Case Note & Summary
The dispute arose between ICICI Bank and the Municipal Corporation of Greater Bombay regarding the legality of illuminated signboards installed above ATM centers. The bank had installed these signboards at various locations to guide customers to their ATM services. The Municipal Corporation issued notices claiming that these signboards constituted advertisements under Sections 328 and 328A of the Bombay Municipal Corporation Act, 1888, and required prior permission. The bank contested this, arguing that the signboards were merely informative and did not promote commercial activities. The High Court dismissed the bank's writ petition, relying on a precedent set in Municipal Corporation of Greater Bombay Vs. Bharat Petroleum Corporation Ltd., which classified similar signage as advertisements. The Supreme Court, however, found that the High Court erred in its application of the precedent, emphasizing that the illuminated signboards served a dual purpose of informing existing customers and attracting potential ones, thus necessitating a fresh evaluation under Section 328A. The court clarified that the definition of advertisement in this context must be understood in relation to commercial intent and public service. The appeal was allowed, and the High Court's judgment was set aside, directing the Municipal Corporation to reassess the situation without imposing costs on either party.
Headnote
A) Municipal Law - Definition of Advertisement - Illuminated Signboards as Advertisements - Bombay Municipal Corporation Act, 1888, Sections 328, 328A - The court held that the illuminated signboards indicating ATM locations do not solely serve as advertisements but also provide essential information to existing and prospective customers, thus requiring a fresh assessment under Section 328A. The notices issued by the Municipal Corporation were deemed inappropriate as they did not specify the applicable section for action (Paras 11-12).
Issue of Consideration
Whether the illuminated signboards of ATM centers constitute advertisements under the Bombay Municipal Corporation Act, 1888.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the Municipal Corporation to reassess the situation regarding the signboards under Section 328A without imposing costs.
Law Points
- Interpretation of advertisement
- definition of sky-sign
- jurisdiction of municipal authority
- statutory interpretation
- commercial interest
