Delhi HC halts MCD action against Nambi Wildwell over ad fee dispute

The Hon’ble Delhi High Court today heard a petition challenging the Municipal Corporation of Delhi’s (MCD) demand notices imposing advertisement fees and penalties against Nambi Wildwell Limited. 

The petition, titled "Nambi Wildwell Limited & Anr. vs. Municipal Corporation of Delhi & Anr." (W.P. (C) 5969/2025), contends that MCD’s demands lack statutory backing under the Delhi Municipal Corporation Act, 1957 and related Advertisement Bye-laws.

During the hearing, Senior Advocates Rajiv Nayar and  BB Gupta, representing the Petitioners, argued that penalties could only be imposed by a Magistrate under Section 461 of the Act. They further stated that although the Petitioners had paid the demanded amount under protest and removed the advertisements in October 2024, they were denied a personal hearing by MCD, thereby violating the principles of natural justice.

The Petitioners cited the precedent set by the "Sports and Leisure Apparel Ltd. vs. MCD & Anr." judgment, which ruled that MCD lacks the authority to independently impose penalties. This judgment had reached finality, bolstering their argument.

Opposing the petition, MCD defended its actions by referring to its powers derived from the 2017 Outdoor Advertisement Policy and alleged that the Petitioners had implicitly accepted liability by their actions.

Recognizing the complexity and importance of the matter, the Hon’ble Court directed that no coercive action be undertaken against the Petitioners until the issue is resolved. The Court granted time to the respondents for filing their replies and clarified that future advertisements within the mall must strictly adhere to applicable legal and commercial requirements.

The Petitioners’ legal team was briefed by Karanjawala & Co., led by Meghna Mishra (Senior Advocate), along with Ankit Rajgarhia (Principal Associate) and Rohit Kumar (Associate).