APHC010175362023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] MONDAY, THE THIRD DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 9459/2023 Between: Theatre Gowri Shankar And Canteen and Others ...PETITIONER(S) AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner(S): 1. PARIMI RAMA RAYUDU Counsel for the Respondent(S): 1. M Krishna Rao SC for skl vzm kkd Municipal Corporations 2. GP FOR REVENUE 3. A S C BOSE (SC FOR MUNICIPAL CORPORATIONS AP) 4. The State of Andhra Pradesh, Department of Municipal Administration and Urban Development The Court made the following: -2- W.P. No.9459 OF 2023 Date of order: 03.11.2025 THE HON’BLE SRI JUSTICE HARINATH.N WRIT PETITION No.9459 OF 2023 ORDER: 1. The present writ petition is filed challenging the demand bills issued by the respondents Corporations, whereby the petitioners are called upon to pay a trade licence fee. 2. The learned counsel for the petitioners submits that the impugned notices were issued under Sections 521 and 622 of the Andhra Pradesh Municipal Corporations Act, 1994 (formerly GHMC Act, 1955). It is submitted that the petitioners are already licensed by the competent authority under the Andhra Pradesh Cinemas (Regulation) Act, 1955, and therefore, do not require a separate trade license from the Municipal Corporation. It is further submitted that this Court had earlier considered a similar issue in W.P. No. 22056 of 2012 and batch, wherein similar notices issued under Section 622 of the Andhra Pradesh Municipal Corporations Act, 1994 were set aside. In the said judgment, the learned Single Judge of this Court had held that Section 521 of the Municipal Corporation Act does not apply to the business activity of the petitioners therein and accordingly set aside the impugned proceedings. The learned counsel for the petitioners submits that the case of the petitioners is similarly situated and prays for setting aside the impugned demand bills. -3- W.P. No.9459 OF 2023 Date of order: 03.11.2025 3. The learned Standing Counsels appearing for the respective Municipal Corporations submits that counters have been filed by the respective Corporations. It is submitted that the petitioners are liable to pay trade licence fees, as they not only sell cinema tickets and displaying films but also operate soft drink and snack stalls within the premises, thereby attracting the requirement of a trade licence under the Municipal Corporation Act. It is further submitted that trade licence must be obtained prior to commencing such business activities and renewed annually. 4. The learned Standing Counsel further submits that the Municipal Corporations are competent to levy trade licence fees for all business establishments operating in public places. Since a cinema theatre allows access to the general public, it must be treated as a public place. 5. The learned Standing Counsel has also placed on record the gazette notification dt.16.11.2011. Referring to Part I of the said notification and in view of Section 539 of the Andhra Pradesh Municipal Corporation Act, it is submitted that no person shall carry on any business without obtaining a valid licence from the Commissioner. At Serial No. 46 of the said notification, “cinema hall” is specifically mentioned. 6. Heard the submissions of the learned counsel for the petitioners and the learned standing counsel appearing for the respondents. Perused the record. -4- W.P. No.9459 OF 2023 Date of order: 03.11.2025 7. To address the issue raised in the present writ petition, it is pertinent to refer to Sections 521, 539 and 622 of the A.P. Municipal Corporation Act, 1994 (formerly GHMC Act). Section 521: Certain things not to be kept and certain trades and operations not to be carried on, without a license. (1) Except under and in conformity with the terms and conditions of a licence granted by the Commissioner no person shall - (a) keep, in or upon any premises, for any purpose whatever; (i) any article specified in Part I of Schedule P; (ii) any article specified in Part II of Schedule in excess of the quantity of such article which may at any one time be kept in or upon the same premises without a license; (b) keep, in or upon any premises, for sale or for other than domestic use, any article specified in Part III of Schedule P; (c) keep, in or upon any building intended for or used as a dwelling or within fifteen feet of such building, cotton, in pressed bales or boras or loose, in quantity exceeding four cwts.; (d) keep or allow to be kept in or upon any premises, horses, cattle or other four footed animals - (i) for sale, (ii) for letting out on hire (iii) for any purpose for which any charge is made or any remuneration is received, or (iv) for sale of any produce thereof; (e) carry on, or allow to be carried on, in or upon any premises- (i) any of the trades or operations connected with trade specified in Part IV of Schedule P; (ii) any trade or operation which in the opinion of the Commissioner is dangerous to life, health or property, or likely to create a nuisance either from its nature, or by reason of the manner in which, or the conditions under which, the same, is or is proposed to be carried on; (f) carry on within the city or use any premises for the trade or operation of a farrier. (2) A person shall be deemed to have known that a trade or operation is, in the opinion of the Commissioner, dangerous or likely to create a nuisance within the meaning of paragraph (ii) of clause (e) of sub- section (1), after written notice to that effect, signed by the Commissioner has been served on such person or affixed to the premises to which it relates. (3) A person shall be deemed to carry on or to allow to be carried on a trade or operation within the meaning of paragraph (ii) of clause (e) of sub- section (1), if he does any act in furtherance of such trade or is in any way engaged or concerned therein whether as principal, agent, clerk, master, servant, workman, handi-craftsman or otherwise. -5- W.P. No.9459 OF 2023 Date of order: 03.11.2025 (4) It shall be in the discretion of the Commissioner - (a) to grant any license referred to in sub-section (1) to such restrictions or conditions, if any, as he shall think fit to impose, or (b) to withhold any such licence; (5) Every person to whom a licence is granted by the Commissioner under sub-section (3) shall keep such licence in or upon the premises, if any, to which it relates; (6) Nothing in this section shall be deemed to apply to mills for spinning or weaving cotton, wool, silk, or jute to any other large mill or factory which the Commissioner may, from time to time, with the approval of the Standing Committee specially exempt from the operation thereof. Section 539 Butchers and persons who sell the flesh of animals to be licenced: No person shall without, or otherwise than in conformity with the terms of a license granted by the Commissioner in this behalf - (a) carry on within the City, or at any municipal slaughter-house the trade of a butcher; (b) use any place in the City for the sale of the flesh of any animal intended for human food, or any place without the City for the sale of such flesh for consumption in the City. Section 622: Licences and written permission to specify conditions etc., on which they are granted. (1) Whenever it is provided in this Act that a licence or a written permission may be given for any purpose, such licence or written permission shall specify the period for which and the restrictions and conditions subject to which, the same is granted, and shall be given under the signature of the Commissioner or of a municipal officer empowered under section 119 to grant the same. (2) For every such licence or written permission a fee may be charged at such rate as shall from time to time be fixed by the Commissioner, with the sanction of the Corporation. (3) Subject to the provisions of sub-sections (2) and (3) of section 530, any licence or written permission granted under this Act may at any time be suspended or revoked by the Commissioner, if any of its restrictions or conditions is infringed or evaded by the person to whom the same has been granted or if the said person is convicted of an infringement of any of the provisions of this Act or of any bye-law made hereunder in any matter to which such licence or permission relates. -6- W.P. No.9459 OF 2023 Date of order: 03.11.2025 (4) (a) If any premises are used without obtaining a licence for any of the purposes specified in Schedules or having obtained a licence is being used in contravention of the terms of such licence or is continued to be used after licence thereof has been suspended or revoked by the Commissioner, the Commissioner may at any time by written notice require that the same shall be discontinued by the person so using it. (b) If within the period specified in such written notice, the requisitions contained therein are not carried out by the person or owner, as the case may be, any officer authorised by the Commissioner in this behalf may enter the premises and cause the usage as such thereof to be discontinued. (c) No claim shall lie against any person for any damage or inconvenience necessarily caused by the exercise of powers under this section or for the use of any force necessary for the purpose of effecting an entrance under this section. (5) Every person to whom any such licence or written permission has been granted shall at all reasonable times while such written permission or licence remains in force, if so required by the Commissioner produce such licence or written permission. (6) Every application for a licence or permission shall be addressed to the Commissioner. (7) The acceptance by or on behalf of the Commissioner of the fee for a licence or permission shall not by itself entitle the person paying the fee to the licence or permission. 8. It is also necessary to refer to the definition of "public place" as set forth in Section 2(44) of the Act, which includes any park or garden, ground or any other place to which the public have or are permitted to have access. 9. After examining the statutory provisions and following the judgment rendered in W.P. No. 22056 of 2012, this Court infers that none of the cited sections can be made applicable for the activity of the petitioners in running cinema halls. At any rate, the cinema hall or theater cannot be considered as a public place. -7- W.P. No.9459 OF 2023 Date of order: 03.11.2025 10. On these considerations, the writ petition is allowed and the impugned demand bills raised by the respective respondents corporations are hereby set aside. No costs. 11. Miscellaneous petitions, if any, pending in this writ petition shall stand closed. ___________________ JUSTICE HARINATH.N BV