PVR INOX case: HC stays Bengaluru consumer commission’s order

High Court of Karnataka stays Bengaluru consumer commission’s order imposing ₹1 lakh fine on PVR INOX for playing ads, deeming it unfair trade practice.

The High Court of Karnataka has stayed the order passed by the Bengaluru Urban District Consumer Disputes Redressal Commission imposing a fine of ₹1 lakh on PVR INOX multiplex for playing commercial advertisements for about 25 minutes and delaying the screening of a movie last year.

“The directions issued by the commission on the face of it is a blatant violation of commission’s jurisdiction,” Justice M. Nagaprasanna said in the interim order passed on a petition filed by Multiplex Association of India, New Delhi and its representative Santanu Pai, who is also a shareholder in PVR INOX.

The commission had passed order on a complaint filed by Abhishek M.R. from Bengaluru. He had complained that his time was wasted due to the unnecessary screening of commercial advertisements for about 25 minutes before the start of the movie, Sam Bahadur, on December 12, 2023, due to which his schedule was affected. The complainant had recorded in his phone the advertisements played before the start of the movie.

Accepting the complaint, the commission had termed the screening of commercial advertisements as “unfair trade practice” by the multiplexes and theatres as the guidelines issued by the Ministry of Information and Broadcasting allows them to screen Public Service Awareness films for about 10 minutes. The commission had also directed PVR INOX to print actual movie start time on their tickets.

“The commission forum accepts the plea of the complainant and answers the complaint as if it has jurisdiction akin to a PIL petition. Indulges in discourses as to how a movie show should be run and directs that the theatres should not play commercial advertisements. Terms practice of playing advertisements as unfair trade practice. All these directions of the consumer forum on the face of it is without jurisdiction,” the court observed in its order.

Earlier, appearing for petitioners, Senior Advocates Mukul Rohatgi and Uday Holla pointed out that the commission has acted without jurisdiction, and this order has become a national issue leading to multiple litigations against theatres.

Contending that the multiplexes and theatres have their business model protected under Article 19(1)(g), Mr. Rohatgi referred to a judgement of the Supreme Court, which had set aside a verdict of the High Court of Jammu and Kashmir, which had said that moviegoers are entitled to carry their own food inside the theatres.