Rajasthan High Court Stays Demand Notice Against HDFC, Cites RBI Circular Allowing Banks To Display Signboard On Premises Without Fee

The Rajasthan High Court (Jaipur Bench) of Justice Anoop Kumar Dhand, recently, passed an interim order in a writ petition filed by HDFC bank. In the interim order, the court stayed the effect and operation of a demand notice issued by the Nagar Parishad Jhunjhunu to HDFC Bank. 

Advocate Naman Yadav, representing the HDFC Bank, submitted that it was a banking institution governed by the guidelines issued by the Reserve Bank of India (RBI). Accordingly, the bank had affixed a display board/signboard on its premises. The Municipal Corporation of Jhunjhunu, however, issued a demand notice to the bank seeking advertisement fees for the signboard. 

Advocate Yadav argued that such advertisement fees could not be demanded by the municipal body in view of Clause 83.1 of the RBI circular dated July 1, 2025, and the judgment passed by the Supreme Court in Harsh Automobiles Private Limited v Indore Municipal Corporation [(2024) 2 SCC 485]. 

Taking a note of these submissions, the court issued notice on the writ petition as well as on the stay application, making the rule returnable by July 24, 2025. The court directed that the notices be served. 

While considering the contentions raised by the petitioner, the court ordered that the operation and effect of the impugned notice by the Municipal corporation be stayed until the next date of hearing. The bench also clarified that the interim order would come into effect only after the service of notice upon the respondents. 

For Petitioner: Advocate Naman Yadav

Case Title: Hdfc Bank Limited v Nagar Parishad Jhunjhunu (S.B. Civil Writ Petition No. 6676/2025)

Citation: 2025 LiveLaw (Raj) 206

Click here to read the order