Karnataka, Dharwad Bench & Anr. v. The State of Karnataka & Anr.

1. J.G. COLLEGE OF COMMERCE, (KLE SOCIETY’S JAGADGURU GANGADHAR COLLEGE OF COMMERCE) VIDYANAGAR, HUBBALLI, DISTRICT: DHARWAD, BY ITS PRINCIPAL, SHRI SHANKARGOUDA PATIL, AGE: MAJOR, OCC: PRINCIPAL, R/O. VIDYANAGAR, HUBBALLI, DISTRICT: DHARWAD. GIRIJA A BYAHATTI

GIRIJA A BYAHATTI Location: High Court of Karnataka, Dharwad Bench

2. THE KARNATAKA LINGAYAT EDUCATION SOCIETY, BELGAUM, KLE SOCIETY, COLLEGE ROAD, REPRESENTED BY ITS SECRETARY, DISTRICT: BELAGAVI, SRI. B.G. DESAI, AGE: 63 YEARS, OCC: SECRETARY, R/O. BELAGAVI-590001. …petitioners (BY SRI. MALLIKARJUNSWAMY B. HIREMATH & SMT. GAYATRI S.R., ADVOCATES) And:

THE STATE OF KARNATAKA, DEPARTMENT OF URBAN DEVELOPMENT, BY ITS PRINCIPAL SECRETARY, VIDHAN SOUDHA, DR. AMBEDKAR VEEDI, BENGALURU-01. - 2 - NC: 2025:KHC-D:2944 WP No. 101034 of 2025

THE HUBLI-DHARWAD MUNICIPAL CORPORATION, R/BY ITS COMMISSIONER, HUBLI, DISTRICT: DHARWAD-580008. …RESPONDENTS (BY SRI. V.S. KALASURMATH, AGA FOR R1; SRI. BHUSHAN KULKARNI, ADVOCATE FOR R2) 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.138047, 138049, 138050, 138048, 138060, 138061, 138062 SITUATED IN VIDYA NAGAR HUBLI; ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESP9ONDENT 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 institution that petitioner No.1 being an educational paying property tax under Section 110(1)(i) of Karnataka Municipal Corporations Act 1976 in the property bearing PID respect of 138048, 138050, 138049, No.138047, is exempted - 3 - NC: 2025:KHC-D:2944 WP No. 101034 of 2025 138060, 138061, 138062 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.

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.138047, 138049, 138050, 138048, 138060, 138061, 138062 situated in Vidya Nagar, 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.

The lis in the above matter is covered by the judgment of this Court in the case of the - 4 - NC: 2025:KHC-D:2944 WP No. 101034 of 2025 Karnataka Lingayat Education Society, Belgaum & Anr., vs. The State of Karnataka & Anr.,1 This Court has categorically held that the educational institution is exempted property taxes under Section 94(1-A)(i) of the Karnataka Municipalities Act, 1964, which is in pari materia with Section 110(1) (i) of the Karnataka Municipal Corporation Act, 1976.

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.