PVR LTD Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) M/S PVR Limited is a company registered under the Companies' Act, 1956 and is primarily engaged in the business of running multiplexes across the country. They have filed the present Writ Application because of the logjam which has been created by the respondents/State authorities in extending the benefit of subsidy which new cinema halls or multiplexes were required to derive under a set of rules notified by the State of Chhattisgarh on 23.10.1982. The Rule in question is known as "Chhattisgarh Naye Cinemagharo (Ya Multiplex Cinemagharo) ke Nirman ko Protsahan Yojna ke Sahayata Anudaan Niyam, 1982" ( for short, 'Rules of 1982'). Since the arguments revolve around the object, purpose and interpretation which is required to be given to the provisions of this Rule, the Court is reproducing the said Rule as under:-

(2.) Even though in the writ application, the vires of Rule 4 and the 'Spastikaran' (clarification) attached to Rule 5 has been challenged but when the arguments began in right earnest learned counsel for the petitioner submits that even if the said Rule under challenge is not struck down as being unconstitutional or ultra vires otherwise, a constructive meaning to the words "swami" or 'malik' used in the Rule and corresponding legislations will achieve the same object and purpose, for which the petitioner has been compelled to approach the writ court.

(3.) Arguments have been made both on behalf of the petitioner, the State as well as an intervener, who in relation to a particular movie-hall or a multiplex claims himself to be the owner. However, there is unanimity that persons who have set-up a new movie hall or a multiplex after 1st July, 1991 are required to be given subsidy by way of refund of entertainment tax, which are deposited by them.