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Hotel Mangalam Petit... v. M/S. Coffee House Pe...

Patna High Court
Sep 14, 1984
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Judgment Summary — S.S. Sandhawalia, C.J.

Factual and Procedural Background

This set of nine connected writ petitions centrally questioned whether the exhibition of films by means of a Video Cassette Recorder (V.C.R.) on a television screen falls within the definition of "cinematograph" under section 2(b) of the Bihar Cinemas (Regulation) Act, 1954 and is therefore subject to the licensing requirements of sections 3, 4 and 5 of that Act and the Bihar Cinemas (Regulation) Rules, 1974.

The representative factual matrix (drawn from Hotel Mangalam v. State of Bihar, C.W.J.C. No. 13 of 1984) is: the petitioner operates a hotel-cum-restaurant (Hotel Mangalam) in which a V.C.R. was installed for customers' entertainment (without any specific charge). Police officers, acting on instructions from a Sub-divisional Officer (who had issued an instruction to prohibit video shows in Jhanjharpur Bazar), directed the proprietor to stop exhibitions by V.C.R. The petitioner complied but challenged the legal basis for the prohibition, contending that V.C.R. exhibitions are outside the scope of the State Act and not subject to its licensing provisions.

Legal Issues Presented

  1. Whether the exhibition of films through a V.C.R. on a television screen falls within the definition of "cinematograph" under section 2(b) of the Bihar Cinemas (Regulation) Act, 1954, and therefore attracts the licensing provisions of sections 3, 4 and 5 and the Rules made thereunder.
  2. Whether the alleged omission (casus omissus) — i.e., that the Legislature did not envisage V.C.R. exhibitions when the Act was enacted — prevents the Act from being applied to V.C.R. exhibitions.
  3. Whether holding commercial licences under the Indian Telegraphs Act (for V.C.R. and television sets) exempts the petitioner from the State Act's licensing requirements or creates a conflict between the statutes.
  4. Whether a television set "simpliciter" (by itself) would fall within the definition of "cinematograph" such that ordinary TV reception would require licensing.
  5. Whether exhibition of films via V.C.R. in the privacy of a home would be caught by the licensing provisions of the State Act.

Arguments of the Parties

Writ Petitioners' Arguments

  • The Act did not envisage exhibition of films by V.C.R. at the time of enactment (casus omissus); the Legislature could not have intended to license an activity it did not imagine.
  • The statutory scheme (including rule 3 and Appendix A of the Rules governing construction and particulars for permanent cinema houses, and rule 4 on location and parking) is directed to permanent cinema houses and cannot reasonably be applied to small-scale, transient V.C.R. exhibitions in hotels/restaurants.
  • Reliance on In re the Regulation and Control of Aeronautics in Canada to support the point about omission and the limits of statutory scope.
  • Some petitioners held commercial licences under the Indian Telegraphs Act for their V.C.R./TV and argued this either exempts them or creates a conflict between the Central and State enactments.
  • A contention (advanced but ultimately recognized as open to objection) that if V.C.R. exhibitions were included, ordinary television sets might also be captured by the definition of "cinematograph."
  • A concern that inclusion would even catch private home exhibitions, which could not have been the Legislature's intent.

Respondent State's Arguments

  • The V.C.R. is encompassed by the wide definition of "cinematograph" in section 2(b) of the State Act; exhibition by V.C.R. therefore attracts licensing under sections 3, 4 and 5 and the Rules.
  • The Rules provide for temporary licences and licensing of temporary buildings; the licensing scheme is flexible and need not apply in full to every mode of exhibition that is covered by the Act.
  • Section 10 of the Act empowers the State Government to exempt any cinematographic exhibition from provisions of the Act or the Rules, undermining the argument that the Act could not have intended to cover V.C.R. exhibitions.
  • Central enactments (Telegraph Act / Wireless Telegraphy Act) relate to transmission and reception of broadcasts and do not cover playing back pre-recorded cassettes of movies; thus there is no occupied field precluding the State Act from operating.
  • A television receiver alone (without a V.C.R.) merely receives broadcasts and, when the station is not transmitting, cannot itself exhibit moving pictures; a V.C.R. coupled with a TV becomes an apparatus capable of representing moving pictures independently.
  • Exhibition, as used in section 3, denotes a public display (admission of the public to a place), so private home shows restricted to family/friends are not captured by the prohibition.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Restaurant Lee v. State of Madhya Pradesh (A.I.R. 1983 Madhya Pradesh 146) Held that use of VCRs for playing pre-recorded cassettes in restaurants is not covered by Central Telegraph/Wireless Acts; such use brings the activity within the State Act's licensing when public is admitted. Clarified distinction between TV reception and VCR playback. The court relied heavily on and adopted the reasoning in Restaurant Lee: VCR+TV used to play back pre-recorded movies constitutes exhibition by cinematograph in a place where public is admitted and therefore requires licence under the State Act. The Restaurant Lee analysis was followed and quoted.
Dinesh-kumar Hanumanprasad Tiwari v. State of Maharashtra (A.I.R. 1984 Bombay 34) Identified as authority contrary to petitioners' position (supporting inclusion of VCR within State Act's scope). The decision was counted among the recent precedents that undermined the petitioners' basic contention; the court treated it as part of a body of authority favouring licensing.
Civil Writ Petition No. 2419 of 1983 (Delhi High Court) — SLP No. 2767 of 1984 dismissed in limine Referenced as supporting authority on the proposition that VCR exhibitions fall within the State Act's scope. Referred to as part of the cluster of authorities that made petitioners' argument difficult to sustain; court relied upon this line of authority.
Prakash Chand Anand, Mandi v. State of Himachal Pradesh (A.I.R. 1984 Himachal Pradesh 47) Noted by analogy among authorities adverse to petitioners. Counted among precedents supporting the State's position; used to reinforce that VCR exhibitions can be regulated by State Act.
Geeta Enterprises v. State of U.P. ((1983) 4 SCC 202 : A.I.R. 1983 Supreme Court 1098) Identified as part of the relevant precedent corpus on the subject. Relied on as an authority that, with others, weighed against petitioners' submissions.
Senior Electric Inspector v. Laxminarayan Chopra (A.I.R. 1962 Supreme Court 159) Principle: a modern legislature must be presumed to be aware that words may attract enlarged meanings with social and technological change; the meaning of legislative words should not be confined to their contemporaneous sense. The court invoked this authority to support a purposive/modern interpretation of the statute that can include technological developments like VCRs.
In re The Regulation and Control of Aeronautics in Canada (54 (1932) A.C. 54) Used by petitioners to argue casus omissus (i.e., that the statute could not have been intended to cover matters not foreseen). In that case, aerial navigation was read into an old constitutional enactment by extended interpretation. The court considered this authority but distinguished or limited its application, concluding that the casus omissus argument based on it must fail in the present context (because the Rules and section 10 show legislative framework can accommodate VCR exhibitions).
Seaford Court Estates Ltd. v. Asher (1949) 2 K.B. 481 (denning, L.J. quoted) Quoted for the proposition that a purposive approach — supplementing the written word to give effect to legislative intent and to "iron out the creases" — is appropriate where statutes require practical construction. The court adopted the Denning passage to justify a constructive/purposive interpretation that accommodates developments like VCRs without altering the statute's fabric.
Heyden's case; Eyston v. Studd (historical authorities cited within Denning's passage) Historical authorities referenced in the Denning passage to support constructive interpretation principles. Used as supporting material within the court's reliance on Seaford Court Estates/Denning to justify purposive interpretation; not independently analysed in detail.

Court's Reasoning and Analysis

The court's legal analysis proceeded in a sequence of discrete, textually-supported steps:

  1. Identification of the central legal question: whether exhibition of films by V.C.R. on a television screen is caught by the statutory definition of "cinematograph" (section 2(b)) and thus subject to licensing under sections 3–5 and the Rules.
  2. Consideration of the factual matrix: the V.C.R. in a hotel used for customers' entertainment and a police direction to stop such exhibition issued under administrative instructions.
  3. Review of precedent: the court observed a "stone-wall" of recent authorities adverse to the petitioners (e.g., Restaurant Lee, Dinesh-kumar, Geeta Enterprises and others). These precedents made the petitioners' primary contention difficult to maintain and supplied an established analytical framework which the court elected to follow.
  4. Addressing the casus omissus argument: the court rejected the contention that the Act cannot be applied because V.C.R. exhibitions were not foreseen at the time of enactment. The court explained that the Rules already provide for temporary licences and licensing of temporary buildings, and section 10 allows the State Government to exempt exhibitions from provisions of the Act or Rules. Thus, the statutory scheme could accommodate such exhibitions without a strained reading. The Aeronautics case relied on by petitioners did not justify exclusion in the present context.
  5. Adoption of purposive interpretation: relying on the Denning passage from Seaford Court Estates and the Supreme Court's decision in Senior Electric Inspector v. Laxminarayan Chopra, the court held that modern statutes must be read with an eye to contemporary meanings and purposes; words should not be confined to their original, narrow historic senses when social and technological changes alter their practical scope.
  6. Resolution of the central question by analogy to precedents: by following and quoting Restaurant Lee, the court accepted that a V.C.R. coupled with a television is an apparatus for representing moving pictures independently of broadcast reception and thus can fall within "cinematograph". The court agreed that a television receiver alone (for reception) is different from a V.C.R. playback apparatus.
  7. Consideration of statutory overlap with Central enactments: the court adopted the reasoning in Restaurant Lee that commercial licences under the Telegraph Acts merely permit reception of broadcasts and do not authorize playing pre-recorded movie cassettes; consequently, there is no field occupied by Central Acts that would preclude the State Act from regulating V.C.R. exhibitions and places where those exhibitions occur.
  8. Clarification of "exhibition" and public/private distinction: the court accepted the interpretation that "exhibition" connotes a public display (i.e., a place where the public is admitted). Thus private home showings to family/friends would not ordinarily be captured, while restaurant shows open to customers would be.
  9. Conclusion drawn from absence of counter-authorities: the court noted that petitioners offered no precedent supporting their view and that the weight of precedent uniformly favoured the State; accordingly, the representative petitions were governed by the authorities relied upon.

Holding and Implications

HOLDING: All the connected writ petitions are dismissed.

Implications (direct effects and scope of the decision):

  • The court affirmed that the exhibition of films by means of a V.C.R. coupled with a television screen can fall within the meaning of "cinematograph" under section 2(b) of the Bihar Cinemas (Regulation) Act, 1954 and thereby attract the licensing provisions of sections 3, 4 and 5 and the Bihar Cinemas (Regulation) Rules, 1974 (as interpreted and applied in the cited precedents, especially Restaurant Lee).
  • Commercial licences obtained under the Indian Telegraphs Act for reception of broadcasts do not authorize the playing of pre-recorded movie cassettes; there is no occupied field by the Central Acts that displaces the State Act in this respect, following the reasoning of the precedents cited.
  • Private home showings restricted to family/friends are not, by that fact alone, exhibitions within section 3's prohibition; by contrast, exhibitions in places open to the public (e.g., restaurants) are covered and require appropriate licensing.
  • No costs were ordered ("there will be no order as to costs").
  • The court's ruling follows existing precedents and the purposive interpretive approach; the judgment applies to the connected petitions before the court and does not purport to create a novel legal principle beyond the authorities relied upon.

Note: This summary is strictly limited to the matters and language contained in the provided opinion. No information has been added beyond what the opinion itself states.

Show all summary ...

S.S Sandhawalia, C.J:— Would the exhibition of films through a Video Cassette Recorder on a television screen come within the ambit of the definition of ‘cinematograph’ under section 2(b) of the Bihar Cinemas (Regulation) Act, 1954 and is consequently subject to the licensing provisions of sections 3, 4 and 5 thereof is the focal point in this set of nine connected writ cases.

2. Admittedly the common matrix of facts may be noticed with relative brevity from Hotel Mangalam v. State of Bihar (C.W.J.C No. 13 of 1984). The petitioner is operating a hotel-cum-restaurant in the name and style of Hotel Mangalam in which he has installed a Video Cassette Recorder (hereinafter referred to as “V.C.R”) for the entertainment of his customers and it is averred that this is done without charging anything specifically therefor. However, somewhat suddenly the officer-in-charge of the police Station having, jurisdiction over the area came to the hotel premises and directed its proprietor to stop the exhibition of films through the V.C.R failing which stringent legal action would be initiated against him. On further enquiry it transpired that the Sub-divisional Officer had issued instruction that no video shows were to be permitted in Jhanjharpur Bazar. It is then averred that the petitioner being a law abiding citizen had stopped the exhibition on the verbal orders of the police authorities. However, in assailing the authority for the issuance of such orders, it is the stand of the writ petitioner that the exhibition of films through the V.C.R on a television set does not come within the definition of ‘cinematograph’ and consequently the same is not at all covered by the Bihar Cinemas (Regulation) Act, 1954 hereinafter referred to as “the Act”). It is pleaded that the Act is only applicable to public cinema hails and has nothing to do with the operation of the V.C.Rs, which are commonly used in restaurants, hotels and in private houses. The uniform stand taken on behalf of the respondent State is that the V.C.R is an apparatus which comes fairly and squarely within the wide ranging definition of ‘cinematograph’ as laid down in section 2(b) and consequently the exhibition of films straightaway attracts the licensing provisions of section 3, 4 and 5 of the Act and Bihar Cinemas (Regulation) Rules, 1974, framed under the Act.

3. Now a stone-wail of recent precedent, against them directy in Restaurant Lee v. State of Madhya Pradesh (A.I.R 1983 Madhya Pradesh 146); Dinesh-kumar Hanumanprasad Tiwari v. State of Maharashtra (A.I.R 1984 Bombay 34) and Civil Writ Petition No. 2419 of 1983 of the Delhi High Court (against which S.L.P No. 2767 of 1984 stands dismissed in limine on the, 1st of March, 1984), and by way of analogy in, Prakash Chand Anand, Mandi v. State of Himachal Pradesh (A.I.R 1984 Himachal Pradesh 47) and Geeta Enterprises v. State of U.P ((1983) 4 SCC 202 : A.I.R 1983 Supreme Court 1098) have rendered the learned counsel for the writ petitioners a somewhat lukewarm in pressing their basic stand that the exhibition of films through V.C.R is beyond the scope of the definition of ‘cinematograph’. It, therefore, suffices to briefly repel the half-hearted submissions raised on behalf of the writ petitioners, rather than to traverse all over again the well-trodden ground in the authorities noticed above.

4. Now the solitary argument raised by Mr. Balbhadra Prasad Singh (apparently in view of host of contrary precedents), who spearheaded the somewhat blunted challenge on behalf of the writ petitioners, was that the issue of exhibition through V.C.R was in essence one of casus omissus in the statute and this could not be supplied merely by a process of strained Interpretation. The stand was that in the original Cinematograph Act of 1918 and its substitution by the later Cinematograph Act of 1952 and later by other State Acts including Bihar Cinemas (Regulation) Act 1954 the very concept of an exhibition of films through V.C.R was not visualised and consequently could not have been intended to be provided for. The submission was that the Legislature could not intend to license something which they did not imagine. Our attention was sought to be drawn to rule 3 of Bihar Cinemas (Regulation) Rules, 1974 (hereinafter called “the Rules”), which provides the procedure for the grant of permission for constructing permanent cinema house for the purpose of license and Appendix A thereto requiring the necessary particulars therefor, for highlighting the stand that by the very nature of things this can apply to regular and permanent cinema houses and not to the minuscule use of V.C.Rs in a small hotel or restaurant. A similar submission was raised on the basis of rule 4 providing restriction in regard to the location of the cinema house and in particular sub-rule (c) thereof requiring space for parking of cars etc., which according to the learned counsel was wholly incongruous in the context of exhibition of films through V.C.R On these premises the ultimate submission was that the Act cannot be extended to meet a case-for which provision had dearly not been made therein. Reliance was placed on In re the Regulation and Control of Aeronautics in Canada 54 (1932 Appeal Cases 54).

5. The submission aforesaid brings considerable credit to the ingenuity of the learned counsel but is nevertheless untenable. The learned Additional Advocate General Mr. R.B Mahto for the respondents rightly highlighted the fact that it was neither mandatory nor inevitable that each and every provision for licensing a permanent cinema house would be made applicable for the purpose of licensing exhibition of films through V.C.R It was pointed out that the Regulations provide for the grant of temporary licenses and also of the licensing in temporary buildings etc., which would not require the stringent provisions for a permanent cinema house having a regular license and housed in a permanent building as defined in rule 2(v) of the Rules. Reliance was also rightly placed on section 10 which vests the power in the State Government to exempt any cinematographic exhibition from any of the provisions of the Act or the Rules made thereunder. Equally it deserves notice that in the judgment In re. The Regulation and Control of Aeronautics in Canada (supra) relied upon by the learned counsel for the writ petitioners it seems to have been held by a process of extended interpretation that aerial navigation was within the ambit of the British. North America Act which was enacted in 1867 and this could hardly be visualised at that stage. The contention on the rule of casus omissus, therefore, must fail.

6. Apart from the above, I am unable to agree with the learned counsel for the petitioners that a purposeful schematic interpretation should, not be given to the Act. One is reminded of the of quoted. Words of Denning, L.J, in Seaford Court Estate Ld. Asher [(1949) 2 King's Bench 481]:

“A judge, believing himself to be fettered by the supposed rule that he must look to the language and nothing else, laments that the draftsmen have not provided for this or that or have been guilty of some or other ambiguity. It would certainly save the judges trouble if Acts of Parliament were drafted with divine prescience and perfect clarity. In the absence of it, when a defect appears a judge cannot simply fold his hands and blame the draftsman. He must set to wort on the constructive task of finding the intension of Parliament, and he must do this not only from the language of the statute, but also from a consideration of the social Conditions which gave rise to it, and of the mischief which it was passed to remedy, and then he must supplement the written word so as to give ‘force and life’ to the intention of the legislature. That was clearly laid down by the resolution of the judges in Heyden's case [(1584) 3 Co. Rep. 7a], and it is the safest guide today. Good practical advice on the; subject was given about the same time by Plowden in his second volume Eyston v. Studd. [(1574) 2 Plowden, 465]. Put into homely metaphor it is thus: A judge should ask himself the question: If the makers of the Act had themselves come across this ruck in the texture of it, how would they have straightened it, out? He must then do as they would have done. A judge must not alter the material of which it is woven, but he can and should iron out the creases.”

7. I am inclined to take the view that the issue of interpretation here is one of merely ironing out the creases and not changing the very fabric of the statute. However, a more direct and categoric answer to the contention of the learned counsel is provided by the authoritative decision in Senior Electric Inspector v. Laxminarayan Chopra (A.I.R 1962 Supreme Court 159 at page 163):

“But in a modern progressive society it would be unreasonable to confine the intention of a Legislature to the meaning attributable to the word used at the time the law was made, for a modern Legislature making laws to govern a society which is fast moving must be presumed to be aware of an enlarged meaning the same concept might attract with the march of time and with the revolutionary changes brought about in social, economic, political and scientific and other fields of human activity.”

8. The primary submission on behalf of the writ petitioners must, therefore, be repelled.

9. Mr. Rajgarhia, the learned counsel for one of the writ petitioners, has raised the ancillary submission that since the writ petitioner; in C.W.J.C No. 4861 of 1983 had secured commercial licenses for its television set and Video Cassette Recorder under the Indian Telegraphs Act it would be exempt or outside the licensing provision of the Act and in any case there was a frontal conflict betwixt two statutes.

10. The aforesaid submission cannot be better answered than in the words of G.P Singh C.J, speaking for the Division Bench, in Restaurant Lee's case (supra):

“The learned counsel for the petitioners laid stress that the petitioners held commercial licences for the VCRs installed in their restaurants which entire them to use these sets for purposes of exhibiting motion pictures on prerecorded cassettes. This argument is also devoid of any substance. The commercial license merely permits the use of VCR and TV in business premises ‘for receiving programmers and messages transmitted for general reception’. The license does not permit the use of VCR and TV for playing pre-recorded cassettes of movies. As already seen such a use of these appliances is outside the Central Acts and the rules made thereunder. It was also argued that on a matter cowered by the Central Acts the State Act cannot operate. This argument which proceeds on the basis of the doctrine of occupied field has no applications here. The Central Acts do not cover the topic of licensing of VCR and TV for exhibiting motion pictures from pre-recorded cassettes nor do they cover the topic of licensing of places where such an activity is carried on. The State Act viz., the Madhya Pradesh Cinema (Regulation) Act which covers licensing of such places thus operates in a field which is unoccupied by the Central Acts.”

11. It was then said with some superficial plausibility that if the stand of the respondent State were to be accepted then every television-set simpliciter would also come within the some what widely couched definition of ‘cinematograph’ and thus require licensing under the Act. In this context what deserves notice is that a television set simpliciter cannot by itself exhibit a film or represent moving picture or series of pictures. It only reflects or receives what is broadcast elsewhere. The source of exhibition 13 the station and when the same is not broadcasting the television receiver cannot exhibit anything. However, when a V.C.R is coupled with a T.V screen it becomes an independent set and apparatus for representation of moving picture or series of pictures. This aspect of the matter has also been adequately considered with and dealt in Restaurant Lee's case (supra) with which reasoning I would entirely agree. It, therefore, suffices to briefly quote the following observation therefrom:

“The Telegraph Act and the Wireless Telegraph Act amongst other deal with transmission and reception of radio and TV broadcasts. A VCR is not an apparatus for transmission of broadcasts. It can be used when fitted with RF tuner sections and/or monitors for reception of broadcast programmes and, therefore. Such VCRs need broadcast receiver licence. Neither the Telegraph Act nor the Wireless Telegraphy Act cover a VCR when it is merely used for playing back pre-recorded tapes on the TV screen. In these petitions we are not concerned with the use made of VCR and TV sets as receivers of broadcast from TV stations. Indeed, most of the petitioners have their restaurants at places which are not covered by any television station for in our State we have television stations only at Raipur, Bhopal and Indore. In these petitions we are only concerned with the use made of VCR and TV sets for playing back pre-recorded cassettes of movies. Such a use of these appliances is not covered by the aforesaid two Central Acts and the learned counsel is not right in his submission that the entire field in relation to VCRs and TVs is covered by those Acts.”

12. Lastly another supposed anomaly allegedly from the respondents' stand was that this would render even the exhibition of a film through V.C.R in the privacy of a home also subject to licensing which could hardly be the intent of the Legislature. This submission has only to be noticed and rejected. What section 3 of the Act requires to be licensed is an exhibition by means of cinematograph in a place. The word ‘exhibition’ would obviously mean a public display which presupposes a place where it has the right of ingress and egress. Strictly a private home hardly equates to that requirement. Herein again the observation in Restaurant Lee's case (supra) is equally pertinent:—

“Section 3, as already seen, prohibits the exhibition by means of a cinematograph elsewhere than in a place licensed under the Act. A ‘place’ is defined by section 2(b) to include a house, building etc. The restaurants of the petitioners come within the definition of ‘place’. One of the meanings of ‘exhibit’, is ‘to show publicly for the purpose of amusement or instruction’. ‘Exhibition’ means a public display, i.e a display to which public is admitted. [See Oxford English Dictionary, Vol. III pages 408-409 and the Randor House Dictionary, Unabridged Edition, page 499]. It is in this sense that the word ‘exhibition’ as used in section 3 has to be understood. For example if a VCR is used for playing a pre-recorded cassette of a movie in one's own residence and the show is restricted to the family members or friends and the public is not admitted the show will not be an exhibition coming within the prohibition of Section 3. The petitioners, however, show the movies with the help of VCR and TV sets in their restaurants where public is admitted. This clearly amounts to exhibition by means of a cinematograph bringing the activity within the ban of section 3. The petitioners cannot indulge into this activity unless they obtain a licence for their restaurants under the Act.

13. It was very fairly conceded at the Bar that there was no precedent in support of the view canvassed on behalf of the writ petitioners and the weight of the precedents was wholly, on the other side without exception. No meaningful challenge could either be raised to the decisions referred to above nor any convincing attempt was made to distinguish the same. Learned counsel for the parties agreed that since the issues of fact and law are common, this judgment would govern all of them.

14. As the representative submissions sought to be raised on behalf of the writ petitioners fail, all the writ petitions are hereby dismissed.

15. In the circumstances there will be no order as to costs.