Sky-sign and advertisement distinctions under municipal law determine how ATM signboards are regulated and assessed on facts.

Illuminated signboards fixed above ATM centres were analysed under the Bombay Municipal Corporation Act, 1888 by distinguishing a "sky-sign" under Section 328 from an "advertisement" under Section 328A. A sky-sign must be a word, sign, device or representation in the nature of an advertisement, announcement or direction, supported on or attached to a structure and visible against the sky; on the stated facts, the ATM signboards were not treated as sky-signs. Section 328A was construed contextually to cover communications with a commercial or promotional purpose, so whether an ATM signboard is an advertisement depends on the factual extent to which it serves the bank's business interests. The notices were therefore required to be reconsidered under Section 328A after a fresh hearing.

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Issues: (i) Whether illuminated signboards fixed above ATM centres constituted a sky-sign within the meaning of Section 328 of the Bombay Municipal Corporation Act, 1888. (ii) Whether such signboards amounted to an advertisement under Section 328A of the Bombay Municipal Corporation Act, 1888 and whether the notices issued by the municipal authority were sustainable.

Issue (i): Whether illuminated signboards fixed above ATM centres constituted a sky-sign within the meaning of Section 328 of the Bombay Municipal Corporation Act, 1888.

Analysis: The expression sky-sign covers a word, sign, device or representation in the nature of an advertisement, announcement or direction, supported on or attached to a structure and visible against the sky. The provision is concerned not merely with advertising matter but with matter of the specified nature visible in the prescribed manner. On the facts, the signboards at the ATM centres were not treated as falling within that definition.

Conclusion: The signboards were held not to be sky-signs under Section 328.

Issue (ii): Whether such signboards amounted to an advertisement under Section 328A of the Bombay Municipal Corporation Act, 1888 and whether the notices issued by the municipal authority were sustainable.

Analysis: Section 328A deals with advertisements and operates in a field distinct from Section 328. The word advertisement was construed in its ordinary and contextual sense, with emphasis on commercial purpose and on whether the communication directly or indirectly promotes business, goods or services. A signboard merely indicating location may not always be an advertisement, but in the context of ATM boards the Court held that the question depends on the facts, including the extent to which the display serves the commercial interests of the bank. The municipal authorities and the High Court had not undertaken that factual inquiry, and the notices also proceeded under both provisions without clarity as to the basis of action.

Conclusion: The matter was required to be examined afresh under Section 328A, and the impugned notices could not be sustained as they stood.

Final Conclusion: The appeal succeeded to the extent that the High Court's judgment was set aside, the notices were not upheld under Section 328, and the municipal authority was directed to reconsider the matter under Section 328A after giving the bank a fresh hearing.

Ratio Decidendi: For the purpose of Section 328A, advertisement must be construed contextually as a communication having a commercial or promotional purpose, and a signboard must be examined on its facts to determine whether it directly or indirectly serves that purpose.

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