Holding

An illuminated sign board indicating the location of ATM centres that serves a commercial purpose is an advertisement under Section 328A, making the BMC's notice valid.

Summary

ICICI Bank installed illuminated sign boards above its ATM centres and extension counters in Bombay without obtaining permission from the Bombay Municipal Corporation (BMC). The BMC issued notices under Sections 328 and 328A of the Bombay Municipal Corporation Act, 1888, requiring the bank to remove the boards or pay a fee. The bank challenged the notices in the High Court, arguing that the boards were merely location indicators and not advertisements; the High Court dismissed the petition, relying on Municipal Corporation of Greater Bombay v. Bharat Petroleum. On appeal, the Supreme Court examined the meaning of "advertisement" under Section 328A, holding that it must have a commercial purpose and be indicative of business activity. The Court found that the illuminated boards, by attracting prospective customers, satisfy this definition and therefore fall within Section 328A. Consequently, the notices were valid, the High Court’s order was set aside, and the appeal was allowed, directing a fresh hearing under Section 328A.

Issues considered

The illuminated sign boards above ATM centres constitute an "advertisement" within the meaning of Section 328A of the Bombay Municipal Corporation Act, 1888.
Whether the notices issued by the BMC under Sections 328 and 328A are valid and enforceable.
Whether the precedent set in Municipal Corporation of Greater Bombay v. Bharat Petroleum is binding on the present case.

Legislation cited

Bombay Municipal Corporation Act, 1888s. 328, s. 328A
Constitution of Indias. Article 141

Subjects

advertisementSection 328Section 328Asky‑signmunicipal corporationpermissionilluminated sign boardATMstatutory interpretationbinding precedent

Judgment

A ICICI BANK LTD. AND ANR.
v.
MUNICIPAL CORPORATION OF GREATER BOMBAY AND ORS.

AUGUST 4, 2005

B [P. VENKATARAMA REDDI AND P.P. NAOLEKAR, JJ.]

Bombay Municipal Corporation Act 1883 :

Advertisement-Section 328A-Meaning and scope-llluminated Sign
Boards ftxed by the bank above the entry of its ATM centers and extension
counters indicating the location-Held, not only supply the information of
c location of the service provided but also may serve the commecial interest
of the bank by affecting the decision of the prospective customers-Whether
such· a sign board would tantamount to an advertisement. or not would·
depend upon the facts of each case depending upon the ~TM· Centres
established in that area.
D
Section 328 and 328A-Advertisement-Comparative scope of-Held,
section 328 A applies to the advertisement alone whereas section 328
comprehends even some thing which is in the nature ofadvertisements-The
reach, ambit and scope of these two sections are quite different and they
operate in different fields.
E
Precedents-Supreme Court decision, whether binding precedent-
Held, ratio of the judgment alone is binding as a precedent which has to be
ascertained by analyzing· all the material facts and issues involved and
argued on both sides in the case-The decision should be read with reference
to and in the context to particular statutory provisions interpreted by the
F
court-Ratio in Municipal Corporation of Greater Bomaby v. Bharat
Petroleum Corporation Ltd. could not be relied upon in the present case
as it involved the interpretation of section 328 and not section 328 A-
Constitution of India, Article 141.

Words and Phrases-Interpretation of-Words used in a statute should
G
be understood in their natural, ordinary and popular sense in the context
in which they are used in the statute. ..
'Advertisement', meaning of-Held, in the context word advertisement
has been used in section 328 anJ in the commercial and ordinary parlance
H it must have some commercial purpose and should be indicative of business
62
ICICI BANK LTD. v. MUNICIPAL CORPN. OF GREATER BOMBAY 63

activity of the displayer with a view to attract the attention of the people to A
the displayer's business.

The ICICI Bank without seeking permission of the Bombay
Municipal Corporation had put up illuminated sign boards above the
entry of its ATM Centres and Extension Counters to indicate their
location. The Municip~l Corporation issued noticed to the bank under B
Sections 328 and 328 A of The Bombay Municipal Corporation Act 1888.
Bank filed a writ petition in the High Court for quashing of the notices
as being illegal, null and void. It was pleaded that the sign board did not
amount to advertisement as specified in section 328 or 328 A. Relying
on Municipal Corporation of Greater Bombay v. Bharat Petroleum c
Corporation Ltd., the High Court dismissed the petition. Hence this appeal
by the bank.

The bank pleaded that the sign boards merely indicate to its
customers about the location of ATM Centres and extension counters
and did not relate to the business or commercial activity of the bank. D
Allowing the appeal, the Court

HELD: I. An advertisement is a matter that draws attention of the
public or segment of public to a product, service, person, organization
or line of conduct in a manner calculated to promote or oppose directly E
or indirectly that products, service, person, organization or line of conduct
intended to promote sale or use of product or range of products. An
advertisement is an information that the producer provides about its
products or services. An advertisement tries to get consumers to buy a
product or a service. An advertisement is generally of goods and services F
and_ is an information intended for the potential customers and not a
mere display of the name of the company unless the same happens to be
a trade mark or trade name. The advertisement would be for the purpose
of directing or soliciting customers to the product or service prominently
shown in the advertisement. Therefore, an advertisement within the
G
meaning of Section 328 A of the Bombay Municipal Corporation Act
must primarily have a commercial purpose and should be indicative of
business activity of the displayer with a view to attract the attention of
people to its business. [75-D-E; 76-H; 77-B[

Block's Law Dictionary, 8th Edn. and Commercial Dictionary; New H
64 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A Encylopaedia Britannica, Vol. I; Collins' Dictionary ofthe English Language;
Chambers Dictionary, referred to.

Edwards v. Lubbock Country, Tex Civ App, 33, SW 2d 482 and First
Nat. Corp. v. Perrine, 99 Mont 454, 43 P 2d 1073, 1077, referred to.

B Singh, G.P.: Principles of Statutory Interpretation (9th Edn., 2004),
Ch. 2, p. 86, referred to.

2. The fact that there is an ATM Centre in the premises tells that the
appellant Bank is providing automated teller machine service there and ~
~

c hence the service provided is clearly identified. The communication therein
is directed to the account-holders and also the prospective account holders.
The kind of information supplied of the location of the service provided
may also be construed of commercial exploitation indirectly, as the
signboards may not aim at the existing customers only but they also affect
the decisions of the prospective customers. That also serves the commercial
D interest of the bank. Whether particular action is an advertisement or not
would depend on whether the person wants to promote directly or indirectly
his product or service. Therefore, in all fact situations and circumstances,
at the outset it cannot be said that the signboards indicating ATM centers
•
cannot have commercial interest that would only tell about the location of
E the ATM centers to the existing account holders only. Whether signboard
of an ATM center tantamounts to an advertisement or not would depend
upcrn the facts of each case, depending on the number of ATM cen.ters
established by a particular bank in a particular locality or place or even
city, to have the flavour of commercial or business interest of the service
provider. [77-E-H; 78-B-C]
F
Paisner v. Goodrich, [1955) 2 All ER 330; Madhav Rao Scindia v.
Union of India, AIR (1971) SC 530 and CIT v. Sun Engg. Works (P) Ltd., "
[1992) 4 sec 363, relied on.

G 3. Under Section 328 it is not merely the advertisement but even
something which is in the nature of advertisement is comprehended
whereas under Section 328 A; it is the advertisement alone which would
attract the provisions of Section 328 A of the Act. The language used in
both the provisions makes it explicitly clear that these provisions operate .
H in somewhat different fields and foe phrase 'advertisement' used in both ~
ICICI BANK LTD. ''· MUNICIPAL CORPN. OF GREATER BOMBAY [NAOLEKAR, J] 65
. ;
Sections in its context pronounces a different meaning of the word. The A
application of these Sections depends upon the kind of the sign Boards
or the illuminated boards etc. For the case to be a binding precedent,
fundamental requirement would be, that the law pronounced should
result from the issues raised before the Court between the parties and
argued on both sides. Normally the ratio of the case shall be deduced
from the facts involved in the case and the particular provision of law B
which the Court has interpreted and the decision shall be read with
reference to and in the context of particular statutory provisions involved
in the matter. The decision rendered in the matter of Municipal Corporation
, of Greater Bombay is not a decision on the question of interpretation of
Section 328 A of the Act, particularly the phrase 'advertisement' used C
therein. (71-A-C; 73-E-H; 74-A]

Municipal Corporation of Greater Bombay v. Bharat Petroleum
Corporation Ltd., JT (2002) 3 SC 452, distinguished.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4678 of D
2005.

From the Judgment and Order dated 8.10.2002 of the Bombay High
Court in W.P. No. 2377 of 2002.
E
R.F. Nariman, Sr. Adv., Bharat Sangal, Ms. Sangeeta Panicker, R.R.
Kumar, Samyadip Chatterji and Sunil Tilokchandani, Advs. with him for the
Appellants. •

V.R. Reddi, Deepak Bhattacharya, Shailesh Madiyal, Sun ii Murarka,
Ms. Altaf Fathima, Anami Bhattacharyya and Pravir Choudhary for the F
, Respondents.

The Judgment of the Court was delivered by

P.P. NAOLEKAR, J. : Leave granted.
G
In the present appeal the appellants ICICI Bank Limited has challenged
the order of the Bombay High Court whereby the High Court has dismissed
the writ petition filed by the appellant holding that the sign boards fixed
above the A TM Centers of the ICICI Bank do amount to an advertisement
and therefore the action taken by the Municipal Corporation of Greater H
66 SUPREME COURT REPORTS (2005] SUPP. 2 S.C.R.
~

A Bombay by issuance of notice is in accordance with the law. The facts, in
brief are that:

Sometime up to the year 2000 the appellant No. l, ICICI Bank has
installed A TM Centers and Extension counters, Bank Branches at 64
locations in the city of Bombay for the convenience of its depositors. Certain
B signboards were fixed above the entry of the A TM centers and extension
counters indicating their location. They are illuminated to indicate the
locations of the A TM centers. The Municipal Corporation did not approve
of putting up of the illuminated signboards of A TM centers and therefore
issued notice to the appellant under Section 328 and 328-A of the Bombay I...

c Municipal Corporation Act 1888 (hereinafter to be referred to as 'The Act').
The contents of the notice are that the appellant has displayed at its premises
sky sign/Glow Sign/Neon Sign/Illuminated Boards without the permission
of the Bombay Municipal Corporation. It was incumbent upon the appellant
before putting up such signboards etc., to have taken the permission and
made the required payment. The notice required the appellant to make certain
D payment towards by filling the prescribed forin within three days of the
receipt of the notice, failing which BMC would take necessary action,

E
including defacing/removal of the boards at appellant's cost. The notice was
replied by the appellant contending therein that the appellant does not admit
any of the allegations mentioned in the notice and requested the BMC not
to take any action as contemplated in the said notice. Thereafter in the month
. '

of August 2003 the appellant filed a writ petition in the High Court of
Bombay alleging that the impugned notices which were served on the
appellant bank are wholly without jurisdiction and without the authority of
law and that the same violated the fundamental and other rights of the
appellant bank and therefore the same are illegal, null and void. According
F
to the appellant the signboards fixed over the A TM Centers or Extension
counters does not amount to advertisement as specified in Section 328A of
the Act nor do they come under the definition of sky-sign as defined in
Section 328 of the Act. They merely tell the existing account holder about
the location of the A TM booth. The said signboards are only for the guidance
G of the public and that the services rendered by the appellant bank are not
advertised. The signboards are essential for the working and business of the
appellant bank and does not amount to advertisement and therefore the
notices issued by the Bombay Municipal Corporation, requiring the appellant
to make the payment of the amount is illegal. The High Court dismissed the \,.

H writ petition filed by the appellant on the ground that the controversy
ICICI BANK LTD. v. MUNICIPAL CORPN. OF GREATER BOMBAY [NAOLEKAR, J.] 67

involved in the case is squarely covered by the judgment of the Apex Court A
in Municipal Corporation of Greater Bombay v. Bharat Petroleuni
Corporation Ltd., JT (2002) 3 SC 452 and held that the signboards fixed
above the A TM Centers.of the appellant Bank do amount to an advertisement.
The itnpugned notices, therefore, cannot be faulted. In consequence thereof
the writ petition filed by the appellant was dismissed.
B
The learned senior counsel Shri R.F. Nariman has urged that the
illuminated signboards of the appellant Bank does not fall within the
definition of sky-sign in Section 328 of the Bombay Municipal Corporation
Act 1888 and therefore Section 328 of the Act has no application. Hence,
the High Court committed an error in applying the ratio laid down by this C
Court in the 1natter of Municipal Corporaiion of Greater Bombay's case
(supra). The signboards fixed on the A TM Centers of the Bank and its
Extension Counters only indicates to its customers about the location of the
Bank/ATM Centers to facilitate them to carry out the banking transaction
at any time of the day or night and is in the nature of the in-house facility
provided to the customers of the bank and does not in any way convey D
message of commercial or business activities of the appellant bank. The
illuminated signboard does not relate to the business or commercial activities
of the bank nor does it propagate the ideas with regard to the goods or
' services rendered by th.e party. It merely displays as to where the ATM
Center is located and therefore the action of the bank putting up the E
illuminated signboards does not fall within the ambit of Section 328A of the
Act. To counter this argument, Mr. V.R. Reddy, learned senior counsel
submitted that in the facts of the case, the decision given by this Court in
the case of Municipal Corporation a/Greater Bombay (supra) is directly on
point and the ratio decided covers the case. In any case, the illuminated
signboards at the entry of the A TM Center and Extension Counter does not F
indicate their locations alone but attract the prospective customers also to
open their accounts with the ICICI Bank and in that manner it propagates
ideas with regard to the goods or the services rendered by rlank and therefore
would be covered under Section 328A of the Act.
G
Before we consider the respective submissions made by the counsel,
it would be fruitful to read the relevant provisions of Section 328 and 328A
I of the Act. The necessary extracts of the relevant provisions for adjudicating
the question involved in this care are as under:

328. (1) No person shall, without the written permission of the H
68 SUPREME COURT REPORTS (2005] SUPP. 2 S.C.R.

Commissioner, erect, fix or retain any sky-sign, whether now ... "
A
existing or not, [where a sky-sign is a poster depicting any scene
from a cinematographic film, stage play or other stage performance,
such permission shall not be granted, unless prior scrutiny of such
poster is made by the Commissioner and he is satisfied that the
erection or fixing of such poster is not likely to offend against
B decency or morality. No permission under this section shall be
granted, or renewed, for any period exceeding two years from the
date of each such permission or renewal].

c
(3) If any sky sign be erected, fixed or retained contrary
to the provisions _of this section, or after permission for the erection,
fixing or retention thereof for any period shall have expired or
become void the Commissioner may, by written notice, require the
D owner or occupier of the land, building or structure, upon or over
which the sky-sign is erected, fixed or retained, to take down and
remove such sky-sign.

The expression 'sky sign' shall in this section mean any word,
letter, model, sign, device or representation in the nature of an
E advertisement, announcement or direction, supported on or attached
to any post, pole standard frame-work or other support wholly or
in part upon or over any land, building or structure which, or any
part of which sky-sign, shall be visible against the sky from some
point in any street and includes all and every part of any such post,
F pole, standard framework or other support. The expression 'sky-
sign' shall also include any balloon, parachute, or other similar
device employed wholly or in part for the purposes of any
advertisement, announcement or direction upon or over any land,
building or structure or upon or over any street, but shall not
include:
G
(a) any flagstaff, pole, vane or weathercock, unless adapted or
used Wholly or in part for the purpose of any advertisement,
announcement or direction;

(b) any sign, or any board, frame or other contrivance securely
H
ICICI BANK LTD. v. MUNICl\AL CORPN. OF GREATER BOMBAY [NA OLE KAR, J.) 69

fixed to or on the top of the wall or parapet of any building, or on A
the cornice or blocking course of any wall, or to the ridge of a roof.

328A. (1) No person shall, without the written permission of the
Commissioner erect, exhibit, fix or retain any advertisement vthether
now existing or not, upon any land, building, wall, hoarding or
structure. [Where an advertisement depicts any scene from a B
cinematographic film, stage play or other stage performance, such
permission shall not be granted, unless prior scrutiny of such
advertisement is made by the Commissioner and he is satisfied that
the erection or exhibition of such advertisement is not likely to
offend against decency or morality;] C

(3) If any advertisement be erected, exhibited, fixed or
retained contrary to the provisions of this section after the written D
pennission for the erection, exhibition, fixing or retention thereof
for any period shall have exp"ired or become void, the Commissioner
may, by notice in writing, require the owner or occupier of the land,
building wall, hoarding or structure upon which the same is erected,
exhibited, fixed or retained, to take down or remove such E
advertisement

By virtue of Section 328 of the Act, no person is permitted with<·ut the
written pennission of the Commissioner to erect, fix or retain any sky-sign,
and the permission granted by the Commissioner or the renewal thereof shall
be for any period exceeding two yeas from the date of each such permission F
or renewal. Sub-s.(3) authorizes the Commissioner by written notice to direct
the owner or occupier of the· land, b·uilding or structure upon or over which
the sky-sign is erected, fixed or retained to take down and remove such sky-
sign, if such sky-sign is fixed, erected or retained contrary to the provisions
of Section 328 of the Act. According to Sub-s.(3) "Sky-sign" shall mean any G
word, letter, model, sign deice or representation in the nature of an
advertisement, announcement or direction, supported on or attached to any
post, pole, standard frame-work or other support wholly or in part upon or
over any land, building or structure which, or any part of which sky-sign,
shall be visible against the sky from some point in any street and includes
H
70 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R. --

A all and every part of any such post, pole, standard framework or other
support. The expression "sky-sign" shall also include any balloon, parachute,
or other similar device employed wholly or in part for the purpose of any
advertisement, announcement or direction upon or over any land, building
or structure or upon or over any street. Sub-clause (a) and sub-clause (b) has
a reference to what shall not be included to be the sky-sign. The reading of
B this section gives a clear cut indication that the sky-sign shall not be erected,
fixed or retained unless written permission to that effect is obtained from the
Commissioner and the sky-sign shall mean any word, letter, model, sign,
device or representation balloon parachute or other similar device which is
in the nature of an advertisement, announcement or direction or employed
C for the purpose of advertisement, announcement or direction, that is to say,
if it is in the nature of advertisement, announcement or direction, it would
be a sky-sign, provided the sign is visible against the sky from some point
in any street which shall include part of any such post, pole, standard frame-
work or other support upon which the sky-sign rest. For any advertisement,
announcement or direction to be a 'sky-sign', it is not necessary that the sign-
D
boards are illuminated. The necessary ingredic1t of the sky-sign are that it
should be in the nature of advertisement, announcement or direction, and
should be visible against sky from some point in any street. So far as Section
328A is concerned, no person is pennitted to erect, exhibit, fix or retain any
advertisement upon any land, building, wall, hoarding or structure without
E the written permission of the Commissioner. Second proviso to sub-s.(J)
exempts the person from taking permission if the advertisement is not
illuminated or a sky-sign and which is exhibited within the window of any
building or is related to the trade or business carried on within the land or
building upon which such advertisement is exhibited or to any sale or letting
F of such land or building or any effects therein or to any sale, entertainment
or meeting to be held upon or in the same building or to any trade or business
carried on by the owner of any tram-car, omnibus or other vehicle upon
•
which such advertisement is exhibited. Therefore, ifthe advertisement is not
illuminated advertisement nor is a sky-sign and is being put at a place
provided under clauses (a) and (b) of Section 328A of the Act, permission
G of the Commissioner is not required. The moment the advertisement is
illuminated or is a sky-sign, even if it is exhibited or rested on the place
mentioned in clauses (a) and (b) of Section 328A of the Act, the permission
of the Commissioner is necessary. Sub-clause (3) authorizes the Commissioner
to direct any person in breach of Section 328A to take down and remove
H such advertisement.
ICICI BANK LTD. v. MUNICIPAL CORPN. OF GREATER BOMBAY [NAOLEKAR, J.) 71

, ,, For application of Section 328, it is necessary that the word, model, sign A
or device or representation is in the nature of advertisement, announcement
or direction, If it does not "fall within the exception provided under the
proviso, the permission of the Commissioner is necessary, It may be noted
that under Section 328 it is not merely the advertisement but even something
which is in the nature of advertisement is comprehended whereas under
Section 328A, it is the advertisement alone which would attract the
B
provisions of Section 328A of the Act The language used in both the
provisions make it explicitly clear that these provisions operate in somewhat
different fields and the phrase 'advertisement' used in both Sections in its
context pronounces a different meaning of the word. The application of these
'
Sections depends upon the kind of the sign-boards or the illuminated boards C
etc.

Both the counsel have extensively argued the question of applicability
of the decision rendered by this Court in the matter of Municipal Corporation
of Greater Bombay (supra), as decision of the High Court is based on this
decision, It is obvious from the decision in the case that the Court has
D
adjudicated and decided mainly the sco~e of sub-s,(3) of Section 328 of the
Act The Court has not decided on the applicability, scope and ambit of
Section 328A of the Act. The definition of 'sky-sign' came up for consideration
• before the Court, This Court laid emphasis on the expression "in the nature
of an advertisement" in the definition of sky-sign in Paragraph I0 of the E
Judgment which expression is not found in Section 328A of the Act.

The decision in the matter of Municipal Corporation of Greater
Bombay (supra), has no relevance to the facts involved in the case before
us for more than one reason, In Paragraph 6 of the fodgment, the Court says F
that although the relevant statutory provisions are Section 328/328A of the
Act, the issues raised have to be considered and decided mainly on the scope
' of sub-section (3) of Section 328 of the Act The paragraph makes it clear
that the Court has considered the scope and reach of Section 328 of the
Bombay Municipal Corporation Act 1888, That apart, in Paragraph IO of the
Judgment the Court held that "the indication given by emphasis supplied to G
some of the words used in the provision in question as well as the words
"in the nature" of an advertise1nent, announcement or direction' would go
to show that it is not a must to be that but is enough if it is 'in the nature
of that which is specified, The three words required to be construed cannot
be said to admit of any one particular meaning alone but capable of being H
72 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.
..... '
A understood by their general or interrelated meaning suitable for the context".
Thus, much emphasis was placed on the expression "in the nature of." The
Court in Paragraph 9 of course has salt! that in common parlance
'advertisement' means to make publicly known an infortnation by some
device and to draw or attract attention of public/individual concerned to such
information. It need not necessarily be to sell only or solely for commercial
B exploitation. Thus, it was pointed out that the advertisement would not
necessarily mean the information supplied to the public or an individual
solely for commercial exploitation. As it appears to us, the observation of
the Court is made in the context of Section 328 of the A.ct where the phrase
'advertisement' is used in limited sense in as much as it includes information
C to the public and is in the nature of advertisement, although not an
advertisement pure and simple.

In the present case we are. not considering the scope and ambit of
Section 328 of the Act, as, admittedly the advertisement in question is not
sky sign within the meaning of Section 328 of the Act. The ratio and effect
D of the judgment is required to be ascertained with reference to the question
of law as decided by the Court. The ratio of the judgment or the principle
upon which the question before the Court is decided is alone binding as a

E
precedent. The decision of the Supreme Court upon a question of law is
considered to be a binding precedent, and this must be a.scertained and
determined by analyzing all the material facts and issues involved in the case.
. "

In the matter of Paisner versus Goodrich, (1955) 2 All ER 330, 332,
Lord Denning in his Judgment has held:

"When the judges of this Court give a decision on the interpretation
F of an Act of Parliament, the decision itself is binding on them and their
successors ( see Cull v. Inland Revenue Commissioners), Morelle, Ltd v.
Wakeling. But the words which the Judges used in giving the decision are . \

not binding. This is often a very fine distinction, which will best be only be
expressed in words. Nevertheless, it is a real distinction, which will best be
appreciated by remembering that, when interpreting a statute, the sole
G function of the Court is to apply the words of the statute to a given situation.
Once a decision has been reached on that situation, the doctrine of precedent
requires us to apply the statute in the same way in any similar situation; but·
not in a different situation. Whenever a new situation .emerges, not covered
by previous decisions, the courts must be governed by the statute and not
H by the words of the judges ....... "
ICICI BANK LTD. v. MUNICIPAL CORPN. OF GREATER BOMBAY [NAOLEKAR, J.J 73

" In Madhav Rao Scindia v. Union of India. AIR (1971) S.C. 530, this A
Court said that it is not proper to regard a word, a clause or a sentence
occurring in a judgment of the Supreme Court, divorced from its context,
as containing a full exposition of the law on a question when the question
did not even fall to be answered in that judgment.

In the matter of C./. T v. Sun.Engineering Works (P) ltd (!'992) 4 SCC B
363 (Page 363), Justice Anand (As His Lordship then was), speaking for the·
Court, has said that it is neither desirable nor permissible to pick out a word
or a sentence from the Judgment of the Court, divorced from the context of
the question under consideration and treat it to bethe complete 'law' declared
by the Supreme Court. The judgment must be read as a whole and the C
observations from the judgment have to be considered in the light of the
questions which were before the Supreme Court. The decision on the
question involved in the case in which it is rendered and while applying the
decision to the later case, the Courts must carefully try to ascertain the true
principle laid down by the decision and not to pick out words or sentence.
from the judgment divorced from the context of the question under
D
consideration by the Court.

ln the· case of Municipal Corporation of Greater Bombay (supra),
Section 328A was not at all interpreted by this Court. For the case to be a
binding precedent, fundamental requirement would be, that the law pronounced E
should result from the issues raised before the Court between the parties and
argued on both sides.. In the matter of Municipal Corporation of Greater
Bombay the definition of 'sky-sign' under Section 328 came up for
consideration. In reaching the conclusion that the huge metallic board
exhibited by BPC Petrol Bunk on a pole with the name of the Compatjy and
. its symbol (Shell symbol) was a sky-sign, this Court laid emphasis on the
F
expression "in the nature of an advertisement" occurring in the definition of
'sky-sign' in Paragraph IO which expression is not to be found in Section
328-A. While interpreting Section 328 and construing the words 'in the
nature of an advertisement, announcement and direction', this Court held that

. the advertisement need not necessarily be only or solely for commercial
exploitation whereas Section 328A of the Act speaks about 'advertisement'
alone and not 'in the nature of an advertisement'. Normally the ratio of the
case shall be deduced from the facts involved in the case and the particular
G

provision of law which the Court has interpreted and the decision shall be
read with reference to and in the context of particular statutory provisions H
74 SUPREME COURT REPORTS [2005) SUPP. 2 S.C.R.
~ .
. A involved in the matter.

In our considered opinion the decision rendered in the matter of
Municipal Corporation of Greater Bombay (supra) is not a decision on the
question of interpretation of Section 328A ofthe Act, particularly the phrase
'advertisement' used therein.
B
The next question that arises for consideration is whether notices issued
by the Corporation to the appellant-I CIC! Bank are per se illegal or without
authority of law as putting up the sign boards of ATM centers at different
places by the bank could out-rightly be said not to be an advertisement and
C thus does not attract the provision of Section 328A of the Corporation Act.
To consider this aspect we have to see what shall be an advertisement for
the purposes of Section 328A of the Act. The dictionary definitions of the
word 'advertisement' are as under :-

BLACK'S LAW DICTIONARY, 8TH EDITION
D
Advertising : l..The action of drawing the public's attention to
something to promote its sale. 2. The business of producing and
circulating advertisements

LAW AND COMMERCIAL DICTIONARY
E
Advertisement: Notice given in a manner designed to attract public
attention. Edwards v. Lubbock Country, Tex Civ. App., 33, S.W.2d
482, 482. Information communicated to the public, or to an
individual concerned, as by handbills, newspaper, television, bill-
F boards, radio. First Nat. Corporation v. Perrine, 99 Mont 454, 43
P.2d 1073, 1077.

THE NEW ENCYCLOPAEDIA BRITTANJCA VOLUME-I

Advertising, the techniques used to bring products, services, opinions,
G or causes to public notice for the purpose of persuading the public
to respond in a certain way toward what is advertised. Most
advertising involves promoting a good that is for sale, but similar
methods are used to encourage people to drive safely, to support
various charities, or to vote for political candidates, among many
other examples.
H
ICICI BANK LTD. r. MUNICIPAL CORPN. OF GREATER BOMBAY [NAOLEKAR, J.] 75

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COLLINS DICTIONARY OF THE ENGLISH LANGUAGE A
Advertisen1ent- any public notice, as a printed display in a
newspaper, short film on television, announcement on radio, etc.,
designed to sell goods, publicize an event, etc.

Advertising 1) the action or practice of drawing public attention to B
goods, services, events etc., as by the distribution of printed notices,
broadcasting, etc. 2) the business that specializes in creating such
publicity, 3) advertisements collectively; publicity.

THE CHAMBERS DICTIONARY

Advertisen1ent-the act of advertising; a public notice with the
c
purpose ofinfonning and/or changing pubHc attitudes and behaviour;
a short perfonnance recorded for radio, T. V. etc. to advertise goods
or services; news.

An advertisement is a matter that draws attention of the public or D
segment of public to a product, service, person, organization or line of
conduct in a manner calculated to promote or oppose directly or indirectly
that product, service, person, organization or line of conduct intended to
promote sale or use of product or range of products. An advertise1nent is an
information that producer provides about its products or services. An
E
advertisement tries to get consu1ners to buy a product or a service. An
advertisement is generally of goods and services and is an information
intended for the potential customers and not a mere display of the name of
the company unless the same happens to be a trade mark or trade name.

It is well settled that ordinarily the words used in the statute are to be F
understood in their natural, ordinary and popular sense. The broad principles
. ' underlying the construction and interpretation of the word or phrase in the
statute is succinctly extracted from the leading authorities and work of
authors and compiled in the book "Principles of Statutory Interpretation"
(9th) Edn. 2004 by Justice G.P. Singh, Chapter 2, page 86 which reads :-
G
-· "When it is said that words are to be understood first in their natural,
ordinary or popular sense, what is meant is that the words must be
ascribes that natural, ordinary or popular meaning which they have
in relation to the subject-matter with reference to which and the
context in which they have been used in the statue. BRETT, M.R. H
76 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.
ll :
A called it a 'cardinal rule' that "Whenever you have to construe a
statute or document you do not construe it according to the mere
ordinary general meaning of the words, but according to the
ordinary meaning of the words as applied to the subject-matter with
regard to which they are used". "No word", says PROFESSOR H.A.
SMITH "has an absolute meaning, for no words can be defined in
B vacuo, or without reference to some context". According to
SUTHERLAND there is a "basic fallacy" in saying "that words
have meaning in and of themselves", and "reference to the abstract
meaning of words", states CRAIES, "if there be any such thing, is
of little value in interpreting statutes". In the words of JUSTICE
c HOLMES : "A word is not a crystal transparent and unchanged; it
is the skin of a living thought and may vary gr~atly in colour and
content according to the circumstances and the time in which it is
used." ~horn of the context, the words by themselves are "slippery
customers". Therefore, in determining the meaning of any word or
phrase in a statute the first question to be asked is-"What is the
D natural or ordinary meaning of that word or phrase in its context
in the statute? It is only when that meaning lea~s to some result
which cannot reasonably be supposed to have been the intention of
the Legislature, that it is proper to look for some possible meaning
of the word or phrase".
E .,,
Section 328A prohibits without prior permission of Commissioner, erection,
exhibition. of advertisement. The advertiser need n_ot ask for permission if
the advertisement is not illuminated or is not a sky sign, provided it is
exhibited in window of any building, or relates to trade or business carried
on within that land or building or ~vhen it relates to sale or letting of that
F property or in reference to any sale, entertainment or meeting organized
therein, or it relates to business of railway company. Exceptions referred in
the provision clearly has nexus and relevance to the business or trade or
commercial activities.

G The context in which the word advertisement has been used in Section
328A of the Corporation Act and in the commercial and ordinary parlance
it must have direct or indirect connection with the business, trade or
commerce carried out by the advertiser. It must have some commercial .
exposition, The adverti~ement would be for the purpose of directing or
soliciting customers .to the product or service prominently shown in the
H
!CIC! BANK LTD. v. MUNICIPAL CORPN. OF GREATER BOMBAY [NAOLEKAR, J.J 77

advertisement. If ordinary parlance meaning is ·not giyen to the word A
, advertisement in Section 328A it will create anomalous position, in as much
as a simple name board put on the house to indicate who is residing in the
t premises, would also be an advertisement; a name board or sign board of
a trader visible to the public or.identifying the place of business would also

I be an advertisement. In our considered opinion advertisement within the
meaning of Section 328A of the Corporation Act must primarily have the B
commercial purpose and should be indicative of business activity of the
displayer with a view to attract the attention of people to its business.

In the present case the appellant has put up an illuminated ATM board
' at various sites and as per the appellant it has been put only to tell the existing
customers and others about the location of the ATM centers, which in itself
c
is in the interest of public at large and not to attract new custo1ners for
opening the bank account. Normally, the ATM centers enable the customers
to carry out the banking activities or transactions at any time , d.ay .or night
and even on gazetted holidays. They are in the nature of public service as
they enable the customers to do away with the need to keep large sum of D
cash in their house; they are able to have access to the money in their account
even on holidays and emergency. The ATM centers have a sign board over
them that are illuminated and tell about the fact that there l·ies the ATM
Center of the bank in that premises. The fact that there is an ATM center
in the premises tells that the appellant ban~ is providing Automatic Teller E
Machine service there and hence the service provider is clearly identified.
The communication in this is direct to the account holders and .also the
prospective account holders. The kind of information supplied of the location
of the service provided may also be construed of commercial exploitation
indirectly, as the sign boards 1nay not aim at the existing custo1ners only but
they may also affect the decisions of the prospective customers. They tell F
the prospective customers that the service of the A TM round the clock is
being made available by the appellant bank which would influence the
prospective customers to make a decision about which service provider he
or she has to choose. The sign board also helps the people to find out which
bank is offering better services as compared to the other bank. The fact that
a Bank has more A TM centers than the other banks, in the competitive trade
G
and business, provides the incentive to the people to choose that Bank. The
fact that one bank has an A TM center in the given location helps them to
get more account holders in that area. This also serves the commercial
interest of the bank. Whether particular action is an advertisement or not
would depend on whether the person wants to promote directly or indirectly H
78 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A his product or service. If by any communication, the communicator tries to
influence the people to buy his product or service or attract towards his
product or service then it would be a guiding factor to identify whether a
particular communication .of the communicator tantamounts to be an
advertisement.

B From the aforesaid analysis, in all fact situation and circumstances, at
the outset it cannot be said that the sign boards indicating ATM centers
cannot have commercial interest but would only tell about the location of
the ATM centers to the existing account holders only. Whether signboard
of ATM Centre tantamounts to be an advertisement or not would depend
c upon the facts of each case, depending on the number of ATM centers
established by a particular bank in a particular locality or place or even city,
to have the flavour of commercial or business interest of the service provider.
In the present case no exercise was .undertaken by the municipal authorities
or the Bombay High Court before the High Court had reached to the
conclusion that the sign boards of the ATM center put up by the ICICI bank
D at different locations would be an advertisement within the meaning ~f
Section 328A of the Corporation Act. In fact the notices issued by the bank
to the appellant are under Section 328, 328A of the Corporation Act. The
reach, ambit and sdope of these sections are quite different and they operate
in different fields. They do not completely overlap. In the circumstances, it
E was appropriate for the Corporation to issue notices to the appellant either
under Section 328 or under Section 328A of the Corporation Act and notice
should not have been issued under both Sections for the same sign board.
The Bombay Municipal Corporation Authorities seem to be in a state of
doubt and hence the notices clearly do not specify under which section they
propose <o take action. As we have made it clear that in the present case the
F sign boards of A TM centers, which are not sky signs, are not covered under
the pr?visions of Section 328 of the Corporation Act, the notices issued shall
be deemed to have been issued under Section 328 A of the Corporation Act
and the Corporation shall decide the question of advertisement under Section
328A of the Act after indicating the bank a fresh date of hearing.
G
For the reasons stated above the appeal is allowed and judgment and
order of the High Court is set aside. Fresh steps can be taken in the light
of the observations in this judgment. In the circumstances of the case we do
not impose any cost and the parties shall bear their own costs.

K.G. Appeal allowed.
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