Karnataka High Court
Shri. Kodasiddheswar Arts College vs The State Of Karnataka on 13 February, 2025
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
-1-
NC: 2025:KHC-D:2948
WP No. 101058 of 2025
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 13TH DAY OF FEBRUARY, 2025
BEFORE
THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO. 101058 OF 2025 (LB-TAX)
BETWEEN:
1. SHRI. KADASIDDHESWAR ARTS COLLEGE,
H.S. KOTAMBRI SCIENCE INSTITUTE, HUBBALLI,
BY ITS PRINCIPAL,
SMT. SUMANGALA B. PATIL,
AGE: MAJOR, OCC: PRINCIPAL,
R/O. VIDYANAGAR, HUBBALLI,
DISTRICT: DHARWAD.
2. THE KARNATAKA LINGAYAT EDUCATION SOCIETY,
BELGAUM, KLE SOCIETY, COLLEGE ROAD,
REPRESENTED BY ITS SECRETARY,
DISTRICT: BELAGAVI,
SRI. B.G. DESAI,
AGE: 68 YEARS, OCC: SECRETARY,
R/O. BELAGAVI-590001.
...PETITIONERS
(BY SRI. MALLIKARJUNSWAMY B. HIREMATH &
SMT. GAYATRI S.R., ADVOCATES)
AND:
GIRIJA A
BYAHATTI 1. THE STATE OF KARNATAKA,
Digitally signed by
GIRIJA A BYAHATTI
DEPARTMENT OF URBAN DEVELOPMENT,
Location: High Court of
Karnataka, Dharwad
Bench
BY ITS PRINCIPAL SECRETARY,
Date: 2025.02.18
12:05:00 +0530
VIDHANA SOUDHA, DR. AMBEDKAR VEEDI,
BENGALURU-01.
2. THE HUBLI-DHARWAD MUNICIPAL CORPORATION,
R/BY ITS COMMISSIONER,
HUBLI, DISTRICT: DHARWAD-580001.
...RESPONDENTS
(BY SRI. V.S. KALASURMATH, AGA FOR R1;
SRI. BHUSHAN KULKARNI, ADVOCATE FOR R2)
-2-
NC: 2025:KHC-D:2948
WP No. 101058 of 2025
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO 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. PID NO.98984 AND 138060 SITUATED
IN VIDYANAGAR HUBLI; ISSUE A WRIT IN THE NATURE OF
MANDAMUS DIRECTING THE RESPONDENT NO.2 TO REFUND THE
TAX COLLECTED BY THE PETITIONER TILL DATE AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY 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.
Sri. Bhushan Kulkarni, learned counsel, is directed to
accept 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
under Section 110(1)(i) of Karnataka Municipal
Corporations Act, 1976 in respect of the property
bearing PID No. PID No.98984 and 138060 situated
in Vidyanagar 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.
NC: 2025:KHC-D:2948
3. The petitioner No.2 claims to be a Society involved in
educational activities. Petitioner No.1 is one of the
colleges run by the petitioner No.2 Society. On a
demand being made by respondent No.2, the
petitioners have made payment of municipal taxes in
respect of property bearing PID No.98984 and
138060 situated in Vidyanagar, Hubballi. The
petitioners are before this Court contending that the
said demand made was unjustified. The demand
having been made under protest, the amount is
required to be refunded to the petitioners.
4. The lis in the above matter is covered by the
judgment of this Court in the case of the Karnataka
Lingayat Education Society, Belgaum & Anr., vs.
The State of Karnataka & Anr.,1 This Court has
categorically held that the educational institution is
exempted from the property taxes under Section
94(1-A)(i) of the Karnataka Municipalities Act, 1964,
W.P.No.100260/2025 dated 23.1.2025
NC: 2025:KHC-D:2948
which is in pari materia with Section 110(1) (i) of the
Karnataka Municipal Corporation Act, 1976.
5. In that view of the matter, I am of the considered
opinion that the Municipal Corporation not being
entitled for collection of property taxes in respect of
the education institution, the payment made by the
petitioners under protest is required to be refunded
to the petitioners.
6. Hence, I pass the following:
ORDER
i. The Writ Petition is allowed.
ii. It is declared that the properties of the
petitioners which are exclusively used for
educational purposes could be exempt
from making payment of property taxes
under Section 110(1)(i) of the Karnataka
Municipal Corporation Act, 1976.
However, if there is any portion of the
NC: 2025:KHC-D:2948
building, which is used for non-education
purposes, the Society would be required to
make payment of property taxes in
relation thereto.
iii. A Mandamus is issued directing respondent
No.2 to refund the tax collected from the
petitioners within a period of 60 days from
the date of receipt of copy of this order.
iv. Liberty is reserved to respondent No.2 to
conduct a survey and identify the
properties which are not exclusively used
for education purposes and raise demand
in respect of those properties which are
used for commercial purposes and not
used exclusively for education purposes.
v. Needless to say the refund is to be made of
the amount in excess of the demand made
in terms of the liberty reserved.
NC: 2025:KHC-D:2948
In view of disposal of the main petition, pending
I.As., if any, do not survive for consideration. Hence, the
same stands disposed of.
Sd/-
(SURAJ GOVINDARAJ)
JUDGE
gab
CT-MCK
