Hours after the order was pronounced, activists of Rajput group "Karni Sena" brandishing swords attacked a cinema hall in Muzaffarpur in Bihar and tore down posters of the movie, police said.
There were also some minor peaceful protests and one anti-Padmaavat group threatened to hit the streets soon, but Bollywood applauded the decision, saying its faith in Indian judiciary has been restored.
Staying the orders and notifications issued by the state governments banning the screening of Sanjay Leela Bhansali's period drama, a bench headed by Chief Justice Dipak Misra also restrained other states from issuing similar bans.
Rajasthan and Gujarat had issued formal orders and notifications while the Haryana and Madhya Pradesh governments had stated they would not allow the exhibition of the film but had not issued any formal order.
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Creative content, including theatre and cinema, are "inseparable aspects" of the right to freedom of speech and expression guaranteed under the Constitution, the bench observed and said that states were under constitutional obligation to maintain law and order.
The Karni Sena, a fringe group that led often violent protests against the film, asserted it would not allow 'Padmaavat' to be screened. Its president Mahipal Singh Makrana said the Rajputs would hit the streets in protest against the film, based on Sufi poet Malik Muhammad Jayasi's epic poem "Padmavat".
The film, which stars Deepika Padukone, Shahid Kapoor and Ranveer Singh in lead roles, had faced opposition from various quarters, including the Rajput community, who allege the film distorted history and tarnished the image of the legendary Queen Padmini of Chittor.
The movie, originally named Padmavati, was supposed to be released in December but was held up because of the protests, and the censor board finally cleared it recently after getting the name changed to Padmaavat.
During the hearing, the CJI also observed, "the whole problem is when the exhibition of a film is stopped like this, my constitutional conscience shocks me."
"There were so many films earlier, but nobody really bothered. 'Bandit Queen' had passed the test of the Supreme Court," the CJI said.
Additional Solicitor General (ASG) Tushar Mehta, who was representing Rajasthan, Gujarat and Haryana, submitted there were intelligence reports regarding law and order problem in these states in the event of exhibition of this movie and that CBFC, while certifying the film, was neither supposed to know about the law and order situation, nor does it have the wherewithal to deal with it.
"Please try to understand. Let the film be released," the bench told the ASG, adding a movie might not be so successful at the box office and people might not go to watch it, but its exhibition cannot be prohibited like this.
The top court passed the interim order on the petition by Viacom 18 Media Pvt Ltd and other producers of the movie challenging the bar on screening of the film in Gujarat, Rajasthan, Haryana and Madhya Pradesh. It posted the matter for further hearing on March 26.
Haryana Health Minister Anil Vij said the apex court gave the order without listening to the state government. "Supreme Court is the supreme so will abide by the decision," he said, adding the government will also examine the decision and see if there is a scope for any appeal.
Rajput community members held protests in Rajasthan's Chittorgarh against the film, demanding a complete ban on its release. They staged a sit-in protest near Rithola crossing on the Udaipur-Ahmedabad highway by blocking it for nearly half- an-hour, police said.
Noted film director Madhur Bhandarkar congratulated the team of the film for the breakthrough while writer Chetan Bhagat lauded the judgememt for protecting the freedom of expression.
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