Bombay High Court Hears Challenge to Municipal Circular Revising Hoarding Advertising Licence Fees. Petition Questions Validity of 2009 Circular Under Mumbai Municipal Corporation Act Sections 328A and 479.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The matter involved consolidated writ petitions filed by outdoor advertising firms and an association challenging licence fee revisions imposed by the Municipal Corporation of Greater Mumbai (MCGM) on advertising hoardings. Writ Petition Nos. 735 of 1997 and 1407 of 1997 originally impugned a resolution dated 12th December 1996 increasing the applicable rates. These earlier petitions were dismissed for default of one and later restored, but by the time of hearing the 1996 resolution had been superseded by Circular No. 999 dated 11th December 2009. The subsequent Writ Petition Nos. 1968 of 2013 (Yog Advertising) and 1068 of 2010 (Indian Outdoor) directly challenged the 2009 circular. The petitioners sought quashing of the circular and a direction that licence fees be accepted at the previous rates. The Court noted that under the Mumbai Municipal Corporation Act, 1888, Section 328A requires prior written permission of the Municipal Commissioner for any advertisement, and Section 479(2) empowers the Corporation to charge such fees as fixed with its sanction. The petitioners’ case, as presented by counsel, began with reference to a resolution of 8th May 1985, though the text of the judgment broke off before completion. The Division Bench of Justices A.S. Oka and G.S. Patel reserved judgment on 26th November 2015 and pronounced on 27th January 2016, but the final decision and reasoning beyond the statutory framework and the issue of infructuousness were not included in the extracted portion of the judgment.

Headnote

A) Municipal Law - Licence Fees for Advertisements - Mumbai Municipal Corporation Act, 1888, Sections 328A and 479 - The Corporation is empowered under Section 328A to require prior permission for advertisements and under Section 479(2) to fix licence fees with sanction of the Corporation. Petitioners challenged Circular No. 999 dated 11th December 2009 revising upwards the licence fees, contending it violated the Act. The Court was to consider whether the fee revision circular fell within the Corporation’s statutory powers. (Paras 5-6)

B) Civil Procedure - Infructuous Petitions - Earlier writ petitions (WP 735/1997 and WP 1407/1997) challenging a 1996 fee resolution became infructuous when that resolution was superseded by the 2009 circular. The Court held that the challenge would be confined to the extant 2009 resolution, and the earlier petitions had become infructuous over time. (Para 3)

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Issue of Consideration

Whether Circular No. 999 dated 11th December 2009 increasing licence fees for advertising hoardings is valid under the Mumbai Municipal Corporation Act, 1888.

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Law Points

  • Mumbai Municipal Corporation Act
  • 1888
  • Section 328A
  • Section 479
  • regulation of advertisements
  • licence fees for hoardings
  • superseding resolutions
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Case Details

2016 LawText (BOM) (01) 21

Writ Petition No. 1968 of 2013 along with Writ Petition No. 1068 of 2010, Writ Petition No. 735 of 1997, Writ Petition No. 1407 of 1997

2016-01-27

A.S. Oka, G.S. Patel

Mr. Anil Anturkar, Mr. Yahya Ghogri, Mr. Yatin Sheth, Mr. P.K. Dhakephalkar, Ms. Smruti Kanadi, Ms. Rujuta Patil, Mr. Yahya Ghogari, Ms. Hetal Patel, Ms. Shakti Parwaney, Mr. Navin Parekh, Mr. Shailesh Mandon, Mr. A.Y. Sakhare, Mr. Joel John Carloes, Mr. Vinod Mahadik, Mrs. Shobha Ajitkumar

Yog Advertising & Marketing Services, M/S. Anurag Sites, Indian Outdoor Advertising Association, Mr. Amlan Basu

Municipal Corporation of Greater Mumbai, The Municipal Commissioner of Greater Mumbai

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Nature of Litigation

Challenge to circular increasing licence fees for advertising hoardings.

Remedy Sought

Petitioners sought quashing of Circular No. 999 dated 11th December 2009 and direction to accept licence fees at previous rates.

Filing Reason

The Municipal Corporation increased the licence fees via the circular, which the petitioners claimed was unlawful.

Previous Decisions

Earlier writ petitions (WP 735/1997 and WP 1407/1997) challenging 1996 resolution were dismissed for default and later restored, but became infructuous as the 1996 resolution was superseded by the 2009 circular.

Issues

Whether Circular No. 999 dated 11th December 2009 is valid under the Mumbai Municipal Corporation Act, 1888.

Submissions/Arguments

Petitioners argued that the licence fee revision was contrary to the provisions of the Mumbai Municipal Corporation Act, 1888.

Judgment Excerpts

Writ Petition No. 1968 of 2013 (“Yog Advertising”) and Writ Petition No. 1068 of 2010 (“Indian Outdoor”) challenge Circular No. 999 dated 11th December 2009 issued by the 1st Respondent relating to an increase or revision in the license fees charged to owners of advertising hoardings. (Para 1) It is necessary to note that the earlier two writ petitions, viz., Sheen Ads and Atul Ashar, have become infructuous with time. The resolution of 12th December 1996 impugned in these two writ petitions has since been superseded by the resolution dated 11th December 2009 challenged in Yog Advertising and Indian Outdoor. (Para 3) Under the Mumbai Municipal Corporation Act (“the MMC Act”), the 1st Respondent Corporation is empowered to regulate and control inter alia advertisements and sky-signs. Section 328A of the MMC Act requires prior written permission of the 2nd Respondent Municipal Commissioner before any advertisement is erected, exhibited, fixed or retained upon any land, building, hoarding or structure. (Para 5)

Procedural History

WP 735/1997 dismissed for default on 17-10-2011, restored on 31-03-2012. All four writ petitions heard together. Rule granted in Yog Advertising and Indian Outdoor, matters placed for final disposal. Judgment reserved on 26-11-2015, pronounced on 27-01-2016.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: 328A, 479
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High Court Bombay High Court Hears Challenge to Municipal Circular Revising Hoarding Advertising Licence Fees. Petition Questions Validity of 2009 Circular Under Mumbai Municipal Corporation Act Sections 328A and 479.