2005 (8) TMI 666 - SC - Indian Laws

Supreme Court sets aside High Court judgment, directs re-evaluation under Section 328A. Emphasizes clear notices.

ICICI BANK & ANR, Versus MUNICIPAL CORPORATION OF GREATER BOMBAY & ORS.

The Supreme Court allowed the appeal by ICICI Bank, setting aside the High Court's judgment. The Court directed the Municipal Corporation to re-evaluate ... Whether the sign boards fixed above the ATM Centers of the ICICI Bank do amount to an advertisement and therefore the action taken by the Municipal Corporation of Greater Bombay by issuance of notice is in accordance with the law? Issues Involved:1. Whether the signboards fixed above the ATM Centers by ICICI Bank amount to advertisements under Section 328 and 328A of the Bombay Municipal Corporation Act, 1888.2. Whether the notices issued by the Municipal Corporation of Greater Bombay to ICICI Bank under Sections 328 and 328A are valid and lawful.3. The interpretation and applicability of the judgments in the case of Municipal Corporation of Greater Bombay Vs. Bharat Petroleum Corporation Ltd. with respect to the current case.4. The definition and scope of 'advertisement' and 'sky-sign' under Sections 328 and 328A of the Act.Detailed Analysis:1. Signboards as Advertisements under Section 328 and 328A:The appellant, ICICI Bank, argued that the illuminated signboards above their ATM Centers and Extension counters do not constitute advertisements as defined under Section 328A of the Act. They contended that these signboards merely indicate the location of the ATM booths for the convenience of existing account holders and do not promote the bank's services or attract new customers.The Court examined the definitions of 'sky-sign' and 'advertisement' under Sections 328 and 328A respectively. Section 328 defines 'sky-sign' as any word, letter, model, sign, device, or representation in the nature of an advertisement, announcement, or direction that is visible against the sky from any street. Section 328A prohibits the erection, exhibition, or retention of any advertisement without the Commissioner's written permission.The Court concluded that the signboards indicating the ATM Centers could be construed as having a commercial purpose, as they provide information about the bank's services and could influence prospective customers. Hence, these signboards could fall under the definition of advertisements as per Section 328A.2. Validity of Notices Issued by Municipal Corporation:The Municipal Corporation issued notices to ICICI Bank under Sections 328 and 328A, claiming that the bank had displayed illuminated signboards without the required permission. The appellant argued that these notices were illegal and without jurisdiction.The Court observed that the notices issued by the Corporation were ambiguous, as they did not clearly specify whether the action was being taken under Section 328 or 328A. The Court emphasized that the scope and reach of these sections are different, and the Corporation should have issued notices under the appropriate section.The Court directed that the notices should be deemed to have been issued under Section 328A, and the Corporation should decide the matter afresh, providing the bank with a new date of hearing.3. Interpretation of Previous Judgments:The High Court had dismissed the writ petition filed by ICICI Bank, relying on the Supreme Court's judgment in Municipal Corporation of Greater Bombay Vs. Bharat Petroleum Corporation Ltd. The appellant argued that this judgment was not applicable to their case, as it primarily dealt with the interpretation of 'sky-sign' under Section 328 and not 'advertisement' under Section 328A.The Supreme Court agreed with the appellant, noting that the previous judgment focused on the definition of 'sky-sign' and emphasized the phrase 'in the nature of an advertisement,' which is not present in Section 328A. Therefore, the Court held that the High Court had erred in applying the ratio of the previous judgment to the present case.4. Definition and Scope of 'Advertisement' and 'Sky-Sign':The Court analyzed various dictionary definitions of 'advertisement' and concluded that an advertisement is intended to draw public attention to a product or service, often for commercial purposes. The Court emphasized that for something to be considered an advertisement under Section 328A, it must have a direct or indirect connection with the business or commercial activities of the advertiser.The Court held that the illuminated signboards of the ATM Centers could be seen as promoting the bank's services and attracting new customers, thus falling under the definition of advertisements. The Court also clarified that the signboards were not 'sky-signs' as defined under Section 328, as they were not visible against the sky from any street.Conclusion:The Supreme Court allowed the appeal, setting aside the High Court's judgment. It directed the Municipal Corporation to re-evaluate the matter under Section 328A, providing ICICI Bank with a new hearing date. The Court emphasized the need for clear and specific notices under the appropriate sections of the Act and highlighted the distinct scopes of Sections 328 and 328A. The parties were directed to bear their own costs.