Supreme Court Quashes High Court's Interim Order Modifying Copyright Rules in Statutory License Dispute - Interim Order That Altered Prior Notice Requirement Under Rule 29(4) of Copyright Rules 2013 Set Aside as Impermissible Judicial Rewriting of Statutory Provisions.

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Case Note & Summary

The appeals arose from an interim order dated 2 August 2021 by a Division Bench of the High Court of Judicature at Madras in writ petitions challenging the validity of Rule 29(4) of the Copyright Rules 2013. The High Court's order directed that no copyrighted work could be broadcast under Rule 29 without prior notice, but allowed details and royalty payments to be furnished within fifteen days post-broadcast, effectively substituting the statutory twenty-four hour prior notice requirement with a post-facto compliance regime. The appellants, Saregama India Limited, contended that this interim order rewrote Rule 29(4), which is framed under Section 31D and Section 78(2)(cD) of the Copyright Act 1957. The respondents, Next Radio Limited and others, were the original petitioners before the High Court. The core legal issue was whether the High Court could modify statutory requirements through an interim order. The appellants argued that the order undermined the legislative intent and rights of copyright owners, while the respondents likely defended the interim relief as necessary. The Supreme Court analyzed Section 31D, which mandates prior notice for broadcasting organizations seeking a statutory license, and Rule 29(4), which specifies the notice particulars. The Court reasoned that interim orders should not alter substantive statutory provisions or grant final relief, especially when the rule's validity is sub judice. It emphasized that judicial intervention must respect the legislative scheme and not rewrite rules. Consequently, the Court set aside the High Court's interim order, restoring the original requirements of Rule 29(4), and disposed of the appeals, noting that the writ petitions were listed for final disposal on 4 October 2021.

Headnote

A) Copyright Law - Statutory License for Broadcasting - Prior Notice Requirement - Copyright Act, 1957, Section 31D and Copyright Rules, 2013, Rule 29(4) - The High Court's interim order substituted the statutory mandate of a twenty-four hour prior notice with a provision for compliance within fifteen days after broadcast, effectively rewriting Rule 29(4) - The Supreme Court held that such judicial modification of a statutory rule is impermissible as it alters the legislative scheme and undermines the rights of copyright owners - The interim order was set aside, restoring the original requirements of Rule 29(4) (Paras 2-3, 7-9).

B) Civil Procedure - Interim Orders - Scope and Limitations - Constitution of India, Article 226 - The High Court, in exercise of its writ jurisdiction under Article 226, issued an interim order that modified the operation of Rule 29(4) of the Copyright Rules 2013 - The Supreme Court found that the interim order went beyond preserving the status quo and instead altered substantive statutory obligations - Held that interim relief should not grant final relief or rewrite statutory provisions, especially when the validity of the rule itself is under challenge (Paras 2-3, 5).

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Issue of Consideration

Whether the High Court's interim order, which modified the prior notice requirement under Rule 29(4) of the Copyright Rules 2013 to a post-facto compliance regime, is legally sustainable.

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Final Decision

The Supreme Court set aside the High Court's interim order dated 2 August 2021, restoring the original requirements of Rule 29(4) of the Copyright Rules 2013, and disposed of the appeals.

Law Points

  • Interim orders cannot rewrite statutory provisions
  • Section 31D of the Copyright Act 1957 mandates prior notice for statutory license
  • Rule 29(4) of the Copyright Rules 2013 must be strictly complied with
  • judicial intervention must respect legislative intent
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Case Details

2021 LawText (SC) (9) 92

Civil Appeal Nos 5985-5987 of 2021 (Arising out of SLP (Civil) Nos 14972-14974 of 2021) WITH Civil Appeal Nos 5988-5990 of 2021 (Arising out of SLP (Civil) Nos 15108-15110 of 2021)

2021-09-27

Dr. Dhananjaya Y. Chandrachud

Mr Mukul Rohatgi, Mr Akhil Sibal, Mr Navroz Seervai, Mr Neeraj Kishan Kaul

Saregama India Limited

Next Radio Limited & Ors

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Nature of Litigation

Civil appeals arising from an interim order of the High Court in writ petitions challenging the validity of Rule 29(4) of the Copyright Rules 2013

Remedy Sought

Appellants sought to set aside the High Court's interim order that modified Rule 29(4)

Filing Reason

The interim order was perceived as rewriting statutory provisions and undermining copyright owners' rights

Previous Decisions

High Court's interim order dated 2 August 2021 directed modified compliance with Rule 29(4); IPAB order dated 31 December 2020 determined royalty rates under Section 31D

Issues

Whether the High Court's interim order modifying Rule 29(4) of the Copyright Rules 2013 is legally sustainable

Submissions/Arguments

Appellants argued that the interim order rewrites Rule 29(4) and undermines statutory mandate Contesting respondents (original petitioners) likely defended the interim relief

Ratio Decidendi

Interim orders cannot rewrite statutory provisions; judicial intervention must respect legislative intent and not alter substantive statutory obligations, especially when the validity of the rule is under challenge.

Judgment Excerpts

The High Court has, by its interim order, directed that: (i) No copyrighted work may be broadcast in terms of Rule 29 without issuing a prior notice; (ii) Details pertaining to the broadcast, particularly the duration, time slots and the like, including the quantum of royalty payable may be furnished within fifteen days of the broadcast or performance The primary submission which has been urged on behalf of the appellants is that the interim order of the High Court has the effect of re-writing Rule 29(4) of the Rules

Procedural History

Writ petitions filed before High Court under Article 226 challenging Rule 29(4); High Court issued interim order on 2 August 2021; Appeals filed in Supreme Court; Supreme Court granted leave and disposed of appeals at this stage; Writ petitions listed for final disposal on 4 October 2021.

Acts & Sections

  • Copyright Act, 1957: Section 31D, Section 78(2)(cD)
  • Copyright Rules, 2013: Rule 29(4)
  • Constitution of India: Article 226
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