Bombay High Court
Jyoti Shikshan Prasarak Mandal, ... vs State Of Maharashtra, Thr. Its ... on 17 October, 2022
Bench: A.S. Chandurkar, M. W. Chandwani
40-WP-4383-21with connected writ petitions 1/6
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR.
WRIT PETITION NO.4383 OF 2021
Jyoti Shikshan Prasarak Mandal, Akola
Through its Secretary
Prashant Uttamrao Janolkar,
Add-Kapilvastu Nagar, Behind Vijay
Colony, Gaorakshan Road,
Tah. & Dist. Akola ... Petitioner
-vs-
1. State of Maharashtra, Through its Secretary,
Urban Development Department, Mantralaya, Mumbai-32
2. The Akola Municipal Corporation,
Through its Commissioner, Akola
Tah. Dist. Akola ... Respondents
WITH
WRIT PETITION NO.4401 OF 2021
Shri Saraswati Education Society,
Akola, Through its Secretary
Mr Sachin Keshav Joshi,
Add-" Ishkrupa", 27, Keshav Nagar, Akola
Tah. & Dist. Akola ... Petitioner
-vs-
1. State of Maharashtra, Through its Secretary,
Urban Development Department, Mantralaya, Mumbai-32
2. The Akola Municipal Corporation,
Through, its Commissioner, Akola
Tah. Dist. Akola ... Respondents
WITH
WRIT PETITION NO.4425 OF 2021
1. Ladies Home Class Society, Akola
Through its Secretary
Mrs Vidula Anniruddha Chaudhary
Add- Ramdaspeth, Near Government
B.Ed College, Akola
40-WP-4383-21with connected writ petitions 2/6
Tah. & Dist. Akola
2. Manutai Kanya Shala, Akola,
Through its Head Mistress,
Mrs Aishwarya Ajay Dharaskar,
R/o Gajananpeth, Raut wadi, Akola ... Petitioners
-vs-
1. State of Maharashtra, Through its Secretary,
Urban Development Department, Mantralaya, Mumbai-32
2. The Akola Municipal Corporation,
Through, its Commissioner, Akola
Tah. Dist. Akola ... Respondents
WITH
WRIT PETITION NO.4443 OF 2021
1. Akola Education Society,
Through its Secretary
Shrikrishna Rajaram Amravatikar,
Add-New Bhagat Plots,
Tah. & Dist. Akola
2. New English High School
And Junior College, Akola,
Through Its Head Master,
Mr Madhav Sudhakar Munshi,
R/o Birla Colony, Akola
3. G. D. Platinum Jubilee
English School, Kharap, Bq.,
Akola, Through its Head Mistress,
Mrs Madhura Suryakant Bhartiya,
R/o Jatharpeth, Prasad Colony, Akola ... Petitioners
-vs-
1. State of Maharashtra, Through its Secretary,
Urban Development Department, Mantralaya, Mumbai-32
2. The Akola Municipal Corporation,
Through its Commissioner, Akola
Tah. Dist. Akola ... Respondents
40-WP-4383-21with connected writ petitions 3/6
WITH
WRIT PETITION NO.4750 OF 2021
1. Savitribai Fule Shikshan Prasarak Mandal,
Paras, Through, its Secretary
Mr Dhananjay Baliram Shiraskar,
Add- Pola Chowk, Paras,
Tq. Balapur, Dist. Akola
2. Dr Sushilabai Deshmukh Secondary and
Higher Secondary School, Mothi Umari,
Akola, Through its Principal,
Anil Vasantrao Masne, R/o Uttara Colony,
Lahan Umari, Akola
3. Sant Gajanan Baba Primary School, Akola,
Through Its Principal, Mrs Saroj Anant Shegokar,
R/o Mothi Umari, Akola ... Petitioners
-vs-
1. State of Maharashtra, Through its Secretary,
Urban Development Department, Mantralaya, Mumbai-32
2. The Akola Municipal Corporation,
Through, its Commissioner, Akola
Tah. Dist. Akola ... Respondents
Shri A. R. Deshpande, Advocate for petitioners.
Shri D. P. Thakare, Additional Government Pleader for respondent No.1.
Shri S. S. Sohoni, Advocate for respondent No.2.
CORAM : A. S. CHANDURKAR AND M. W. CHANDWANI, JJ.
DATE : October 17, 2022
Common Judgment (Per : A. S. Chandurkar, J.)
Rule. Rule made returnable forthwith and heard the learned
counsel for the parties.
Since similar issues are raised in these writ petitions, they are
being decided by this common judgment.
40-WP-4383-21with connected writ petitions 4/6
2. Each petitioner is a charitable Trust which claims that in view
of provisions of Section 132(1)(b) of the Maharashtra Municipal
Corporation Act, 1949 (for short, the Act of 1949) it is exempted
from paying general taxes. To substantiate this claim reliance is
placed on the judgment of the Honourable Supreme Court in
Municipal Corporation of Delhi vs. Children Book Trust (1992) 3
SCC 390 to urge that since each Trust is running educational
institutions that are imparting education, each Trust is not liable to
pay general tax.
3. The Municipal Corporation has issued demand notices to
each petitioner seeking payment of various taxes including general
tax. Each petitioner has raised objection to the demand of such tax
by relying upon the provisions of Section 132(1)(b) of the Act of
1949. The grievance of the petitioners is that notwithstanding such
objection being raised, the demand is being pursued and the
property of the Trusts is being attached. Hence these writ petitions
have been preferred.
4. After hearing the learned counsel for the parties we find that
the judgment in Children Education Trust (supra) has been
considered by the Division Bench of this Court in Writ Petition
40-WP-4383-21with connected writ petitions 5/6
No.927/2018 (Shambhu Educations Society, Patur, Dist. Akola vs.
State of Maharashtra, Thr. Secretary, Urban Development Dept.
Mumbai and anr.) decided on 16/08/2019 wherein while observing
that the Municipal Corporation ought to treat the activity of
imparting education as a public charitable activity for the purposes of
exemption of tax, it was observed that the Municipal Corporation
hwould be entitled to analyse the balance-sheets and bye-laws of the
Trust in the light of the aforesaid decision of the Honourable
Supreme Court.
5. It is seen that in each writ petition the Trust had submitted
its reply to the demand notice after which the Municipal Corporation
had sought to attach the Trust's property. We find that before
enforcing the demand for general tax, it would be necessary for the
Municipal Corporation to analyse the balance-sheets and bye-laws of
each Trust in question in the light of the law laid down by the
Honourable Supreme Court in Children Book Trust (supra).
6. In that view of the matter, the following directions would
serve the interest of justice :
(i) The demand of general tax as made from each petitioner-
Trust shall not be enforced until the Municipal Corporation
considers the representation/reply submitted by the
40-WP-4383-21with connected writ petitions 6/6
petitioners-Trust based on the judgment in Children Book
Trust (supra) to determine the liability of each Trust to pay
general tax.
(ii) The Municipal Corporation is free to issue fresh show cause
notice to each Trust demanding general tax and grant an
opportunity to the Trust to put forth its stand in accordance
with law. After considering all relevant documents including
balance-sheets and bye-laws of the Trust, the Municipal
Corporation would be free to take a decision with regard to
the liability of the public Trusts to pay general tax. To that
extent, the impugned demand notice issued to each
petitioner-Trust demanding general tax shall not be enforced
till such decision is taken by the Municipal Corporation.
(iii) The petitioners are free to respond to the show cause notice, if
issued by the Municipal Corporation by filing additional reply
if necessary.
(iv) It is clarified that insofar as demand of other taxes is
concerned, it is open for the Municipal Corporation to enforce
such demand and the petitioners would be free to avail the
statutory remedy provided under the Act of 1949 if they are
aggrieved by such demand.
(v) The entire exercise be completed within a period of three
months from today on its own merits and in accordance with
law.
With these directions the writ petitions are disposed of.
No costs.
Digitally signed byASMITA
ADWAIT BHANDAKKAR (M. W. Chandwani, J.) (A. S. Chandurkar, J.)
Signing Date:18.10.2022
Asmita
18:00:43
