The main legal point established in the judgment is that the State Government cannot issue a general order contrary to the provisions of the Tamil Nadu Act 7 of 1984, and that concerns about unauthorized exhibition of films and potential loss of revenue to cinema theatres do not justify such an order.

Heard Mr. K. Doraisami, learned Senior Counsel leading Mr. Kandan Doraisami and Mr.

A. Arumugam, learned Special Government Pleader for the respondents and perused the records.

2. Both the writ petitioners challenges the order of the State Government in G.O.Ms.No.1118, Home (Cinema -II) dated 18. 1998 and after setting aside the same, they want renewal of the licence granted to the petitioners video theatres.

3. While in the first Writ Petition, notice was ordered on 8. 1998, the second Writ Petition was admitted on 112. 2000. Interim orders were also granted in favour of the petitioners and they are still in currency. On the strength of the interim order, the first petitioner is still running the video theatre as per the Tamil Nadu Exhibition of Films on Television Screen through Video Cassette Recorders and Cable Television Network (Regulation) Act, 1984 (for short Tamil Nadu Act 7 of 1984). On notice from this court, the respondents have filed a counter affidavit dated nil.

4. It is stated by the petitioners that the State had promulgated Tamil Nadu Ordinance 11 of 1984, which was subsequently replaced by the state legislation in the form of Tamil Nadu Act 7 of 1984. Pursuant to the power granted under section 22 of the Act, Rules have been framed known as the Tamil Nadu Exhibition of Films on Television Screen through Video Cassette Recorders and Cable Television Network (Regulation) Rules, 1984 on 30.1.1984.

5. The object of the Act was set out in the preamble of the Act, which reads as follows:

"An Act to provide for the regulation of exhibition of films on Television Screen through video cassette Recorders (and through Cable Television Network) in the State of Tamil Nadu and for matter incidental or ancillary thereto."

6. Under the provisions of the Act, no person shall be given exhibition of films on

television screen through Video Cassette Recorders (VCR) except in accordance with the licence granted under section 6 read with Section 5 of the Act. This was to be exhibited in place for which permission has been granted under section 7 r/w 5 of the Act. Section 5 provides for grant or for refusal of licence. Under section 6, restrictions have been imposed on the powers of licensing authorities. Apart from various guidelines therein, regarding the materials to be exhibited, the State Government is given power to grant direction under section 8(1), which reads as follows:

"1. The Government may issue such orders and directions of a general character as they may consider necessary, in respect of any matter relating to licences for the exhibition of film on television screen through Video Cassette Recorder (or through Cable Television Network) or the keeping of Video Library, to licensing authorities; and every licensing authority shall give effect to such orders and directions."

7. Section 11 provides the power of the State Government to suspend exhibition of film in certain cases where there is likelihood of breach of peace. In case of revocation or suspension of licence made under section 12 by the licensing authority, an appeal lies under section 13 to the appellate authority prescribed therein. Section 14 gives revisional power to the State Government. Except for the above referred provisions, there is no general power vested with the Government except the power of exemption granted under section 21 of the Act. That may not have any relevance to the present case.

8. The rules framed therein set out the guidelines for the licensing authorities to grant licence in terms of the conditions imposed by the Act. It is stated that both the petitioners are having licences under the Act. Subsequently, when the question of renewal came, the petitioners were surprised with the issuance of the Governments order in G.O.Ms.No.1118 (Home (cinema-II) Department dated 18. 1999.

9. The said order which was issued in Tamil, if freely translated, reads as follows:

"(1) The Joint Commissioner for Land Administration info