SC upholds penalties on Kerala film body for not screening Tamil, Malayalam movies

New Delhi, Sep 26 (PTI) The Supreme Court on Friday restored the finding of the Competition Commission of India (CCI) that imposed penalties on the Kerala Film Exhibitors Federation (KFEF) and its officials for indulging in anti-competitive practices by denying the screening of Tamil and Malayalam films in theatres.

A bench of Justices Manoj Misra and K V Viswanathan set aside the judgment of the Competition Appellate Tribunal (COMPAT) and restored the finding of the CCI.

"We allow the appeal and set aside the judgement of the COMPAT dated February 4, 2016 in… insofar as it set aside the penalty and directions against Respondent Nos. 2 and 3 (president and general secretary of KFEF) and the direction contained in clauses… of the order of the Commission. We restore the findings of the Commission dated September 8, 2015 in its entirety," the bench said.

The bench said the directions to KFEF not to associate with its president P V Basheer Ahamed and general secretary M C Bobby with its affairs including administration, management and governance of the federation for a period of two years shall commence from December 1.

"Compliance to be filed before the Commission within three months from today with regard to all the directions imposed by the Commission in its order dated September 8, 2015," the bench ordered, while allowing the appeal of CCI.

Complaints were filed before the CCI by Crown Theaters alleging anti-competitive activities by KFEF and its office-bearers. It was alleged that KFEF and Ahamed took steps to ensure that whenever new Tamil and Malayalam movies were released, they would not be screened at Crown Theatre.

The CCI found the allegations to be true and imposed penalties on KFEF and its two office bearers and, later, finding non-compliance, directed the office-bearers and the KFEF not to associate with each other for a period of two years.

Aggrieved by the order, KFEF and its office-bearers moved the COMPAT which set aside the penalty and directions only insofar as Ahamed and Bobby were concerned.

The order of COMPAT was challenged by the CCI before the top court. PTI MNL MNL KSS KSS