The High Court of Karnataka ruled that theatres do not need a trade licence to show movies. This is because the Karnataka Cinemas (Regulation) Act, 1964, governs cinema exhibitions, not the Karnataka Municipalities Act, 1964. Justice Suraj Govindaraj gave this order while partly allowing Kesari Enterprises' petition. The company had challenged a notice from Chitamni City Municipal Council, which asked them to get a trade licence for running a cinema theatre in Chickballapur district. The court explained that the KCR Act, 1964 is a special law made to regulate movie exhibitions. It covers licences for cinema theatres, safety rules, and supervision by the Deputy Commissioner. On the other hand, the KMC Act talks about shooting and processing films but does not include exhibition of films for trade licence purposes. The court said, "...the legislature had consciously not included ‘exhibition’ of the films under the KMC Act." Therefore, a trade licence under Section 256 of the KMC Act cannot be required just for showing movies. However, the court noted that any other commercial activities inside theatres, like food vending, need a trade licence. These activities must follow the law properly. The notice demanding a trade licence for cinema exhibition was canceled. But theatres must still get proper licences for any other business in their premises, whether done by them or through others. This ruling clarifies the licensing rules for cinema halls in Karnataka and protects theatre owners from extra trade licence hassles for movie screenings.