MOHINDER SINGH Vs. STATE OF PUNJAB

JUDGEMENT

(1.) THIS petition seeks quashing of allotment of work of advertisements of Rs. 18 crores to respondent No. 5 for 11 years.

(2.) THE challenge is on two grounds : (i) for want of transparency; (ii) creating monopoly in the field of publicity even to the extent of prohibiting private building owners from displaying advertisements on their own buildings on payment of advertisement tax and while complying all other regulatory legal requirements.

(3.) REPLIES have been filed on behalf of the State, Municipal Corporation as well as the private respondents. In the reply filed by the State, it is stated that the contract is within the purview of provisions of Sections 174 and 175 of the Act which allowed the Corporation to enter into any contract. The Corporation has power to exempt payment of tax. Section 123 provides that no person can display advertisement without prior permission of Corporation. In its reply, the Corporation has stated that it has never prohibited any advertisement on boards outside any establishment. Only restriction was on advertisement boards of other companies/products by installing huge bill - boards on the walls or on the roof which would be defacing the walls. A Sub - Committee was constituted under the orders of the Local Govt. Minister, Punjab on 9.7.2007 to find out whether the contract was in over all public interest and according to rules and regulations. The Sub Committee decided to recommend annulment of the contract by Annexure R -3/1 and the matter was pending with the Government. The contract was given bona fide. Revenue generated in the last five years was Rs. 10 lac per year, while it was much more after the contract. It is denied that any monopoly has been created in favour of respondent No. 5.