( 1. ) THIS is a petition under Articles 226 and 227 of the constitution challenging the order of the District Magistrate cancelling the cinema licence and rejecting the application for renewal, and the order of the State Government dismissing the appeal against that order.

( 2. ) LATE Shankarlal Rathi was granted licence for exhibition of films in the premises known as Vasant Talkies at Durg under section 4 of the m. P. Cinemas (Regulation) Act, 1952. The premises belong to respondent no. 4 Bajranglal Roongta. Earlier he was using the premises as a godown for storing Tendu leaves. In 1959 the premises were taken on rent by s. L. Rathi for converting into a cinema theatre after making necessary reconstruction. The cinema licence was obtained in 1959. The State government framed M. P. Cinema (Regulation) Rules, 1972, for regulating grant of cinema licence. S. L. Rathi held cinema licence No. 22 of 1972 which was renewed from year to year up to 31-3-1981. In February 1981, he applied for renewal of the licence. The respondent No. 4 also made an application to the licensing authority objecting for the renewal saying that his lease has already expired on 31-10-1975 and he is n