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Issues Involved:
1. Lawful possession of the leased property after the expiry of the lease. 2. Interpretation of Rule 13 of the Madras Cinemas (Regulation) Rules, 1957. 3. Whether the lessor is an aggrieved person under Section 5(7) of the Madras Cinemas (Regulations) Act, 1955. 4. Jurisdiction of the High Court under Article 226 of the Constitution to interfere with the order of the Board of Revenue. Issue-wise Detailed Analysis: 1. Lawful Possession of the Leased Property after the Expiry of the Lease: The primary issue was whether the respondent's possession of the leased cinema theatre after the lease expired constituted "lawful possession" within the meaning of Rule 13 of the Madras Cinemas (Regulation) Rules, 1957. The lease expired on 18th August 1972, and the respondent continued to occupy the property. The Division Bench of the High Court held that the respondent's possession was lawful based on the precedent set by the Supreme Court in Lalu Yeshwant Singh v. Rao Jagdish Singh, which recognized juridical possession as lawful possession. However, the Supreme Court in this judgment clarified that juridical possession, protected against wrongful dispossession, does not equate to lawful possession. Lawful possession requires a legal right to possess the property, which the respondent did not have after the lease expired. 2. Interpretation of Rule 13 of the Madras Cinemas (Regulation) Rules, 1957: Rule 13 requires an applicant for a cinema licence to show lawful possession of the site, building, and equipment. The Supreme Court emphasized that the rule has two parts: one for owners and another for non-owners. The respondent, being a non-owner, had to prove lawful possession, which he failed to do as the lease had expired. The Court held that lawful possession implies a legal right to possess, which the respondent lacked post-lease expiry. The Court rejected the High Court's interpretation that the respondent's possession was lawful merely because it was protected against forcible dispossession under Section 6 of the Specific Relief Act. 3. Whether the Lessor is an Aggrieved Person under Section 5(7) of the Madras Cinemas (Regulations) Act, 1955: The respondent contended that the lessor was not an aggrieved person under Section 5(7) of the Act and thus could not appeal to the Board of Revenue. The Supreme Court dismissed this argument, noting that the appellants had applied for the licence and were directly affected by the Commissioner's decision to renew the respondent's licence. Therefore, the appellants were indeed aggrieved persons within the meaning of the Act. 4. Jurisdiction of the High Court under Article 226 of the Constitution to Interfere with the Order of the Board of Revenue: The Supreme Court held that the High Court erred in interfering with the Board of Revenue's order under Article 226. The Board had correctly interpreted Rule 13 and found that the respondent was not in lawful possession of the property. The High Court's intervention was unwarranted as there was no manifest error of law in the Board's decision. Conclusion: The Supreme Court set aside the decision of the Division Bench of the High Court, reinstating the order of the Board of Revenue. The respondent's possession after the lease expiry was not lawful, and the appellants were rightfully aggrieved by the Commissioner's decision. The High Court's jurisdiction under Article 226 was not applicable in this case due to the absence of any manifest error of law in the Board's decision. The appeal was allowed with costs.
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