A Supreme Court bench pointed out that being private properties, cinema halls and the owners are entitled to regulate food brought into the premises
Delhi: The Supreme Court recently released a judgment asserting that the owner of cinema halls or multiplexes have the right to regulate people from carrying any outside food or beverage into the cinema hall.
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This will come as a relief to cinema hall operators, especially large chains as F&B is among the three major sources of revenue for multiplexes in addition to tickets and advertising. In fact, for PVR, F&B is the second-highest revenue source accounting for over a quarter of its total revenue. To put things in perspective, in 2022, multiplex chain Inox Leisure sold 863 tonnes of popcorn, over 5.1 lakhs sandwiches and 38.15 lakh litres of Coke to its customers.
The recent SC ruling gives the power back in the hands of cinema hall operators, which now want to be known as F&B multiplex players.
A bench headed by Chief Justice of India DY Chandrachud and Justice PS Narasimha noted on January 3, 2023, that cinema halls are private properties and the owners are entitled to set terms and conditions on the moviegoers as long as it is in public interest and safety.
“A cinema hall is a private property. What goes in is for the owner of the property to decide subject to statutory rules,” the bench pointed out.
Giving real-life examples the Bench said that the owner of cinema halls may not want people wiping hands on the seats after eating jalebis brought from outside and therefore can forbid the same. “It’s his right. He may not want tandoori chicken to be bought in. Noone is forcing them to buy popcorn. But the owner has a right,” the bench added.
The Bench said that concessions could be made for providing free water at movie theatres but that doesn’t give moviegoers the right to bring lemons from outside and make lemon water inside the hall just because lime water is priced at Rs 20.
“The basic premise is that cinema has a right to reserve admission. The cinema owners have a right to sell their own food and beverages. The owner is entitled to set terms and conditions so long as such terms and conditions are not contrary to the public interest, safety, and welfare. The owner is entitled to set terms for the sale of food and beverages. Movie goer has the choice to not purchase the same,” the court stated.
The Supreme Court bench also said that cinema hall owners could consider allowing parents of children to carry a certain amount of food inside the theatres. “It is also reiterated that when an infant accompanies a parent, cinema owners shall not object to reasonable food carried for the infant,” the bench directed.
Food at cinema halls has been a matter of controversy and litigation for many years with moviegoers vehemently fighting for cinema halls to allow outside food citing high prices. The issue has led to various incidents one of which included a viral video depicting an MNS worker slapping a multiplex manager over high prices of food in June 2018.
In the same year, J&K High Court lifted the ban on moviegoers from carrying outside food in theatres. The ruling further led to the Multiplex Association of India and J&K cinema hall owners filing a plea against the same in Supreme Court. The latest ruling by the apex court overruled HC judgement noting that the initial ruling would affect the legitimate rights of theatre owners.
“High Court transgressed the limits on the exercise of its jurisdiction. Absent is statutory rules to that effect. The imposition of such directions would affect the legitimate rights of theatre owner,” the SC bench concluded. [/bs_input_restrict]
