( 1 ) LAKSHMI Theatre of Bhimavaram, West Godavari District was constructed by one Sanyasayya His wife is Suramma. Sanyasavya mortgaged the said cinema hall on 5-7-1972 in favour of Smt. Tummalappalli Sakuntalamma of Attili Village and also took a loan of Rs. 35,000/ Sakunta1amma failed a suit in the Subordinate Judge s Court. Narasapur on the foot of the mortgage deed and also another suit on the foot of the promissory note executed by Sanyasapya and got order of attachment against the theatre in the month of April, 1974 Sanyasayya died on 1-12-1976 leaving behind him his wife, Suramma, six sons and five daughters. Suramma got the BForm licence transferred in her name in the month of June 1977 One of the sons died on 9-12-1977 leaving behind him his widow, two sons and three daughters. One Ch. Ramalinga Raju obtained a letter date 14-11-77 under which Suramma agreed to lease out the theatre to him f r a period five years and Suramma delivered possession of the theatre to him and since then he has been running the theatre Ramalingaraju was paying the agreed rent to Suramma and also was discharging the debts due from her. Ultimately by an agreement dated. 30-6-1978 Suramina got the half share in the theatre transferred to Ramalinga Raju for a sum of Rs. 4 lakhs and an advance of Rs. 15,000/- was paid under the said agreement. Besides this amount he paid a sum of Rs. 1,50,000/ to her debtors. But the sale deed was not executed for the half share in the theatre inspite of requests. As the licence was standing in the name of Suramma, he found it difficult to run the thearte and hence filed an application in November, 1981 before the joint Collector, West Godavari Eluru under Rule 11 (e) of the A. P. Cinema (Regulation) Rules, 1970 hereinafter will be referred to as the Rules, for transfer of the licence in Form -B in his name. The Assistant Collector, narsapur was asked to enquire in to the Petition after notice to Suramma. The Assistant Collector submitted his report stating that Suramma and her sons had admitted that Ramalingaraju was the lessee of the theatre under the rental of Rs. 48,000/- per annum and Ramalmguraju has been running theatre since November, 1977 as a lessee. The Joint Collector, Eluru, held ultimately that Ramalingaraju was a lessee and he was in lawful possession of the theatre and hence the licence should be transferred in his name under rule 11 (e) of the Rules. Aggrieved with that order dated 12-4-1981 Suram ma filed an appeal before the Government of Andhra Pradesh. The Government by its order dated 30-10-1981 dismissed the appeal. As against that order Suramma filed W. P. NO. 9284 of 1981. The learned single Judge by his order dated 28-4-1981 remanded the matter to the Covernment for disposal of the appeal afresh in accordance with law and also in the light of the observations made in the Judgment. The Government heard the arguments once again and allowed the appeal of Suramma under orders in G. O. Rt no. 2698 dated 22-9-1982. In the said order the Government held that ramalingarajus possession cannot be said to be lawful but it is only litigious. In the meanwhile the Collector stopped the shows from 29-8-1982 and handed over the possession of the theatre to Suramma and her sons on 22-9-82. Then Ramalingaraju filed W. P. NO. 6882 of 1982 for the issue of a writ of certiorari to quash the order in G. O. Rt. No. 2698 dated 22-9-1982. Along with the writ petition he filed a petition for the grant of stay. This court passed orders on 30-9-1982 granting stay. On the receipt of the orders passed by this Court the Collector again passed orders on 1-10-1982 directing restoration of possession of the theatre in favour of Ramalingaraju. Our learned brother Ramarao, J. , after hearing the arguments deliverey the judgment on 3-12-1982, and held that rule 11 (e) of the Rules stipulates that the person seeking a licence should be in lawful possession of the premises if he is not the Owner. The learned sin