K C CINEMA (CORRECT NAME K C THEATRE) versus STATE OF JAMMU AND KASHMIR & ORS

Citation: [2023] 6 S.C.R. 572 · Decided: 03-01-2023 · Supreme Court of India · Bench: D.Y. CHANDRACHUD · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2023] 6 S.C.R.
   [2023] 6 S.C.R. 572
572
K C CINEMA (CORRECT NAME K C THEATRE)
v.
STATE OF JAMMU AND KASHMIR & ORS
(Civil Appeal No 77 of 2023)
JANUARY 03, 2023
[DR. DHANANJAYA Y CHANDRACHUD, CJI AND
PAMIDIGHANTAM SRI NARASIMHA, J.]
Constitution of India – Article 226, 19(1)(g) – PIL was filed
with the grievance that cinema theatres in J&K were prohibiting
movie goers from bringing eatables inside cinema halls – High Court
inter alia directed the Multiplexes/Cinema Halls Owners of the State
of J&K not to prohibit cinema goers/viewers from carrying his/her
own food articles and water inside the theatre – Legality of – Held:
Trade and business of operating cinema theatres is subject to
regulation by the State – In the present case, State Government had
framed the 1975 Rules to regulate the industry– In the absence of a
specific mandate in the 1975 Rules (or any other applicable law) in
this regard, High Court was not justified in issuing a direction
prohibiting theatre owners from disallowing food and beverages to
be brought in by persons entering a movie theatre who enter it for
viewing a film – Cinema hall is a private property of the owner of
the hall – The owner of the hall is entitled to stipulate terms and
conditions so long as they are not contrary to public interest, safety
and welfare – A prohibition on carrying food and beverages from
outside into the precincts of the movie hall is not contrary to public
interest, safety or welfare – Further, whether or not to watch a movie
is entirely within the choice of viewers – If viewers seek to enter a
cinema hall, they must abide by the terms and conditions subject to
which entry is granted – The condition of entry is imposed as a
direct result of the exercise of the right of cinema owners to carry
on a business or trade u/Article 19(1)(g) – High Court transgressed
its jurisdiction u/Article 226 by issuing the impugned direction –
Impugned judgment in regard to the said direction set aside – Jammu
and Kashmir Cinemas (Regulation) Rules 1975 – Cinematograph
Act 1952 – Cinematograph (Certification) Rules 1983 – Jammu and
Kashmir Cinematograph Act 1989 – Jammu and Kashmir
Cinematograph Rules 1989.
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Contract – Unfair and unreasonable contract/clause in a
contract – Test laid down in Central Inland Water Transport Corpn.
case – Held: When one party has unequal bargaining power relative
to the other party, any terms and conditions which are unreasonable
may not be enforced as against the party with lower bargaining
power – Central Inland held that whether parties can be said to have
unequal bargaining power and whether a bargain is unfair or
unreasonable must be decided on the facts and circumstances of
each case – The test in Central Inland is not only to assess whether
the parties have unequal bargaining power relative to one another
but also to ascertain whether a contractual term or a contract is
unfair, unreasonable or unconscionable – A contract (or a term in
a contract) can be said to be unfair or unreasonable if it is one-
sided or devoid of any commercial logic – However, in the present
case, although theatre owners may unilaterally determine the
conditions of entry into cinema hall, the condition imposed in this
instance is not unfair, unreasonable or unconscionable – Jammu
and Kashmir Cinemas (Regulation) Rules 1975.
Allowing the appeals, the Court
HELD: 1.1 The trade and business of operating cinema
theatres is subject to regulation by the state. In this case, the
State Government has framed the 1975 Rules to regulate the
industry. Admittedly, the 1975 Rules do not contain a rule
compelling the owner of a cinema theatre to allow a movie goer
to bring food or beverages from outside within the precincts of
the theatre. Similarly, other enactments and rules which regulate
the industry, namely, the Cinematograph Act 1952, the
Cinematograph (Certification) Rules 1983, the Jammu and
Kashmir Cinematograph Act 1989, and the Jammu and Kashmir
Cinematograph Rules 1989 do not contain a provision which
requires theatre owners to permit movie goers to carry food and
beverages of their own into the cinema hall. The rule making
power of the state must be exercised consistent with the
fundamental right of the cinema hall owner to carry on a legitimate
occupation, trade, or business within the meaning of Article
19(1)(g) of the Constitution. The legislature’s omission of a
provision requiring the cinema owner to allo

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