KRISHNA KISHORE FIRM vs GOVT. OF. A.P. AND OTHERS

The Supreme Court held that under Rule 11 of the A.P. Cinemas (Regulation) Rules, 1970, a licensee must demonstrate lawful possession of the cinema site for license renewal. The Court found that the appellant, despite not being the formal owner, had acquired lawful possession through an agreement of sale with a co-lessor, which was not challenged. The High Court's conclusion that the appellant's possession was unlawful was overturned, establishing that possession can be lawful even if not strictly legal, thus allowing the renewal of the license.