Section 5(6) in The Tamil Nadu Cinemas (Regulation) Act, 1955
(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.
