A lessee who continues in possession after the expiry of the lease period is not in unlawful possession and is entitled to a renewal of the license.

VEERASWAMI

1. The appeal arises from an order of Ramaprasada Rao J., who dismissed the appellants petition under Art. 226 of the Constitution to quash an order of the Board of Revenue dated 16th September, 1972. The appellant had obtained a lease from one M.C. Chockalingam and two others of a site for a period of three years from 19th August, 1969 and had also obtained a licence in Form C for running a cinema thereon. After expiry of the term, he refused to hand over possession of the building and equipment to the respondent but applied to the Commissioner of Police for a renewal beyond 19th August 1972. The Commissioner accepted his claim to be in lawful possession and granted him a licence. The respondent has made representations before him after the expiry of the lease. On appeal preferred by the respondent, the Board of Revenue cancelled the licence on the view that, since after expiry of the lease the appellant was no longer in lawful possession in terms of R. 13 of the Cinema (Regulation) Rules, he would not be entitled to a renewal. Ramaprasada Rao, J. having declined to quash the Boards order, this appeal is before us.

2. Two contentions are urged for the appellant (1) The appeal to the Board of Revenue by the lessor was incompetent. (2) R. 13 will have no application to renewal. In respect of the first contention, we are of the view that it cannot be upheld. S. 5(7) of the Madras Cinemas Regulation Act 1955, after its amendment in 1961, has provided for an appeal by any person aggrieved by the decision of the licensing authority granting or refusing to grant a licence. The date for determining an aggrieved person for the purpose of this provision are not, in our opinion, necessarily confined to those to whom the right of representations has been specifically granted by S. 5(1). In granting or refusing to grant a licence, the licensing authority under R. 13 will have to satisfy itself whether the applicant for a licence is in lawful possession of the site among other things. The primary task of satisfying the licensing authority in that matter will be that of the applicant by producing documentary evidence. But, since the obligation is on the licensing authority to satisfy itself as to the lawful possession of the site by the applicant, it is implicit that the authority can properly receive representations from the owner of the lessor of the land relative to the question of lawful possession. Though such a person is not specifically mentioned Sec. 5, it is obvious that, before, granting or refusing a licence, the licensing authority can properly hear representations from the owner or the lessor. If not with standing such representation made by the lessor or the owner the licence is granted, we consider that the person who made representations can well be regarded as a person aggrieved for the purpose of Sec. 5(7). A case of renewal is, as we think, not different. A renewal is a new licence, though the procedure for a licence may be different in the sense that the renewal is normally granted for the asking unless there are reasons to deny it. It may be noted that a renewal is granted in exercise of the same power as the power to grant a licence under S. 5. We notice that Part VI of the rules deals with renewals. This part contains provisions which provide how and when an application for a renewal can be made and the requirements therefor. A renewal will depend, as in the case of an initially granted licence, on the Chief Electrical Inspectors certificate in respect of the matters mentioned in R. 94 and the period of renewal will correspond to that mentioned in the Inspectors certificate. R. 96 says that, on receipt of the Chief Election Inspectors certificate duly renewed, the licensing authority shall inspect and satisfy ‘that all the rules including R. 53 in part IV and Rr. 80 and 81 in part V for sanitation are observed before the licence is renewed”. It follows, therefore, that even for the purpose of a re