THE SOUTH INDIAN FILM CHAMBER OF COMMERCE, MADRAS ETC.versusENTERTAINING ENTERPRISES, MADRAS AND ORS. ETC.

A     THE SOUTH INDIAN FILM CHAMBER OF COMMERCE, MADRAS
                              ETC.           I

                                v.
          ENTERTAINING ENTERPRISES, MADRAS AND ~RS. ETC.

                              DECEMBER 16, 1994
B
             [N. VENKATACHALA AND K.S. PARIPOORNA.N)J.]

        Tamil Nadu Exhibition of Films on Television Screeh through Video
    Cassette Recorders (Regulation) Act, 1984:

C        Sections 9 (2) and JO (2)-Held Constitutionally valib and within the
    legislative competence ofState Legislature.

         Constitution of India, 1950: Seventh Schedule-List. I-Entry 49-
     'Copyright'-List 1I - Entry 33- 'Cinemas'-Provisioils contained in
    Section 9(2) of Tamil Nadu Exhibition of Films on T~levision Screen
D   through Video Cassette Recorders (Regulation) Act, 1984 held ancillary to
    the subject ofAct which in pith and substance is 'Cinema'. I

         With a view to regulating the exhibition of films on television
    screen through Video Cassette Recorder, the T~milnadu State
    Legislature enacted· Tamilnadu Exhibition of Films' on Television
E   Screen through Video Cassette Recorders (Regulatipn) Act, 1984.
    Section 9(2) of the Act requires every person keeping ~ Video Library
    licensed under the Act, possessing cinematography films, to produce in
    respect of each film whenever demanded by the conce~ned officers of
                                                                  I




    Government a letter of consent from the first owner of the copyright of
    such film under the Copyright Act, 1957 or its assig~ee thereunder.
F   Section 10(2) of the Act requires every person keeping Video Library
    licensed under the Act not to sell, let to hire, distribute, exchange or put
    into circulation a cinematography film which is not }ertified by the
    authority under Cinematograph Act, 1952 as suitable for public
    exhibition and does not contain the prescribed mark pr if contains a
    mark, the film is not altered or tampered with after affixure of such
G
    mark. The respondents, who were keeping Video Cassette Libraries,
    challenged the constitutional validity of the Act on the !ground of want
    of legislative competence on the part of State legislarture. The High
    Court upheld the validity of the Act holding that the s~bject matter Of
    the Act was in pith and substance covered by the subject 'Cinema'
H   mentioned in Entry 33 of List II of the Seventh Schedule to the
                                                              I

                                     674
       S. INDN. F. CHAMBER OF COMM. v. ENTERTAINING ENTERP. 675

Constitution. However, it struck down Sections 9(2) and 10(2) of the A
Act. In striking down Section 9(2) the High Court held that though the
State legislature purported to enact it on the subject 'cinema', a subject
in the State List, in fact it has gone beyond the permitted limit because
it covers the subject 'Copyright', which was a subject faUing in the
Union List. Further, in view of the fact that the non-possessing by a
licensee of Video Library of a Jetter of consent from the owner or B
assignee of copyright of st.ch film to be dealt with by him sAnce makes
him liable for a cognizable offence and of a higher punishment not
provided for in the Copyright Act itself, the provision in section 9(2)
requiring the keeping of such consent letter cannot be regarded as an
incidental or ancillary provision made on the subject of 'cinema', lying C
within the competence of the State Legislature.

    In striking down Section 10(2), the High Court held that having
regard to the fact that the provisions of the Cinematograph
Certification Rules, 1983 do not contemplate the certification of a video
film for private exhibition in the residence of the members of the video D
library, the requirement of the production of a certificate in respect of
the video films hired out by a video library to its members under
Section 10(2) was not only invalid but also unworkable.

     Against the decision of the High Court, appeals were preferred in
this Court.
                                                                               E
    Allowing the appeals, this Court

    HELD: 1. Sections 9(2) and 10(2) of the Tamilnadu Exhibition of
Films on Television Screen through Video Cassette Recorders
(Regulation} Act, 1984 are constitutionally valid. (686 A]
                                                                               F
    2. The provision in Section 9(2) of the Act being an ancillary
provision on the subject of the Act which in pith and substance is
'cinema', lay within its legislative competence of the State legislature
and hence is constitutionally valid. When under the Act a person who is
given a licence to keep a Video Cassette Library for purposes of
carrying on his business of selling, letting to hire, distribution, exchange   G
or putting into circulation in any manner whatsoever of video films
recorded on Video Cassette tape, it is required by section 9(2) of the
Act to keep a letter of consent from the first owner of the copyright in
any of such films or from the assignee thereof, so that he may not carry
on such business infringing the copyrights of the owner or assignee in         H
    676                  SUPREME COURT REPORTS                [1994) SUPP. 6 S.C.R

A   such films under the Copyright Act, such section en~cted covering a
    ·matter which is incidental to regulation of business! of video films,           ~
    cannot fall outside the competence of the State Legislature. [682F, B, CJ

         3. The High Court fault~d in its conclusion that the provision in
                                                                      1



    section 9(2) of the Act enacted by the State Legislafure was not an
B   ancillary provision enacted, in pith and substance, on the subject of
    'cinema' lying within its legislative competence. In taking into  1


    consideration the cognizable nature of the offence andi a severe penalty
    impassible for the offence of not keeping a letter of consent obtained
    from the first owner of the copyright of the film or ass~gnee thereof, for
    reaching the conclusion that the State Legislature llas no legislative
c   competence to legislate on the subject of 'cinemar has taken into
    consideration matters which were not germane to th' consideration of
    the question of legislative competence of a legislature on a subject.
                                                                  1
                                                                  [683 D, A, BJ
                                                                  I
        4. It is, however, difficult to think that when a regulatory legislative
D   measure is enacted by a legislature on a subject wit~in its competence
    requiring a person to obtain a licence for doing certain business
    concerned with the subject, imposes certain restrictions upon such
    person to make him conduct the business concerned for which he is
    granted the licence, lawfully, could be regarde<f as a legislative
    provision which is not ancillary to the main subjec~ of the regulation,
E   when once the subject of regulation is found within the pith and
    substance of the concerned legislature's competence.1[683 CJ
                                                              I

         5. The High Court's view that Section10(2) of th~ Act is invalid and
    unworkable is not based upon a proper construction of sub-section(2)
    of section 10 having regard to its setting in sectlon 10. When sub-
    section(2) appears in its setting in section 10 after the said sub--section
F   (1) which deals with the licensees under the Act ~ho are required to
    give exhibition of certified films on televisions throjllgh Video Cassette
    Recorders and when while dealing with the pers~n keeping a Video
    Library sub-section (2) says that no person keeping a Video Library
    shall sell, let to hire, distribute, exchange or put into circulation in any
    manner whatsoever any film other than a film whi~h has been certified
G
    as suitable for public exhibition by the authority constituted under
    section 3 of the Cinematograph Act, 1952 and wh;ich, when exhibited,
    displays the prescribed mark of that authority and has not been altered
                                                          1
    or tampered with in any way since such mark was affixeo thereto, the
    legislative intendment in imposing such restrittion on the Video
H   Library or a person keeping a Video Library cannot be anything other
    S. INDN. F. CHAMBER OF COMM. v. ENTERTAINING ENTERP. [VENKATACHALA, J.J 677

    than imposing it in respect of films which are intended for public A

-   exhibition. If that be the effect of the provision and its requirement,
    question of invalidating it on the ground that it applies to films with
    licensed persons keeping Video Library for fHms other than those
    meant for public exhibition, cannot arise. [685 G, 675 D, 685 D to F]

         CIVIL APPELATE WRISDICTION: Civil Appeal No. 2627 of 1984 B
    Etc. Etc.

        From the Judgment and Order dated 2 I .6.84 of the Madras High Court
    in W.P. No. 1587of1984.

         M.N Krishnamani, K.V. Mohan, P.R. Seetharaman (NP) C.V. Subba C
    Rao (NP), A. Mariarputham, Mrs. Aruna Mathur, for Arputham Aruna and
    Co., Tripurari Ray for Vineet Kumar, for the appearing parties.

        The Judgment of the Court was delivered by

         VENKA T ACHALA, J. On a certificate granted by the High Court of
    Judicature at Madras in respect of its common Judgment dated 21st June, D
    I 984 rendered in Writ Petition No. I 587 of I 984 and connected matters, the
    present appeals are filed assailing the sustainability of that judgment insofar
    as it relates to the striking down of Section 9(2) of the Tamil Nadu
    Exhibition of Films on Television Screen through Video Cassette Recorders
    (Regulation) Act, 1984- "the Act" requiring every person keeping a Video E
    Library licensed under the Act, possessing cinematograph films, to produce
    in respect of each film whenever de;nanded by the concerned officer of
    Government a letter of consent got from the first owner of the copyright of
    such film under the Copyright Act, 1957 or its assignee thereunder, as that
    enacted by the Tamil Nadu State Legislature- "the State Legislature",
    without being possessed of the required legislative competence and of F
    Section 10(2) of the Act requiring every person keeping Video Library
    licensed under the Act not to sell, let to hire, distribute, exchange or put into
    circulation a cinematograph film which is not certified by the authority
    under Cinematograph Act, 1952 as suitable for public exhibition and does
    not contain the prescribed mark or if contains a mark, the film is not altered
    or tampered with after affixure of such mark, as that enacted by the State G
    Legislature, is invalid and unworkable.

         Before taking up for consideration the contentions urged in these
    appeals against the striking down by the High Court sections 9(2) and 10(2)
    of the Act, it would be advantageous to advert to the scheme of the Act, as
    could be found from the Preamble and the provisions of the Act.             H
     678                   SUPREME COURT REPORTS               [1994] $UPP. 6 S.C.R

A         Object-sought to be achieved by the State legislature b/enacting the
     Act, as declared in its preamble, is the regulation in the State of Tamil Nadu
     of the exhibition of films on Television screen through' video Cassette
     Recorders.

          'Video Cassette Recorder' is defined in clause (6) ofl section 2 as
B    meaning a cinematograph for the purpose of giving citiettiatography
     exhibition of film, recorded on Video cassette tape. 'Vid~o Library' is
     defined in clause (7) thereof as meaning a place by whatever name called
     where the business of selling, letting to hire, distribution, exchange or
                                                                     1
     putting into circulation in any manner, whatsoever, of film f<!>r purposes of
     exhibition is carried on.
c
          Coming to regulatory provisions in the Act, while sub~s'!ction (1) of
     section 3 requires that no person shall give an exhibition of film on
     Television screen through Video Cassette Recorier except Jnder a licence
     granted under section 6 read with section 5 of the Act, and ~ a place other
     than one for which permission has been grant~d under secti?n 7 read with
D section 5 of the Act - such place not being allowed to carry on any other
     business at any time, sub-section (2) thereof lifts the restrict~on imposed as
     to exhibition of films under sub-section (1) to exhibitidn of film on
     Television screen through Video Cassette Recorder to the family members
     of the household only. Further, while section 4 thereof requires that no
    person shall keep any Video Library except under and in accordance with, a
E licence granted under the Act and under the stated circumftances obtains
     separate licenses and renewals of the licenses so obtained, section 6 thereof
    requires licensing aµthority not to grant a licence for exhibition of film if it
    goes against public interest and if it is not satisfied I that adequate
    precautions have been taken in place for which licence has ~o be granted to
    Provide for the safety, convenience and comfort of the persons attending
F exhibitions therein or as the case may be visiting the Video Library.
    Thereafter, while section 7 thereof refers to the powers of the licensing
    authority to permit construction and reconstruction of buildfugs, installation
    of machinery, etc, for exhibition of film, section 8 thereof reserves to the
    Government power to issue orders or directions of a gener~l nature as they
    consider necessary in respect of any matter relating to licenses for the
G
    exhibition of film on Television screen through Video Cassette Recorder or
  . the keeping of Video Library, to licensing authorities. Cqming to section
    9(1), it enjoins every person licensed under section 6 read with section 5 of
    the Act giving exhibition of films on Television screeni through Video
    Cassette Recorder to produce when demanded by an officer authorited by
    the Government in this behalf, a letter of consent for such exhibition from
H                                                                  I
S. INDN. F. CHAMBER OF COMM. v. ENTERTAINING ENTERP. [VENKATACHALA, J.] 679
                                                                                   ·,
the person who is the first owner of the copyright of the cinematograph film A
under section 17 of the Copyright Act, 1957 (Central Act XIV of 1957),
and in case such copyright has been assigned under section 18 of the said
Act, from the assignee of such copyright. But, section 9(2), which is struck
down by the High Court in the judgment under appeals reads:

              "Every person keeping a Video Library licensed under this B
              Act, shall in respect of each film in his possession, produce
              when demanded by an officer authorized by the Government
              in this behalf, a letter of consent from the person who is the
              first owner of the copyright of the cinematograph film under
              section 17 of the Copyright Act, 1957 (Central Act XIV of
              1957) and in case such copyright has been assigned under C
              section 18 of the said Act, from the assignee of such
              copyright."

      Then, coming to section 10(1) it enjoins that no person licensed under
this Act to give an exhibition of film on Television screen through Video
Cassette Recorder shall exhibit or permit to be exhibited any film other than D
a film which has been certified as suitable for public exhibition by the
authority constituted under section 3 of the Cinematograph Act, 1952
(Central Act, XXXVII of 1952), and which, when exhibited, displays the
prescribed mark of that authority and has not been altered or tampered with
in any way since such mark was affixed thereto. But, section 10(2), which
is also struck down by the High CoUJt in its judgment under appeals reads : E

              "No person licensed under this Act for keeping a Video
              Library shall sell, let to hire, distribute, exchange or put into
              circulation in any manner whatsoever any film other than a
              film which has been certified as suitable for public exhibition F
              by the authority constituted under section 3 of the
              Cinematograph Act, 1952 (Central Act, XXXVII of 1952),
              and which, when exhibited, displays the prescribed mark of
              that authority, and has not been altered or tampered with in
              any way since such mark was affixed thereto."
                                                                               G
     When we come to other sections of the Act, while section 11 empowers
the Government or licensing authority to suspend exhibition of film in
certain cases, section 12 of the Act refers to their power to revoke or
suspend licenses. While section 13 of the Act, refers to appellate authority
before which a person aggrieved by an order of the licensing authority
refusing to grant or renew a licence or an order of revocation or suspension   H
    680                  SUPREME COURT REPORTS              [1994] SUPP. 6 S.C.R

A   of a licence or a decision refusing to approve any transfer cir assignment of
    a licence under the Act can appeal against, section 14 of the Act, refers to
                                                                                     I
    the powers of revision exercisable by Government in such 1'1.atters.

          Section 15, which deals with penalties, while by sub-seftion (1) thereof
    makes every person who contravenes or attempts to contra'r"ene or abets the
B   contravention of the provisions of section 10 punishable wi~h imprisonment
    which may extend to three months. or with fine which ml\y extend to one
    thousand rupees or with both and in the case of a continuing offence with a
    further fine which may extend to one thousand rupees for l~ach day during
    which the offence continues, by sub-section (2) thereof makes every person
    who contravenes or attempts to contravene or abets the contravention of
c   any of the provisions of the Act other than section l 0 or any rule made
    thereunder or of the terms and conditions of, and restri~tions upon, any
    licence granted under the Act punishable with imprisom:nent which may
    extend to one year and shall also be liable to fine. Section 16 of the Act
    while provides for offences by companies, section 17 of tile Act deals with
    the power to enter, search and seize. Section 18 of the Act deals with
D   confiscation of films· exhibited or kept in contravention of/the provisions of
    the Act and the rules made thereunder. Section 19 states that no court
    inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the
    first class shall try any offence punishable under the Act. Section 20 of the
    Act states that any offence punishable under the Act sha~l be a cognizable
    offence. While section 22 deals with power of the Government to make
E   rules for carrying the purpose of the Act, the remaining sections in the Act
    deal with ancillary or incidental matters.

         Thus, from the above preamble and· the provisio*s of the Act, it
    becomes obvious that the State Legislature by enacting the Act has evolved
    a comprehensive legislative scheme aimed at regulating in the whole State
F   of Tamil Nadu of the exhibition of cinematograph filtns on Television
    screen through Video Cassette Recorders by requiring petsons who want to
    give exhibition of such films outside their households ·and persons who
    want to keep Video Libraries, to obtain licenses as provided for thereunder
    and by making such licensees liable for penalties for breaches of
G   restrictions imposed upon them, as envisaged thereunder.'

        When the respondents in the present appeals, who were keeping Video
    Cassette Libraries in several places of the State of Tamil Nadu challenged
    before the High Court the constitutionality of the various provisions of the
    Act as being ultra vires on the ground of want of legislative competence on
H   the part of the State Legislature, a thorough examination of that challenge
    S. INDN. F. CHAMBER OF COMM. v. ENTERTAINING ENTERP. [VENKATACHALA, J.] 681


    made by that Court, led it to the conclusion that the Act in 'pith and A
    substance' being 'cinema', the subject which finds its place in Entry 33 of
    List II to the Seventh Schedule of the Constitution was within the
    legislative competence of the State Legislature. However, the High Court,
    insofar as the provision in section 9(2) of the Act is concerned, reached the
    conclusion that it had been enacted, by the State Legislature on 'copyright',
    the subject in List-I of Seventh Schedule to the Constitution, by going B
    beyond the permitted limit of encroachment and hence ultra vires. The
    conclusion reached by the High Court in that regard, as recorded by it,
    reads thus:

                  "We are of the view that Section 9(2) is not a mere incidental
                  encroachment on the entry 'Copyright' falling in List I, but it C
                  amounts to an addition to the provisions of the Copyright Act
                  and therefore it falls outside the permitted limit of
                  encroachment and as such it should be taken to be ultra·
                  vires."

         The said conclusion of the High Court, has since been assailed in the D
    present appeals, as the one wrongly reached by the High Court, the
    sustainability of that conclusion warrants our examination in the light of
    rival contentions raised before us.

         Section 9(2) of the Act, which according to the High Court covers the
    subject of copyright in List-I of Seventh Schedule of the Constitution-          E
    Union List, is enacted by the State Legislature traversing outside the
    permitted limit of encroachment on the subject of 'copyright' purported to
    enact on the subject of 'cinema' in List-II of Seventh Schedule- State List,
    lying within its competence, is reproduced by us already while adverting to
    the scheme of the Act. That sub-section, as could be seen therefrom              F
    requires of every person keeping a Video Cassette Library licensed under
    the Act to produce in respect of each film in his possession, when
    demanded by an officer authorized by the Government in that behalf, a
    letter of consent from the person, who is the fir~t owner of the copyright of
    the cinematograph film under section 17 of the Copyright Act, 1957 and in
    case such copyright has been assigned under section 18 of that Act, from         G
    the assignee of such copyright. The High Court, placing reliance on the
    definition clause (f) of section 2 of the Copyright Act, 1957 has, as a matter
    of fact, held in its judgment under appeals that a copyright should be taken
    to have been created in respect of a video film under the Copyright Act,
    1957, negativing the contention raised before it, to the contrary. The High
    Court also does not say that every person carrying on the business of            H

-
    682                   SUPREME COURT REPORTS               [1994] SUPP. 6 S.C.R

A    selling, letting to hire, distribution, exchange or putting into circulation in
     any manner whatsoever of such film for the purpose of exhibition, can
     carry on such business without the consent from the person, who is the first
     owner of such copyright or its assignee according to the provisions of the
     Copyright Act, 1957. Therefore, when under the Act a person who is given
     a licence to keep a Video Cassette Library for purposes of carrying on his
B    business of selling, letting to hire, distribution, exchange or putting into
    circulation in any manner whatsoever of video films recorded on Video
    Cassette tape, if is required by section 9(2) of the Act to keep a letter of
    consent from the first owner of the copyright in any of such films or from
    the assignee thereof, so that he may not carry on such business infringing
    the copyrights of the owner or assignee in such films under the Copyright
c   Act, such section enacted covering a matter which is incidental to
    regulation of business of video films, cannot fall outside the competence of
    the State Legislature. But, what the High Court has said is that the non-
    keeping of the letter of consent by the person keeping the Video Cassette
    Library in respect of a film, has since been made a cognizable offence
    under another provision of the Act, while the same is not a congnizable
D   offence under the Copyright Act, and yet by another provision of the Act
    makes him liable for a higher punishment than that awardable under the
    Copyright Act, 1957- the provision in section 9(2) of the Act has to be
    regarded as that enacted by the State Legislature on the subject of copyright
    itself, which is a subject on which Parliament alone under List- I is
    competent to legislate. Then, according to the High Court the non-
E   possessing by a licensee of Video Library of a letter of consent from the
    owner or assignee of copyright of such film to be dealt with by him since
    makes him liable for a cognizable offence and of a higher punishment not
    provided for in the Copyright Act itself, the provision in section 9(2)
    requiring the keeping of such consent letter cannot be regarded as an
    incidental or ancillary provision made on the subject of 'cinema', although
F   the Act is in pith and substance the subject of 'cinema' lying within the
    competence of the State Legislature.

         We are of the opinion,· as rightly contended for on behalf of the
    appellants before us that the fact the provisions in the Act make the non-
    possessing of the letter of consent from the holder of copyright of the film
G   or assignee thereof for doing business in such films a cognizable offence or
    an offence punishable, can be no ground for holding that the State
    Legislature in requiring the keeping of a consent letter from the copyright
    holder or his assignee for doing business in the film which is necessary for
    carrying on the such business lawfully can be said to make the State
H   Legislature to lose the legislative competence which it had on the subject of
S. INDN. F. CHAMBER OF COMM. v. ENTERTAINING ENTERP. [VENKATACHALA, J.] 683

'cinema' in List-II of Seventh Schedule to the Constitution. The High A
Court, in our view, in taking into consideration the cognizable nature of the
offence and a severe penalty impossible for the offence of not keeping a
letter of consent obtained from the first owner of the copyright of the film
or assignee thereof, for reaching the conclusion that the State Legislature
has no legislative competence to legislate on the subject of 'cinema' has
taken into consideration matters which were not germane to the B
consideration of the question of legislative competence of a legislature on a
subject. It is, however, difficult to think that whe~ a regulatory legislative
measure is enacted by a legislature on a subject within its competence
requiring a person to obtain a licence for doing certain business concerned
with the subject , imposes certain restrictions upon such person to make C
him conduct the business concerned for which he is granted the licence,
lawfully, could be regarded as a legislative provision which is not ancillary
to the main subject of the regulation, when once the subject of regulation is
found within the pith and substance of the concerned legislature's
competence.

    Hence, we are constrained to hold that the High Court faulted in having
                                                                              D
reached the conclusion that the provision in section 9(2) of the Act enacted
by the State Legislature was not an ancillary provision enacted, in pith and
substance, on the subject of 'cinema' lying within its legislative
competence. Consequently, we hold that the provision in section 9(2) of the
Act being an ancillary provision on the subject of the Act which in pith and E
substance is 'cinema'. lay within its legislative competence and hence is
constitutionally valid.

     Now, we shall tum to section 10(2) of the Act which the High Court
has held to be invalid and unworkable. The High Court for reaching the
said conclusion has stated thus:                                        F
             "Having regard to the fact that the prov1S1ons of the
             Cinematograph Certification Rules, 1983 do not contemplate
             the certification of a video film for private exhibition in the
             residence of the members of the video library, the
             requirement of the production of a certificate in respect of the G
             video films hired out by a video library to its members under
             Section 10(2) is invalid. As pointed out already, the
             certification is contemplated in the certification rules only if
             the applicant for certification intends to use the video film for
             public exhibition and not when he does not intend to do so.
             Thus, the insistence on certification under the impugned Act H
    684                  SUPREME COURT REPORTS               (1994] SUPP. 6 S.C.R

A                 and the rules framed thereunder is not valid. A video film for
                  their own use and not for public show or exJiibition cannot
                  approach the Censor Board for a Certificate, for, the owner of
                  the library does not intend to use the video tapes for public
                  exhibition. In this view of the matter, we have to hold that
                  Sec. 10(2) of the Act is not only Lr1valid but unworkable."
B
         The High Court, as could be seen from the excerpted portion of its
    judgment under appeals, has concluded that Section 10(2) of the Act is
    invalid and unworkable. That conclusion, as becomes clear therefrom, is
    based on its view that Section 10(2) requires a person keeping a Video
                                                                                      .<
    Library of films which are not meant for public exhibition, cannot sell, let
C   to hire, distribute, exchange or put into circulation in any manner
    whatsoever any of them unless certified as suitable for public exhibition by
    the authority constituted under section 3 of the Cinematograph Act, i 952
    and which, when exhibited, displays the prescribed mark of that Authority
    and has not been altered or tampered with in any way since such mark was
    affixed thereto.
D
         The said view, as contended on behalf of the appellants before us, is
    not based upon a proper construction of sub-section (2) of section 10
    having regard to its setting in section 10. The contention was, if sub-section
    (2) of section 10 has to be properly understood having regard to its setting
    in section 10 of the Act, it could only relate to those films which are not
E   meant for public exhibition and if so understood, the conclusion reached by
    the High Court that the sub-section is invalid and unworkable becomes
    unsustainable. There is, in our opinion, substance in the contention
    advanced on behalf of the appellants. Section 10 as a whole reads thus : .

                  "10. Licensee to exhibit only certified films -(1) No person
                   licensed under this Act to give an exhibition of film on Tele-
F
                   vision screen through Video Cassette Recorder shall exhibit
                   or permit to be exhibited any film other than a film which has
                   been certified as suitable for public exhibition by the
                   authority constituted under section 3 of he Cinematograph
                  Act, 1952 (Central Act XXXVII of 1952), and which, when
G                  exhibited, displays the prescribed mark of that authority, and
                  .has not been altered or tampered with in any way since such
                   mark was affixed thereto.

                  (2) No person licensed under this Act for keeping a Video
                  Library shall sell, let to hire, distribute, exchange or put into
H                 circulation in any manner whatsoever any film other than a
     S. INDN. F. CHAMBER OF COMM. v. ENTERTAININGENTERP. [VENKATACHALA, J.] 685

                   film which has been certified as suitable for public exhibition A
                   by the authority constituted under section 3 of the
                   Cinematograph Act, 1952 (Central Act XXXVII of 1952),
                   and which, when exhibited, displays the prescribed mark of
                   that authority, and has not been altered or tampered with in
                   any way since such mark was affixed thereto."
                                                                                     B
          The heading of section l 0, as could be seen therefrom, indicates that
     the provision in the sub-sections thereunder are intended to apply to only
     licensees who want to exhibit certified films. Under sub-section (I), as
     becomes clear therefrom, no person- licensed under the Act could give an
     exhibition of films through Video Cassette Recorder or permit to be
     exhibited any film other than a film which has been certified as suitable for   C
     pubic exhibition by the authority constituted under section 3 of the
     Cinematograph Act, 1952 and which, when exhibited, displays the
     prescribed mark of that authority and has not been altered or tampered with
     in any way since such mark was affixed thereto. In fact, the High Court
     does not say that the said provision is in any way constitutionally invalid.
     When sub-section (2) appears in its setting in section (1) which deals with     D
     the licensees under the Act who are required to give exhibition of certified
     films on televisions through Video Cassette Recorders and when while
     dealing with the persons keeping a Video Library sub-section (2) says that
     no person keeping a Video Library shall sell, let to hire, distribute,
..   exchange or put into circulation in any manner whatsoever any film other
     than a film which has been certified as suitable for public exhibition by the   E
     authority constituted under section 3 of the Cinematograph Act, 1952 and
     which, when exhibited, displays the prescribed mark ·of that authority and
     has not been altered or tampered with in any way since such mark was
     affixed thereto, the legislative intendment in imposing such restriction on
     the Video Library or a person keeping a Video Library cannot be anything        F
     other than imposing it in respect of films which are intended for public
     exhibition. If that be the effect of the provision and its requirement,
     question of invalidating it on the ground that it applies to firms with
     licensed persons keeping Video Library for films other than those meant for
     public exhibition, cannot arise, as rightly contended for on behalf of the
     appellants. Hence, the view taken by the High Court that section I 0(2) is      G
     invalid and unworkable, cannot be sustained.

          Thus, the view of the High Court that section 9(2) was invalid and
     ultra vires being enacted by State Legislature without the required
     legislative competence and its view that section 10(2) was invalid and
     unworkable because it applied to films other than those which are meant for     H
    686                  SUPREME COURT REPORTS             [1994) SUPP. 6 S.C.R

A   public exhibition and hence both of them were liable to ~e struck down,
    require to be interfered with, in that , in our opinion, section 9(2) and      (
    Section 10(2) of the Act are constitutionally valid.

         In the result, we allow these appeals and dismiss the writ petitions in
    the High Court out of which the present appeals have arisen. However, in
B   the circumstances of the present appeals, we make no order as to costs.

    T.N.A.                                                    Appeals allowed.