SCILvMBPL CaseAnalysis

CASE ANALYSIS
SUPER CASSETTES INDUSTRIES LTD V. MUSIC BROADCAST PRIVATE LIMITED

(AIR 2012 SC 2144)
CASE ANALYSIS
I. FACT OF THE CASE
On 16th May 2008, compulsory license for the work administered by Phonographic
Performance Ltd. (Hereinafter referred to as PPL) was granted in a dispute to which Super
Cassettes Industries Ltd (Hereinafter referred to as SCIL) was not a party. Subsequently, on
25th August 2010, Copyright Board fixed the rate for which compulsory license was to be
granted not just for PPL but for SCIL as well.
Thereafter, Music Broadcast Pvt. Ltd. (Hereinafter referred to MBPL) despite having a
voluntary license from SCIL wrote to them and informed it about broadcasting its work on
terms fixed by copyright board. SCIL questioned the validity of the order passed by the
Copyright board, to which Delhi High Court passed an order against MBPL from relying
upon the order of Copyright board.
Nonetheless, MBPL filed an application for compulsory license1 and on 28th March 2011, the
Copyright board dismissed the application for interim relief filed by MBPL on the ground
that it is not vested with such power. Subsequently, on an appeal filed by MBPL, Delhi High
Court via its order dated 1st September 2011, reversed the earlier ruling and held that the
Copyright Board has the power to issue interim compulsory license. Hence, SCIL preferred
an appeal against the order dated 1st September 2011 by the Delhi High Court.
II. ISSUES INVOLVED
Whether the Copyright Board, exercising the jurisdiction under Section 31 of the Copyright
Act, can grant Ad hoc compulsory licence by an interim order pending the adjudication of the
issue in works withheld from public?
III. ARGUMENTS FROM THE PLAINTIFF
Mr. Amit Sibal appeared for SCIL in the instant case wherein he averred that:
1. High Court had erred in law in holding that even in absence of an express conferment
by statute , the Copyright Board had the power to grant an interim compulsory license
under 31 of Copyright Act.
2. While 12 of the Copyright Act vested the Copyright Board with the authority to
regulate its own procedure and 74 conferred certain limited powers of a civil court
on the Board, the same were procedural in nature and did not vest the Board with a
1
31(b), Copyright Act, 1957.
NATIONAL LAW UNIVERSITY ODISHA 1|Page

CASE ANALYSIS
substantive right to grant interim orders under 31 of the Copyright Act.
3. Being a creature of statute, the Copyright Board could only exercise such powers as
were expressly vested in it by the statute. Thus, Copyright Board is a tribunal created
under 11 of Copyright Act2 and hence, could not exercise the substantive power of
granting an interim compulsory license.3
4. Notwithstanding the fact that the Copyright Board was discharging quasi-judicial
functions, it did not possess inherent powers to pass interim orders, since it continued
to be a tribunal governed by the statute under which it had been created.4
5. Final relief ought not to be granted at an interim stage.5
6. The courts will not imply a power in a particular provision of the statute if the
legislative intent behind the statute suggested a contrary view. Similarly, implying a
power to grant an interim compulsory license under 31 of the Copyright Act was not
the legislative intent since implying such a power would transform compulsory
licensing to statutory licensing without any statutory mandate to do so.
IV. ARGUMENT FROM THE DEFENDANT
Dr. Abhishek Singhvi appeared for MBPL wherein he averred that:
1. Although 31 of the Copyright Act may not have expressly vested the power to pass
interim orders on the Copyright Board pending disposal of an application for grant of
a compulsory licence, the same would have to be read into it as being incidental to the
powers granted by the Statute to the Board to grant compulsory licences.
2. It could not have been the intention of the legislature that pending the determination
of the right of an applicant to a compulsory licence, the public should be deprived of
the entertainment of listening to music in respect of which the owner has the
copyright.
3. The Copyright Board is vested with incidental and ancillary powers under 31 of the
Copyright Act to give effect to the final relief which it is empowered to give.
4. 12(7) states that the Copyright Board is deemed to be a Civil Court for certain
purposes and further, 12 is to be read in light of the Copyright Board being
2
11, Copyright Act, 1957.
3
See Rajeev Hitendra Pathak and Ors. v. Achyut Kashinath Karekar and Anr., 2011 (9) SCALE 287; Morgan
Stanley Mutual Fund v. Kartick Das, (1994) 4 SCC 225; Sham Lal v. State Election Commission, AIR 1997
P&H 164; Lingamma v. State of Karnataka, AIR 1982 Kar 18.
4
See B Prasad Singh v. Kali Singh, (1977) 1 SCC 57; Transcore v. Union of India, (2008) 1 SCC 125.
5
Morgan Stanley Mutual Fund v. Kartick Das, (1994) 4 SCC 225

CASE ANALYSIS
considered a quasi-judicial body discharging a quasi-judicial function having the
power to decide the reasonableness of royalties claimed by the copyright owner.
5. 19-A indicates that the Copyright Board was an adjudicating authority with respect
to disputes between the parties and would, therefore, be deemed to be vested with
ancillary powers to make interim orders in aid of the final relief that could be granted
Under 31 of the Copyright Act.
6. Power to pass certain interim orders were incidental and ancillary to the exercise of
powers conferred on a Tribunal by the Statute.6 Thus, the doctrine of implied power
would apply in the instant case as well and the High Court was therefore not at fault
while passing the orders dated 1st September 2011.
Mr Bhaskar P. Gupta, Mrs. Pratibha Singh and Mr. Harish Salve, appeared for the
Interveners, wherein they adopted Dr. Singhvi arguments and further, averred that:
7. The Copyright Board has the trappings of a quasi-judicial authority which inheres in it
the right to pass interim orders in the interest of the parties while keeping in mind
public interest and the principles of natural justice.
8. Unless the power to grant interim orders were read into 31 of the Copyright Act,
there would be a complete stalemate with respect to cases where matters were
pending before the Copyright Board thereby, resulting in the public being deprived of
such work.
9. The essence of the Copyright Act is the delicate balance between intellectual property
rights and the rights of access to the copyright material and a private right of
copyright would have to give way to the public interest as contemplated in 31 of the
Copyright Act.
V. JUDGEMENT
ALTAMAS KABIR, J.
1. 31 of the Copyright Act contemplate a final order after a hearing and after holding
an inquiry to see whether the ground for withholding of the work from the public was
justified or not. There is no hint of any power having been given to the Copyright
Board to make interim arrangements, such as, grant of interim compulsory licences,
6
Income Tax Officer v. M.K. Mohammed Kunhi, (1969) 2 SCR 65; Allahabad Bank, Calcutta v. Radha Krishna
Maity and Ors., (1999) 6 SCC 755; Industrial Credit and Investment Corporation of India Ltd. v. Grapco
Industries Ltd. and Ors., (1999) 4 SCC 710

CASE ANALYSIS
during the pendency of a final decision of an application.
2. Tribunals discharging quasi-judicial functions and having the trappings of a Court, are
generally considered to be vested with incidental and ancillary powers to discharge
their functions, but that does not imply that such Tribunal would have the power to
grant at the interim stage the final relief which it could grant.
3. If the legislature had intended that the Copyright Board should have powers to grant
mandatory injunction at the interim stage, it would have vested the Board with such
authority.
4. If the legislature had intended that the Copyright Board should have powers to grant
mandatory injunction at the interim stage, it would have vested the Board with such
authority.
JASTI CHELAMESHWAR, J.
1. Both the Courts and the Tribunals are adjudicatory bodies to whom the Legislature
entrusts the authority to resolve the disputes falling within the jurisdiction conferred
upon each of such bodies and brought before them. Further, the jurisdiction and
authority of not only the Tribunals, but also the Courts are structured by the statutory
grants and limitations.
2. The grant as well as the limitations on the tribunal and court could be either express or
implied which in turn can be inferred from the scheme of a particular enactment. The
considerations relevant for ascertaining whether there is an implied grant of such
powers appears to be:
a. Need to preserve status quo with respect to the subject matter of the dispute in
order to enable the party, which eventually succeeds in the litigation, to enjoy
the fruits of the success; and
b. Need to preserve the parties themselves a consideration.
3. By conceding a power to grant ad hoc compulsory licence during the pendency of the
proceeding would render the final inquiry into the question a futile exercise
4. Unless, it is demonstrated that failure to imply such power to direct immediate
republication or performance of a work in public would be detrimental to public
interest, the power to grant ad hoc compulsory licence, cannot be implied.
Thus, the Court held that in the absence of an express statutory grant, the power to grant an
ad hoc compulsory licence by way of interim order by the Copyright Board wont be implied.

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CASE ANALYSIS

SUPER CASSETTES INDUSTRIES LTD V. MUSIC BROADCAST PRIVATE LIMITED

I. FACT OF THE CASE

II. ISSUES INVOLVED

III. ARGUMENTS FROM THE PLAINTIFF

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IV. ARGUMENT FROM THE DEFENDANT

Dr. Abhishek Singhvi appeared for MBPL wherein he averred that:

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