No trade licence needed under municipal laws for cinema exhibition: Karnataka High Court

The High Court of Karnataka has held that theatres do not require a trade licence for exhibiting cinematographic films, as such activity is governed by the licensing framework under the Karnataka Cinemas (Regulation) Act, 1964, and not the Karnataka Municipalities Act, 1964.

However, the court made it clear that any ancillary commercial activities within the theatre premises, including food vending and other business activities, require trade licence under Section 256 of the KMC Act.

Justice Suraj Govindaraj passed the order while partly allowing the petition filed by Kesari Enterprises, which had challenged the notice issued by Chitamni City Municipal Council in Chickballapur district asking the petitioner to obtain trade licence for operating a cinema theatre.

The court pointed out that the KCR Act, 1964 is a special legislation enacted to regulate the exhibition of cinematographic films as it provides a complete statutory mechanism governing grant of licence for cinema theatres, structural and infrastructural compliance, fire safety and public safety measures, and conditions for exhibition and supervisory control by the Deputy Commissioner of the district.

As the KMC Act specifically deals only with ‘shooting’ of films and ‘treating’ of films, and the word, ‘exhibition’ of films is not included in this Act for securing trade licence under Section 256, the court should infer that the legislature had consciously not included ‘exhibition’ of the films under the KMC Act, the court pointed out.

Consequently, the court said, a trade licence under the Section 256 cannot be insisted upon solely for the purpose of exhibition of cinematographic films the municipal authority is at liberty to regulate ancillary commercial activities within the theatre premises and to recover property tax dues in accordance with law.

While quashing the notice issued to the petitioner to secure trade licence for cinema exhibition, the court said that it would be incumbent on the petitioner to obtain appropriate licences as per law before carrying on such ancillary activities, either directly or through vendors, contractors, or third parties.