P.Mahendra Pandi vs. The District Collector

WP(MD)/22318/2018HC MadrasGSTCNR HCMD01054729201801 November 2018Bench: HONOURABLE MR JUSTICE T.RAJA,HONOURABLE MR JUSTICE KRISHNAN RAMASAMY6 pages
AI SummaryRemanded

Held

The Court noted the petitioner's grievance regarding cinema theatres overcharging entry fees beyond the rates fixed by G.O.Ms.No.762 (Home) Cinema Department, dated 16.10.2017. The Court also considered the respondents' submission that action had been initiated following the petitioner's complaint. Specifically, the District Collector, Madurai, had issued instructions on 31.10.2018 to the Revenue Divisional Officer, constituting committees to address complaints of overcharging. The Court acknowledged that a proper inquiry would be conducted based on the reports submitted, and suitable action would be taken, including potential cancellation of 'C' Form licences. The Court disposed of the writ petition with a direction to the District Collector, Madurai, to provide suitable instructions to control room in-charges to receive oral complaints, guide complainants to make written complaints, and take further action, including licence cancellation, based on such written complaints. No costs were awarded.

Facts

The petitioner, P. Mahendra Pandi, a practicing advocate and cooperative society president, filed a writ petition seeking a mandamus directing the District Collector, Superintendent of Police, and Commissioner of Police to take action against 'C' Form Licences issued to cinema theatres. The petitioner alleged that these theatres were illegally levying entry fees beyond the rates fixed by Government G.O.No.762 (Home) Cinema Department, dated 16.10.2017. He provided an example of online ticket booking for the movie 'SARKAR' where tickets were priced between Rs. 500/- to Rs. 1,000/-, significantly exceeding the prescribed maximums for various theatre types. The petitioner also complained about the lack of effective mechanisms to implement the G.O., leading to potential revenue loss for the government and unjust enrichment for theatre owners. He sought an interim injunction against overcharging.

Key Issues

1. Whether the respondents (District Collector, Superintendent of Police, Commissioner of Police) have failed to take appropriate action against cinema theatres ('C' Form Licences) for allegedly levying entry fees beyond the rates fixed by Government G.O.No.762 (Home) Cinema Department, dated 16.10.2017, as per the petitioner's representation dated 29.10.2018? Petitioner's Arguments: The petitioner argued that cinema theatres were violating the prescribed rates for entry fees as per G.O.No.762, leading to exorbitant charges for moviegoers and a loss of government revenue, particularly GST. He contended that the government had not implemented an effective mechanism to prevent this overcharging, resulting in unjust enrichment for private theatres. He sought a mandamus to compel the authorities to act and an interim injunction to prevent further violations. Revenue/State's Arguments: The Special Government Pleader for respondents 1 to 3 submitted that action had been initiated based on the petitioner's complaint. The District Collector had issued instructions to the Revenue Divisional Officer on 31.10.2018, constituting committees to deal with complaints against theatres. He stated that further action would be taken after a detailed inquiry and that the petition could be closed in light of the initiated action.

Sections Cited

G.O.No.762 (Home) Cinema Department, dated 16.10.2017, Cinematography Act, G.O.Ms.No.405 (Home) Cinema Department, dated 20.05.2009

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