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He strenuously contended that renewal of licence is not automatic as claimed by the respondents/petitioners, therefore, when the statute itself does not confer any vested right to demand for renewal of licence, the question of infringing upon the fundamental rights guaranteed under Article 19(1)(g) of the Constitution of India does not arise. According to him, the learned Judge failed to take note that the impugned Government Order imposes only a reasonable restriction and it is not a total prohibition on the right of the respondents to carry on the hotel business. He further contended that the learned Judge ought to have considered the fact that the other provisions of the Pondicherry Municipalities Act do not in any manner interfere with the right of the Municipality to decline the grant of/renewal of licence on the ground of public order, decency, morality etc. It is further argued that there was a proper exercise of statutory powers by the appellants in refusing to renew the licence issued to the respondents. According to him, the learned Judge, while on the one hand proceeded in a right and proper perspective by upholding the need and obligation on the part of the Government to maintain purity, decency and morality in the matter of public life and to take all steps to avoid indecency and immorality being developed and encouraged, on the other hand, has erred in quashing the prohibitory part of the impugned Government Order and directing the authorities to consider the request of the respondents for renewal of licence.

3. WHEREAS, the Government of Pondicherry is satisfied that it is not in public interest to grant any further licenses for the purposes mentioned above. Therefore, the Municipal Authorities are directed not to issue any fresh license for the above mentioned purposes in any permanent buildings, as defined under Rule 2 (c) of Pondicherry Municipalities (Places of Public Resort and Entertainments) Rules, 1980.

By Order K. Nagalingam, Under Secretary to Govt (LA) "

B. S.Muthukumaraswamy/Proprietor of M/s.Fillo Hotels filed a petition, dated 21.11.2005, praying for renewal of the licence in respect of his hotel for conducting classical dance programmes. The Commissioner, Pondicherry Municipality, by proceedings dated 30.11.2005; after recording factual findings to the effect that obscene dances are being conducted and the audience take resort to acts of violence, giving rise to law and order problem; and by holding that with a view to safeguard public morale and decency in the premises in respect of which licences are granted, they are not any more permitted to be used for performing any kind of dance programme on term basis; and also by making reference to G.O.Ms. No.27/LAS/2005, dated 20.09.2005, wherein the policy decision of the Government has been expressed not to renew the licence; refused to renew the licence granted to the Hotel run by S.Muthukumaraswamy. The said Government Order as well as the consequential rejection orders of the Commissioner, Pondicherry Municipality, were challenged by the hotel owners by way of writ Petitions. Though the learned Judge upheld the action of the Pondicherry Administration, however, observed that without amending the Act, they cannot prohibit the performance of classical dance programmes, and issued directions to the commissioner to consider the application of the petitioners for renewal of licence afresh.