EIMPA VS FILMS DIVISION:

Round two for the exhibitors!

New Delhi: The controversy relating to the Films Division’s Indian News Reel (INR) has taken a new turn. The Eastern India Motion Pictures Association has obtained a stay order from Calcutta High Court on the FD’s demand that one per cent rental on the net collections be paid by the exhibitors to it with retrospective effect from November 1, 1995.

Recently, the Films Division had issued a circular to all Indian exhibitors directing them to send details of their collections during the last five years and pay rentals on their net collections with retrospective effect. The FD had also written to all district magistrates, who are the licensing authorities, to ensure the exhibitors get the approved films from FD as was usual prior to August 31, 1995, and pay weekly rentals with retrospective effect. The Calcutta High Court, in its orders dated September 13 and September 15, 1999, has stayed these senseless demands being made by the FD.

The exhibitors feel the FD was trying to force them to sign the agreement to pay rentals with coercion from the district magistrates. Although, both the previous orders of the High Court and Supreme Court are in favour of theatres screening FD documentaries, these by no means justify the FD’s strong arm tactics. While the HC verdict mentions “no rental can be charged for their documentaries by FD”, the apex court ruling leaves exhibitors free to procure documentaries from other sources besides the FD. “None of the provisions make it mandatory for exhibitors to procure such films only from FD. The reason they do so is the lack of adequate alternative sources,” the SC judgement said.

The SC verdict also observed that the rentals demanded by FD were no taxes but service charges. “It is true that neither the act nor the notification nor the rules nor the terms and conditions of license stipulates the payment of rentals. This amount is required to be paid under an agreement which the exhibitor individually enters into with the FD for the supply of these films,” it ruled.

In view of a previous SC ruling, the recent stay order obtained by the EIMPA, the Motion Picture Association, New Delhi, has advised exhibitors not to pay rental for the period from November 1, 1995 to July 15, 1999, since there was no agreement between the exhibitors and the Films Division for the said period to that effect.

Talking to SCREEN, KMS Khan, president of MPA, Delhi, said, “We have advised our members (exhibitors) not to sign any agreement in future, too, regarding the payment of rentals as, under law, no one can demand rentals by force, unless the contract stipulates the payment of rentals.” The exhibitors are bound to screen the approved films if supplied by FD, but the payment of rentals would depend entirely on the contract signed between the the exhibitor and the FD, he added.

Amitabh Parashar