Bombay High Court Dismisses Bank's Challenge to Municipal Notices Requiring Permission and Fees for Displaying Illuminated Signboards, ATMs, and Extension Counters. Display of illuminated signboards and ATM boards constitutes 'advertisement' under Section 328-A of the Mumbai Municipal Corporation Act, 1888, and is subject to regulation by the municipal corporation.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioners, ICICI Bank Limited and another, filed a writ petition challenging notices issued by the Municipal Corporation of Greater Mumbai (MCGM) requiring them to obtain permission and pay fees for displaying illuminated signboards, ATM boards, and extension counter boards on their bank premises. The petitioners contended that such displays did not constitute 'advertisement' under Section 328-A of the Mumbai Municipal Corporation Act, 1888, and that the municipal corporation had no power to regulate them. The dispute had a prior history: the petitioners had earlier filed Writ Petition No. 2377 of 2002, which was dismissed by the High Court relying on Municipal Corporation of Greater Mumbai vs. Bharat Petroleum Corporation Ltd. The petitioners then appealed to the Supreme Court in Civil Appeal No. 4678 of 2005. The Supreme Court, in ICICI Bank & Anr. vs. Municipal Corporation of Greater Bombay & Ors., held that the notices could not be said to have been issued under Section 328 of the Act and directed the respondents to re-examine the issue under Section 328-A. Pursuant to this, the MCGM issued a fresh order dated 24 October 2007, which the petitioners again challenged. The High Court analyzed the definition of 'advertisement' under Section 328-A, which includes any word, letter, model, sign, or other device intended to advertise or bring to notice any person or thing. The court held that the illuminated signboards and ATM boards displayed by the bank were clearly intended to attract customers and promote business, thus falling within the definition. The court rejected the petitioners' argument that the doctrine of ejusdem generis should limit the definition to traditional advertisements, noting that the statutory definition is broad and inclusive. The court also held that the Supreme Court's earlier directions were binding and that the MCGM's order was in compliance. Consequently, the writ petition was dismissed, and the notice of motion was disposed of.

Headnote

A) Municipal Law - Advertisement - Definition - Section 328-A of the Mumbai Municipal Corporation Act, 1888 - Display of illuminated signboards and ATM boards by a bank on its premises - The court held that such displays are 'advertisements' under Section 328-A, as they are intended to attract customers and promote business. The doctrine of ejusdem generis does not apply to exclude them. The municipal corporation has the power to regulate and levy fees for such advertisements. (Paras 1-10)

B) Municipal Law - Ultra Vires - Challenge to Notices - Section 328-A of the Mumbai Municipal Corporation Act, 1888 - The petitioners challenged the notices requiring permission and fees for displaying signboards as ultra vires. The court held that the notices were validly issued under Section 328-A, and the municipal corporation's action was within its statutory powers. (Paras 1-10)

C) Precedent - Binding Effect - Supreme Court Directions - ICICI Bank vs. Municipal Corporation of Greater Bombay - The Supreme Court had earlier directed the municipal corporation to re-examine the issue under Section 328-A. The High Court held that the Supreme Court's observations were binding and the municipal corporation's subsequent order was in compliance. (Paras 2-5)

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Issue of Consideration

Whether the display of illuminated signboards, ATM boards, and extension counter boards by a bank on its premises constitutes 'advertisement' within the meaning of Section 328-A of the Mumbai Municipal Corporation Act, 1888, and whether the municipal corporation can require permission and levy fees for such display.

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Final Decision

The writ petition is dismissed. The notice of motion is disposed of accordingly. No order as to costs.

Law Points

  • Interpretation of 'advertisement' under Section 328-A of the Mumbai Municipal Corporation Act
  • 1888
  • includes illuminated signboards and ATM boards displayed by banks
  • Regulation of advertisements by municipal corporation is intra vires
  • Doctrine of ejusdem generis not applicable to exclude such displays
  • Supreme Court's earlier directions in ICICI Bank vs. MCGM binding on parties
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Case Details

2016 LawText (BOM) (03) 34

Writ Petition No. 2448 of 2007 with Notice of Motion (L) No. 775 of 2015

2016-03-22

M. S. Sonak, J.

Mr. Sachin Chandarana with Mr. Vijayendra Purohit i/b. M/s. Manilal Kher & Ambalal & Co. for Petitioners. Mr. R. S. Apte – Senior Advocate with Ms K. H. Mastakar for Respondents – MCGM.

ICICI Bank Limited & Anr.

The Municipal Corporation of Greater Mumbai & Ors.

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Nature of Litigation

Writ petition challenging notices and order requiring bank to obtain permission and pay fees for displaying illuminated signboards, ATM boards, and extension counter boards.

Remedy Sought

Petitioners sought quashing of notices and order, and declaration that such display does not constitute 'advertisement' under Section 328-A of the Mumbai Municipal Corporation Act, 1888.

Filing Reason

Petitioners were issued notices by MCGM requiring them to obtain permission and pay fees for displaying illuminated signboards, ATM boards, and extension counter boards on their bank premises.

Previous Decisions

Earlier Writ Petition No. 2377 of 2002 was dismissed by High Court; Civil Appeal No. 4678 of 2005 was disposed of by Supreme Court directing re-examination under Section 328-A.

Issues

Whether the display of illuminated signboards, ATM boards, and extension counter boards by a bank constitutes 'advertisement' under Section 328-A of the Mumbai Municipal Corporation Act, 1888. Whether the municipal corporation has the power to require permission and levy fees for such displays under Section 328-A.

Submissions/Arguments

Petitioners argued that the displays are not 'advertisements' but merely name boards or identification signs, and thus not subject to regulation under Section 328-A. Respondents argued that the displays are intended to attract customers and promote business, falling within the definition of 'advertisement' under Section 328-A.

Ratio Decidendi

The display of illuminated signboards, ATM boards, and extension counter boards by a bank on its premises constitutes 'advertisement' within the meaning of Section 328-A of the Mumbai Municipal Corporation Act, 1888, as they are intended to attract customers and promote business. The municipal corporation has the power to regulate such advertisements and levy fees. The doctrine of ejusdem generis does not apply to restrict the definition.

Judgment Excerpts

The challenge in this petition is to the notices (Exhibits A-1 to A-7) and the order dated 24 October 2007 (Exhibit I) requiring the petitioners to obtain permission and pay fees for the purposes of displaying illuminated signboards upon the petitioners bank premises, ATM centres, extension counters. The petitioners basically contend that such display does not constitute 'advertisement' for the purposes of section 328-A of the Mumbai Municipal Corporation Act, 1888 (said Act) and therefore, the insistence on the part of the municipal authorities (respondents) to even regulate the same, is ultra vires.

Procedural History

The petitioners initially filed Writ Petition No. 2377 of 2002, which was dismissed by the High Court on 8 October 2002. The petitioners appealed to the Supreme Court in Civil Appeal No. 4678 of 2005, which was disposed of on 4 August 2005, directing the respondents to re-examine the issue under Section 328-A. Pursuant to this, the MCGM issued a fresh order on 24 October 2007, which the petitioners challenged in the present Writ Petition No. 2448 of 2007.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: 328, 328-A
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