The main legal point established in the judgment is that while the government has the power to regulate parking fees, the fees should have a correlation with the actual expenses incurred for providing amenities by the theatre owners.

1. These Writ Appeals arise out of the Common Order in W.P. No. 10048/1999, etc. batch, whereby the learned Single Judge struck down the provision viz., Rule 91-B of Tamil Nadu Cinemas (Regulation) Rules, 1955 introduced through G.O.Ms. No. 678, Home (Cinemas-II) Department, dated 18.05.1999.

2. Brief facts are that Writ Petitioners have obtained contracts from the respective Cinemas Theatres to establish canteens as well as maintaining the parking lots in Cinema Theatres. For getting the said contract, they have paid lumpsum amount to the licensee of the Theatre and they have been also paying the specified amount of monthly basis for running the canteens and maintaining the parking lots. Apart from paying the licensee fee for the Theatre, the Writ Petitioners are required to spend huge amount to engage men for the purpose of maintaining the parking area. According to the Writ Petitioners, they are collecting the fee from the vehicles which are parked in the Theatre for the services rendered by them and also they are taking care of the said vehicles and seeing that the vehicles are taken out of the Theatre after the show is over by the respective owners. Writ Petitioners are collecting the fee from the owners of the vehicles as per the fees collected by the Corporations and Municipalities from the vehicles which are parked on the road in the specified areas. Writ Petitioners are collecting the parking fee of Rs.5/- from cars, Rs.3/- from motorcycle and Rs.2/- from cycle for each show.

3. Case of Writ Petitioners is that the Government have issued G.O.Ms. No. 678, Hone (Cinemas-II), dated 18.5.1999 amending the Cinema Regulation Rules by introducing Rule 91-B as per which the licensee of a Cinema Theatre is authorised to collect fees for parking vehicles in the Cinema Theatre situate in the Corporation and Grade-I Municipalities at the rate of Rs.3/- from Cars, Rs.2/- from two wheelers and Rs.1/- from cycles. In the case of Theatres situate in other than the Grade-I Municipalities, the fees to be collected is Rs.2.50 from cars, Rs.2/- from two wheelers and Rs.1/-from cycle and in the case of Panchayat Rs.2/- from cars, Rs.1/- from two wheelers and 0.50 paise from cycle. Contending that the impugned amendment restricts the fees to be collected in the manner stipulated has the effect of seriously affecting the business of the Theatres, the Tamil Nadu Film Exhibitors Association and the Contractors have filed the Writ Petitions challenging the said Rule.

4. Resisting the Writ Petitions, Government have filed counter contending that Rules have been framed in exercise of the powers conferred under Section 10(1) of the Tamil Nadu Cinemas (Regulation) Act. Case of Respondents is that only after collecting particulars from various Collectors of the District regarding the rates of parking vehicles – Cars, Motorcycles, Cycles and the proposed rates in Corporations, Municipalities, Town Panchayats and Villages and after examination of the recommendations and the report of the Joint Commissioner (Cinema) Land Administration, Chennai, Government have issued the notification regulating the parking fees and the fixation has been done by inserting Rule 91-B in G.O.Ms. No. 678. Home (Cinemas-II) Department, dated 18.05.1999.

5. Upon consideration of the contentions, the learned Single Judge held that though the Government is having power to regulate the collection of the fees for parking the vehicles in the premises of Cinema Theatres, Rule 91-B in so far as it fixes the fixed rates in general to be collected as fees for parking the vehicles in the place provided in the respective Cinema Theatres cannot be sustained since the said rates are not fixed taking into consideration of the various aspects regarding the expenses incurred for providing the amenities by the licensees, the learned Single Judge struck down the Rule 91-B and allowed the Writ Petitions. For striking down Rule 91-B, the learned Single referred to Royal Arts, Coimbat