The Bombay High Court has delivered a significant ruling concerning the convenience fee charged during online ticket bookings in Maharashtra. The court has quashed the orders issued by the Maharashtra government in 2013 and 2014 that prohibited theater owners and ticketing platforms from levying additional charges beyond the original ticket price. This decision provides substantial relief to BookMyShow, PVR, and other multiplex operators.
The High Court's decision came after hearing petitions filed by PVR Limited, Big Tree Entertainment Private Limited (BookMyShow), and FICCI-Multiplex Association of India. These companies had challenged the state government's orders that deemed the collection of convenience fees on online bookings illegal.
What was the case?
In 2013 and 2014, the Maharashtra government issued orders prohibiting theaters and online ticketing platforms from charging any extra fees besides the ticket price. However, the High Court had stayed these orders through an interim order on July 9, 2014. The matter was pending in court since then, and during this period, theater owners continued to collect convenience fees.
In its final judgment, the court clarified that these government orders lacked legal backing and violated Article 19(1)(g) of the Constitution, which grants every citizen the freedom to practice any trade, business, or profession.
What the Court said
The bench of Justices Mahesh Sonak and Jitendra Jain stated that those involved in businesses have the right to determine how they operate their businesses. Restricting this freedom would negatively affect economic activities, potentially leading to the stagnation of businesses.
The court also stated that the customer has a complete choice – they can either purchase tickets by going to the theater or obtain tickets online by paying a convenience fee. There is no compulsion to use the online medium; thus, this facility is optional, not mandatory.
The court also accepted the arguments of the petitioners.
The petitioners argued in court that online ticket booking is an additional facility that requires significant investment in technology, servers, platforms, and infrastructure. Therefore, charging a nominal fee if a consumer wishes to avail of this facility is completely justified.
They also argued that if a consumer does not want to pay this fee, they can purchase tickets directly from the box office at the theater. The court agreed with these arguments, stating that the consumer has both options available, and there is no compulsion.
What happens now?
Following this decision, there are no legal obstacles to collecting convenience fees on BookMyShow, PVR, and other online ticketing platforms. This ruling not only brings relief to these companies but could also set a precedent for the entire multiplex sector.
