In a significant development for cinema-goers and multiplex operators in Karnataka, the High Court has refused to lift its interim order that temporarily halted the implementation of a new rule capping cinema ticket prices at ₹200 (excluding GST). However, the court has introduced a vital condition, directing the Multiplex Association to diligently maintain comprehensive accounts of every ticket sold across all its venues.
This interim ruling was issued by a vacation Division Bench, comprising Justice Suraj Govindaraj and Justice Rajesh Rai K. The order came as a response to an appeal lodged by the Karnataka Film Chamber of Commerce and other industry bodies. Their challenge targets an amendment to the Karnataka Cinema (Regulation) Rules, effective September 12, which imposed the ₹200 cap, with exemptions only for premium facilities in multiple-screen cinemas offering 75 seats or less.
Refunds on the Horizon if Rule is Upheld
The Bench clarified that should the amended rule ultimately be validated by the court, any amount collected above the ₹200 ceiling would be refunded to ticket purchasers. This refund would be processed through the same electronic method originally used for the ticket purchase. To ensure transparency and public awareness, the court instructed the association to communicate this order to cinema-goers. This must be done via prominent notice boards, on ticket booking portals, and by displaying the information on screens for at least 30 seconds in both English and the regional language before each film screening.
Furthermore, the High Court mandated that an external chartered accountant would be responsible for auditing these monthly statements of accounts submitted by the multiplexes. The court warned that any multiplex failing to comply with this accounting requirement would face immediate revocation of the interim stay, meaning the ₹200 ticket price cap would then apply to that specific venue as per the new rules.
The original single judge’s order to stay the rule was based on the preliminary observation that the 1964 Karnataka Cinema (Regulation) Act appeared to lack specific provisions empowering the regulation of ticket prices. This raised serious questions about the legal validity of setting ticket price caps through rule amendments in the absence of explicit statutory authority within the Act itself.