Section 5 in The Tamil Nadu Cinemas (Regulation) Act, 1955
5. Restrictions on powers of licensing authority.
(1)The licensing authority shall, in deciding whether to grant or refuse a licence, have regard to the following matters, namely:-(a)the interest of the [cinema going public and other sections of the public generally] [Substituted by Tamil Nadu Cinemas (Regulation) Second Amendment Act, 1987 (Tamil Nadu Act 48 of 1987).];(b)the status, [antecedents] [Inserted by section 3 of the Tamil Nadu Cinemas (Regulation) Amendment Act, 1964 (Tamil Nadu Act 20 of 1964).] and previous experience of the applicant.[Explanation. [Explanation was a added by section 3(ii) by the Tamil Nadu Cinemas (Regulation) Amendment Act, 1964 (Tamil Nadu Act 20 of 1964).] - For the purpose of this clause, the expression "antecedents" means the conduct of the applicant in relation to the payment of any tax or dues payable by him to the Government;](c)the suitability of the place where the cinematograph exhibitions are proposed to be given;(d)the adequacy of existing places for the exhibition of cinematograph films in the locality;(e)the benefit to any particular locality or localities to be afforded by the opening of a new place of cinematograph exhibition;(f)the possession by the applicant, of other places, if any, licensed under this Act, whether in the same locality or elsewhere, and whether at the time of applying for the licence or at any previous time; and shall also take into consideration any representations made by persons already giving cinematograph exhibitions in or near the proposed locality or by any local authority or police authority within whose jurisdiction the place proposed to be licensed is situated or by any association interested in the giving of cinematograph exhibitions.(2)The licensing authority shall not grant a licence unless it is satisfied that-(a)the rules made under this Act have been substantially complied with, and(b)adequate precautions have been taken in the place, in respect of which the licence is to be granted, to provide for the safety, convenience and comfort of the persons attending exhibitions, therein.(3)The licencing authority may, after consideration of the matters set forth in sub-section (1), limit the number of places in any area in respect of which licences under this Act may be granted.(4)The Government may issue such orders and directions of a general character as they may consider necessary, in respect of any matter relating to licences for the exhibition of cinematograph films, to licensing authorities: and every licensing authority shall give effect to such orders and directions.(5)Subject to the foregoing provisions of this section, the licensing authority may grant licences under this Act to such persons on payment of such fees as may be prescribed and on such terms and conditions and subject to such restrictions as it may determine. When the licensing authority refuses to grant any licence, it shall do so by an order communicated to the applicant, giving the reasons in writing for such refusal.(6)Every licence under this Act shall be personal to the person to whom it is granted and no transfer or assignment thereof, whether absolute or by way of security or otherwise, shall be valid unless approved in writing by the licensing authority.[(6-A) (a) Whenever the licensee proposes to transfer or assign the licence, the licensee and the person to whom the licence is proposed to be transferred or assigned, as the case may be, shall, before such transfer or assignment apply jointly to the licensing authority for approval thereof.] [Inserted by Tamil Nadu Cinemas (Regulation) Second Amendment Act, 1987 (Tamil Nadu Act 48 of 1987).](b)An application under clause (a) shall be in such form, contain such particulars and be accompanied by such fee as may be prescribed.(6-B) (a) Subject to clause (b), the licensing authority may on receipt of the application and the fee under sub-section (6-A) and after making such inquiry as it thinks fit either approve in writing the transfer or assignment, as the case may be, or refuse such approval.(b)Notwithstanding anything contained in clause (a)-(i)No transfer or assignment of a licence shall be approved under that clause unless the licensing authority is satisfied that the licensee has paid all amounts due under the Tamil Nadu Entertainments Tax Act, 1939 (Tamil Nadu Act X of 1939) on the date of such transfer or assignment: and (ii) such approval shall not be refused until the applicant has been given a reasonable opportunity of showing cause against such refusal.(7)Any person aggrieved by [the decision of the licensing authority [granting or] [These words were substituted for the words 'the decision of the licensing authority refusing to grant a licence under the Act or refusing to approve any transfer' by section 2(i) of the Tamil Nadu Cinemas (Regulation) Amendment Act, 1961 (Tamil Nadu Act 4 of 1961).] refusing to grant a licence under this Act or approving or refusing to approve any transfer] or assignment thereof may, within such time as may be prescribed, appeal to such authority as the Government may specify in this behalf and such authority may make such order in the case as it may think fit.(8)[ The appellate authority referred to in sub-section (7) may stay the execution of any such decision pending the exercise of its powers under sub-section (1) in respect thereof.] [Sub-section (8) was added by section 2(ii) of the Tamil Nadu Cinemas (Regulation) Amendment Act, 1961 (Tamil Nadu Act 4 of 1961).]
