In a significant decision, the Supreme Court has upheld the penalties levied by the Competition Commission of India (CCI) against the Kerala Film Exhibitors Federation (KFEF) and its office-bearers. These penalties were issued due to anti-competitive practices, specifically the federation’s role in restricting the screening of Tamil and Malayalam films in theaters.
A bench comprising Justices Manoj Misra and K.V. Viswanathan set aside a previous judgment from the Competition Appellate Tribunal (COMPAT), thereby restoring the CCI’s original findings and directives. The COMPAT had previously overturned penalties concerning specific officials, but the Supreme Court’s latest ruling reinstates these in full.
The apex court directed that the federation’s president, P.V. Basheer Ahamed, and general secretary, M.C. Bobby, would be barred from participating in the federation’s affairs, including its administration and management, for a period of two years, commencing from December 1.
This decision stems from complaints filed by Crown Theaters, which alleged that the KFEF and its officials, including Ahamed, had deliberately prevented the screening of new Tamil and Malayalam films at Crown Theatre. The CCI investigated these claims and found them to be true, subsequently imposing penalties on the federation and its office-bearers. Further action was taken when the CCI found non-compliance with its orders, leading to the two-year association ban.
The KFEF and its officials appealed the CCI’s order to the COMPAT, which selectively set aside the penalties and directions against Ahamed and Bobby. However, the CCI challenged the COMPAT’s order in the Supreme Court, leading to the current ruling that restores the CCI’s findings entirely.