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2002 Supreme(Kar) 644

Karnataka High Court
Rainbow Advertising - Appellant
Versus
Bangalore Mahanagara Palike - Respondent
Decided On : 10-09-02
W.P. : 44589 of 2001

Advocates:
ASHOK HARANAHAFLI, K.N.Puttegowda, S.VISHWAJITH SHETTY

Headnote:Renewal of licence for advertisement hoarding

       KARNATAKA MUNICIPAL CORPORATIONS ACT, 1976

       Section 443 (10) -Renewal of licence for advertisement hoarding renewal not a matter of course -just because the application for renewal was rejected after 45 days, there cannot be a deemed renewal.

       [A. V. Srinivasa Reddy, J.] - While dealing with the question of renewal of licence and the powers that are available to a Licensing Authority in the matter of such renewal, the Apex Court observed thus: "The renewal of a licence for sale of tickets is not a matter of course. The fact that the Licensing Authority can in proper circumstances refuse an application for renewal and is not precluded for imposing different conditions and can grant it for a different period coupled with the absence of any Rules for renewal are all indications leading to the result that renewal is a fresh grant is not merely continuation of the licence previously issued. ................. If renewal is treated as continuation of the licence previously granted, in a case where a licence is renewed from year to year as it would be in a large number of cases, if a licensee has committed breach of one of the conditions of the licence in any particular year, action against him can be taken in any subsequent year and his licence would be liable to be cancelled or suspended during any such subsequent year for a breach committed by him several years ago." Thus, it is clear that renewal of a licence is not a matter of course and the Licencing Authority can always refuse an application for renewal. The applications for renewal having been refused by the respondents herein, the schedule hoardings as of now are without a valid permission or licence and, therefore, they can only be characterised as unauthorised hoardings.

       Case Referred: AIR 1967 SC 1036.

A. V. SRINIVASA REDDY, J.

( 1 ) THE petitioners are registered advertising. agencies involved in the business of installing advertisement hoardings for their clients. After entering into agreement with the owners of the properties the petitioners had filed their applications before the respondents seeking permission for the erection of the hoardings. These applications had been considered and orders had been passed by the respondents permitting the petitioners to erect hoardings. As the term of the permission/licence originally granted under the Act is limited to one year, on the expiry of the one year period, the petitioners made applications for renewal along with the requisite fee. The respondents have declined in all these cases to renew the permission earlier granted on 6ne ground or the other. Being aggrieved by the said refusal to renew the permission or licence earlier granted, these petitions have been filed by the aggrieved petitioners

( 2 ) I have heard learned Counsel Mr. Vishwajith Shetty for petitioners and Mr. K. N. Puttegowda for the respondent-corporation.

( 3 ) LEARNNED counsel Mr. Vishwajith Shetty submitted that as the case of the respondents rests on S. 443 (10) of the Karnataka municipal Corporation Act, 1976 ('the Act' for short) the benefit of deemed permission is available to these hoardings and, therefore, the respondents cannot dismantle these hoardings. On the contrary, it is the contention of learned counsel for the corpration Mr. K. N. Puttegowda that even assuming that these hoardings would be Covered by S. 443 ( 10) of the Act the period for which the renewal was sought also being over, in the absence of fresh application for renewal the hoardings in question would be unauthorised hoardings and, therefore the petitioners cannot have any valid objection in law for dismantling these hoardings

( 4 ) AS the entire thrust of the case pleaded by the petitioners is dependent on the deemed permission which, according to the learned counsel for petitioners, is available to them by operation of law, it is relevant to consider the provision to determine whether the relief sought in these petitions could be granted to the petitioner. The relevant provision reads :"443 (10 ). The acceptance by the Corporation of the prepayment of the fee for a licence or permission or for registration shall not entitle the person making such prepayment to the licence or permission or to registration, as the case may be, but only to refund of the fee in icase of refusal of the licence or permission Or of registration, but an applicant for the renewal of a licence or permission or registration, shall until communication of orders on his application be entitled to act as if the licence or permission or registration had been renewed: and save as otherwise specially provided in this act, if orders on an application, for licence or permission of for registration are not communicated to the applicant within forty five days after the receipt of the application by the Commissioner, the application shall be deemed to have been allowed for the year for such less period as is mentioned in the application and subject to the provisions of this. Act, the rules, bye-laws, regulations and all conditions ordinarily imposed. "a careful reading of the underlined portion of the provision does go to show that the applicant is entitled to act as if the licence or permission has been renewed only until communication of orders to him by the corporation on the renewal application. The later parti of the provision which deals with 'deemed permission' only relates to an application made for registration or licence or permission and not to a renewal application. In all these cases communication has been sent by the respondents turning down the request for renewal. That being the case on facts; with effect from the date when the request for renewal was declined, the hoardings would cease to be authorised hoardings. The provision deals with three aspects viz








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