Khaitan & Co Represents Multiplex Association of India Before the Supreme Court in Challenge to Karnataka High Court’s Conditional Stay Order
The leading law firm in India, Khaitan & Co, successfully advised and represented the Multiplex Association of India (MAI) before the Hon’ble Supreme Court of India in a Special Leave Petition challenging the conditions imposed by the Division Bench of the Karnataka High Court regarding the earlier stay order on the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025. The amendment had imposed a price cap of INR 200 on cinema ticket prices in Karnataka.
Challenge Before the Division Bench
The stay order of the Learned Single Judge was challenged by the Karnataka State Film Chamber of Commerce and other appellants in a writ appeal before the Division Bench of the High Court of Karnataka.
On 30 September 2025, the Hon’ble Division Bench, while continuing the interim stay, imposed several conditions — including refund obligations subject to the outcome of the writ petition, the maintenance of ticket sale records, verification by Chartered Accountants, and submission of monthly reports (“Impugned Order”). The continuation of the stay on the price cap was made conditional upon compliance with these directions, prompting multiplex operators to approach the Supreme Court.
Supreme Court Proceedings
Senior Advocates Shyam Divan and Amit Sibal, along with the Khaitan & Co team, appeared on behalf of MAI. Hombale Films and VK Films were represented by Mukul Rohatgi and Shailesh Maidyal, Senior Advocates.
The SLP petitioners submitted that since the Karnataka State Film Chamber of Commerce and other appellants were not impleaded as parties to the writ petition before the Single Judge, they could not maintain an appeal against the stay order. Furthermore, the Division Bench erred in modifying the stay order without identifying any patent illegality or perversity.
Contentions on Constitutional Grounds
The Senior Advocates further argued that the Impugned Order imposed unworkable conditions on multiplex operators, infringing Articles 14 and 19(1)(g) of the Constitution by interfering with cinema proprietors’ right to determine their own business models.
In response, the Karnataka State Film Chamber of Commerce contended that the price cap on cinema tickets was justified and that the conditions on the stay order were necessary to balance the interests of all parties if the Single Judge later upheld the validity of the amendment.
Supreme Court’s Decision
After hearing the contentions of the parties, the Hon’ble Supreme Court of India, on 3 November 2025, stayed the Impugned Order to remove the onerous conditions imposed by the Division Bench. The Court also directed the Single Judge to expeditiously decide MAI’s constitutional challenge to the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025.
Representation
The Khaitan & Co team comprised Sahil Narang (Partner), Ayushman Kacker (Principal Associate), and Vidush Sinha (Associate),alongside Senior Advocates Shyam Divan and Amit Sibal, who represented MAI before the Supreme Court.
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