View of Karnataka High Court. | Photo credit: FILE PHOTO
The Karnataka High Court ruled that theaters do not require a trade license to screen 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 specified that any secondary business activity on the premises of the theater, including the sale of food and other business activities, requires a trade license under Section 256 of the KMC Act.
Justice Suraj Govindaraj passed the order and partially allowed a petition filed by Kesari Enterprises challenging a notification issued by the Chitamni Municipal Council in Chickballapur district asking the petitioner to obtain business license to run a cinema.
The court pointed out that the KCR Act, 1964 is a special piece of legislation that governs the release of cinematographic films as it provides a complete statutory mechanism governing licensing of cinema halls, compliance of structure and infrastructure, fire safety and public safety measures and conditions for screening and supervisory control by the District Deputy Governor.
Since the KMC Act specifically deals only with the “shooting” of films and the “editing” of films, and the word “screening” of films is not included in this Act to secure a trade license under Section 256, the court should conclude that the legislator did not consciously include the “showing” of films in the KMC Act, the court pointed out.
As a result, according to the court, it is not possible to insist on a trade license according to § 256 only for the purpose of showing cinematographic films, when the municipal authority can, in accordance with the law, regulate secondary business activities in the premises of the theater and collect real estate tax.
Dismissing the summons issued by the petitioner to secure a trade license to screen in cinemas, the court said that it would be up to the petitioner to obtain the relevant authorizations under the law, either directly or through vendors, suppliers or third parties, before operating such ancillary business.
Published – 16 Feb 2026 19:38 IST