The Bombay High Court on Thursday struck down two Maharashtra government orders issued in 2013 and 2014 that had barred cinema owners from charging convenience fees on online ticket bookings.
The court ruled that the state lacked legislative authority under the Maharashtra Entertainment Duty Act, 1923, to issue such directives and held the orders to be unconstitutional.
A division bench of Justices MS Sonak and Jitendra Jain observed that the prohibition violated Article 19(1)(g) of the Constitution, which guarantees the right to carry on any trade or business.
“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 bench said. It added that customers are free to choose whether to book tickets online or purchase them at the theatre.
The court was hearing petitions filed by PVR Ltd, the FICCI-Multiplex Association of India, and BookMyShow (Big Tree Entertainment Pvt Ltd), which had challenged the orders banning recovery of any additional charges for online booking services.
Senior advocate Naresh Thacker, appearing for the petitioners, argued that the orders infringed on constitutional freedoms and lacked any specific statutory backing.
BookMyShow’s counsel, advocate Rohan Rajadhyaksha, submitted that the directions constituted an unreasonable interference in private business agreements.
The state, represented by Additional Government Pleader Milind More, defended the orders citing Article 162 of the Constitution and provisions of the Entertainment Duty Act.
The court, however, rejected these arguments, noting that the cited sections did not empower the state to ban the collection of convenience fees. It concluded that the orders amounted to unauthorised restrictions on legitimate business practices and were thus liable to be quashed.
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