IN THE HIGH COURT OF KERALA AT ERNAKULAM
K. VINOD CHANDRAN, J.
P. Sivakumar – Petitioner
Versus
Chalakudy Municipality, Rep. by its Secretary and Others – Respondents
WP (C) No. 26168 of 2017
Decided On : 09-08-2017
Cinema Complex - Municipality Regulations - Kerala Cinemas (Regulation) Rules, 1988 - The judgment discusses the validity of the closure notice issued by the Municipality to a cinema complex. It refers to various acts and sections including the Kerala Cinemas (Regulation) Act, 1958, Kerala Municipality Act, 1994, and Kerala Panchayath Raj Act, 1994. The court's decision is influenced by the interpretation of these acts and sections, particularly in relation to the licensing authority, establishment permits, and the authority of the Municipality to interfere with the license granted by the Secretary.
Fact of the Case:
The petitioner, the brother of the cinema complex owner, challenged the closure notice issued by the Municipality. The complex had obtained various certificates and licenses, but the Municipality issued a notice resulting in the closure of the theaters.
Finding of the Court:
The court found that the Municipality's decision to close down the theater-complex was without authority and violated principles of natural justice. It held that the theater-complex was entitled to function without interference from the Municipality.
Issues: The issues included the validity of the closure notice, the authority of the Municipality to interfere with the license granted by the Secretary, and the requirement of an establishment permit under the Kerala Municipality Act, 1994.
Ratio Decidendi: The court emphasized that the Municipality exceeded its jurisdiction and violated principles of natural justice. It also highlighted the exemption of provisions of the Kerala Municipality Act, 1994 under the Kerala Cinemas (Regulation) Act, 1958.
Final Decision: The writ petition was allowed, and the closure notice and authorization letter were set aside. The theater-complex was permitted to function without interference from the Municipality.
1. The petitioner is the brother of the owner of a multiplex cinema complex, within the jurisdiction of the 1st respondent. The operation of the three theaters in the complex commenced on 18.12.2014 and has been continued till now. The petitioner challenge the notice issued by the Secretary at Exhibit P15 and the authorization letter P20, which together resulted in the closing down of the cinema theaters.
2. The writ petition was filed day before yesterday and though this Court was inclined to grant an interim order, on the specific request made by the learned Counsel for the Municipality it was posted yesterday. A counter-affidavit was filed by the Municipality and considerable arguments were advanced by both sides. Due to paucity of time and also for reason of the Counsel seeking time for clarification; the matter was again posted today. Today after the matter was considerably heard, both Counsel requested that only an interim order be passed. However, this Court is of the opinion that there is no necessity to pass an interim order especially since pleadings are completed and the matter fully heard. Hence it was specifically informed to the Counsel that the writ petition would be disposed of and again permitted to further argue the matter.
3. The facts indicate that the theater-complex was granted occupancy certificate by Exhibit P2. They had also obtained the Certificate to exhibit approved films, in three screens coming within the theater-complex, from the Ministry of Information and Broadcasting, Government of India, as is seen from Exhibit P3 series. The Electrical Inspectorate had also issued Exhibits P4, P4(a) and P4 (b) certificates of suitability. Sanction was accorded by the Office of the Chief Electrical Inspector as is evidenced from Exhibit P5. The certificate issued by the PWD, Building Section and the No Objection Certificate of the Fire and Rescue Services Department are produced as Exhibits P6 and P7. Based on all these orders, the Secretary of the Municipality issued License for Exhibition of Cinematograph Shows [Exhibits P8, P8(a) and P8(b)] under the Kerala Cinemas (Regulation) Rules, 1975 (the said Rules have been superseded by the Rules of 1988, but the form shows the year of the superseded rules). A consent to operate was issued by the Pollution Control Board, which was valid till 28.02.2017, evidenced by Exhibit P9. The consent has been renewed and the validity extended to 28.02.2020 by Exhibit P10.
4. Exhibits P11 and P12 are the D&O licenses issued under Section 447 of the Kerala Panchayath Raj Act, 1994; respectively of the cinema theaters and the coffee and snacks counter. Exhibits P13 and P14 evidence the license fee payment for the year 2017-2018; remitted along with the application for renewal of license. The theater-complex then was faced with Exhibit P15 notice served on 21.07.2017, which was far beyond the 30 days as prescribed under Section 447 (6) of the Kerala Municipality Act, 1994. The theater- complex hence had a deemed license is the argument raised. Exhibit P15, which is in purported response to the renewal application projects the ground of the Consent to Operate issued by the Pollution Control Board having not been renewed. Subsequently Exhibit P20 authorization letter was issued based on a decision of the Council of the Municipality to close down the theater-complex and the same has been effected. The theater-complex has not been able to run the shows after that. Hence, the petitioner is before this Court.
5. The learned Counsel appearing for the respondent Municipality, as a preliminary objection contests the locus standi of the petitioner and challenge the maintainability, on ground of alternative remedy being available, by way of an appeal before the Local Self Government Institutions Tribunal, against a decision of the Council. On merits, it is argued that before a D & O license is obtained there should be an establishment permit under Section 448 of the Municipality Act.
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