SUPER CASSETTS INDUSTRIES LTD. Vs MUSIC BROADCAST PVT. LTD.
Bench: ALTAMAS KABIR,SURINDER SINGH NIJJAR,J. CHELAMESWAR
Case number: C.A. No.-004196-004197 / 2012
Diary number: 29281 / 2011
Advocates: SENTHIL JAGADEESAN Vs
KARANJAWALA & CO.
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REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.4196-4197 OF 2012 (Arising out of SLP(C)Nos.26581-26582 of 2011)
Super Cassettes Industries Ltd. … Appellant Vs.
Music Broadcast Pvt. Ltd. … Respondent
J U D G M E N T
ALTAMAS KABIR, J.
1. Leave granted.
2. The sole question for consideration in these
appeals is whether on a complaint made to the Copyright
Board under Section 31 of the Copyright Act, 1957, the
said Board under Clause (b) of Sub-Section (1) can pass
an interim order in the pending complaint. Since, we
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shall be dealing with the said section throughout this
judgment, the same is extracted hereinbelow :
“31. Compulsory licence in works withheld from public.-(1) If at any time during the term of copyright in any Indian work which has been published or performed in public, a complaint is made to the Copyright Board that the owner of copyright in the work-
(a) has refused to republish or allow the re- publication of the work or has refused to allow the performance in public of the work, and by reason of such refusal the work is withheld from the public; or
(b) has refused to allow communication to the public by [broadcast], of such work or in the case of a [sound recording] the work recorded in such [sound recording], on terms which the complainant considers reasonable,
the Copyright Board, after giving to the owner of the copyright in the work a reasonable opportunity of being heard and after holding such inquiry as it may deem necessary, may, if it is satisfied that the grounds for such refusal are not reasonable, direct the Registrar of Copyrights to grant to the complainant a licence to re-publish the work, perform the work in public or communicate the work to the public by [broadcast], as the case may be, subject to payment to the owner of the copyright of such compensation and subject to such other terms and conditions as the Copyright Board may determine; and thereupon the Registrar of Copyrights shall grant the licence to the complainant in accordance with the directions of
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Copyright Board, on payment of such fee as may be prescribed.
Explanation.-In this sub-section, the expression "Indian work” includes-
(i) an artistic work, the author of which is a citizen of India; and
(ii) a cinematograph film or a [sound recording] made or manufactured in India.
(2) Where two or more persons have made a complaint under sub-section (1), the licence shall be granted to the complainant who in the opinion of the Copyright Board would best serve the interests of the general public.”
3. However, in order to consider the said question, it
is necessary to set out some of the facts giving rise
to the said question.
4. These appeals preferred by Super Cassettes
Industries Ltd., hereinafter referred to as “Super
Cassettes”, are directed against the order dated 1st
September, 2011, passed by the Delhi High Court whereby
it reversed the order passed by the Copyright Board on
28th March, 2011, in which the Board held that it did
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not have the power to grant an interim compulsory
licence. By its judgment and order dated 1st September,
2011 in R.F.A.No.250 of 2011 and C.M.No.8977 of 2011,
the High Court reversed the finding of the Copyright
Board upon holding that even while the grant of
compulsory licence under Section 31 of the Copyright
Act was under consideration, an interim compulsory
licence could be granted. The High Court also held that
where the dispute is over the quantum of licence fee,
an interim compulsory licence had to be granted. The
impugned order directs the Copyright Board to grant an
interim compulsory licence against Super Cassettes with
the further direction to the Board to fix its own terms
for such licences, after hearing the parties.
5. Appearing for Super Cassettes, Mr. Amit Sibal,
learned counsel, submitted that on 16th May, 2008, this
Court had decided the two set of cases, in which it
upheld the setting aside of the compulsory licence
granted against Super Cassettes by the Copyright Board
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in relation to Entertainment Network India Ltd.,
hereinafter referred to as “ENIL”, a radio broadcaster.
In the other set of matters, where Super Cassettes was
not a party, this Court upheld the grant of compulsory
licence in relation to the works administered by
Phonographic Performance Ltd., hereinafter referred to
as “PPL”, and remanded the matter to the Copyright
Board to fix the rates at which the compulsory
licences, in relation to the works administered by PPL,
were to be granted.
6. Pursuant to the decision of this Court, the
Copyright Board passed the order on 25th August, 2010,
fixing the rates, not just for PPL, but for all music
providers, including Super Cassettes, although, it was
not a party to the proceedings. Mr. Sibal submitted
that on 9th September, 2010, Music Broadcast Pvt. Ltd.,
hereinafter referred to as “MBPL”, wrote to Super
Cassettes informing it that MBPL proposed to broadcast
the works in which copyright was owned by Super
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Cassettes on the terms fixed in the aforesaid order of
the Copyright Board dated 25th August, 2010. Mr. Sibal
submitted that this was done despite the fact that MBPL
had an existing voluntary licence from Super Cassettes,
which had subsisted since 25th March, 2002, and had been
amended and renewed a number of times since then. It
was also submitted that several other broadcasters with
existing voluntary licence from Super Cassettes wrote
similar letters to it.
7. Super Cassettes filed Writ Petition No.6255 of
2010, questioning the order passed by the Copyright
Board dated 25th August, 2010. After hearing Super
Cassettes and the Respondents, including MBPL, on 15th
September, 2010, the Delhi High Court passed an interim
order to the effect that the order dated 25th August,
2010, passed by the Board would not be relied upon by
any of the Respondents or any other party for a
compulsory licence against Super Cassettes. Despite the
aforesaid order of the Delhi High Court dated 15th
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September, 2010, MBPL filed an application for
compulsory licence under Section 31(1)(b) of the
Copyright Act, relying solely on the rates fixed by the
Copyright Board for PPL by its order dated 25th August,
2010. Other eight broadcasters also filed applications
for compulsory licence against Super Cassettes, relying
solely on the order of the Copyright Board dated 25th
August, 2010. Super Cassettes responded to the said
offer made by MBPL on the same terms as were prevalent
under the expired voluntary licence agreement. The said
proposal made by Super Cassettes was rejected by MBPL,
while other broadcasters continued to broadcast the
work of Super Cassettes on existing mutually agreed
terms which were different from the terms set out in
the order of the Copyright Board dated 25th August,
2010. By its order dated 28th March, 2011, the
Copyright Board dismissed the application for interim
relief filed by MBPL holding that it did not have the
power to grant any interim compulsory licence.
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8. Mr. Sibal submitted that even though MBPL did not
broadcast the works of Super Cassettes after 25th
December, 2010, its radio station, known as “Radio
City”, improved its listenership ratings to become the
most popular radio station in Mumbai and was
maintaining its position as the fifth most popular
radio station in Delhi. Mr. Sibal urged that MBPL
thereafter preferred an appeal against the order dated
28th March, 2011, before the Delhi High Court and vide
the impugned order, the High Court held that the
Copyright Board had the power to issue interim
compulsory licence.
9. Mr. Sibal submitted that the impugned order of the
Delhi High Court, inter alia, held that the power to
grant interim relief is not dependent upon a specific
statutory empowerment to this effect. The power is a
common law principle and is not founded on any statute
or legislation. Mr. Sibal submitted that the Delhi
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High Court also held that the refusal of the copyright
holder to grant a licence would, in effect, compel the
broadcaster or any other party similarly placed, into
succumbing to the demands of the owners and that since,
litigation is protracted over years, a party would be
unable to play or broadcast music, owned by the
copyright holder, even though it was willing to pay a
reasonable fee for making such broadcast and may also
have to give up its action under Section 31 of the
Copyright Act. Mr. Sibal urged that the High Court
went on to hold that refusal to grant interim relief
would frustrate the rights of a broadcaster under
Section 31 of the Copyright Act, which would render the
provisions of the statute futile and nugatory.
10. It was further held by the High Court that where
the controversy concerns only the quantum of licence
fee, an interim protection should be granted and even
though Super Cassettes was not a party to the order of
the Copyright Board dated 25th August, 2010, it is
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similarly placed as PPL, which was bound by the order
passed by the Board on 25th August, 2010. Accordingly,
it was appropriate that Super Cassettes should also
receive 2% of the net advertisement revenue as licence
fee in the interim period for broadcasting of its sound
recordings.
11. Mr. Sibal urged that the Division Bench of the
Bombay High Court chose not to differ with the decision
of the Single Judge in Music Choice India Pvt. Ltd. Vs.
Phonographic Performance Ltd. [(2009) 39 PTC 597], in
which the learned Single Judge had held that the
Copyright Act did not prohibit the Copyright Board from
passing any interim order for determination of
reasonable fees by way of royalty or compensation by
the plaintiff. The High Court disposed of the appeal
by making an interim arrangement, whereby Super
Cassettes was to receive an aggregate of 4% of the
advertisement revenue of MBPL for broadcasting its
sound recordings, music and literary work, while
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remanding the matter to the Copyright Board for interim
order, making it clear that the Board need not be bound
by the interim arrangement devised by the Court.
12. Mr. Sibal submitted that the High Court had erred
in law in holding that even in the absence of an
express conferment by statute, the Copyright Board had
the power to grant an interim compulsory licence under
Section 31 of the Copyright Act. He urged that the
Copyright Board is a Tribunal created under Section 11
of the Copyright Act, 1957, and being a creature of
statute, its powers were confined to the powers given
to it by the statute. Mr. Sibal urged that while
Section 12 of the Act vested the Copyright Board with
the authority to regulate its own procedure and Section
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 substantive right to grant
interim orders under Section 31 of the Act. Mr. Sibal
submitted that the High Court had erred in holding that
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grant of interim relief was not dependent upon a
specific statutory empowerment to this effect. Learned
counsel submitted that being a creature of statute, the
Copyright Board could only exercise such powers as were
expressly vested in it by the statute and that the
power to grant an interim compulsory licence not having
been vested with the Board, it could not exercise such
substantive power, which it did not possess.
13. In support of his submissions, Mr. Sibal referred
to the decision of this Court in Rajeev Hitendra Pathak
& Ors. Vs. Achyut Kashinath Karekar & Anr. [2011 (9)
SCALE 287], wherein three learned Judges of this Court
were called upon to consider as to whether the District
Forum and the State Commission as established under the
Consumer Protection Act, 1986, had the power to recall
an ex parte order. After examining various provisions
of the Consumer Protection Act, this Court held that
such an express power not having been conferred on the
District Forum and the State Commission, they had no
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jurisdiction to exercise such powers which had not been
expressly given to them.
14. Mr. Sibal also referred to the decision of this
Court in Morgan Stanley Mutual Fund Vs. Kartick Das
[(1994) 4 SCC 225], wherein this Court was considering
the scope of the provisions of the Consumer Protection
Act, 1986. On construction of Section 14 of the said
Act, this Court came to the conclusion that there was
no power under the Act to grant any interim relief,
even of an ad interim nature. Their Lordships who
decided the matter, observed as follows :
“……… If the jurisdiction of the Forum to grant relief is confined to the four clauses mentioned under Section 14, it passes our comprehension as to how an interim injunction could ever be granted disregarding even the balance of convenience.”
15. Reference was also made to a decision of the Punjab
and Haryana High Court in Sham Lal Vs. State Election
Commission [AIR 1997 P&H 164], in which the High Court
was considering a similar question as to whether the
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Election Tribunal constituted under the Punjab State
Election Commission Act, 1994, had the power to pass an
injunction so as to restrain an elected representative
from assuming office pending adjudication of an
election petition filed against him. After considering
various provisions of the 1994 Act, the Court observed
that “if the legislature had so desired, nothing
prevented it from conferring statutory power upon the
Election Tribunal to grant interim stay or injunction
or restraint order during the pendency of the election
petition.” Accordingly, the Court went on to hold that
the Election Tribunal did not have the power to pass
any order of injunction or stay which would impede the
implementation of the result of election.
16. Mr. Sibal cited yet another decision on the same
issue rendered by a Full Bench of the Karnataka High
Court in Lingamma Vs. State of Karnataka [AIR 1982
Karnataka 18], where the question involved was as to
whether the Appellate Tribunal constituted under the
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Karnataka Appellate Tribunal Act, 1976, was empowered
to pass interim orders when there was no express
provision which conferred such substantive power on the
Appellate Tribunal. The Full Bench held that “in the
absence of express conferment, power to grant temporary
injunction was not implied.” The Full Bench further
held that the fact that no express provision had been
made conferring on the Tribunal jurisdiction to make
interlocutory orders, clearly indicates that the
legislature did not want the Tribunal to have such
powers.
17. Mr. Sibal urged that in view of the aforesaid
decisions and having regard to the fact that the
Copyright Act did not specifically vest the Copyright
Board with substantive powers to pass interim orders
under Section 31 of the Copyright Act, the High Court
erred in taking a view which was contrary to the well-
established principle that a statutory body could
exercise only such powers that were vested in it by a
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statute and not otherwise. Learned counsel urged that
by making an interim arrangement and granting an
interim compulsory licence to the Respondent, the High
Court had conferred upon itself a jurisdiction which
the Copyright Board and, consequently, the High Court
did not possess under Section 31 of the Copyright Act.
18. Mr. Sibal went on to submit further that all
tribunals constituted under different statutes, were
not the same and some enjoyed powers to pass certain
orders which had been vested in them by statute, which
made them different from other tribunals to whom such
express powers had not been given. Learned counsel
urged that there were certain tribunals which
completely supplemented the jurisdiction of the Civil
Court and, therefore, exercised all the powers of the
Civil Court in respect of the matters entrusted to them
by statute. In this regard, reference was made to
Section 41(1) of the Armed Forces Tribunal Act, 1985,
which specifically provides that the Tribunal shall
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have all jurisdiction, powers and authority exercisable
by all courts in matters relating to service. Reference
was also made to other Tribunals, such as, the Telecom
Disputes Settlement & Appellate Tribunal, the National
Green Tribunal and also the Debts Recovery Tribunal,
which had been expressly vested with powers to pass
interim orders under the statutes under which they had
been created. Mr. Sibal submitted that there were no
similar provisions in the Copyright Act, which granted
such powers to the Copyright Board.
19. Mr. Sibal then submitted that 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. It did not, therefore, have jurisdiction
to pass interim orders which inheres in other
Tribunals. Referring to the decision of this Court in
Bindeshwari Prasad Singh Vs. Kali Singh [(1977) 1 SCC
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57], Mr. Sibal urged that in the said decision, this
Court was called upon to decide as to whether a
Magistrate had the authority to review or recall his
order. It was held that unlike Section 151 of the Civil
Procedure Code, which vests the civil courts and
certain tribunals with inherent powers, the subordinate
criminal courts had no such inherent power, since there
was absolutely no provision in the Code of Criminal
Procedure empowering a magistrate to exercise such
powers.
20. Mr. Sibal lastly referred to the decision of this
Court in Transcore Vs. Union of India [(2008) 1 SCC
125], and submitted that in the said case, this Court
had observed that the Debts Recovery Tribunal is a
tribunal and a creature of statute and it does not have
inherent powers which existed in the civil courts.
21. Mr. Sibal also submitted that apart from the
decisions rendered in the case of Morgan Stanley Mutual
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Fund (supra), the Supreme Court had held on several
occasions that while entertaining matters, final relief
ought not to have been granted at the interim stage.
In fact, as submitted by Mr. Sibal, 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. Learned counsel submitted that
implying a power to exercise the powers under Section
31 of the Act was not the legislative intent which is
easily discernible. It was urged that implying such a
power would transform compulsory licensing to statutory
licensing without any statutory mandate to do so. Mr.
Sibal also reiterated the principle that power would
not be implied to displace a pre-existing vested
statutory right and the court would not, therefore,
exercise such powers as a statutory right unless a
statute expressly allowed the same. The power to over-
ride such pre-existing right had to be in express terms
and could not be implied. Various other decisions were
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referred to by Mr. Sibal, which will only amount to
repetition to what has already been stated.
22. Mr. Sibal submitted that the High Court erred in
holding that the Copyright Board had power to grant an
interim compulsory licence and that when there was a
dispute as to the quantum of fees payable by the
licencee, an interim compulsory licence had to be
given. Mr. Sibal submitted that in the face of the
well-established propositions of law, the High Court’s
order could not stand and was liable to be set aside.
23. Dr. Abhishek Manu Singhvi, learned Senior Advocate,
appearing for the Respondent, firstly contended that
although Section 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 the Section as being incidental to the
powers granted by the Statute to the Board to grant
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compulsory licences. Dr. Singhvi urged that 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, in this case,
Super Cassettes.
24. Dr. Singhvi urged that if it were to be held that
the Board did not have such power to grant an interim
compulsory licence, the consequences would be contrary
to public interest, since it was not possible to assess
the time that could be taken by the Copyright Board for
disposing of an application for grant of compulsory
licence. Dr. Singhvi submitted that the Copyright Act
is a Code in itself and that matters relating to
copyrights and grant of licences had been left to the
Copyright Board for decision, which only lend strength
to the submission that the Board is vested with
incidental and ancillary powers under Section 31 of the
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Act to give effect to the final relief which it is
empowered to give under the said Section.
25. Dr. Singhvi referred to Section 25 of the Trade
Marks Act as also Section 25(i) and (ii) of the Patents
Act, which vested the authorities under the said Acts
to pass appropriate orders in aid of the final relief.
Dr. Singhvi urged that it is in situations such as
these, that the doctrine of “implied power” comes into
play. Learned counsel submitted that without holding
that the Copyright Board had the authority to direct
the grant of interim compulsory licences in keeping
with the doctrine of implied power, the provisions of
the Copyright Act would be rendered somewhat
unworkable.
26. Dr. Singhvi urged that the Copyright Board is a
quasi-judicial body discharging quasi-judicial
functions and under the scheme of the Act, it has been
vested with the power to determine the reasonableness
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of royalties claimed by performing rights societies and
to fix the rates thereof and to consider applications
for general licences for public broadcasting of works.
Dr. Singhvi submitted that it is in that context that
Section 12 of the Copyright Act would have to be read.
Under Section 12, which defines the powers and
procedure of the Copyright Board, it has been
stipulated that the Board would, subject to any rules
that may be made under the Act, have the power to
regulate its own procedure, including the fixing of
places and times of its meetings. Referring to Sub-
section (7) of Section 12, Dr. Singhvi urged that the
Copyright Board is to be deemed to be a Civil Court for
certain purposes and all proceedings before the Board
are to be judicial proceedings within the meaning of
Sections 193 and 228 of the Indian Penal Code.
27. Dr. Singhvi then drew the Court’s attention to
Section 19-A of the Copyright Act, which was inserted
by amendment with effect from 9th August, 1984, in
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regard to disputes with respect to assignment of
copyright. It was submitted that the said provision
clearly indicated that the Board was an adjudicating
authority in regard 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 Section 31 of the
Act.
28. Dr. Singhvi urged that the Copyright Act
contemplated the grant of three types of licences,
namely :-
(i) voluntary; (ii) compulsory; and (iii) statutory.
Dr. Singhvi urged that Sections 30, 31 and 31-A of
the Act deal with grant of voluntary, compulsory and
statutory licences. However, while Section 30 deals
with grant of voluntary licences by the owners of the
copyright, Sections 31 and 31-A speak of grant of
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licences for broadcasting works which had been withheld
from the public, either by the copyright owners, or
where the owner of an Indian work is either dead or
untraceable. However, Section 52 of the Act also made
provision that certain acts performed by broadcasters
were not to be considered as infringement of copyright.
In particular, reference was made by Dr. Singhvi to
Section 52(1)(j)(iv) which indicates that the making of
sound recordings in respect of any literary, dramatic
or musical work would not amount to infringement of
copyright if the person making such sound recording
allowed the owner of the right or his duly authorised
agent or representative to inspect all records and
books of accounts relating to such sound recording.
Dr. Singhvi urged that, in any event, any decision in
respect of the above provisions would be appealable
under Section 72 of the Copyright Act. Dr. Singhvi
urged that the powers now vested in the Copyright Board
were, in fact, powers which had been vested in it as
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high a body as Judicial Committee of the Privy Council
under Section 4 of the Copyright Act, 1911, which had
been passed by the Parliament of the United Kingdom and
modified in its application to India by the Indian
Copyright Act, 1914.
29. In support of the submissions made by him, Dr.
Singhvi referred to various decisions, beginning with
the decision of this Court in Income Tax Officer Vs.
M.K. Mohammed Kunhi [(1969) 2 SCR 65], wherein the
power of the Income Tax Appellate Tribunal to stay
recovery of penalty was under consideration. Although,
such power was not directly vested in the Tribunal, the
High Court held that the power to order the stay or
recovery of penalty is an incidental and ancillary
power possessed by the Tribunal in its appellate
jurisdiction. Reference was also made to the decision
cited on behalf of the Appellant in Morgan Stanley ’s
case (supra). Dr. Singhvi urged that the same was no
longer good law on account of the subsequent decisions
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of this Court. Dr. Singhvi urged that in Allahabad
Bank, Calcutta Vs. Radha Krishna Maity & Ors. [(1999) 6
SCC 755], this Court was considering the provisions of
the Recovery of Debts Due to Banks and Financial
Institutions Act, 1993, hereinafter referred to as “the
DRT Act”, wherein it was held that in a Suit under
Section 19(1) for recovery of monies, the Tribunal
acted within its powers in passing an interim order to
restrain the defendants from recovering any money from
a particular party. It was held that in view of Section
22(1) of the Act, the Tribunal could exercise powers
contained in the Civil Procedure Code and could even go
beyond the Code as long as it passed orders in
conformity with the principles of natural justice. This
Court held further that Section 19(6) of the Act did
not in any manner limit the generality of the powers of
the Tribunal under Section 22(1) and that Section 19(6)
was an enabling provision and that certain types of
stay orders and injunctions mentioned therein could be
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passed by the Tribunal, but the same could not be
deemed to be exhaustive nor restricting the Tribunal’s
powers only to those types of injunctions or stay
orders mentioned therein. It was also observed that in
addition, Rule 18 enabled the Tribunal to pass orders
to secure the ends of justice. Dr. Singhvi urged that
the aforesaid decision of this Court was based on its
earlier decision in Industrial Credit & Investment
Corporation of India Ltd. Vs. Grapco Industries Ltd. &
Ors. [(1999) 4 SCC 710], wherein it had been held that
the Debts Recovery Tribunal had jurisdiction under
Section 19(6) of the DRT Act to grant interim orders,
since such power inheres in a Tribunal.
30. Dr. Singhvi lastly contended that the decision in
Rajeev Hitendra Pathak ’s case (supra) could not be
relied upon for a decision in this case on account of
the fact that in the said case this Court was called
upon to consider as to whether the District Forum and
the State Commission had been vested with powers of
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revision, in the absence whereof they could not
exercise such powers which had not been expressly
vested in them. Dr. Singhvi urged that having regard
to the various decisions of this Court which have
categorically held that powers to pass certain interim
orders were incidental and ancillary to the exercise of
powers conferred on a Tribunal by the Statute, the
doctrine of implied power would stand attracted and the
orders of the High Court could not, therefore, be
faulted.
31. Mr. Bhaskar P. Gupta, learned Senior Advocate,
appearing for some of the interveners, adopted Dr.
Singhvi’s submissions and reiterated the concept that
the Copyright Act is a complete code in itself and the
parties to the dispute would have to take recourse to
the provisions of the Act and not the Civil Code which
lends support to Dr. Singhvi’s submissions that the
“doctrine of implied power” would have to be
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incorporated in the provisions of the Copyright Act, as
far as the Copyright Board is concerned.
32. Mr. Gupta also raised the question as to whether
during the pendency of an existing licence granted
under Section 30, a dispute could be raised with regard
to the fees charged under Section 31(1)(b) which may
subsequently convert the voluntary licence given under
Section 30 of the Copyright Act into a compulsory
licence under Section 31 thereof. Mr. Gupta contended
that since Section 31(1)(b) of the Act contemplates
adjudication, the Copyright Board had the trappings of
a quasi-judicial authority which inheres in itself the
right to pass interim orders in the interest of the
parties and to apply the principles of natural justice,
keeping in mind the public interest. In this regard,
Mr. Gupta also submitted that Section 75 of the
Copyright Act provides that the orders for payment of
money passed by the Registrar of Copyrights, the
Copyright Board or by the High Court would be deemed to
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be decrees of a Civil Court and would be executable in
the same manner as a decree of such Court. Mr. Gupta
contended that the intention of the legislature would
be clear from the scheme of the Act that matters
relating to copyright should be dealt with by the
authorities under the Act and not the Civil Court.
33. Mrs. Prathiba Singh, learned Advocate, who appeared
for one of the parties, while reiterating the
submissions made by Dr. Singhvi and Mr. Gupta,
submitted that the powers of the Board had been
gradually increased by legislation from time to time
and even in regard to the question of subsisting
licences and the grant of new licences, there could be
no dispute as to the powers vested in the Copyright
Board and the orders which it was competent to pass.
Mrs. Singh, however, introduced another dimension into
the debate by contending that the membership of the
Copyright Board is drawn from various quarters. There
being 14 members, it does not meet regularly and
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decisions in cases are, therefore, deferred for long
intervals. In fact, as pointed out by Mrs. Singh,
sometimes it is not possible to hold even one meeting
in a month. In such cases, unless the power to grant
interim orders were read into the provisions of Section
31 of the Act, there would be a complete stalemate in
regard to cases where matters were pending before the
Board and the public would be deprived of the pleasure
of listening to such music and sound broadcasting.
34. Mr. Harish Salve, learned Senior Advocate, in his
turn provided another twist to the question under
consideration in urging that inherent powers exist in
an appellate forum. Mr. Salve urged that this was not a
case where the Copyright Board was not entitled to pass
orders of an interim nature, but whether it should
exercise such power. Mr. Salve further urged that the
power under Section 31(1)(b) was in respect of matters
which were already in the public domain and the
transaction being purely of a commercial nature, the
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Board was only called upon to decide how much charges
were required to be paid for broadcasting music and
sound recordings in respect whereof Super Cassettes had
the copyright. Mr. Salve urged that Section 31(1)(b)
merely enumerated the right of the Copyright Board to
decide and compute the amount of fees payable for the
use of the copyright, which was being withheld from the
public. According to Mr. Salve, the essence of the
Copyright Act is the delicate balance between
intellectual property rights and the rights of access
to the copyright material. In such a situation,
according to Mr. Salve, a private right of copyright
would have to give way to the public interest as
contemplated in Section 31 of the Copyright Act.
35. Replying to the submissions made on behalf of the
Respondents and the interveners, Mr. Sibal urged that
the powers which were inherent in a Tribunal as against
the implied powers, stood on a different footing and,
in any event, the provisions of Sections 19(4) and 19-A
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34
were not relevant to the doctrine of implied power in
the facts of this case.
36. Mr. Sibal submitted that the concept of public
interest was nothing but a bogey introduced on behalf
of the Respondents, when the entire transaction only
involved the computation of the fees payable to a
copyright owner for use of the copyright when the same
was withheld from the public. Referring to the decision
between ENIL and the Appellant in Entertainment Network
(India) Limited Vs. Super Cassette Industries Limited
[(2008) 13 SCC 30], Mr. Sibal referred to paragraph 116
thereof, which is extracted hereinbelow :-
“116. Section 31(1)(b) in fact does not create an entitlement in favour of an individual broadcaster. The right is to approach the Board when it considers that the terms of offer for grant of licence are unreasonable. It, no doubt, provides for a mechanism but the mechanism is for the purpose of determination of his right. When a claim is made in terms of the provisions of a statute, the same has to be determined. All cases may not involve narrow commercial interest. For the purpose of interpretation of a statute, the court must take into consideration all situations
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including the interest of the person who intends to have a licence for replay of the sound recording in respect whereof another person has a copyright. It, however, would not mean that all and sundry can file applications. The mechanism to be adopted by the Board for determining the right of a complainant has been provided under the Act.”
Mr. Sibal urged that the decision of the High Court
was liable to be set aside and that of the Copyright
Board was liable to be restored.
37. What emerges from the submissions made on behalf of
the respective parties is the dispute as to the width
of the powers vested in the Copyright Board under
Section 31 of the Copyright Act. There is no dispute
that the Copyright Act is a Code by itself and matters
relating to copyrights and grant of licences in respect
of such copyrights have been left to the Copyright
Board for decision. Chapter II of the Copyright Act,
1957, deals with the establishment of a Copyright
Office and the constitution of a Copyright Board and
the powers and procedure to be exercised and formulated
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36
for the functioning of the said Board. Section 11 of
the Act, which comes within the said Chapter, provides
for the constitution of a Copyright Board, which would
hold office for such period and on such terms and
conditions as may be prescribed. Section 12 enumerates
the powers and procedure of the Board and is extracted
hereinbelow :-
“12.Powers and procedure of Copyright Board. – (1) The Copyright Board shall, subject to any rules that may be made under this Act, have power to regulate its own procedure, including the fixing of places and times of its sittings:
Provided that the Copyright Board shall ordinarily hear any proceeding instituted before it under this Act within the zone in which, at the time of the institution of the proceeding, the person instituting the proceeding actually and voluntarily resides or carries on business or personally works for gain.
Explanation.-In this sub-section "zone" means a zone specified in section 15 of the States Reorganisation Act, 1956. (37 of 1956).
(2) The Copyright Board may exercise and discharge its powers and functions through Benches constituted by the Chairman of the Copyright Board from amongst its members, each
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Bench consisting of not less than three members:
[Provided that, if the Chairman is of opinion that any matter of importance is required to be heard by a larger Bench, he may refer the matter to a special Bench consisting of five members.]
(3) If there is a difference of opinion among the members of the Copyright Board or any Bench thereof in respect of any matter coming before it for decision under this Act, the opinion of the majority shall prevail:
[Provided that where there is no such majority, the opinion of the Chairman shall prevail.]
(4) The [Chairman] may authorise any of its members to exercise any of the powers conferred on it by section 74 and any order made or act done in exercise of those powers by the member so authorised shall be deemed to be the order or act, as the case may be, of the Board.
(5) No member of the Copyright Board shall take part in any proceedings before the Board in respect of any matter in which he has a personal interest.
(6) No act done or proceeding taken by the Copyright Board under this Act shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board.
(7) The Copyright Board shall be deemed to be a civil court for the purposes of [sections 345
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and 346 of the Code of Criminal Procedure, 1973 (2 of 1974)] and all proceedings before the Board shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code, 1860 (45 of 1860)”.
As would be noticed, the Copyright Board has been
empowered to regulate its own procedure and is to be
deemed to be a Civil Court for the purposes of Sections
345 and 346 of the Code of Criminal Procedure, 1973,
and all proceedings before the Board shall be deemed to
be judicial proceedings within the meaning of Sections
193 and 228 of the Indian Penal Code. The provisions
clearly indicate that the Copyright Board discharges
quasi-judicial functions, which as indicated in
Sections 19-A, 31, 31-A, 32 and 52, requires the Board
to decide disputes in respect of matters arising
therefrom. In fact, Section 6 also spells out certain
disputes which the Copyright Board has to decide, and
its decision in respect thereof has been made final.
However, for the purposes of these appeals we are
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concerned mainly with Section 31, which has been
extracted hereinabove.
38. Elaborate submissions have been made regarding the
power of the Copyright Board to grant interim
compulsory licences in works withheld from the public,
in relation to matters which were pending before it.
Having considered the said submissions, we are unable
to accept the submissions made by Dr. Abhishek Manu
Singhvi, Mr. Bhaskar P. Gupta, Mr. Harish Salve and the
other learned counsel appearing for the different
interveners. The Copyright Board has been empowered in
cases where the owner of a copyright in a work has
withheld the same from the public, after giving the
owner of the copyright in the work a reasonable
opportunity of being heard and after holding such
inquiry as it may consider necessary and on being
satisfied that the grounds for withholding the work are
not reasonable, to direct the Registrar of Copyrights
to grant to the complainant a licence to republish the
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40
work, perform the work in public or communicate the
work to the public by broadcast, as the case may be,
subject to payment to the owner of the copyright of
such compensation and subject to such other terms and
conditions as the Board may determine. The language
used in the Section clearly contemplates 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 Board to make interim
arrangements, such as, grant of interim compulsory
licences, during the pendency of a final decision of an
application.
39. As has been held by this Court in innumerable
cases, a Tribunal is a creature of Statute and can
exercise only such powers as are vested in it by the
Statute. There is a second school of thought which
propagates the view that since most Tribunals have the
trappings of a Court, it would be deemed to have
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41
certain ancillary powers, though not provided by the
Statute, to maintain the status-quo as prevailing at
the time of filing of an application, so that the
relief sought for by the Applicant is not ultimately
rendered otiose. While construing the provisions of
Section 14 of the Consumer Protection Act, 1986, in the
Morgan Stanley Mutual Fund ’s case (supra), this Court
categorically held that in the absence of any specific
vesting of power, no interim relief could be granted,
not even of an ad-interim nature. The decision in the
recent judgment of this Court in Rajeev Hitendra
Pathak’s case (supra) also supports the case made out
by Mr. Sibal to the extent that in the absence of any
express power conferred on the District Forum and the
State Commission under the Consumer Protection Act,
they had no jurisdiction to exercise powers which had
not been expressly given to them.
40. Even the decision rendered in Bindeshwari Prasad
Singh’s case (supra), which was a decision as to the
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42
jurisdiction of a Magistrate to review or recall his
order, it was held that in the absence of any specific
power in the Code of Criminal Procedure, the Magistrate
was not entitled to exercise such a power.
41. On the other hand, the various decisions cited on
behalf of the Respondent and the interveners were in
the context of the question as to whether a Tribunal
has incidental powers, which were inherent though not
specifically vested, in order to preserve the status-
quo as in M.K. Mohammed Kunhi ’s case (supra), Allahabad
Bank, Calcutta ’s case (supra) or even in Grapco
Industries Ltd. ’s case (supra), till a decision was
reached in the pending matter.
42. In the instant case, the power being sought to be
attributed to the Copyright Board involves the grant of
the final relief, which is the only relief contemplated
under Section 31 of the Copyright Act. Even in matters
under Order XXXIX Rules 1 and 2 and Section 151 of the
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43
Code of Civil Procedure, an interim relief granting the
final relief should be given after exercise of great
caution and in rare and exceptional cases. In the
instant case, such a power is not even vested in the
Copyright Board and hence the question of granting
interim relief by grant of an interim compulsory
licence cannot, in our view, arise. Mr. Salve’s
submission that the substratum of the scheme of Section
31 is commercial in nature and only involves
computation of the charges to be paid to the holder of
the copyright who withholds the same from the public,
is no answer to the proposition that under Section 31
only an ultimate relief by way of grant of a licence on
payment of reasonable charges to the copyright owner to
publish and/or broadcast the work could be given. To
grant an interim compulsory licence during the stay of
the proceedings would amount to granting the final
relief at the interim stage, although the power to
grant such relief has not been vested in the Board.
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43. It is no doubt true, that 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 cannot surely mean that in the
absence of any provision to the contrary, such Tribunal
would have the power to grant at the interim stage the
final relief which it could grant.
44. As also indicated hereinbefore, such incidental
powers could at best be said to exist in order to
preserve the status-quo, but not to alter the same, as
will no doubt happen, if an interim compulsory licence
is granted. 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. The submission made
that there is no bar to grant such interim relief in
Section 31 has to be rejected since the presence of a
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45
power cannot be inferred from the absence thereof in
the Statute itself.
45. In the aforesaid circumstances, we have no
hesitation in allowing the appeals and setting aside
the impugned judgment and order of the Division Bench
of the High Court. The Appeals are, accordingly,
allowed. There will be no order as to costs.
………………………………………………………J. (ALTAMAS KABIR)
……………………………………………………J. (SURINDER SINGH NIJJAR)
New Delhi Dated:04.05.2012
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NON-REPORTABLE
IN THE SUPREME COUR OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS.4196-4197 OF 2012 [@ SLP (CIVIL) NOS.26581-26582 OF 2011]
Super Cassettes Industries Ltd. ….Appellant
Versus
Music Broadcast Pvt. Ltd. ….Respondent
J U D G M E N T
Chelameswar, J.
Though, I agree with the conclusion reached by my learned brother
Justice Kabir, I wish to add a few lines.
2. To my mind, the issue is not whether the Copyright Board is a
Court or a Tribunal while exercising the jurisdiction under Section 31 of the
Copyright Act or any other Section, which authorises the Copyright Board to
perform certain adjudicatory functions. It is also not the issue whether Courts
or Tribunals have such powers, which are categorised as powers ancillary to
their jurisdiction irrespective of the fact that the Statute, which created the
jurisdiction, does not, always, expressly provide for the exercise of such
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47
ancillary powers. This Court has held on more than one occasion that such
powers could be implied - Income Tax Officer vs. M.K. Mohammed Kunhi, 1969
(2) SCR 65 and Allahabad Bank, Calcutta vs. Radha Krishna Maity and others,
(1999) 6 SCC 755. As noticed by my learned brother at para 39 of the
Judgment, there have been decisions of this Court, which appear conflicting on
the question whether a Statutory Tribunal has powers other than those
expressly conferred by the Statute.
3. In the ultimate analysis, 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. The jurisdiction is, normally, defined with reference
either to; (1) the subject matter of the dispute and / or the pecuniary value of
the dispute; or (2) the territorial nexus of either the parties to the dispute or
the subject matter of the dispute to the Court or Tribunal.
4. In the context of Courts adjudicating civil disputes, the jurisdiction
and powers necessary to effectively exercise the jurisdiction, such as, securing
the presence of defendants / respondents or witnesses, granting of interim
orders etc., and the method and manner of enforcement of a decision or a
decree, are matters elaborately dealt by the Code of Civil Procedure. Similarly,
the Code of Criminal Procedure contains provisions necessary for the exercise
of the jurisdiction of the Criminal Courts. While the Code of Civil Procedure,
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under Section 151, recognises the existence of inherent powers in all Civil
Courts, the Code of Criminal Procedure recognises all such inherent powers
only in the High Court under Section 482.
5. Therefore, the jurisdiction and authority of not only the Tribunals,
but also the Courts are structured by the statutory grants and limitations.
6. However, both the grant as well as the limitations could be either
express or implied from the scheme of a particular enactment. The
considerations relevant for ascertaining whether there is an implied grant of
such powers, as can be culled out from the various Judgments relied upon by
the learned counsel appearing in these matters, which have been taken note of
by my learned brother Justice Kabir, appear to be; (1) 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 (2) need to preserve the parties themselves a consideration,
which weighed heavily with this Court in implying such powers in favour of the
Magistrates while exercising the jurisdiction under Section 125 of the Code of
Criminal Procedure.
7. The often stated principle that Courts would not, normally, grant a
relief by way of an interim measure, which is either identical with or
substantially the same as the final relief sought in the proceeding, is based on
the ground that indiscriminate grant of such interim reliefs are capable of
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producing public mischief see Assistant Collector of Central Excise, Chandan
Nagar, West Bengal v. Dunlop India Limited and others, (1985) 1 SCC 260.
This Court opined that the injury, if any, to the party approaching the Court is
reversible and the public interest in certain instances should outweigh the
temporary inconvenience of individuals.
8. Take another example, if a returned candidate to the
constitutionally created Legislative Bodies could be restrained from functioning
as a legislator by an interim order pending the adjudication of the legality of
such candidate’s election, the same would produce great public mischief.
9. Therefore, different considerations come into play depending upon
the context or nature of the legal rights at issue or subject matter of the
dispute, etc., in deciding the question whether an adjudicatory body can be
said to have been invested with the power to grant interim orders, which are
identical or substantially similar to the final relief that can be afforded in the lis
by implication from the scheme and language of the enactment, which created
the jurisdiction.
10. For deciding the question 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, is
required to be examined.
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11. Copyright in a “work”, undoubtedly, is a valuable legal right
subsisting in the “owner” or somebody claiming through the owner. Such a
right has more than one dimension. It may have a commercial value
depending upon the quality, nature and the public demand of the work. It may
also have aesthetic value. Whether such a right should be transferred or not is
a matter, essentially, for the “owner” of the copyright to determine. It is,
further, the right of the owner to decide on what terms and conditions (which
need not necessarily be related to money alone), he would part with the
copyright of his work if ever he decides to part with it. However, Section 31 of
the Copyright Act creates an exception to the abovementioned principle of the
right of the owner of the copyright. In substance - the Section deprives the
“copyright” of the “owner” against his volition. In other words, by Section 31,
the State is authorised, by its coercive powers, to deprive the owner of his
copyright in a work, which is his property and the right to enjoy such property
in the manner as the owner of the property pleases. Necessarily, in view of the
constitutional mandate under Article 300A, such a deprivation can only be by
the authority of law and it is too well entrenched a principle on the
constitutional law that such a law could be only for a public purpose.
12. The core of Section 31 is that the owner of a copyright has; (1)
either refused to “republish” or “allow the republication” of his work or “refused
to allow the performance in public” of the work; (2) by reason of such refusal
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the work is withheld from the public; and (3) the grounds for such refusal are
not reasonable. It is in the abovementioned circumstances, if the Copyright
Board is satisfied that the grounds of refusal are not reasonable, the Copyright
Board is authorised, by law, to take steps for the grant of a compulsory licence.
13. As can be seen, the appellants are interested in the commercial
exploitation of a work, of which they are not “owners” of the copyright. To
succeed in their claim for a compulsory licence in their favour, they must,
firstly, establish that “the work is withheld from the public”, because of the
“owner’s” refusal to republish the work, etc.; secondly, the owner’s refusal is
on grounds, which are “not reasonable” in law. Whether the owner is
withholding the republication on grounds, which are unreasonable or not, is a
question, which can only be decided upon affording a complete hearing to the
owner of the work, as I have already indicated the reason for withholding need
not only be monetary. Take for example the case of a book or a
cinematograph film, such as, Satanic Verses or Da Vinci Code, which have
created quite some commotion in certain quarters including the security threat
to the author or owner of the work. If the author, on realising that repeated
publication of the work might endanger his security, declines or refuses
republication of the work, it cannot be said that the author (owner)
unreasonably withheld republication. Such a refusal has nothing to do with the
monetary considerations. Therefore, by conceding a power to grant ad hoc
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compulsory licence during the pendency of the proceeding, under Section 31,
would not only render the final inquiry into the question, a futile exercise in a
case where the owner has reasons other than inadequacy of monetory
compensation. The power under Section 31 to grant a compulsory licence
meant for avoiding the withholding of the republication or refuse to allow the
performance in pubic of some “work” - is, essentially, for the benefit of the
public. Commercial benefit to “publisher” is incidental. 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. No
such detriment is demonstrated. In the absence of an express statutory grant,
I would not imply the power to grant an ad hoc compulsory licence by way of
interim order by the Copyright Board.
………………………………….J. ( J. CHELAMESWAR )
New Delhi; MAY 4, 2012.