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2016 Supreme(All) 420

ALLAHABAD HIGH COURT
BEFORE : ARUN TANDON AND AMAR SINGH CHAUHAN, JJ.
M/s. GORAKHPUR ADVERTISERS WELFARE SOCIETY AND ANOTHER .....Petitioners
Versus
NAGAR NIGAM, GORAKHPUR ....Respondent
(Civil Misc.Writ Petition No. 14024 of 2016, decided on 4th April, 2016)

Advocates:
Counsel :
Ravi Kant and Tarun Agrawal for the Petitioners; Sanjay Kumar Tripathi for the Respondent.

Headnote:U.P. Nagar Mahapalika Adhiniyam, 1959—Sections 545, 193(3), 172(1) (2) (h) (3), 192, 195 and 193—Constitution of India, 1950—Article 19(1)(a), 243-Q—Municipal Corporation (Assessment and Collection of Tax on Advertisement) Rules, 2009—Rules 6-A, 6-B, 7(2), 8, 21—Advertisement Tax—Libility of—Challenge against Niyamawali framed—Competence to frame such Niyamawali to levy tax not under challenge—Liability of tax is shifted upon on the owner of premises, only in case of default of advertiser to pay the tax as owner of premises had authorized the advertiser to put up the advertisement upon his premises—Nagar Nigam has to determine the minimum amount of tax for a particular place—Rejection of permission to put up the advertisement, if the material which is to be advertised, found to be obscene, etc. [Paras 10 to 43]

       Result; Petition Dismissed.

       

JUDGMENT

By the Court.—This writ petition has been filed for challenging the Gorakhpur Nagar Nigam Main Vigyapanon Par Kar Ka Nirdharan Aur Vasooli Niyamawali, 2015 (hereinafter referred to as ‘Niyamawali’), Annexure-2 to the writ petition.

2. At the very outset, we may record that the recital in the prayer clause that Niyamawali has been framed by the State Government is factually incorrect. The Niyamawali has been framed by the Gorakhpur Nagar Nigam in exercise of powers under Section 545 of the U.P. Nagar Mahapalika Adhiniyam, 1959.

3. Sri Ravi Kant, senior advocate, made a statement that the last line of the prayer clause may be deleted.

4. The other prayer made in the writ petition is for a writ of mandamus commanding the Nagar Nigam not to give effect to the Niyamawali, 2015.

5. Written submissions have been filed which are taken on record.

6. Sri Ravi Kant submitted before us that in view of Full Bench judgement of this Court in the case of Anurag Bansal v. State of U.P. and others, 2011(5) ADJ 879 (LB) (FB), the impugned Niyamawali cannot be legally sustained. It is explained to the Court that the right to advertise is a facet of freedom of speech and expression guaranteed under Article 19(1)(a) of the Constitution of India. The Nagar Nigam in exercise of its power to frame rules which is in the nature of subordinate legislation, cannot impose a tax in the matter of exercise of such fundamental right. It is submitted that the powers conferred upon the Municipal Corporation to that extent would be hit by Article 19(1)(a) of the Constitution of India. Similarly, it is stated that Rule 6-A, 6-B, 7(2) and 8 as well as Rule 9 are patently arbitrary, they affect the fundamental right of the persons like the members of the petitioners association, who are involved in the business of advertising. Similarly, it is stated that Rule 6(9) is vague in the background that it requires minimum premium to be fixed by a Committee before right to advertise is granted by auction or tender. Similarly, it is stated that if an advertisement or pole of the hoarding falls down on account of an accident or any other act of God, the licensee would be held responsible for compensation when no person can be held liable for an act of God i.e. for an act beyond his control. Rule 7(2) is challenged on the ground that it empowers the allotment committee to fix minimum amount of premium in light of items provided therein which is arbitrary. It confers absolute discretion in the Committee to fix the amount of premium according to its own estimate of said factors.

7. Under Section 193(3) of the Nagar Nigam Adhiniyam, permission for advertisement can be granted after payment of tax but demand of premium, over and above, the said tax under the rules would be in excess of the statutory provision and, therefore, bad. Similarly, the power to reject an application for putting up an hoarding as conferred upon Rule 8(ga) and (anga) is also bad being unchannelized. Similarly, the competence of the Nagar Nigam to prohibit installation of a hoarding at a particular place because of the site being unfit is also arbitrary, as no guidelines have been laid down for the purpose. Rule 15(ka)(5) and Rule 18 are subjected to challenge on the ground that the norms fixed in the matter are arbitrary as no guidelines have been laid down therein. Rule 21 (2) is challenged on the ground that an appeal has been provided against the order of Municipal Commissioner to the Municipal Board which would be an appeal from Caesar’s to Caesar’s wife. The power conferred upon the State Government and the Central Government to declare any area as prohibited area, for the purpose of advertising under Rule 25 is challenged on the ground that it violates Article 19(1)(g) of the Constitution of India. Rule 27 is subjected to challenge on the ground that no guidelines have been framed.

8. We have heard Sri Ravi Kant, senior counsel assisted by Sri Tarun Agrawal for the appellant and Sri Sanjay Ku


























































































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