Sub-section (2) of section 479 upheld; Commissioner’s power to fix advertisement license fees with Corporation sanction not excessive delegation, as guidelines exist in statute, policy, and democratic oversight ensures validity.

JUDGMENT :

Shree Chandrashekhar, C.J.

M/s. Rushabh Outdoors which is a partnership firm and represented through its partners, namely, Navnit Haria and Zaverben Liladhar Haria is joined by the proprietress of M/s. Synnovation, namely, Vandana Borse in laying a challenge to sub-section (2) of section 479 of the Mumbai Municipal Corporation Act, 1888, [MMC Act]. The petitioners are seeking a declaration that sub-section (2) of section 479 of the MMC Act is unconstitutional and liable to be struck down. They are aggrieved by Resolution No.999 passed by the Municipal Corporation of Greater Mumbai in its meeting held on 11^th December 2009 by which a revision in the schedule of fees for the advertisement license issued under sections 328 and 328A of the MMC Act was approved and increased by 80 percent of the prevailing rate for one year and then it is to be increased by 10 percent per annum every following year. The petitioners have challenged the power of the Commissioner to fix the rates of license fees and it is in that context that they are raising a question to the constitutional validity of sub-section (2) of section 479 of the MMC Act.

2. The petitioners state that they obtain a license from the Municipal Corporation under sections 328/328A of the MMC Act on payment of license fees for carrying on the business of outdoor publicity. The Municipal Corporation proposed a revision in the license fees for the permissions granted under sections 328 and 328A and the said proposal contained in the letter dated 4^th November 2009 was considered by the Law Committee and it was decided to take approval of the Municipal Corporation. The reasons for seeking a revision in the license fees are said to be the rising expenditure for the establishment of the Municipal Corporation, an increase in the wholesale price index and service costs, decline in the revenue of the Municipal Corporation from the license fees etc. However, the information received by them through the RTI is that the Municipal Corporation has reserves and surplus of Rs.47244.56 crores (excluding inter budget contributions) and its consolidated income far exceeds its expenditure. The petitioners have provided the details of the license fees collected by the Municipal Corporation for the period between 2007 to 2016 and endeavored to demonstrate that the total income of the Municipal Corporation from the advertising licenses constitutes about 69 percent of the total collection of the License Department. The petitioners blame the Commissioner for not applying his mind before proposing increase in the license fees. They say that the Municipal Corporation also did not apply its mind and approved the proposal for increase in the license fees in a mechanical manner inasmuch as there was no discussion in the meeting of the Municipal Corporation held on 11^th December 2009. They contend that the effect of 10 percent increase in perpetuity in the license fees is excessive, arbitrary and unreasonable and violates their fundamental rights under Articles 14 and 19 of the Constitution of India.

3. In the affidavit-in-reply, the respondents have narrated the procedure for granting permission for advertisement and claim that several high-ranking officers of d