Amit Vyas vs Union Of India Through The Ministry Of … on 10 January, 2025

0
41

Bombay High Court

Amit Vyas vs Union Of India Through The Ministry Of … on 10 January, 2025

Author: Amit Borkar

Bench: Amit Borkar

2025:BHC-OS:595-DB
                                                                                    PIL-89-2024-Final.doc


                         Shabnoor


                                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      ORDINARY ORIGINAL CIVIL JURISDICTION


                                     PUBLIC INTEREST LITIGATION NO. 89 OF 2024

                         Amit Vyas

                         adult Indian inhabitant having his
                         Office at Vertices Partners
                         Tulsiani Chambers, 801-804,
                         A Wing, 8th Floor,
                         Free Press Journal Marg,
                         Nariman Point, Mumbai - 400021.                           ... Petitioner

                                                       V/s.

 SHABNOOR                1. Union of India
 AYUB
 PATHAN                      Through the Ministry of Electronics
  Digitally signed by        and Information Technology
  SHABNOOR AYUB
  PATHAN                     Electronics Niketan, 6, CGO Complex,
  Date: 2025.01.15
  18:01:46 +0530             Lodhi Road, New Delhi 11003.                          ... Respondent

                         2. Union of India

                             Through     the     Ministry  of   Finance
                             (Department of Revenue) Central
                             Board of Indirect Taxes and Custom
                             Jeevan Deep Building, Sansad Marg
                             New Delhi - 110001.

                         3. State of Maharashtra

                             through its Ministry of Department of
                             Goods and Service Tax,
                             GST Bhavan, Ground Floor,
                             New Building, Balwant Singh
                             Dodhi Marg, Mazgaon,
                             Mumbai 400010




                                                              1
                        ::: Uploaded on - 15/01/2025              ::: Downloaded on - 18/01/2025 06:28:35 :::
                                                           PIL-89-2024-Final.doc


 4. Live Nation Entertainment Inc.

     Formerly known as CCE Spinco. Inc.
     Having its Headquarters at
     9348 Civic Centre Drive
     Beverly Hills, CA 90210
     Email: [email protected],
     [email protected],
     [email protected],

 5. Big Tree Entertainment Pvt. Ltd.

     Having its registered office at
     Wajeda House, Ground Floor,
     Gulmohar Cross Road 7, Near Tian
     Restaurant, Juhu Scheme,
     Mumbai - 400 049.
     Email Id: [email protected]

 6. BookMyShow Live Pvt. Ltd.

     Having its registered office at
     CTS No.125, Village Vile Parle,
     Near W. E. Highway,
     Next to Neelkanth Complex,
     Sahar Road, Vile Parle East,
     Mumbai - 400099
     Email Id. [email protected]

 7. Stubhub India Private Limtied.

     Through Authorised Representatives
     Registered Office;
     Plot No.32, CTS No.16295-34,
     Jyothi Nagar, Behind Sai Mandir,
     Aurangabad, Maharashtra - 431005.
     Email:- [email protected]

 8. Viagogo Entertainment Inc.

     Through Authorised Representatives
     Registered Office;
     1209 Orange Street,




                                 2
::: Uploaded on - 15/01/2025            ::: Downloaded on - 18/01/2025 06:28:35 :::
                                                               PIL-89-2024-Final.doc


      Wilmington, Delaware,
      U.S.A - 19801.
      Also At;
      160 Greentree Drive,
      Suite 101, Dover, Delaware,
      County of Kent, U.S.A - 19904
      Email:- [email protected]



 Mr. Janak Dwarkadas, Sr. Advocate, (through V.C.) a/w
 Ankita Singhania a/w Mr. Saif Digankar, Mr. Amit Vyas,
 Mr. Naserali Rizvi, Ms. Poonam Ashar i/by Vertices
 Partners for Petitioner.

 Smt. Sheetal Malvankar, AGP for State - Respondent
 No.3.



      CORAM                    : DEVENDRA KUMAR UPADHYAYA, CJ &
                                 AMIT BORKAR, J.

      RESERVED ON              : JANUARY 3, 2025

      PRONOUNCED ON            : JANUARY 10, 2025


 JUDGMENT (PER AMIT BORKAR, J.)

1. The petitioner, invoking jurisdiction of this Court under

Article 226 of the Constitution of India, seeks a writ of

mandamus directing respondent Nos.1 to 3 to take cognizance

of online ticketing scams and black marketing, and to frame

effective and comprehensive laws, rules, and regulations to

prevent the practices of ticket scalping, touting, and black

marketing concerning the sale of tickets for ‘major events’.

The petitioner further prays for the constitution of an expert

3
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

committee to study and recommend measures to control and

regulate the online sale of tickets for such events.

2. The petitioner specifically draws attention to substantial

irregularities and illegalities alleged to have occurred in the

online sale of tickets conducted on 22nd September 2024 for

the concert “COLDPLAY: Music of the Spheres World Tour”,

scheduled for January 2025. Based on these allegations, the

petitioner seeks directions for reconvening the online sale of

tickets, if necessary.

3. The petitioner is a practicing Advocate and claims locus

standi by invoking the doctrine of public interest litigation to

bring to light grievances impacting a large section of the

public. Respondent Nos.5 and 6 are companies incorporated

under the Companies Act, 1956. Respondent No.4 is a globally

renowned live entertainment company responsible for

organizing and hosting international concerts. Respondent No.

6 is a group company of respondent No.5 and acts as a liaison

for promoting live entertainment events in India. The

petitioner alleges that an online ticketing scam pertaining to

the “COLDPLAY: Music of the Spheres World Tour” Concert

2025, necessitated the filing of the present PIL petition. It is

4
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

alleged that respondent No. 4, as the global ticketing partner

for the Coldplay tour, collaborated with respondent Nos. 5 and

6 and awarded exclusive ticketing rights to “BookMyShow” for

the Indian leg of the tour.

4. The petitioner contends that tickets for the concert were

announced to be live for booking on 22nd September 2024 at

12:00 p.m. via BookMyShow’s digital platform. However,

according to the petitioner, the process was marred by multi-

crore irregularities. It is alleged that even before the

scheduled time of 12:00 p.m., numerous users, including the

petitioner, were logged out from the platform. Subsequently,

both the application (App) and the website became non-

responsive, precluding users from accessing the platform to

purchase tickets. When users were able to log in by 12:16

p.m., they were placed in a digital queue where the initial two

shows of the concert, scheduled for 18th and 19th January

2025, were shown as “sold out” within minutes, at

approximately 12:30 p.m. Further, at around 1:30 p.m., a

third show of the concert, scheduled for 21st January 2025,

was announced and tickets were made available for purchase.

However, these tickets were also shown as “sold out” almost

instantaneously, even as the queue numbers for many users

5
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

remained stagnant.

5. The petitioner contends that within minutes of 12:00

noon on 22nd September 2024, tickets for the concert were

made available on secondary ticketing websites (STWs) such

as Viagogo.com through ticket scalpers, who procured large

quantities of tickets and resold them at exorbitant prices. The

petitioner alleges that the original price of a ticket on the

BookMyShow platform was ₹2,500, but in the secondary

market, the starting price ranged from ₹25,000 to ₹12,00,000

or more. It is argued that such an extraordinary escalation in

ticket prices could not have occurred without the active

involvement, connivance, or gross negligence of promoters,

directors, and key managerial personnel of respondent Nos.4

to 6. The petitioner submits that these actions demonstrate a

blatant failure of the regulatory framework, warranting judicial

scrutiny and remedial measures.

6. The petitioner further states that on 23rd September

2024, a police complaint was filed with the Economic Offences

Wing (EOW), alleging offences under Sections 111(2)

(organized crime), 318(4) (cheating), 316(2) (criminal breach

of trust), and 61(2) (criminal conspiracy) of the Bharatiya

6
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

Nyaya Sanhita, 2023 (BNS, 2023) against respondent Nos. 4

to 6 and their key managerial personnel. It is submitted that

the EOW initiated a preliminary inquiry, being PE No. 125 of

2024, to investigate the alleged offences. However, the

inquiry was delayed due to non-cooperation by the

respondents and their key managerial personnel. The

petitioner also points to similar allegations of illegal activities

by a global ticketing entity, Ticketmaster, allegedly associated

with respondent No.4, in jurisdictions such as the United

States of America, Canada, and the United Kingdom. These

precedents, according to the petitioner, indicate a systematic

and deliberate pattern of misconduct in the global ticketing

industry.

7. The petitioner alleges collusion between event

organizers and primary ticket sellers, who conspire to engage

in unethical practices, including the black marketing of tickets

through foreign entities like Viagogo. It is submitted that a

ticket priced at ₹2,500 attracts Goods and Services Tax (GST)

of approximately ₹700. However, when such tickets are resold

on secondary platforms like Viagogo for prices as high as

₹5,80,000 or more, no GST is paid on the resale transaction,

resulting in significant GST evasion and loss to the public

7
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

exchequer. The petitioner highlights that these STWs do not

disclose the identities of the sellers, making it virtually

impossible to verify whether tickets were procured by genuine

individuals or automated ticketing bots. This opacity in

operations warrants judicial intervention and the formulation

of appropriate guidelines to ensure accountability and

transparency until a specific legislative framework is enacted.

8. The petitioner emphasizes that several international

jurisdictions, including the USA, United Kingdom, Australia,

Canada, Japan, China, Taiwan, France, and Belgium, have

enacted specific laws to combat ticket touting and scalping.

These legal frameworks include provisions to prevent the use

of automated bots, ensure fairness in ticket distribution, and

enhance consumer protection. The absence of analogous

legislation or guidelines in India, the petitioner contends,

compromises the efficiency and fairness of the ticketing

system and perpetuates unethical practices. The petitioner

specifically points out that the use of bots automates the

ticket-purchasing process, enabling them to purchase large

volumes of tickets within seconds, thereby depriving genuine

consumers of access and inflating ticket prices in secondary

markets. This necessitates immediate regulatory intervention

8
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

to curb the misuse of technology in ticketing practices and

safeguard public interest.

9. The petitioner contends that the practices of ticket

scalping, touting, and black marketing violate the

fundamental rights of the public under Articles 14, 15(2), 19,

and 21 of the Constitution of India. These rights, particularly

the right to equality, protection from discriminatory practices,

and the right to life with dignity, are allegedly infringed due to

the lack of fair and transparent mechanisms in online ticketing

systems. Additionally, the petitioner asserts that such

practices contravene the provisions of the Consumer

Protection (E-commerce) Rules, 2020, particularly Rule 4(9),

which mandates e-commerce entities to ensure fair and non-

deceptive practices, and Rule 4(11), which requires them to

provide transparency in their operations

10. The petitioner emphasizes that the regulation of not only

ticket scalping and the use of automated bots but also the

conduct of Primary Ticket Sellers (PTS) and Primary Ticketing

Websites (PTW) is essential to safeguard consumer rights and

public interest in the online ticket sales industry for major

events. These practices, if unchecked, undermine trust in the

9
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

digital economy and create an uneven playing field. It is

submitted that the formation of an expert committee to

conduct a comprehensive macro-level study of the ticketing

practices observed during the Coldplay concert is imperative.

Such a study could provide actionable recommendations to

regulate the secondary ticket market and ensure compliance

with constitutional and statutory principles.

11. According to the petitioner, the absence of stringent laws

or effective regulatory mechanisms has resulted in the

perpetuation of black marketing, ticket scalping, and unethical

touting practices, particularly in the online domain. It is stated

that pending the enactment of adequate legislation, it is

imperative to lay down effective interim guidelines to address

these issues. Such guidelines would serve as a framework for

the regulation of online ticket sales for major events and

provide a deterrent against unlawful and unfair practices.

12. The petitioner has therefore prayed for relief in the

nature of mandamus for framing and enforcement of stringent

guidelines to prevent black marketing, ticket scalping, and

touting of online tickets for major events. Additionally, the

petitioner seeks constitution of a committee to conduct a

10
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

detailed study and recommend measures to control and

regulate the online sale of tickets. In cases where substantial

irregularities or illegalities are identified, the petitioner further

prays for directions to reconvene the online sale of tickets that

were acquired through illegal, unfair, or deceptive acts. These

measures, according to the petitioner, are necessary to uphold

constitutional values, promote fairness and accountability in

the online ticketing system, and protect the interests of

consumers at large.

13. We have heard Mr. Janak Dwarkadas, learned senior

counsel appearing for the petitioner. He submitted that the

lack of regulations governing the sale of online tickets for

major events has resulted in deprivation of genuine

consumers’ fundamental rights, including their right to

equality and non-discrimination under Article 14, as well as

their right to access public goods and services under Articles

19 and 21 of the Constitution of India. He argued that the

absence of a regulatory framework creates an uneven playing

field, allowing unethical and illegal practices to thrive, thereby

depriving citizens of an equal opportunity to purchase tickets

and access entertainment and live events.

11
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::

PIL-89-2024-Final.doc

14. Learned senior counsel further contended that these

unethical practices have caused substantial economic losses to

the public exchequer, particularly due to the evasion of Goods

and Services Tax (GST) on exorbitantly priced tickets sold in

the secondary market. He emphasized that multi-crore

irregularities have emerged from the online sale of tickets due

to the lack of regulations to control primary ticket sales and

the functioning of primary ticketing websites in the online

ticketing industry for major events.

15. He submitted that it is imperative to establish an expert

committee to conduct a comprehensive macro-level study of

the current ticketing ecosystem and recommend effective

measures to regulate the secondary ticket market. Such a

study would ensure accountability, fairness, and transparency

in ticket sales and provide a basis for regulating the primary

and secondary ticket markets to prevent black marketing and

ticket scalping.

16. Learned senior counsel also brought to the Court’s

attention that despite the registration of PE No.125 of 2024 by

the Economic Offences Wing, no substantial progress has

been made in the investigation due to the alleged non-

12
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::

PIL-89-2024-Final.doc

cooperation of respondent Nos.4 to 6 and their key

managerial personnel. He urged the Court to take cognizance

of the seriousness of the issue and issue appropriate

directions to ensure compliance by the respondents.

17. In conclusion, Mr. Dwarkadas submitted that this Court

must exercise its jurisdiction under Article 226 of the

Constitution of India to issue the necessary directions as

prayed for in paragraph 53 of the Public Interest Litigation

(PIL) petition, including framing stringent guidelines to

address the issue, preventing unlawful practices in ticket

sales, and protecting the rights of consumers and the integrity

of the ticketing system.

18. At the outset, we may state that the petitioner is

seeking writ of mandamus directing respondent Nos.1 to 3 to

take cognizance of online ticketing scams and black

marketing, and to frame effective and comprehensive laws,

rules, and regulations to prevent the practices of ticket

scalping, touting, and black marketing concerning the sale of

tickets for ‘major events’. In this context, it may be observed

that it is now well settled that the High Court, in exercising its

powers under Article 226 of the Constitution of India, cannot

13
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

issue directions to compel the legislature to enact a particular

law. This limitation on judicial power is firmly rooted in the

constitutional scheme, which vests the power to legislate

solely in the Parliament and State Legislatures.

19. The Supreme Court in Supreme Court Employees’

Welfare Association v. Union of India, (1989) 4 SCC 187,

unequivocally held that no court can direct the legislature to

enact a specific law, as such an action would violate the

principle of legislative sovereignty. Similarly, if delegated or

subordinate legislation is permissible under the Constitution or

a parent statute, the judiciary cannot dictate the content of

such rule-making unless there is a failure to meet mandatory

statutory or constitutional requirements.

20. In State of H.P. v. Parent of a Student of Medical College,

(1985) 3 SCC 169, the High Court of Himachal Pradesh

required the State Government to initiate legislation against

ragging in educational institutions and, for this purpose,

granted the State Government a period of six weeks. The

decision was challenged before the Supreme Court. The

Supreme Court held that the direction given by the Division

Bench was, in essence, an attempt to compel the State

14
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

Government to introduce legislation to curb the evil of

ragging. The Court in paragraph 4 observed as follows:

“It is entirely a matter for the executive branch of the
Government to decide whether or not to introduce any
particular legislation. Of course, any member of the
legislature can also introduce legislation but the court
certainly cannot mandate the executive or any member
of the legislature to initiate legislation, howsoever
necessary or desirable the court may consider it to be.
That is not a matter which is within the sphere of the
functions and duties allocated to the judiciary under the
Constitution. If the executive is not carrying out any
duty laid upon it by the Constitution or the law, the court
can certainly require the executive to carry out such
duty and this is precisely what the court does when it
entertains public interest litigation. Where the court
finds, on being moved by an aggrieved party or by any
public-spirited individual or social action group, that the
executive is remiss in discharging its obligations under
the Constitution or the law, so that the poor and the
underprivileged continued to be subjected to exploitation
and injustice or are deprived of their social and
economic entitlements or that social legislation enacted
for their benefit is not being implemented thus depriving
them of the rights and benefits conferred upon them,
the court certainly can and must intervene and compel
the executive to carry out its constitutional and legal
obligations and ensure that the deprived and vulnerable
sections of the community are no longer subjected to
exploitation or injustice and they are able to realise their
social and economic rights. When the court passes any
orders in public interest litigation, the court does so not
with a view to mocking at legislative or executive
authority or in a spirit of confrontation but with a view to
enforcing the Constitution and the law, because it is vital
for the maintenance of the rule of law that the

15
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

obligations which are laid upon the executive by the
Constitution and the law should be carried out faithfully
and no one should go away with a feeling that the
Constitution and the law are meant only for the benefit
of a fortunate few and have no meaning for the large
numbers of half-clad, half-hungry people of this country.
That is a feeling which should never be allowed to grow.
But at the same time the court cannot usurp the
functions assigned to the executive and the legislature
under the Constitution and it cannot even indirectly
require the executive to introduce a particular legislation
or the legislature to pass it or assume to itself a
supervisory role over the law-making activities of the
executive and the legislature.”

[

(emphasis supplied)

21. The Court thus underscored that it cannot usurp the

functions assigned to the legislative bodies under the

Constitution by directly or indirectly mandating them to enact

specific legislation. The principle of separation of powers, as

reflected in the scheme of our Constitution, provides that the

legislature, executive, and judiciary must operate within their

own spheres. Courts may enforce existing constitutional or

legal obligations upon the executive or the legislature but

cannot instruct them to enact, amend, or repeal a particular

statute. It is trite that while Articles 32 and 226 of the

Constitution confer wide powers of judicial review to enforce

rights and obligations, these powers do not extend to

16
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

compelling legislative action where none exists.

22. The above position aligns with the judgment in Common

Cause v. Union of India, (1999) 6 SCC 667, where the

Supreme Court clarified that while courts may fill legislative

gaps by issuing guidelines in cases where fundamental rights

are at stake (as was done in Vishaka v. State of Rajasthan,

(1997) 6 SCC 241, in relation to sexual harassment at the

workplace), such guidelines are not a substitute for legislation

and cannot compel the legislature to act. Ultimately, it is for

the legislature alone to decide whether or not to enact a law

in any given field, subject to the parameters of the

Constitution.

23. Even when subordinate legislation is enacted by an

executive authority pursuant to delegated powers, the courts

cannot dictate the content of such rules or regulations. This

principle was reiterated in State of Uttar Pradesh v. Uttar

Pradesh State Law Officers Association, (1994) 2 SCC 204,

where the Supreme Court observed that courts should refrain

from interfering in matters that fall squarely within the

executive or legislative domain. The judiciary’s role is confined

to ensuring the constitutionality and legality of existing laws

17
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

or administrative actions, and not to formulate policies or

enact laws.

24. In the case of Census Commissioner & Ors. v. R.

Krishnamurthy, (2015) 2 SCC 796, the Supreme Court, while

deliberating on the power of the judiciary to issue directions in

matters involving policy or legislative action, observed in

paragraph 33 as follows:

“The court, while exercising its powers, must keep in
view the inherent limitations in its functioning and must
not transgress into the domain of the executive or the
legislature. The judiciary can neither direct the framing
of policies nor dictate the enactment of legislation. The
judicial process, while interpreting laws or policies, must
respect the principle of separation of powers.”

25. This principle underscores that courts should exercise

judicial restraint when dealing with matters that are within the

purview of legislative or executive discretion. It further

reiterates the constitutional framework wherein the legislature

holds the prerogative to address policy gaps and enact laws in

response to emerging challenges.

26. Furthermore, the doctrine of separation of powers, which

forms part of the basic structure of the Constitution,

mandates that the three organs of the State–legislature,

18
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

executive, and judiciary–must function independently within

their respective domains. Judicial encroachment into

legislative functions would undermine this fundamental

principle and disrupt the balance of power envisaged by the

Constitution. Accordingly, while the High Court’s jurisdiction

under Article 226 is broad and supervisory in nature, it must

ensure that it does not overreach its bounds by assuming the

role of the legislature. In keeping with the constitutional

scheme, courts can only guide the executive to comply with

duties explicitly cast by existing statutes or constitutional

provisions. They cannot assume a supervisory role over law-

making powers, which remain within the exclusive domain of

duly elected legislative bodies under Articles 245 to 248

(relating to the distribution of legislative powers) of the

Constitution.

27. Hence, the High Court must ensure that in exercising its

supervisory jurisdiction, it refrains from intruding into

legislative functions. It must not overstep the well-recognised

boundaries of judicial review by issuing directions that

effectively mandate legislative or policy formulations that rest

exclusively in the legislature’s domain.

19
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::

PIL-89-2024-Final.doc

28. Applying these principles to the present case, in the

absence of existing statutory provisions regulating illegalities

such as ticket scalping, touting, and black marketing

concerning the sale of tickets for major events–or provisions

addressing the misuse of bots and malpractices by primary

ticket sellers and ticketing platforms–the Court cannot issue

directions to enact specific laws or regulations to address

these concerns.

29. While the petitioner’s grievances highlight the urgent

need for regulatory intervention to address the challenges

posed by the evolving online ticketing industry, the

responsibility for creating a statutory framework lies with the

legislature. Courts, while acknowledging the significance of

such issues, must limit themselves to providing

recommendations or directing compliance within the existing

legal framework. Furthermore, directions and guidelines

issued by the court are permissible only when they are in

consonance with and within the framework of existing

statutory provisions. In the absence of a statutory framework,

the court is constrained from issuing binding directions to

formulate specific laws or regulations.

20
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::

PIL-89-2024-Final.doc

30. In the present case, the grievances raised by the

petitioner about unethical practices in the online ticketing

ecosystem underscore the need for robust regulatory

mechanisms. However, it is ultimately for the legislature and

the executive, in their wisdom, to address these issues

through appropriate policy measures or legislative

intervention.

31. Moreover, accepting that for the enforcement of

fundamental rights such a direction could be issued in the

absence of specific legislation, in our considered opinion, the

practices of ticket scalping, hoarding, and resale by private

entities and individuals, without any direct or substantial

involvement of the State or its instrumentality, do not per se

violate fundamental rights of citizens under Articles 14, 15(2),

19, and 21 of the Constitution of India.

32. Article 14 guarantees the right to equality before the law

and equal protection of the laws. However, the petitioner has

not demonstrated any State action or involvement of a State

instrumentality that discriminates or arbitrarily restricts

individuals from purchasing tickets. Ticket scalping and resale,

though ethically questionable, are predominantly conducted

21
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

by private entities and individuals. To establish a violation

under Article 14, it must be demonstrated that the alleged

discrimination or arbitrariness is attributable to the State or to

a “State” authority as contemplated under Article 12 of the

Constitution. Private conduct, absent any state action or

nexus, generally does not come within the ambit of Article 14.

(See: Pradeep Kumar Biswas v. Indian Institute of Chemical

Biology, (2002) 5 SCC 111.). In the absence of such evidence,

the claim of an Article 14 infringement remains

unsubstantiated.

33. Article 15(2) prohibits discrimination on grounds of

religion, race, caste, sex, or place of birth in matters of access

to shops, public restaurants, hotels, and places of public

entertainment. However, mere commercial restrictions or

inflated prices set by private parties, without discrimination

based on the protected categories, do not fall within its scope.

The petitioner has not shown how the alleged practices

amount to such discrimination or denial of access to public

entertainment. Ticket scalping and hoarding may restrict

access to certain events due to inflated pricing, but these

actions do not fall within its ambit Article 15(2). Consequently,

the alleged conduct does not fall within the ambit of Article

22
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

15(2).

34. While Article 19(1)(g) guarantees the freedom to

practise any profession or to carry on any occupation, trade,

or business, this provision neither creates a fundamental right

to access privately organized events nor does it prohibit all

profit-driven endeavors. However, these freedoms do not

encompass an unrestricted right to access entertainment

events organized by private entities. Moreover, no

unreasonable restriction has been shown to be imposed by

the State under Articles 19(2) to 19(6) in relation to ticket

scalping or resale activities by private entities. Regulation of

ticket sales and resale, where it exists, is a matter of

commercial activity, and legislative bodies–exercising their

powers under Entries 26 and 33 of the State List or

Concurrent List of the Seventh Schedule–are vested with

authority to enact or amend laws governing such practices.

35. Lastly, Article 21 guarantees the right to life and

personal liberty, which has been interpreted to include various

facets of a dignified existence. While access to cultural and

entertainment opportunities can be considered an important

aspect of individual well-being, the practices of ticket scalping,

23
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

hoarding, and resale do not amount to a State-inflicted

deprivation of life or personal liberty. Article 21 is primarily

enforceable against the State or entities that can be

characterized as “State” under Article 12, or that perform

public duties of a governmental nature. Private wrongdoing, in

the absence of direct or indirect state participation, generally

does not amount to a violation of Article 21.

36. In Zee Telefilms Ltd. v. Union of India, (2005) 4 SCC

649, the Supreme Court dealt with the question of whether

the Board of Control for Cricket in India (BCCI)–a private

body–could be treated as “State” or an instrumentality/

agency of the government within the meaning of Article 12 of

the Constitution. The Court held that BCCI did not fall within

the ambit of “State” and, therefore, actions against it for

alleged breaches of fundamental rights were not maintainable.

37. Article 21 of the Constitution guarantees the right to life

and personal liberty, which is enforceable against the “State”

(or any authority that qualifies as a “State” under Article 12).

In Zee Telefilms, the Supreme Court clarified that private

bodies, even if they discharge some public functions, are not

automatically brought within the fold of “State” unless they

24
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

fulfill the criteria indicating a significant or pervasive control

by government or performance of an exclusively

governmental (public) function.

38. In the ticket scalping/hoarding scenario, as described in

the petition, the entities carrying out these activities are

private actors (e.g., ticketing websites, promoters, scalpers)

with no substantial or pervasive control by the government.

Following the ratio of Zee Telefilms, these private entities

would not be categorized as instrumentalities or agencies of

the State merely because they are performing a commercial

activity of selling event tickets. Applying Zee Telefilms to the

ticket scalping context, since private individuals and entities

are the main operators (and not governmental bodies), no

direct Article 21 violation arises unless it can be demonstrated

that the private body is “State” or is exercising a public

function under Article 12.

39. Insofar as the contentions raised by Mr. Dwarkadas,

learned senior counsel, regarding the alleged loss to the

public exchequer due to unchecked resale of tickets at inflated

prices are concerned, the same falls within the domain of tax

enforcement authorities. The Central Goods and Services Tax

25
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

Act, 2017 (hereinafter “GST Act”) provides ample scope for

the authorities to take action in instances where there is

reason to believe that tax has not been paid or has been short

evaded.

40. Therefore, it is open for the Goods and Services Tax

authorities to take necessary action in accordance with law if

evidence substantiating allegations of revenue loss is brought

to their notice. However, for the said purpose, it is neither

necessary nor within the Court’s jurisdiction under Articles

226 of the Constitution to issue directions compelling such

authorities to act in a specific manner or to undertake any

particular investigation. The relevant statutory provisions, as

outlined, already vest adequate powers in these authorities to

conduct inquiries, impose penalties, and provide remedies

where appropriate.

41. Furthermore, in the absence of an enforceable right

being demonstrated by the petitioner, this Court cannot

invoke its jurisdiction under Article 226 to grant the relief

sought. The Supreme Court has consistently held that the writ

of mandamus can only be issued where there exists a legal

right in favor of the petitioner and a corresponding legal duty

26
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

on the part of the respondent to act and infringement of such

right or failure of duty on the part of public authorities. (See

Director of Settlements, A.P. v. M.R. Apparao, (2002) 4 SCC

638).

42. Mr. Dwarkadas, learned senior counsel, next contended

that considering the facts of this case, it is necessary to

constitute an expert committee to conduct a study and

recommend measures to control and regulate the sale of

online tickets for major events. While we note the petitioner’s

concerns, we have already held that it is not within the

Court’s province to issue directions in matters of policy and

legislation. Under the constitutional framework, Articles 245

to 248 vest sovereign legislative power exclusively in the

Parliament and State Legislatures, and the judiciary cannot

compel these bodies to enact or amend laws in a particular

domain. In other words, the doctrine of separation of powers

precludes the Court from directing the legislature or the

executive to form a specific committee or to pass particular

legislation.

43. If the executive or legislature, in its wisdom, deems it

appropriate, an expert committee could be constituted by

27
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

invoking powers under any enabling statute or even under

executive powers, to inquire into and take effective measures

on issues affecting the public interest. However, as clarified by

the Supreme Court in Supreme Court Employees’ Welfare

Assn. (Supra), Courts cannot usurp the role of policy-makers

by mandating the creation of such bodies. Nor can the courts

dictate the manner in which the legislature or executive

should exercise their legislative or administrative

power/discretion.

44. Consequently, while the matter raised by the petitioner

indeed highlights the importance of regulating and overseeing

online ticket sales for major events–particularly to address

allegations of black marketing, scalping, and revenue loss–

judicial deference is required. Any legislative or policy

initiative, including the constitution of an expert committee,

must emanate from the competent authorities under the

constitutional and statutory scheme. Therefore, in view of the

settled legal position, we are unable to accede to the

petitioner’s prayer to constitute an expert committee through

judicial intervention. The legislature and the executive remain

at liberty to undertake such measures as they deem fit in the

public interest.

28
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::

PIL-89-2024-Final.doc

45. Moreover, in the absence of an existing statutory

framework regulating ticket scalping, touting, and black

marketing pertaining to major events–or provisions

governing the use of bots and regulating primary ticket sellers

in the online ticketing industry–this Court cannot issue

binding directions or guidelines compelling the creation of

such a committee. Our Constitution underscores the principle

of separation of powers requiring the judiciary to refrain from

overstepping into legislative or executive functions, which

include policy formulation and the creation of statutory bodies

or committees or framework.

46. We, however, clarify that it shall be open for the

appropriate legislature or executive to frame or amend

effective laws, rules, and regulations to address the concerns

raised by the petitioner, including but not limited to regulating

secondary ticket markets, curbing black marketing, and

preventing GST evasion under the Goods and Services Tax

Act, 2017.

47. The petitioner has further sought directions against

respondent Nos. 4 to 8 to co-operate with an Expert

Committee and/or Monitoring Committee by providing all

29
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

necessary information requisitioned for examining the sale of

tickets that took place on 22nd September 2024, particularly

with regard to alleged ticket scalping and black marketing. In

essence, the petitioner urges this Court to embark upon a

speculative inquiry–one that may, in the petitioner’s belief,

unearth substantive material concerning ticket scalping and

black marketing during the online sale of tickets for the event.

48. The legal position on this issue is well settled. This

Court, while exercising its extraordinary jurisdiction under

Article 226 of the Constitution of India, must refrain from

engaging in or compelling a roving or speculative inquiry,

particularly where the petitioner has not established a prima

facie violation of an existing legal right or shown a

corresponding legal duty on the part of the respondents. In A.

Hamsaveni & Ors. v. State of Tamil Nadu, (1994) 6 SCC 51,

the Supreme Court emphasized that petitioner must

independently make out a case and cannot rely on judicial

process merely to discover evidence in the hope of

establishing a claim.

49. Similarly, in N.K. Singh v. Union of India, (1994) 6 SCC

98, it was held that speculative or roving inquiries are

30
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

unwarranted under the guise of judicial review–particularly

when they relate to private or contractual rights, as opposed

to a clear violation of constitutional or statutory provisions.

The Court noted that Article 226 confers broad powers of

judicial review, but these powers do not extend to sanctioning

investigations in the absence of a proper legal basis or factual

foundation.

50. Reference may also be made to Ratan Chandra

Sammanta v. Union of India, 1993 Supp (4) SCC 415, wherein

the Supreme Court reiterated that a writ of mandamus or any

similar order would issue only in favor of a person who

possesses an established or legally enforceable right, and not

for the purpose of initiating an open-ended inquiry into

speculative or unsubstantiated allegations. A court, in

exercising its jurisdiction under Article 226, cannot compel the

respondents to produce extensive records or to cooperate in a

broad investigative exercise in absence of concrete evidence

or at least a prima facie infringement of a legal right.

51. Merely seeking an order to compel the respondents to

supply information for a committee–when no specific

violation of an established right has been shown–falls within

31
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

the ambit of a fishing or roving inquiry, which this Court is

inclined to disallow in view of the precedents cited.

52. Therefore, in light of the above legal principles, we find

no justification to grant such prayer. Unless the petitioner

demonstrates a clear legal right, supported by credible

evidence of violation of statutory or constitutional provisions,

Article 226 of the Constitution does not authorize the Court to

embark upon an unbounded inquiry, nor to compel the

respondents to disclose information on a purely speculative

basis.

53. The next prayer made by the petitioner is contingent on

a report of a monitoring committee–if such a committee were

constituted by this Court–that, in the event substantial

illegalities are found to have taken place in the online sale of

tickets, directions be issued for re-convening the online sale of

tickets acquired by illegal, unfair, and deceptive acts. In our

considered opinion, this prayer is untenable for multiple

reasons. Firstly, as discussed, in the absence of a breach of a

fundamental right or a clear statutory mandate, this Court is

not inclined to constitute such a committee. Secondly, the

petitioner has already registered PE No.125 of 2024 before

32
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

the Economic Offences Wing (“EOW”) and has alleged

commission of offences under Sections 11(2), 318(4), 316(2)

read with 61(2) of the Bharatiya Nyaya Sanhita, 2023 (BNS,

2023) against respondent Nos. 4 to 6 and their key

managerial personnel. Under the newly enacted Bharatiya

Nagrik Suraksha Sanhita, 2023 (BNSS, 2023)–which governs

investigative procedures and delineates powers of

investigation–officers of the EOW are enjoined with a duty to

conduct a fair and comprehensive inquiry into all allegations

set forth in the complaint. If, in the course of investigation,

the EOW uncovers sufficient evidence suggesting the

commission of a cognizable offence or a prima facie violation

under the relevant sections of BNS, 2023, it shall be within

their prerogative to take further steps in accordance with

BNSS, 2023 or any other law applicable thereto.

54. In light of the above, we see no justification for judicial

intervention to re-convene any online ticket sale or to impose

further monitoring mechanisms beyond what is already

available under the statutory framework. The investigating

agency is duty-bound to proceed with the inquiry in

accordance with law, and if it finds credible material

substantiating the petitioner’s allegations, legal recourse

33
::: Uploaded on – 15/01/2025 ::: Downloaded on – 18/01/2025 06:28:35 :::
PIL-89-2024-Final.doc

through the criminal justice system is fully available.

55. For the reasons discussed above, we find no merit in the

prayers sought by the petitioner. The issues raised in this

petition primarily pertain to matters of policy and legislation,

which lie within the exclusive domain of the legislature and

the executive. In the absence of a clear statutory framework

mandating the reliefs claimed, and given the settled legal

position that courts cannot direct the legislature to enact or

amend laws in a particular manner, we are unable to accede

to the petitioner’s prayers. However, in the event that the

competent authorities consider it necessary, they remain at

liberty to take appropriate legislative or executive measures

to address the concerns highlighted by the petitioner.

56. For the aforesaid purpose, it will be open to the

petitioner to approach the authority concerned, by way of

representing him, for redressal of the grievances raised

herein.

57. Accordingly, the writ petition stands dismissed.

58. No order as to costs.

    (AMIT BORKAR, J.)                                (CHIEF JUSTICE)



                                  34
::: Uploaded on - 15/01/2025             ::: Downloaded on - 18/01/2025 06:28:35 :::
 



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here