( 1 ) MESSERS Nataraj theatre has filed WP No. 21691 of 1995 praying for a writ of mandamus or any other appropriate writ declaring the memo issued by the Government of Andhra Pradesh, the 1st respondent herein bearing No. 1730/genl. A1/ 94-3 dated 23-5-1995 (the impugned order) as illegal and arbitrary and also to set aside all the consequential orders issued by the Licensing Authority under the A. P. Cinemas (Regulation) Act, 1955 (Act No. 4 of 1955, hereinafter referred to as the Act ). The other writ petition being WP No. 30691 of 1998 is filed by the Chand Talkies questioning the same impugned order. Messers Chand Talkies also questioned Rule 10-A of the A. P. Cinemas (Regulation) Rules, 1979 (hereinafter called as the Rules) as ultra-vires and unconstitutional insofar as the same imposes time limit for reduction of seating capacity in the petitioner s cinema theatre.

( 2 ) AS both the writ petitions came to be framed in the same set of facts and circumstances and raise common questions of law and facts, both the writ petitions are being disposed of by this common order.

( 3 ) BEFORE considering the questions of law, the facts leading to filing of these cases m