SAGARDEEP ADVERTISING Vs. MUNICIPAL CORPORATION JABALPUR

JUDGEMENT

(1.) THE petitioner has filed the present petition against the tender notice dated 2-4-2006 issued by the respondent-Municipal Corporation, Jabalpur inviting tenders from prospective advertisers for installing hoardings and advertisement boards at specific streets/zones in the city of Jabalpur. The petitioner has also assailed the increase in the rate of advertisement tax for the year 2006-2007 as decided in the resolution of the respondent-Corporation.

(2.) THE brief facts of the case are that the respondent-Corporation in its annual general meeting resolved that the advertisement tax for installation of hoardings and advertisement boards on Corporation lands would be Rs. 3/- per sq. ft. while the tax in respect of advertisement boards and hoardings on private lands and shops would be Rs. 5/- per sq. ft. for the year 2006-2007 to be applicable with effect from 1-4-2006. It was also resolved that the rent for installation of advertisement boards/hoardings on Corporation lands would be rs. 20/- per sq. ft. per year. The Corporation thereafter issued a tender notice on 2-4-2006 inviting tenders for installing hoardings and advertisement boards for the period upto 31-3-2008 from prospective advertisers for 38 groups/zones identified in the city. The last date for submission of tender forms and opening of tenders was 22-4-2006. Though more than 100 forms were issued, about 23 tenders were received by the respondents. As the tender forms for all the zones were not received, the tenders were recalled for a second time and thereafter on the 3rd occasion on 19-5-2006. In all 12 persons or agencies have been selected for the 37 groups as tender for one of the groups has been abandoned. The petitioner firm which is engaged in the business of advertisement in the city of jabalpur has assailed the resolution as well as the tender notice in the present petition.

(3.) THE petitioner has assailed the tender notice dated 2-4-2006 on the grounds that there is no provision in the M. P. Municipal Corporation Act, 1956 (hereinafter referred to as "the Act") permitting or authorizing the Municipal corporation to allot advertisement sites by way of tender proceedings and therefore, the entire action is contrary to law; that the Municipal Corporation has no power of authority to invite tenders in respect of private lands and therefore, the tender notice deserves to be quashed; that the advertisement tax and fees imposed by the respondent-Corporation vide the impugned resolution is contrary to the provisions of Section 133 of the M. P. Municipal Corporation act, 1956 as no maximum or minimum limit of fees has been fixed; that the advertisement tax imposed by the Corporation is discriminatory and creates monopoly in favour of the Corporation as different rates of tax are levied for installation of advertisement boards on Corporation lands and private lands; that the impugned tender proceedings have resulted in depriving the petitioners of their statutory right of renewal of licence as contained in Section 366 of the municipal Corporation Act; and that the tender proceedings are contrary to the provision of Section 366, which does not envisage inviting of tenders for the purpose of granting permission or licence to install advertisement boards or hoardings and therefore, deserves to be quashed and the petitioner has relied upon a Division Bench judgment of this Court reported in 1979 JLJ 668, Kishore gupta Vs. Municipal Corporation, Indore and another, in support of this submission.