K L E Socieys Vs the State of Karnataka

K.L.E. SOCIETY’S, KANNADA MEDIUM PRIMARY SCHOOL, ANKALI, TALUK: CHIKKODI, DIST: BELAGAVI, BY ITS PRINCIPAL, SHRI. SHRI KUMAR SIDDAPPA HALINGALI, AGE: MAJOR, OCC: SERVICE, R/O. ANKALI, TQ: CHIKKODI, DIST: BELAGAVI.

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THE KARNATAKA LINGAYAT EDUCATION SOCIETY, BELGAUM KLE SOCIETY, COLLEGE ROAD, REPRESENTED BY ITS SECRETARY, DIST: BELAGAVI, SRI. B.G. DESAI, AGE: 63 YEARS, OCC: SECRETARY, R/O. BELAGAVI-590001.

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…PETITIONERS

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VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH

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(BY SRI. M.B. HIREMATH, ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, DEPARTMENT OF URBAN DEVELOPMENT, BY ITS PRINCIPAL SECRETARY, VIDHANA SOUDHA, DR. AMBEDKAR VEEDI, BENGALURU-01.

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THE GRAM PANCHAYAT, ANKALI, TQ: CHIKODI-590002, DIST: BELAGAVI GRAM PANCHAYAT, BY PANCHAYAT DEVELOPMENT OFFICER.

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…RESPONDENTS

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(BY SRI. S.V. MAGADUM, AGA FOR R1; SRI. SHIVARAJ HIRAMATH, ADVOCATE FOR R2)

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NC: 2025:KHC-D:8530 WP No. 102464 of 2025

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HC-KAR

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO

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A. ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO PASS AN ORDER EXEMPTING THE EDUCATIONAL INSTITUTIONS FROM PAYING PROPERTY TAX UNDER SECTION KARNATAKA GARM SWARAJ AND PANCHAYAT RAJ ACT, 1993.

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B. 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.

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

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ORAL ORDER

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(PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR)

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The petitioner is a Society established in the field of education and is running more than 310 educational institutions not only in the State of Karnataka and country but in overseas locations also. Petitioner No.1 is established by petitioner No.2 society after taking necessary approval.

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This being the state of affairs, respondent No.2 issued notice to the petitioners-Education Institution, directing to pay property tax in respect of the building used for the educational institution.

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3 - NC: 2025:KHC-D:8530 WP No. 102464 of 2025

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HC-KAR

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It is the vehement contention of learned

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counsel that the Educational Institutions are exempted from paying property tax in accordance to the Statute and in a similar matter of identical nature, this Court held that property tax falling under Section 110(1)(i) of the Karnataka Municipal Corporations Act, 1976, would not be applicable to the Educational Institutions. Under the circumstances, petitioner contends that the issuance of notice, directing the petitioners to pay the property tax as sought for by respondent No.2, is not sustainable, as there is an exemption to the petitioner-Educational Institution for payment of property tax towards the Educational Institution and the Building. On these grounds, learned counsel seeks to allow the petition and quash the impugned order passed by respondent No.2 and for a direction to respondent No.2 to refund the tax so collected by the petitioners.

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Learned counsel for the respondents does not dispute the provisions of the Karnataka Municipal

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HC-KAR

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Corporations Act and contends that if there is actually an educational building and institution existing on the said land, they would be entitled for the exemption as provided under the Act and not for building/property other than the educational institution.

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It is relevant to extract Section 110(1)(i) of the

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Karnataka Municipal Corporations Act, 1976, which reads as under:

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“110. General exemptions.- (1) The following buildings and lands shall be exempted from the property tax:-

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(i) building or lands exclusively used for,-

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(a) students hostels which are not established or conducted for profit;

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(b) educational purposes by recognised educational institutions;

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(c) the offices of Labour Associations registered under the Trade Union Act, 1926 and belonging to such Association”

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On careful perusal of the provisions

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hereinabove stated, it is apparently clear and there is no ambiguity with regard to the general exemption granted to

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5 - NC: 2025:KHC-D:8530 WP No. 102464 of 2025

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HC-KAR

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Educational Institutions with regard to payment of property tax. There is sufficient force in the submission made by learned counsel for the petitioner that once the property is an Educational Institution, the building therein is exempted from payment of property tax as per Section

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110(1)(i) of the Act and in view of the judgment of the Coordinate Bench of this Court in W.P.No.101205/2024, the petitioner herein also would deserve similar order on the ground of parity. Under the circumstances, I pass the following:

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ORDER

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(i) Petition is allowed.

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(ii) The impugned notice dated 19.12.2024 passed by the 2^nd respondent demanding tax from the petitioner in respect of education institution is hereby quashed.

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