HDIL ENTERTAINMENT PRIVATE LIMITED Vs. STATE OF U.P.
LAWS(ALL)-2019-8-299
HIGH COURT OF ALLAHABAD
Decided on August 13,2019

Hdil Entertainment Private Limited Appellant
VERSUS
STATE OF U.P. Respondents

JUDGEMENT

SAUMITRA DAYAL SINGH,J. - (1.) Rejoinder affidavit filed today. Taken on record.
(2.) The present writ petition has been filed by the petitioner - a duly incorporated company, to challenge the order dated 20.08.2018 passed by the Commissioner, Meerut Division. By that order, that appeal authority has confirmed the order dated 28.12.2016 passed by the District Magistrate, Ghaziabad whereby the said authority had cancelled the cinematograph licence issued to the petitioner (on form prescribed under Appendix-I) under Rule 43 read with Rule 2(v) of the Uttar Pradesh Cinematograph Rules, 1951 (hereinafter referred to as the Rules) read with Section 7 of the Uttar Pradesh Cinemas (Regulation) Act, 1955 (hereinafter referred to as the Act). Also, a recovery of amount Rs. 3,33,18,467/- being the grant-in-aid availed by the petitioner under Government Order dated 19.12.2014 read with orders dated 25.02.2015 and 25.03.2015, has been directed to be recovered from the petitioner, together with interest @18%.
(3.) Briefly, a multiplex with three screens was established by the petitioner in a building owned by the M/s Wianxx Impex Pvt. Ltd. (WIPL in short), over the land leased to the latter by U.P. State Industrial Development Corporation Ltd., at Sahibabad, Ghaziabad. It is hereinafter referred to as the 'multiplex'. The State Government issued Government Order dated 19.12.2014, referable to Section 11 of the U.P. Entertainments and Betting Tax Act, 1979. It thus introduced a scheme providing grant-in-aid to multiplex cinema halls. Under clause 6(d/'gha'), the eligibility to the grant-in-aid was made equivalent to the cost of construction of the multiplex, excluding certain specified items. Further, the period within which the grant-in-aid was required to be availed/exhausted was five years. In the event of the entire grant-in-aid being availed within a shorter time, no further benefit would be available. Under clause 6(g/'chha'), the beneficiary licencee was obliged to run the multiplex for a further period of five years from the date it would exhaust the entire grant-in-aid. Under clause 6(l/'da'), in the event of it being discovered that the grant-in-aid had been availed on wrong facts or the grantee had violated any terms and conditions mentioned in Form-II, the grant-in-aid availed would be recovered together with 18% interest, as arrears of land revenue. Perusal of Form-II reveals similar stipulations were contained in that order also, by virtue of paragraph nos.1 and 8 thereto.;


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