Allowed

Seshadripuram Law College v. the State of Karnataka

Karnataka HC10 Jul 2023WP/2275/2023

Case brief

AI extract

What is this about?

An educational institution challenged a property tax demand via writ petition. The Court allowed the petition and quashed the demand notice and a relevant circular based on the amendment in the BBMP Act, 2020, which reintroduced tax exemption for such institutions.

What did the court decide?

Writ petition allowed; impugned demand notice dated 18.01.2023 quashed; Circular dated 29.03.2021 quashed.

Seshadripuram Law College Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2023)

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NC: 2023:KHC:23791 WP No. 2275 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 10^TH DAY OF JULY, 2023

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BEFORE

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THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 2275 OF 2023 (LB-TAX)

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BETWEEN:

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Digitally signed by JUANITA THEJESWINI Location: HIGH COURT OF KARNATAKA

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SESHADRIPURAM LAW COLLEGE NO.1, GOVINDA RAO STREET SESHADRIPURAM, BANGALORE 560020 ESTABLISHED AND RUN BY SESHADRIPURAM EDUCATIONAL TRUST REGISTERED UNDER THE INDIAN TRUST ACT 1962 NO 27, NAGAPPA STREET, BANGALORE 560020 REPRESENTED BY ITS HON GEN SECRETARY DR WOODAY P KRISHNA S/O LATE W H PUTTAIAH AGED ABOUT 59 YEARS

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(BY SRI. GOUTHAM A. R., ADVOCATE)

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…PETITIONER

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AND:

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THE STATE OF KARNATAKA REP BY ITS PRINCIPAL SECRETARY DEPARTMENT OF URBAN DEVELOPMENT M S BUILDING DR AMBEDKAR ROAD BANGALORE 560001

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NC: 2023:KHC:23791 WP No. 2275 of 2023

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BRUHAT BENGALURU MAHANAGARA PALIKE REPRESENTED BY ITS COMMISSIONER N R SQUARE BENGALURU KARNATAKA 560002

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…RESPONDENTS

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(BY SRI. NITHYANANDA K.R., AGA FOR R1 SRI. B.V. MURALIDHAR, ADVOCATE FOR R2)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE PRIVATE EDUCATIONAL INSTITUTIONS ESTABLISHED AND ADMINISTERED WITHIN BRUHAT BANGALORE MAHANAGARA PALIKE AREA NOT LIABLE TO PAY PROPERTY TAX UNDER THE BRUHAT BANGALORE MAHANAGARA PALIKE ACT 2020 AND ETC.,

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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R.DEVDAS J., (ORAL):

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The petitioner, an educational institution is before this Court aggrieved of the demand notice dated 18.01.2023 raised by the respondent-Bruhat Bengaluru Mahanagara Palike, seeking payment of property tax. The petitioner has also called in question the provisions contained in Section 152(1)(i)(b) of the Bruhat Bengaluru

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3 - NC: 2023:KHC:23791 WP No. 2275 of 2023

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Mahanagara Palike Act, 2020 (hereinafter referred to as the ‘BBMP Act’ for short); Circular dated 29.03.2021 issued by the second respondent-Commissioner, BBMP etc.

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It appears that the Karnataka Municipal Corporations Act, 1976 which was earlier governing the municipal area including the BBMP had a provision contained in Section 110 of the said Act, granting exemption from payment of property tax to educational institutions which were established for the purpose of education, recognized by the Government or local authority. However, on the enactment of the BBMP Act, 2020, such a provision was discontinued in the similar provision contained in Section 152 of the Act. Nevertheless, when many such institutions filed writ petitions before this Court and interim orders were passed

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by this Court, the State Government appears to have taken note of the same and amended the provisions contained in Section 152(1)(i)(b) of the BBMP Act, on

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4 - NC: 2023:KHC:23791 WP No. 2275 of 2023

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10.03.2023 substituting the provision re-introducing

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similar provisions that were earlier available in the Karnataka Municipal Corporations Act, 1976, to exempt such educational institutions from payment of property tax. In view of the same, all such writ petitions which were pending consideration before this Court were disposed of including the case of the Management

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Association of Schools, Karnataka and Another Vs. the State of Karnataka and Others in W.P.No.12954/2001 dated 17.04.2023. Learned Counsel

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for the respondent-BBMP submits that similar orders may be passed in this writ petition taking note of the amendment brought to the BBMP Act.

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Consequently, this Court proceeds to pass the following order:

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i) Writ petition is allowed .

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ii) The impugned demand notice dated 18.01.2023 at Annexure ‘F’ is hereby quashed and set aside.

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5 - NC: 2023:KHC:23791 WP No. 2275 of 2023

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iii) In view of the amendment brought to Section 152(1)(i)(b) of BBMP Act, the Circular which has been issued on 29.03.2021 is also quashed.

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Needless to observe that if the petitioner has deposited any amount before the BBMP or in terms of any interim orders that are passed by this Court, the same shall be adjusted to future tax payment due from the petitioner.

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Ordered accordingly.

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Sd/JUDGE

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JT/-

Seshadripuram Law College v. the State of Karnataka

Case brief

What is this about?

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Seshadripuram Law College v. the State of Karnataka

Case brief

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