STATE OF GUJARAT AND ANR. vs M/S. KRISHNA CINEMA AND ORS.

The Supreme Court held that Rule 89 of the Bombay Cinemas (Regulation) Act, 1953 does not prohibit the construction of a cinema building prior to the grant of a no objection certificate by the Licensing Authority. The Court emphasized that the Licensing Authority must apply its mind to the facts and provide reasons for its decisions under Section 8A. The Court dismissed the appeal by the State of Gujarat, affirming that the construction of the building did not bar the issuance of the no objection certificate, as the completed annexe complied with all regulatory requirements.