K L E Institute Of Technology vs The State Of Karnataka
2025 Latest Caselaw 5697 Kant

Karnataka High Court

K L E Institute Of Technology vs The State Of Karnataka on 18 August, 2025

Author: Suraj Govindaraj

Bench: Suraj Govindaraj

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                                                       NC: 2025:KHC-D:10319
                                                     WP No. 102508 of 2025


                   HC-KAR




                               IN THE HIGH COURT OF KARNATAKA,
                                       DHARWAD BENCH

                            DATED THIS THE 18TH DAY OF AUGUST, 2025

                                            BEFORE

                        THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

                          WRIT PETITION NO. 102508 OF 2025 (LB-TAX)

                   BETWEEN:

                   1.   K.L.E INSTITUTE OF TECHNOLOGY
                        HUBBALLI,
                        OPP. TO AIRPORT, GOKUL ROAD, HUBBALLI,
                        BY ITS PRINCIPAL,
                        SHRI MANU MANJUNTH TUDUAM,
                        AGE: MAJOR, OCC. SERVICE,
                        R/O. OPP TO AIRPORT, GOKUL ROAD,
                        HUBBALLI-580027.

                   2.   THE KARNATAKA LINGAYAT EDUCATION SOCIETY
                        BELGAUM, KLE SOCIETY, COLLEGE ROAD,
                        REPRESENED BY ITS SECRETARY
                        DISTRICT. BELAGAVI,
Digitally signed
by V N BADIGER          SRI. B G DESAI, AGE: 63 YERAS,
Location: High          OCC. SECRETARY, R/O. BELAGAVI-590001.
Court of                                                      ...PETITIONERS
Karnataka,
Dharwad Bench,
Dharwad            (BY SRI. MALLIKARJUNSWAMY B HIREMATH, ADVOCATE)

                   AND:

                   1.   THE STATE OF KARNATAKA
                        DEPARTMENT OF URBAN DEVELOPMENT,
                        BY ITS PRINCIPAL SECRETARY,
                        VIDHANA SOUDHA,
                        DR. AMBEDKAR VEEDI,
                        BENGALURU 01.
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                                          NC: 2025:KHC-D:10319
                                        WP No. 102508 of 2025


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2.  THE HUBLI DHARWAD MUNICIPAL CORPORATION
    R/BY ITS COMMISSIONER, HUBBALLI,
    DISTRICT: DHARWAD 580001.
                                        ...RESPONDENTS
(BY SRI. SHARAD V. MAGADUM, AGA FOR R1;
    SRI. BHUSHAN KULKARNI, ADVOCATE FOR R2)

     THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO A. DECLARE THAT
PETITIONER NO.1 BEING AN EDUCATIONAL INSTITUTION IS
EXEMPTED FROM PAYING PROPERTY TAX UNDER SECTION
110(1)(I) OF KARNATAKA MUNICIPAL CORPORATIONS ACT
1976 IN RESPECT OF THE PROPERTY BEARING PID NO. 178962
SITUATED IN VIDYA NAGAR HUBLI. B. ISSUE A WRIT IN THE
NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2
TO REFUND THE TAX COLLECTED BY THE PETITIONER TILL
DATE.C. ISSUE SUCH OTHER WRIT OR ORDER AS DEEMED FIT
IN THE INTEREST OF JUSTICE AND EQUITY.

     THIS PETITION, COMING ON FOR PRILIMINARY HEARING
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:


                           ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ)

1. Learned AGA accepts notice for respondent No.1.

Shri Bhushan Kulkarni accepts notice for respondent

No. 2.

2. The petitioners are before this Court seeking for the

following reliefs:

a. Declare that petitioner no.1 being an educational institution is exempted from paying property tax

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under section 110(1)(i) of Karnataka Municipal Corporations Act 1976 in respect of the property bearing PID No. 178962 situated in Vidya Nagar Hubli.

b. Issue a writ in the nature of Mandamus directing the respondent no.2 to refund the tax collected by the petitioner till date.

c. Issue such other writ or order as deemed fit in the interest of justice and equity.

3. The petitioners are before this Court, aggrieved by the

action of the respondents in levying property tax on the

petitioners' property, which is stated to be used for the

purpose of carrying on educational activities.

4. Relying on the judgment of this Court in W.P.

No.87922/2012, dated 23.05.2023, learned counsel for

the petitioners submitted that insofar as any property

which is used for educational purposes, there is an

exemption from payment of property tax.

5. Heard Sri.Mallikarjun B Hiremath, learned counsel for

the petitioners and Sri.Sharad V Magadum, learned

AGA for respondent No.1 and Sri.Bushan Kulkarni,

learned counsel for respondent No.2 and perused the

papers.

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6. In view of the order dated 23.05.2023, passed in W.P.

No. 87922/2012, the respondents cannot levy property

tax on the portion of the property used exclusively for

educational purposes. Accordingly, the respondents

may levy property tax only on those portions of the

property which are not exclusively used for educational

purposes.

7. In light of the above, I pass the following

ORDER

i) The writ petition is partly allowed.

ii) The respondents are restrained from levying

property tax in respect of the portion of the

property used exclusively for educational

purposes.

iii) Liberty is reserved to the respondents to conduct

survey of the property, ascertain the portions not

exclusively used for educational purposes, and to

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issue necessary notices under the applicable

provisions of law.

Sd/-

(SURAJ GOVINDARAJ) JUDGE

VB CT:PA