- (1.) A. P. Misra, J. In view of the exchange,, of affidavits and in accordance with the Rules of Court, the present petition is being disposed of finally at the stage of admission.
(2.) THE petitioner seeks quashing of order dated 27-7-1995 (Annexure-3 to the writ petition) by virtue of which the District Magistrate has suspended the Cinema licence of the petitioner under Section 15 of the U. P. Entertainment and Betting Tax Act, 1979. The petitioner is, a licensee under the Cinematograph Act, 1918 under which he was running the same. Earlier the petitioner came to this Court against the rejection of his application for compounding of payment of the Entertainment Tax in accordance with the provisions of Section 3 read with Rule 24-A of 1981. Thereafter the impugned notice-cum-order dated 27-7-1994 (Annexure-3) was passed by the District Magistrate to show cause as to why the licence be not suspended under Section 15 (1) of the Act. Further for the reasons recorded thereunder the proviso to S. 15 (2) the licence has been suspended with immediate effect. The order refers to the inspection made at 1. 30 p. m. and records the irregularity found therein. Inspection records, the manager/owner or any responsible persons absent, on records being summoned the same were not produced & 13 persons were found without ticket. The main contention of the petitioner is that exercise of powers for suspending the petitioner's Cinema licence under proviso to Section 15 (2) of the aforesaid Act was illegal as condition to exercise the power under it does not exist.
(3.) IN the counter-affidavit stand is almost on the same line, in consonance with inspection note and the notice given to the petitioner. The short question for consideration is whether the exercise of power for suspending the licence for running the cinema under proviso to Section 15 (2) could be exercised on the facts and circumstances of the case. For proper appreciation of the matter Section 15 of the Act is quoted hereinunder: "15. Suspension or revocation of licence or permission for entertainment.- (1) Notwithstanding anything contained in any other law and without prejudice to the order provisions of this Act, the District Magistrate or the Commissioner, may, be order, revoke or suspend by way of punishment for a period not exceeding three months, any permission or licence granted for an entertainment under any other law for the time being in force if he is satisfied that the proprietor has: (a) admitted any person to any place of entertainment without (payment of tax), or (b) failed to pay the tax due from him without the time prescribed, or (c) fraudulently evaded the payment of any tax due under this Act, or (d) obstructed any officer in carrying out inspection, search or seizure of records, or (e) failed to produce the records required for inspection by any officer carrying out an inspection under this Act, or - (f) contravened and other provisions of this Act or the rules made thereunder or any order or direction issued under any such provision : Provided that where either of the aforesaid officers has commenced a proceeding under this sub-section the other of them shall have no jurisdiction to proceed subsequently in respect of the same matter and any such subsequent proceeding, if commenced, shall be of no effect and shall be dropped. (2) No order to revoke or suspend any permission or licence shall be made under sub-section (1) without giving the holder of the licence or permission a reasonable oppor tunity of being heard: Provided that where the District Magistrate or the Commissioner is of the opinion that the object of the action proposed to be taken would be defeated by the delay he may, while or after communicating to the holder of the licence or permission the grounds on which the action is proposed, pass an interim order suspending the permission or licence in the mean time. (3) Any person aggrieved by an order revoking or suspending any permission or licence under this section may, within fifteen days from the date of communication of such order prefer an appeal to the State Government in such manner as may be prescribed and the order of the appellate authority shall be final. (4) Where any permission or licence granted for an entertainment has been revoked or suspended under this section, the District Magistrate or, as the case may be, the Commis sioner shall have the power to prevent such entertainment and may for this purpose use such minimum force as he may consider necessary in the circumstances of the case. ";