LAWS(CHH)-2016-1-41

AVINASH DEVELOPERS PRIVATE LIMITED Vs. STATE OF CHHATTISGARH

Decided On January 22, 2016
Avinash Developers Private Limited Appellant
V/S
STATE OF CHHATTISGARH Respondents

JUDGEMENT

(1.) In this writ petition under Article 226 of the Constitution of India, the petitioners have challenged the legality and validity of the order dated 30.04.2014 (Annexure -P -4) passed by the respondent No.2 and for declaration that the petitioners are duly qualified and entitled for the benefits/incentives/grant contained in the rules namely, the Chhattisgarh Cinema Gharon Ke Nirman Ko Protsahan Yojna Ke Sahayata Anudan Niyam, 1982 (for short 'the Rules, 1982'), for the multiplex cinema in question for the period 04.03.2010 onwards.

(2.) Facts of the case, briefly stated, are that the petitioner No.1 and its Managing Director, the petitioner No.2 have constructed a Mall in the name and style 'Magneto Mall' in Raipur City in the year 2008 -09 investing an amount of Rs.19.00 crores. The Mall is also having a four screen multiplex cinema theater, which commenced its operation on 05.02.2010. Before commencement of operation, the petitioners No.1 & 2 on one side and the petitioner No.3 on the other side have entered a Revenue Sharing and Co -ordination Agreement (for short 'the Agreement') dated 15.01.2009 at Raipur vide Annexure -P -1.

(3.) The State Government has enacted the Rules, 1982 for encouraging the construction of new cinema theaters/multiplexes. The Rules, 1982 provides incentive or grant or benefit for such construction made after 01.07.1991. Initially, the multiplexes were not covered under the Rules, as at that time i.e. in the year 1982 multiplexes have not taken birth. By amendment dated 30.08.2003, multiplex cinema theaters, whose construction started after 01.07.1991, were also included for availing the benefit of the Rules, 1982, however, such benefit was available to such cinema theater or multiplexes, where there is no existing cinema theater or multiplex within radius of 10 kms, however, this rider was done away with by notification dated 04.03.2010.