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Icici Bank Ltd. And Anr vs The Municipal Corporation Of ...
2016 Latest Caselaw 815 Bom

Citation : 2016 Latest Caselaw 815 Bom
Judgement Date : 22 March, 2016

Bombay High Court
Icici Bank Ltd. And Anr vs The Municipal Corporation Of ... on 22 March, 2016
Bench: M.S. Sonak
    skc                                                                      JUDGMENT- WP 2448-2007



                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                    ORDINARY ORIGINAL CIVIL JURISDICTION




                                                                                       
                         WRIT PETITION NO. 2448 OF 2007
                                      WITH




                                                             
                        NOTICE OF MOTION (L) NO. 775 OF 2015

            ICICI Bank Limited & Anr.                            ..      Petitioners
                  vs.




                                                            
            The Municipal Corporation of
            Greater Mumbai & Ors.                                ..      Respondents

            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.    
                                    CORAM : M. S. SONAK, J.

Date of Reserving the Judgment : 27 January 2016

Date of Pronouncing the Judgment : 22 March 2016

JUDGMENT :-

1] 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.

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            2]      The petitioners had initially instituted writ petition no. 2377 of

            2002 when            when confronted with the notices issued by the




                                                                                    

respondents in the purported exercise of powers conferred by

sections 328 and 328-A of the said Act. This court, by judgment and

order dated 8 October 2002, mainly relying upon the decision of the

Hon'ble Supreme Court of India in the case of Municipal

Corporation of Greater Mumbai vs. Bharat Petroleum

Corporation Ltd.1, had dismissed the said petition. The petitioners,

thereupon instituted civil appeal no. 4678 of 2005, which was since

disposed of by the judgment and order dated 4 August 2005. This

judgment and order is reported as ICICI Bank & Anr. vs. Municipal

Corporation of Greater Bombay & Ors.2.

3] In the aforesaid civil appeal, the Hon'ble Supreme Court upon

concluding that the notices / notices of demand cannot be said to

have been issued under section 328 of the said Act, directed the

respondents to reexamine the issue on the basis that the notices be

deemed to have been issued under section 328-A of the said Act. In

paragraphs 20 and 21 the Hon'ble Supreme Court has observed

thus:

"20. From the aforesaid analysis, in all fact situation and circumstances, at the outset it cannot be said that the sign boards indicating ATM centers cannot have commercial

1 2002 (4) SCC 219 2 (2005) 6 SCC 404

skc JUDGMENT- WP 2448-2007

interest but would only tell about the location of the ATM centers to the existing account holders only. Whether

signboard of an ATM Centre tantamounts to be an advertisement or not would depend upon the facts of each

case, depending on the number of ATM centers established by a particular bank in a particular locality or place or even

city, to have the flavour of commercial or business interest of the service provider. In the present case no exercise was undertaken by the municipal authorities or the Bombay High

Court before the High Court had reached to the conclusion that the sign boards of the ATM center put up by the ICICI

bank at different locations would be an advertisement within the meaning of Section 328A of the Corporation Act. In fact

the notices issued by the corporation to the appellant are under Sections 328, 328-A of the Corporation Act. The reach, ambit and scope of these sections are quite different and they

operate in different fields. They do not completely overlap. In

the circumstances, it was appropriate for the Corporation to issue notices to the appellant either under Section 328 or under Section 328-A of the Corporation Act and notice should

not have been issued under both Sections for the same sign board. The Bombay Municipal Corporation Authorities seem to be in a state of doubt and hence the notices clearly do not specify under which section they propose to take action. As

we have made it clear that in the present case the sign boards of ATM centers, which are not sky signs, are not covered under the provisions of Section 328 of the Corporation Act, the notices issued shall be deemed to have been issued under Section 328-A of the Corporation Act and the Corporation shall decide the question of advertisement under Section 328-A of the Act after indicating the bank a fresh date of

skc JUDGMENT- WP 2448-2007

hearing.

21. For the reasons stated above the appeal is allowed and

judgment and order of the High Court is set aside. Fresh steps can be taken in the light of the observations in this judgment.

In the circumstances of the case we do not impose any cost and the parties shall bear their own costs."

4] In pursuance of the aforesaid, and upon afford of opportunity

to the petitioners to submit their say, the respondents, by their

impugned order dated 24 October 2007 (Exhibit I) have concluded

that the illuminated signboards put up by the petitioners upon their

bank premises, ATM centres and extension counters amount to

'advertisement' for the purposes of section 328-A of the said Act.

Aggrieved by such determination, the petitioners have instituted the

present petition.

5] Mr. Sachin Chandarana, the learned counsel for the

petitioners has submitted that the impugned order is in breach of

the specific directions issued by the Hon'ble Supreme Court in the

civil appeal instituted by the petitioners, in as much as the

respondents have neither undertaken the exercise as directed nor

have they examined the factual aspects in the proper perspective.

Mr. Chandarana submitted that mere display of name upon the

signboard is never regarded as advertisement as per the provisions

contained under the said Act. However, if such signboard is

illuminated, the respondents treat the same as an 'advertisement'.

     skc                                                              JUDGMENT- WP 2448-2007



            This according to Mr. Chandarana, is clearly             an absurd and

            illogical.




                                                                                
                                                        
            6]      Mr. Chandarana further submitted that the sole purpose for

display of illuminated signboard or name boards is to assist the

customers in determining the location of the bank premises, ATM

centres or extension counters, even after day light hours. He

submitted that such illuminated display, particularly upon ATM

centres, assists, not merely the customers of the petitioners bank

but also ATM card holders of other banks. For this purpose, he

relied the RBI guidelines which expressly permit use of ATM centres

of banks inter se between their respective customers. Mr.

Chandarana submitted that these aspects have been ignored by the

respondents in making the impugned order.

7] Mr. Chandarana finally submitted that the operative portion of

the impugned order which purports to bring within the regulatory

net of the respondents even illuminated signboards or name

boards upon bank premises, ATM centres and extension counters,

which were not specifically referred to or included in the impugned

notices / notices of demand is clearly ultra vires and violates the

principles of natural justice and fair play. Mr. Chandarana submitted

that since the Hon'ble Supreme Court had directed that each case

should be considered upon its own facts, the petitioners were

skc JUDGMENT- WP 2448-2007

entitled to specific notice, so that the petitioners could place

appropriate material to satisfy the respondents that such illuminated

display does not constitute 'advertisement' for the purposes of

section 328-A of the said Act.

8] Mr. R. S. Apte, the learned Senior Advocate for the

respondents has relied upon a dictionary meanings of the term

'advertisement' as also certain observations made by the Hon'ble

Supreme Court whilst disposing of the civil appeal instituted by the

petitioners. Mr. Apte has submitted that the respondents have

undertaken the exercise as directed by the Hon'ble Supreme Court

and on the basis of the material so collected, have made the

impugned order. Prior thereto, full opportunity of hearing/

submission of say was afforded to the petitioners and the

petitioners, have availed of the same in ample measure. Mr. Apte

submitted that the respondents have applied the correct tests,

adverted to the correct parameters and the decision made, was

after due compliance with the principles of natural justice and fair

play. For all these reasons, Mr. Apte submitted that there is no case

made out by the petitioners warranting judicial review.

9] Finally, Mr. Apte submitted that since the material collected

pertains to display of illuminated signboard / name boards by the

petitioners throughout the jurisdiction of the MCGM, directions have

skc JUDGMENT- WP 2448-2007

been issued with regard to such illuminated signboards / name

boards, even though the same may not have been specifically

referred to in the impugned notices. The petitioners have submitted

their say in the context of such material as well, without any demur.

Mr. Apte submitted that in fact, there is not even a ground raised in

the petition, in the context of such inclusion in the impugned order.

In the absence of demonstration of any prejudice whatsoever, the

petitioners cannot be permitted to raise hyper technical pleas, in the

matter of this nature.

10] Rival contentions now fall for determination.

11] There is no merit in the petitioners challenge to the

classification of signboard or name boards on the basis whether

they are illuminated or not, particularly since the provisions

contained in section 328-A of the said Act, which clearly bring about

this distinction, have not been challenged. Besides, in the case of

ICICI Bank (supra) the Hon'ble Apex Court has held that section

328-A of the said Act prohibits without prior permission of the

Commissioner, erection, exhibition of advertisement. The advertiser

need not ask for permission if the advertisement is not illuminated

or is not a sky sign, provided it is exhibited in the window of any

building, or relates to trade or business carried on within that land or

building or when it relates to sale or letting of that property or in

skc JUDGMENT- WP 2448-2007

reference to any sale, entertainment or meeting organised therein,

or it relates to business of a railway company. The exceptions

referred to in the provision clearly have a nexus and relevance to

the business or trade or commercial activities.

12] In this view of the matter, the distinction between illuminated

and non illuminated advertisements, in the context of the provisions

contained in section 328-A of the said Act, will have to be respected.

The moot question in this petition however, is whether the display of

illuminated signboards or name boards upon the bank premises,

ATM centres and extension counters indeed, amounts to

'advertisement' for the purposes of section 328-A of the said Act.

13] There is no statutory definition of the term 'advertisement'

contained in the said Act and therefore, the term will have to be

understood in its natural, ordinary and popular sense. In fact, in

the case of ICICI Bank (supra), the Hon'ble Supreme Court has

specifically approved the application of such principle of

interpretation, by reference to Principles of Statutory Interpretation

(9th Edition, 2004) by Justice G. P. Singh, Chapter 2, p. 86, which

reads :

"When it is said that words are to be understood first in their natural, ordinary or popular sense, what is meant is that the words must be ascribed that natural, ordinary or popular meaning which they have in relation to the subject-matter

skc JUDGMENT- WP 2448-2007

with reference to which and the context in which they have bee used in the statute. BRETT, M.R. called it a 'cardinal

rule' that "Whenever you have to construe a statute or document you do not construe it according to the mere

ordinary general meaning of the words, but according to the ordinary meaning of the words as applied to the subject-

matter with regard to which they are used". "No word", says PROFESSOR H.A. SMITH "has an absolute meaning, for no words can be defined in vacuo , or without reference to

some context". According to SUTHERLAND there is a "basic fallacy" in saying "that words have meaning in and of

themselves", and "reference to the abstract meaning of words", states CRAIES, "if there be any such thing, is of little

value in interpreting statutes". In the words of JUSTICE HOLMES : "A word is not a crystal transparent and unchanged; it is the skin of a living thought and may vary

greatly in colour and content according to the circumstances

and the time in which it is used." Shorn of the context, the words by themselves are "slippery customers". Therefore, in determining the meaning of any word or phrase in a statute

the first question to be asked is "What is the natural or ordinary meaning of that word or phrase in its context in the statute? It is only when that meaning leads to some result which cannot reasonably be supposed to have been the

intention of the Legislature, that it is proper to look for some other possible meaning of the word or phrase".

14] The Hon'ble Supreme Court, in the case of ICICI Bank

(supra) has also made reference to the dictionary meanings of the

term 'advertisement', which are incidentally, the very same

skc JUDGMENT- WP 2448-2007

meanings upon which the respondents have placed reliance in their

affidavit in reply. In paragraph 14, the Hon'ble Supreme Court has

observed thus:

"14. The next question that arises for consideration is whether notices issued by the Corporation to the appellant-

ICICI Bank are per se illegal or without authority of law as putting up the sign boards of ATM centers at different places by the bank could out-rightly be said not to be an

advertisement and thus does not attract the provision of Section 328A of the Corporation Act. To consider this aspect

we have to see what shall be an advertisement for the purposes of Section 328A of the Act. The dictionary definitions

of the word 'advertisement' are as under :-

BLACK'S LAW DICTIONARY,8TH EDITION

Advertising : 1..The action of drawing the public's attention to something to promote its sale. 2. The business of

producing and circulating advertisements.

LAW AND COMMERCIAL DICTIONARY

Advertisement : Notice given in a manner designed to attract public attention. Edwards v. Lubbock Country, Tex Civ. App., 33, S.W.2d 482. Information communicated to the public, or to an individual concerned, as by handbills,

newspaper, television, bill-boards, radio. First Nat. Corporation v. Perrine, 99 Mont 454, 43 P.2d 1073, 1077.

New Encyclopaedia Brittanica Vol. I

Advertising.- the techniques used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way toward

skc JUDGMENT- WP 2448-2007

what is advertised. Most advertising involves promoting a good that is for sale, but similar methods are used to

encourage people to drive safely, to support various charities, or to vote for political candidates, among many other

examples.

Collins' Dictionary of the English Language

Advertisement.- any public notice, as a printed display in a newspaper, short film on television, announcement on radio, etc., designed to sell goods, publicize an event, etc.

Advertising 1) the action or practice of drawing public

attention to goods, services, events etc., as by the distribution of printed notices, broadcasting, etc. 2) the business that

specializes in creating such publicity, 3) advertisements collectively; publicity.

Chambers Dictionary

Advertisement - the act of advertising; a public notice,

usu with the purpose of informing and / or changing public attitudes and behaviour; a short performance recorded for radio, T.V. etc. to advertise goods or services; news.

15] Finally, in the case of ICICI Bank (supra), the Hon'ble

Supreme Court has held that an advertisement is a matter that

draws attention of the public or segment of public to a product,

service, person, organisation or line of conduct in a manner

calculated to promote or oppose directly or indirectly that product,

service, person, organisation or line of conduct intended to

promote sale or use of product or range of products. An

skc JUDGMENT- WP 2448-2007

advertisement is an information that the producer provides about its

products or services. An advertisement tries to get consumers to

buy a product or a service. An advertisement is generally of goods

and services and is an information intended for the potential

customers and not a mere display of the name of the company

unless the same happens to be a trade mark or trade name. The

context in which the term 'advertisement' has been used in section

328-A of the said Act and in the commercial and ordinary parlance,

it must have direct or indirect connection with the business, trade or

commerce carried out by the advertiser. It must have some

commercial exposition. The advertisement would be for the purpose

of directing or soliciting customers to the product or service

prominently shown in the advertisement. If such ordinary parlance

meaning is not given to the word 'advertisement', in section 328-A,

it will lead to anomalous position in as much as a simple name

board put on a house to indicate who is residing in the premises,

would also be an advertisement. A name board or signboard of a

trader visible to the public or identifying the place of business

would also be an advertisement. Therefore, 'advertisement' within

meaning of section 328-A of the said Act must primarily have a

commercial purpose and should be indicative of the business

activity of the displayer with a view to attract attention of people to

its business. Therefore, in order to determine whether a signboard

skc JUDGMENT- WP 2448-2007

or name board tantamounts to be an advertisement or not would

depend upon the facts of each case, depending upon the number

of ATM centres deployed by a particular bank in a particular locality

or place or even in a city, to have flavour of commercial or business

interest of the service provider. Obviously, the parameters

suggested are illustrative and not exhaustive.

16] The respondents, in pursuance of a remand by the Hon'ble

Supreme Court have now undertaken the exercise as directed. The

respondents have offered reasonable opportunity to the petitioners

to make their submissions in the context of the exercise undertaken

and the material collected. Thereafter, the respondents have

determined that the name boards or signboard displayed by the

petitioners over their premises, ATM centres and extension counters

tantamount to 'advertisement' for the purposes of section 398-A of

the said Act. Since, such advertisements are illuminated, necessary

directions have been issued to the petitioners to comply with the

regulatory provisions contained in section 328-A of the said Act.

17] Amongst other matters, the respondents in the impugned

order, have made reference to information displayed by the

petitioners themselves at their website ICICI Bank.com. The

respondents have adverted to the circumstance that the petitioners

have, within the jurisdiction of the Municipal Corporation of Greater

skc JUDGMENT- WP 2448-2007

Mumbai (MCGM) not less than 69 branches, 143 ATM centres, 2

extension counters and 28 drop boxes, upon which, the petitioners

have displayed such illuminated signboard or name board. The

respondents, have taken into consideration the number and density

of branches, ATM centres etc. in the context of jurisdictional limits

of the MCGM. The respondents have taken into consideration the

manner of display, the size of display as well as the impact of such

display. The respondents have also made reference to the

emphasis upon the name ICICI, particularly in the context of

several signboards or name boards displayed by the various

businesses undertaken under the name and style of ICICI Lombard,

ICICI Prudential and ICICI Mutual Funds and so on, which also

have distinct commercial exposition. The respondents have also

taken into consideration the size of the signboard or name boards

and the frequent circumstance that the word ICICI is displayed in

larger letters, as compared to information with regard to the

services provided like e.g. '24 Hour ATM'. Thus upon cumulative

consideration of all facts and circumstances as well as parameters,

the respondents, have concluded that signboards and the name

boards displayed by the petitioners over their bank premises, ATM

centres, extension counters constitute 'advertisement' for the

purposes of section 328-A of the said Act.

     skc                                                              JUDGMENT- WP 2448-2007



            18]     This is not a case where any irrelevancies can be said to

have crept into the decision making process nor is this a case

where relevancies can be said to have been ignored. The

parameters to which the respondents have addressed, can

themselves, not to be said to be irrelevant or extraneous. In fact, the

reference to the number of ATM centres established by a particular

bank in a particular locality or place or even the city, was one of the

parameters suggested by the Hon'ble Supreme Court in the case of

ICICI Bank (supra). The respondents in making their decision, have

offered more than ample opportunity to the petitioners and there is

really no scope to interfere with the decision making process on the

grounds of lack of procedural fairness or other such reason.

19] The respondents, on the basis of the exercise undertaken by

them and the material collected thereby, have rightly held that the

purpose of the name board or the signboard in the context of the

facts and circumstances is presented was not to merely identify the

place or location of the business or to merely indicate the nature of

the activity undertaken within but the purpose was clearly

commercial exposition of the products and services offered by the

petitioners. The purpose was clearly impart information not just to

existing customers but also, to potential customers, with a view to

increase in business.

     skc                                                            JUDGMENT- WP 2448-2007




            20]     Considering, the number and density of such signboard and




                                                                              

name boards, the manner and size of display, the illumination, the

illumination, there is no reason to fault the decision of the

respondents that the signboard and name boards displayed by the

petitioners are also for the purposes of influencing the prospective

customers to make decision about which service provider they may

choose. In fact, as observed by the Hon'ble Supreme Court itself in

the case of ICICI Bank (supra) such signboard or name boards

may also be construed to commercial exploitation indirectly, as they

may not aim at the existing customers only but also may affect the

decision of the prospective customers. They tell the prospective

customers that the service of the ATM round the clock is being

made available by the bank which would influence the prospective

customers to make a decision about which service provider he or

she has to choose. The signboard also helps people to find out

which bank is offering better services as compared to other banks.

The fact that the bank has more ATM centres than other banks, in

the competitive trade and business, provides incentive to people to

choose that bank. The fact that one bank has so many ATM centres

in the given location helps them to get more account holders in that

area. This also serves the commercial interest of the bank. In this

case, the respondents have taken into consideration all these

aspects and accordingly, there is no reason to interfere with the

skc JUDGMENT- WP 2448-2007

impugned order.

21] In the context of the manner and size of name boards or

signboard, this court, in the case of Municipal Corporation of

Greater Mumbai & Ors. vs. Ratiloku Shetty (Smt.) 3 has

regarded this aspect as relevant and upheld the decision of the

MCGM in treating the illuminated neon signboard over the

restaurant 'Ashok Restaurant and Beer Bar' as advertisement within

meaning of Section 328-A of the said Act. Upon reference to various

dictionary meanings of the term 'advertisement', the Division Bench

of this Court at paragraphs 11 and 12 observed thus:

"11. It is important to consider the meaning of the term

"Advertisement". The discussion under the heading

"ADVERTISING" Encyclopaedia, to be found in Encyclopaedia Britannica, 1969 Edition Vol. I, page 179, read as under:--

"Advertising : a form of paid public announcement intended to promote the sale of a Commodity or service, to advance an idea or to bring about some other effect desired by the advertiser. It is essentially a form of

communication through such divers, media a hand bills, news papers, magazines, billboards, letters, radio and television broadcasts and motion pictures. The term is broad enough to include a wide range of types, from all small two-line entry in a newspaper or magazine to (spread of several full pages, or from a small sign in a shop

3 2002 (2) Bom.C.R. 501

skc JUDGMENT- WP 2448-2007

window to a huge bill board with changing designs in coloured lights."

Similarly in Collier's Encyclopaedia, 1957 Edition, Vol. I at page

107 the following discussion appears:--

"Advertising : That portion of published information, whether seen or heard, the cost of which is born by

business that expect to gain by the spread of the ideas expressed, usually commercial notices of goods and services for sale."

In Webster's THIRD NEW INTERNATIONAL DICTIONARY the

following meanings are to be found given to the very "Advertise" ;

la : to make known to (someone) : give notice to : INFORM, NOTIFY ... Obs : WARN, ADMONISH.

2 : to make generally known : call attention to : give notice

of: a : to give publicity to, b : to make conspicuous, c(1) : to

give public notice of: announce publicly esp. by a printed notice or through a radio or television broadcast, (2) : to call public attention to esp. by emphasizing desirable

qualities so as to arouse a desire to buy or patronize."

For the word "advertisement" the said dictionary goes on to indicate the meaning as follows :--

"1 : the action of advertising : a calling attention to or making known : as a obs : WARNING, ADMONITION, b obs : an informing or notifying : NOTIFICATION c : a calling to public attention : PUBLICITY.

2a : archaic : a statement calling attention to something :

NOTICE, b : a public notice : esp : a paid notice or announcement published in some public print (as a newspaper,

skc JUDGMENT- WP 2448-2007

periodical, poster, or handbill) or broadcast over radio or television."

12. On a plain construction of Section 328 reproduced (supra)

we find that in term permission of the Municipal Commissioner is not required in respect of any advertisement which is not an illuminated advertisement nor a sky-sign and which relates to

the trade or business carried on within the land or building upon which such advertisement is exhibited : vide proviso to Section 328-A."

22]

The circumstance that the ATM centres of the petitioner bank

can be used or are being used by ATM card holders of other banks

or the circumstance that the RBI has permitted such inter se user, is

really not very relevant for determining the issue as to whether the

signboards and name boards displayed by the petitioner bank

tantamount to 'advertisement' for the purposes of section 328-A of

the said Act. Even though, inter se user of ATM centers may be

permissible, the circumstance that the petitioner bank has so many

ATM centres within the jurisdiction of the MCGM, is undoubtedly a

circumstance which provides a competitive edge to the petitioners.

As noted earlier, the Hon'ble Supreme Court, in the case of ICICI

Bank (supra) has observed that the fact that the bank has more

ATM centres than the other banks, in the competitive trade and

business, provides an incentive to the people to choose than bank.

Accordingly, there is no reason to interfere with the impugned order

skc JUDGMENT- WP 2448-2007

on the basis of the contention that the circumstance that inter se

user of ATM centres may not have been specifically considered.

23] In the matters of this nature, the limits of judicial review also

have to be borne in mind. This Court, is certainly not called upon to

exercise any appellate jurisdiction in a matter of this nature. The

power of judicial review in such matters is neither unqualified nor

unlimited. It has its own limitations. The scope and extent of the

power that is so very often invoked has been the subject-matter of

several judicial pronouncements within and outside the country.

The Hon'ble Supreme Court, has approved the classic and oft-

quoted passage from Council of Civil Service Unions vs.

Minister for the Civil Service4, where Lord Diplock summed up the

permissible grounds of judicial review thus:

"Judicial Review has I think developed to a stage today when,

without reiterating any analysis of the steps by which the development has come about, one can conveniently classify under three heads the grounds on which administrative action is subject to control by judicial review. The first ground I would call

'illegality', the second 'irrationality' and the third 'procedural impropriety'.

By 'illegality' as a ground for judicial review I mean that the decision-maker must understand correctly the law that regulates his decision-making power and must give effect to it. Whether he has or not is par excellence a justiciable question to be decided, 4 (1984) 3 ALL ER 935 (HL)

skc JUDGMENT- WP 2448-2007

in the event of dispute, by those persons, the judges, by whom the judicial power of the State is exercisable.

By 'irrationality' I mean what can by now be succinctly referred to

as 'Wednesbury unreasonableness'. It applies to a decision which is so outrageous in its defiance of logic or of accepted moral standards that no sensible person who had applied his

mind to the question to be decided could have arrived at it. Whether a decision falls within this category is a question that judges by their training and experience should be well equipped

to answer or else there would be something badly wrong with our

judicial system... ...

I have described the third head as 'procedural impropriety' rather

than failure to observe basic rules of natural justice or failure to act with procedural fairness towards the person who will be affected by the decision. This is because susceptibility to judicial

review under this head covers also failure by an administrative

tribunal to observe procedural rules that are expressly laid down in the legislative instrument by which its jurisdiction is conferred, even where such failure does not involve any denial of natural

justice."

24] In the case of Tata Cellular v. Union of India5, the Hon'ble

Supreme Court in the context of judicial review at paragraph 77 has

observed thus:

"77. The duty of the court is to confine itself to the question of legality. Its concern should be :


    5 (1994) 6 SCC 651



     skc                                                               JUDGMENT- WP 2448-2007



1. Whether a decision-making authority exceeded its powers?

2. Committed an error of law,

3. committed a breach of the rules of natural justice,

4. reached a decision which no reasonable tribunal would have reached or,

5. abused its powers.

Therefore, it is not for the court to determine whether a particular policy or particular decision taken in the fulfilment of

that policy is fair. It is only concerned with the manner in which those decisions have been taken. The extent of the duty to act

fairly will vary from case to case. Shortly put, the grounds upon which an administrative action is subject to control by judicial review can be classified as under :

(i) Illegality : This means the decision-maker must understand

correctly the law that regulates his decision- making power and must give effect to it.

(ii) Irrationality, namely, Wednesbury unreasonableness.

(iii) Procedural impropriety."

25] In the case of Heinz India Private Limited & Anr. vs. State

of Uttar Pradesh & Ors.6 the Hon'ble Supreme has held that there

is almost complete unanimity on the principle that the judicial review

is not so much concerned with the decision itself as much with the

6 (2012) 5 SCC 443

skc JUDGMENT- WP 2448-2007

decision-making process. (See Chief Constable of the North

Wales Police vs. Evans)7. As a matter of fact, the juristic basis for

such limitation on the exercise of the power of judicial review is that

unless the restrictions on the power of the court are observed, the

courts may themselves under the guise of preventing abuse of

power, be guilty of usurping that power. That the court dealing with

the exercise of power of judicial review does not substitute its

judgment for that of the legislature or executive or their agents as

to matters within the province of either, and that the court does not

supplant "the feel of the expert" by its own review, is also fairly well

settled by the decisions of this Court. In all such cases, judicial

examination is confined to finding out whether the findings of fact

have a reasonable basis on evident and whether such findings are

consistent with the laws of the land. (See Union of India vs. S.B.

Vohra8, Shri Sitaram Sugar Co. Ltd. vs. Union of India 9 and

Thansingh Nathmal vs. Supdt. of Taxes)10.

26] Applying therefore, the aforesaid parameters of judicial

review, it can hardly be said that the impugned order made by the

respondents warrants interference in the exercise of extra ordinary

jurisdiction under Articles 226 and 227 of the Constitution of India.

In this case, as noted earlier, the respondents have undertaken the 7 (1982) 3 All ER 141 (HL) 8 (2004) 2 SCC 150 9 (1990) 3 SCC 223 10 AIR 1964 SC 1419

skc JUDGMENT- WP 2448-2007

exercise as directed by the Hon'ble Supreme Court in the case of

ICICI Bank (supra). The respondents have applied the correct tests

and parameters for the purposes of determining whether the name

boards or signboard indeed tantamount to 'advertisement' for the

purposes of section 328-A of the said Act. The respondents have

afforded an ample opportunity to the petitioners to either place their

own material on record or to contradict the material which the

respondents had collected for the purposes of determining the

issue. Relevant material has been considered by the respondents

and it is not a case where irrelevancies have crept into the decision

making process. The decision arrived at by the respondents, on the

basis of material on record, can hardly be styled as perverse,

unreasonable or illogical. For all these reasons, and also, in view of

the restrictive parameters of judicial review in the matter of this

nature, there is no case made out to interfere with the impugned

decision.

27] There is no case made out to interfere the direction in the

impugned order in the context of illuminated name boards put up at

ATM centres, extension counters, bank branches by the petitioners

within the jurisdiction of the MCGM, which may not have been

specifically mentioned in the notices issued to the petitioners. The

respondents, as noted earlier, have undertaken the exercise as

directed by the Hon'ble Supreme Court in the case of ICICI Bank

skc JUDGMENT- WP 2448-2007

(supra). In pursuance thereof, material was collected with regard to

the display of illuminated name boards or signboards by the ICICI

Bank Limited throughout the territorial limits of the MCGM. The

petitioners were offered opportunity to submit their say in the

context of such entire material, which opportunity, the petitioners

have duly availed. Possibly, this is a reason why the ground now

raised by Mr. Chandarana, the learned counsel for the petitioners,

does not even find any place in the grounds raised in the petition.

The learned counsel however submitted that such ground has been

raised in 'affidavit in rejoinder'. The affidavit in rejoinder is hardly a

place to raise substantial grounds. That apart, decisions of this

nature, need not be interfered with on the ground of some technical

or hyper technical pleas alleging formal failure of natural justice. In

this case, principles of natural justice have been complied with, in

substantial measure. The element of prejudice is required to be

specifically pleaded and made out. The petitioners have failed to do

this.

28] For all the aforesaid reasons, there is no case made out to

interfere with the impugned notices / order. This petition is therefore

dismissed. Interim order, if any, stands vacated. The amounts, if

deposited by the petitioners in this court, may be withdrawn by the

respondents unconditionally. There shall be no order as to costs.

     skc                                                                  JUDGMENT- WP 2448-2007



            29]       Rule is accordingly discharged with no order as to costs.




                                                                                    
            30]       In view of the disposal of the writ petition, the notice of motion




                                                            
            (l) no.775 of 2015 also stands disposed of.


            31]       All concerned to act on basis of authenticated copy of this




                                                           
            order.

                                                             (M. S. SONAK, J.)




                                               
            32]
                                   

At this stage, Dr. Birendra Saraf, the learned counsel for the

petitioners requests for continuation of order dated 8 November

2007 for a further period of twelve weeks. The learned counsel

appearing for the respondents objects to the continuation of the

interim relief.

33] The interim relief has been in operation since 8 November

2007 and therefore, it would be appropriate to extend the same for

a further period of six weeks from today. Accordingly, the interim

order to operate for a period of six seeks from today.

(M. S. SONAK, J.)

Chandka

 
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