Judgment

BALAKRISHNA ERADI, J.:- When the hearing of these appeals was concluded on November 11, 1982, after elaborate arguments had been addressed by learned counsel appearing on both sides, we announced our decision allowing the appeal (C. A. No. 2611 of 1981) by passing the following order :

"The appeal is allowed. The judgment and order of the Division Bench of the High Court presided over by learned Acting Chief Justice is set aside and the one by learned single Judge, Dr.. A. S. Anand is restored and consequently the Writ Petition No. 436 of 1980 filed by Respondents in the High Court of Jammu and Kashmir stands dismissed. No order as to costs of hearing in this Court. The legal consequence, of this order will take effect from November 16, 1982. All interim orders passed by this Court shall stand vacated from the midnight between 15th and 16th November, 1982. Reasons will follow."

We now proceed to state. in this judgment the reasons in support of our aforesaid conclusion.

2. In July, 1966, the appellant Ved Gupta decided to embark upon a venture to construct and operate an air-conditioned Cinema in a plot of land which he proposed to take on lease in Gandhi Nagar, Jammu, in collaboration with two other persons, namely, Todar Mal and Krishan Kumar. Accordingly, on July 22, 1966, Ved Gupta purporting to act on behalf of a partnership consisting of himself and the two persons, aforementioned (as a matter of fact, no partnership had been constituted at all by that date), applied to the District Magistrate, Jammu, under Section 3 of the Jammu & Kashmir (Cinematograph) Act, 1989 (1933 A. D.) (hereinafter referred to as the Act) for permission to construct a modern Cinema Hall at the proposed site, a detailed, description of which was furnished in the Plan annexed to the application. Shri Ved Gupta was informed . by the District Magistrate, Jammu, by his Memo (Annexure-B) that the Government had approved the construction of a Cinema Hall at the proposed, site and had granted the requisite permission in his favour as per letter dated September 11, 1967, issued by the Secretary to Government, General Department. From Annexure-B, it would appear that the permission so granted was in favour of Ved Gupta in his individual capacity and not as the representative of any firm. In, the meantime, by a deed dated December 7, 1966, which was registered on December 24, 1966, the plot in question was taken on lease jointly by Ved Gupta, Todar Mal and Krishan Kumar for a period of 40 years on the terms and conditions set out therein. Thereafter, under a deed dated July 15, 1969 (sic), the aforesaid three persons entered into a partnership along with 11 others under the name and style "Metro Theatres" for carrying on the business of constructing and running a modern air-conditioned Cinema in the site covered by the permission granted by the Government. Clause 15 of the said deed provided that the site for construction of a Cinema which had been. obtained on lease by Ved Gupta, Todar Mal and Krishan Kumar in their own names shall not be their personal property,: but shall be the property of the partnership, and that the permission which Ved -Gupta had obtained, from the Government for, construction of the Theatre in the said plot, shall be treated as the property of the partnership- By a. subsequent agreement executed by the 14 partners on February 22, 1969, the name of the Cinema business was changed from Metro Theatre to "Apsara Theatre."

3. The construction of the Cinema Theatre appears to have been completed by the middle of June 1969. On June 17, 1969, Ved Gupta submitted an application to the District Magistrate, Jammu, reporting that the construction of the theatre and the installation of the cinematograph machinery and equipment had all been completed purusant to the permission granted by the Government and requesting that the requisite licence for running the Cinema Theatre may be issued to him under the Act and the Rules. Annexure-C is a c