Topic: Sec 12. Restrictions on powers of licensing authority

(1) The licensing authority shall not grant a licence under this Part, unless it is satisfied that-

(a) The rules made under this Part have been substantially complied with, and

(b) Adequate precautions have been taken in the place, in respect of which the licence is to be given, to provide for the safety of persons attending exhibitions therein.

(2) Subject to the foregoing provisions of this section and to the control of the State Government, the licensing authority may grant licence under this Part to such persons s that authority thinks fit an on such terms and conditions and subject to such restrictions as it may determine.

(3) Any person aggrieved by the decision a licensing authority refusing to grant a licence under this Part may, within such time as may be prescribed, appeal to the State Government or to such officer as the State Government may speicfy in this behalf and the State Government or the officer, as the case may be, may make such order in the case as it or he thinks fit.

(4) The Central Government may, form time to time, issue directions to licensees generally or to any licensee in particular for the purpose of regulating the exhibition of any film or class of films, so that scientific films, films intended for educational purposes, films dealing with news and current events, documentary films or indigenous films secure and adequate opportunity of being exhibited, and where any such directions have been issued those directions shall be deemed to be additional conditions and restrictions subject to which the licence has been granted.
Notes

The exprssion "may" used in sub section (2) cannot be read as "shall" Tajdin Facerbhai v. Union Territory of Goa, AIR 1965 Goa 158.
If the licensing authority does not surrender its own judgement to the Government it is entitled in law to give weight to the opinion of the Government. Tajdin Facerbhai v. Union Territory of Goa, AIR 1965 Goa 158.

Where the appellant authority without passing any written order directed the Distrcit Magistrate to inform the petitioner that it was not possible to grant the licene as various directs were found under Cinematograph Rules, the order was fit to be set aside and a direction ws given to the Government to dispose of the appeal as per law. Tajdin Facerbhai v. Union Territory of Goa, AIR 1971 Goa 27.

The final order which the appellate passes in appeal is a quasi-judicial order. When it is a quasi-judicial order it must be a speaking order. Reasons must be given by the appellate authority for allowing or dismissing the appeal. Tajdin Facerbhai v. Union Territory of Goa, AIR 1971 Goa 27.

During the pendency of an application under sub section (3) of Section 12 a writ petition is maintainable. Tajdin Facerbhai v. Union Territory of Goa, AIR 1967 Goa158.