defeat the legislative purpose of regulation for public health and safety.
  • The appropriate test to apply is the number/quantum of persons viewing the performance rather than a narrow label of "public" or "private" attached to the premises.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
C.W.J.C. No. 13 of 1984 (reported in 1985 Pat LJ 326) — Hotel Mangalam v. State of Bihar Held that exhibition of films via a VCR on a TV screen falls within the definition of "cinematograph" under S. 2(6) of the Bihar Cinemas Act and is subject to licensing provisions (Ss. 3, 4, 5). The Court regarded this Division Bench decision as settling the broader question that VCR exhibitions are covered by the Act and relied on it to confine the present dispute to the narrower club-premises issue.
Restaurant Lee v. State of Madhya Pradesh, AIR 1983 Madh Pra 146 Supported the proposition that exhibitions by means analogous to cinematographic apparatus may fall within licensing statutes (used as consistent precedent). Adopted as part of the consistent weight of authority from other High Courts that informed the Court's view that VCR exhibitions fall under the Act.
Commr. of Income-tax v. Bankipur Club Ltd., 129 ITR 787 (1981 Tax LR 626) (Pat) Held that sale of liquor by an incorporated club to its members was governed by mutuality and not taxable. The Court observed that this authority concerned taxation and mutuality and did not advance the petitioner's case on the licensing issue; it was not persuasive on the present statutory interpretation.
Harms (inc.) Ltd. and Chappell & Co. v. Martans Club Ltd., (1927) 1 Ch 526 Held that a musical performance before members and guests could be deemed a performance "in public"; articulated tests (including profit/injury to author, admission of any portion of the public, domestic/private nature, and where the performance took place). The Court relied on this authority by analogy to support applying tests based on the number and character of the audience (quantum of viewers) rather than technical labels of public/private place.
Duck v. Pates, (1884) 13 QBD 843 Used in Lord Hanworth's formulation to explain what "a portion of the public" means (class of persons likely to attend a public performance). Quoted as part of the analytical framework for deciding whether admission of a portion of the public had occurred and thus whether a performance amounted to public exhibition.
Panama (Piccadilly) Ltd. v. Newberry, (1962) 1 All ER 769 Authoritative observations (Lord Parker, C.J.) on public/domestic/performance-related tests. Referenced as instructive support for the Court's application of audience-focused tests rather than place-focused labels.

Court's Reasoning and Analysis

The Court's reasoning proceeds in sequential steps, each rooted in statutory text, purpose and existing authority:

  1. Precedent on the broader question: The Court began by noting that a Division Bench had already settled that the use of a VCR to play pre-recorded cassette films on a television screen falls within the Act's definition of "cinematograph" and is therefore subject to licensing (citing C.W.J.C. No.13 of 1984 / 1985 Pat LJ 326 and Restaurant Lee). That settled the primary threshold question and narrowed the present issue to whether club-premises exhibitions fall within S. 3.
  2. Statutory language: The Court examined the Act's definitions. "Cinematograph" expressly includes apparatus for the representation of moving pictures (S. 2(6) as cited), and "place" is broadly defined to include a house or building. Section 3 prohibits exhibitions by means of a cinematograph except in licensed places or in compliance with licence conditions.
  3. Purpose of the Act: The Court emphasized the Act's regulatory object — public safety and public health — and located the State's competence to legislate in List II entries (public order, public health, cinema shows and licensing). These policy considerations frame interpretation.
  4. Nature of a club and practical realities: The Court observed the Act does not define "club" and relied on a working definition (from Halsbury) and facts that the Societies Registration Act imposes no numeric limit on members. The petitioner club's bye-laws permitted up to 1,000 members and membership benefits commonly extended to spouses and families. These circumstances meant large numbers could access performances in the club.
  5. Analytical test — audience/quantum over label/place: The Court rejected a narrow place-focused test that would categorize clubs as private and akin to homes. Instead it adopted a test concentrating on the quantum or numbers of persons participating or viewing the performance. The Court explained that where large groups or a large section of the public have access to view a performance, it amounts to an "exhibition" under S. 3 irrespective of whether the place is publicly or privately held or whether access is restricted.
  6. Analogical support from authorities: The Court applied and cited English authority (Martans Club and Duck v. Pates) to demonstrate established tests that emphasize admission of a portion of the public, profit/injury considerations, and whether a performance is domestic. The Court used these authorities to buttress its audience-focused approach.
  7. Rejection of petitioner's reliance on taxation/mutuality authority: The Court noted that the Bankipur Club income-tax decision was about mutuality and taxation and did not bear directly on the licensing/regulatory scheme of the Act; it therefore did not aid the petitioner's position.
  8. Conclusion of analysis: On applying the statutory text, purposive considerations, factual matrix as to membership and potential audience size, and the precedents emphasizing audience-based tests, the Court concluded that film exhibitions by VCR in a club premises fall within the ambit of S. 3 of the Act.

Holding and Implications

Holding: The writ petition is dismissed.

Implications and direct consequences:

  • The Court held that an exhibition of films by means of a video cassette recorder on a television screen in the premises of a club registered under the Societies Registration Act comes within the ambit of the Bihar Cinemas (Regulation) Act, 1954 (specifically the licensing provision of S. 3).
  • Accordingly, the respondents (State authorities) are within their rights to regulate such exhibitions under the Act.
  • There was no order as to costs.

The opinion does not purport to create or state a broader new principle beyond applying existing authorities and the Act to the facts before the Court; it refers to earlier Division Bench authority and other precedents as guiding and controlling the conclusion reached.

Disposition

Judgment delivered by S.S. Sandhawalia, C.J.; S.K. Jha, J. agreed. Petition dismissed. No order as to costs.

Show all summary ...

S.S Sandhawalia, C.J:— Would the exhibition of films by means of a video cassette recorder in the premises of a club (registered under the Societies Registration Act, 1860) come within the licensing provisions of S. 3 of the Bihar Cinemas (Regulation) Act, 1954, is the significant question in this writ petition.

2. The facts are not in dispute the H.R Club, a Fatuha, is a society registered under the Societies Registration Act, and it is averred that the same is primarily being run for the benefit of its members and others and it has installed a video cassette recorder for the entertainment of its members, without charging anything expressly for the film shows. However, the Officer-in-charge, Fatuha police station, directed the petitioner to stop the exhibition of films by means of the video cassette recorder on T.V screen, under threat of penal action apparently on the ground that the premises were not duly licensed under the Bihar Cinemas (Regulation) Act, 1954 (hereinafter called the ‘Act’). It is the petitioner's claim that the exhibition of these films in the club without any specific charge therefor does not attract any of the provisions of the Act or of the Central Cinematograph Act, 1952.

3. In the counter-affidavit filed by the Executive Magistrate, it is averred that the club being a registered society is, in itself, an indication that it is something in contradistinction to the word ‘domestic’. It is pointed out that the membership of the club is open to any person and it charges fees from its members which would cover the charge for the showing of video films. It is the claim that the performances are made by public announcement and the exhibition of the cinema shows is of a nature which cannot possibly be equated with those in a residence restricted to family members only. It is categorically averred that the exhibition of these films amounts to public display by means of a pre-recorded cassette film on the large screen of a T.V set in the club. In terms, the stand taken on behalf of the respondents is that the showing of these films would amount to an exhibition within the meaning of S. 3 of the Act and any other construction would tend to defeat the very purpose of the same.

4. Perhaps, at the very outset it may be noticed that the larger question whether a VCR when used for playing back pre-recorded cassette films would fall within the ambit of the Act, now stands settled by the recent Division Bench judgment in C.W.J.C No. 13 of 1984 (reported in 1985 Pat LJ 326) and analogous cases decided on the 14th Sept. 1984 Hotel Mangalam v. State of Bihar. Therein the primary and, indeed, the solitary issue before the Bench was whether the exhibition of films through a video cassette recorder on a television screen would come within the definition of ‘cinematograph’ under S. 2(6) of the Bihar Cinemas (Regulation) Act, 1954 and would consequently be subject to the licensing provisions of Ss. 3, 4 and 5 thereof. On behalf of the petitioners ingenious and ancillary submissions not considered in the earlier precedents were examined therein and rejected. Primarily following the consistent weight of precedent in the High Courts of Madhya Pradesh, Bombay, Himachal and Delhi and relying on Restaurant Lee v. State of Madhya Pradesh, AIR 1983 Madh Pra 146, the answer to the primal question arising in the case was plainly rendered in the affirmative. In the light of the above, the narrower issue that now arises is whether such an exhibition in the premises of a club would equally come within the scope of S. 3 of the Act.

5. Learned counsel for the writ petitioner primarily took his cue from one of the many dictionary meanings of the word ‘exhibition’ as being a public display or show for purposes of amusement or instruction. Emphasis was sought to be laid entirely on the concept of a public as distinct from a private place and it was contended that the premises of a club being one where the right of entry was restricted, it could not be deemed as a public place and, consequently, a public display therein would not be an exhibition. On the analogy of a private home, it was submitted that a similar exhibition in a club premises would also be outside the scope of the Act and would not, therefore, require licensing. Reliance was placed on Commr. of Income-tax v. Bankipur Club Ltd., 129 ITR 787 : (1981 Tax LR 626) (Pat) and on Stroud's Judicial Dictionary for the proposition that a club would not stricto sensu be a public place.

6. Since the controversy herein must inevitably revolve around the language of the statute, it is apt to quote the relevant provisions of Ss. 2 and 3 of the Act:

“2. Definitions.— In this Act, unless there is anything repugnant in the subject or context.—

x x x x x x x x x x x x x

(b) ‘cinematograph’ includes any apparatus for the representation of “moving pictures or series of pictures”;

x x x x x x x x x x x x

(d) ‘place’ includes a house, building, tent and any description of transport, whether by water, land or air;……….

x x x x x x x x x x x x”

3. Cinematograph exhibition to be licensed.—Save as otherwise provided in this Act, no person shall give an exhibition by means of a cinematograph elsewhere than in a place licensed under this Act or otherwise than in compliance with any conditions and restrictions imposed by such licence.”

7. Now, undoubtedly, the key-word herein is ‘exhibition’ as employed in S. 3 and the core of the question is whether the showing of films by means of a V.C.R in the premises of a club to its members or guests in unlimited numbers would amount to an exhibition within the meaning of S. 3 or not. To my mind, the issue of interpretation herein is one of the basic angles of approach because it is well-settled that a word or phrase having many shades of meaning would take its hue from the context in which it is inlaid and the larger purpose of the statute itself. Herein, what perhaps first calls for a pointed notice is the fact that the underlying object of the Act is its concern for public safety and public health. The legislative entries, which warrant this legislation, are apparently entries 1, 6, 32 and 33 of List II of the 7th Schedule to the Constitution. The States have exclusive power to legislate on the subject of public order and public health under entries 1 and 6. More specifically entries 32 and 33 of List II would bring cinema shows and their licensing within the ambit of the State's legislative competence. It could not be disputed before us that the two paramount considerations of licensing and regulation of cinema shows are both public health and public safety. The interpretation of the statute has, thus, to be viewed within these parameters.

8. The Act does not define a club and even otherwise a legally precise strait-jacketed definition of the term may be difficult to attempt. A working definition may be noticed from the Halsbury's Laws of England, Fourth Edition, Vol. 6, p. 56:

“A club, except a proprietary club or an investment club, may be defined as a society of persons associated together, not for the purposes of trade, but for social reasons, the promotion of politics, sport, art, science or literature, or for any other lawful purpose; but trading activities will not destroy the nature of a club if they are merely incidental to the club's purposes……….”

For our purposes what has then to be noticed is that the Societies Registration Act, under which the petitioner club is registered, does not place any numerical limit on the number of the members of a society registered thereunder. It was stated at the Bar that even the bye-laws of the petitioner club permitted a membership up to 1000 persons and this again was not an inflexible limitation and could expressly be enlarged by the club itself. Equally, it was not denied that in the petitioner club generally the spouse of a member and their families or, in any case, dependent children are usually, if not invariably, extended certain benefits appurtenant to membership including that of viewing the entertainments in the club premises. The issue would, therefore, be whether a performance, to which all the aforesaid persons may well have the right of access, would be an exhibition or not.

9. I am inclined to take the view which was forcefully canvassed by Mr. R.B Mahto, the learned Additional Advocate-General, appearing on behalf of the State, that the question herein must not be viewed from the narrower and the pedantic angle by giving a label to the place whether the same is a public or a private one. The (illegible) of the matter is not a quibble on these two words but, indeed, is the question of the larger number of people who may come to view the display. To put it tersely, the anvil for the test is the numbers in human terms and not the nature of the place where they choose to assemble. To repeat, the question is not whether a particular place is to be deemed or labelled as a public or a private one but whether larger groups of the community or a large section of the public may at a particular time be viewing or participating in the performance and the display and thereby come within the ambit of the word ‘exhibition’ as employed in S. 3. The paramount consideration is not the situs but the quantum of the public watching or participating.

10. It may next be pin-pointed that the Act does not use the word ‘public’ or ‘private’ with regard to the place or the same appellation with regard to the word ‘exhibition’. Therefore, to impose or unduly emphasise the public or private nature of the premises would not be well warranted in the context of the Act. On behalf of the respondents it was argued with plausibility that even in a private home if there is a display of saris or even of flowers which is thrown open to large sections of people then in common parlance to it may well come within the ambit of an exhibition of saris or flowers. This would consequently be the more so when viewed in the context and the purposes of the Act. Therefore, where larger groups of the community or larger sections of the public may have access to view a performance, the same would become an exhibition irrespective of the nature of the place where it is held. If the purpose of the regulation is to safeguard public health, public safety or public order then it is irrelevant where the section of the public has collected — be the place one with a wholly unrestricted right of entry or a private one with severe restrictions thereto. It was submitted — and, in my view, rightly — that if a thousand people or more are viewing the showing of a film on the V.C.R — T.V screen, it is irrelevant whether the same is being done in a cinema hall or a club hall. In either case it would be an exhibition for the purposes of the Act and in either case the considerations of public health and public safety would be identical. Viewed from another angle, the question is not of any inherent right of access but the factum of access and collection of a large number of persons in a place. Once that is so, the display or performance becomes an exhibition under the Act irrespective of the fact whether the place is public or private, whether right of access is unrestricted or controlled or whether the same is commercial for payment or merely by aesthetic invitation. Consequently, to view the matter from a narrow myopic angle of the place being technically a public or a private one may well tend to defeat the larger purposes of the Act and the requirements or regulation and licensing in the interest of public health and safety.

11. The view I am inclined to take receives support by way of analogy from Harms (incorporated) Ltd. and Chappell and Co. v. Martans Club Ltd., (1927) 1 Ch 526 — wherein it was held that a musical performance at the Embassy Club before an audience of 150 members and 50 guests must be deemed as a performance in public. The broad tests were enumerated by Lord Hanworth M.R in the following terms:—

“In dealing with the tests which have been applied in the cases, it appears to me that one must apply one's mind to see whether there has been any injury to the author. Did what took place interfere with his proprietary rights? As to that, profit is a very important element. Next, you must consider whether there has been admission of any portion of the public, with or without payment, and when you are considering that you mean by any portion of the public you will find in Duck v. Pates, (1884) 13 QBD 843, 847 that according to Brett M.R it means the public who would go either with or without payment the class of persons who would be likely to go to a performance if there was a performance at a public theatre for profit. Then one has also to consider whether or not the performance is a domestic one so as to exclude the notion of ‘public’ — domestic in the sense that it was private and domestic, a matter of family and household concern only. Then again you must consider where the performance took place, hearing in mind that the place need not be one which is kept habitually for the exhibition of dramatic entertainments.”

Reference may also be instructively made to the observations of Lord Parker, C.J, in Panama (Piccadilly) Ltd. v. Newberry, (1962) 1 All ER 769.

12. In fairness to Mr. Rajgarhia, reference must be made to his reliance on Commr. of Income-tax v. Bankipur Club Ltd., (1981 Tax LR 626) (Pat) (supra). Therein it has only been held that in an incorporated club the sale of liquor by the club to its members only was governed by the principle of mutuality and was, consequently, not taxable. I am unable to see how this authority in any way advances the case of the writ petitioner.

13. To finally conclude, the answer to the question posed at the outset is rendered in the affirmative, and it is held that an exhibition of films by means of video cassette recorder on a T.V screen in the premises of a club registered under the Societies Registration Act would well come within the ambit of the Act.

14. Once it is held as above, it is plain that the respondents would be well within their rights in regulating the exhibition of films by the petitioner club. The writ petition is without merit and is, consequently, dismissed. There will, however, be no order as to cost.

S.K Jha, J.:— I agree.

Petition dismissed.