Karnataka High Court
Kasturba Education Trust vs The State Of Karnataka on 20 April, 2023
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
-1-
WP No. 8197 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 20TH DAY OF APRIL, 2023
BEFORE
THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO.8197 OF 2022 (LB-BMP)
BETWEEN:
KASTURBA EDUCATION TRUST
NO.30, KEMPAPURA, HEBBAL,
BANGALORE-560024
REPRESENTED HEREIN BY ITS
MANAGING TRUSTEE,
Ms HANSA R. VITHANI
...PETITIONER
(BY SRI. SANDEEP HUILGOL., ADVOCATE)
AND:
1. THE STATE OF KARNATAKA
REPRESENTED HEREIN BY THE
PRINCIPAL SECRETARY,
URBAN DEVELOPMENT DEPARTMENT,
VIKASA SOUDHA,
Digitally signed BANGALORE-560001
by SHWETHA
RAGHAVENDRA
2. BRUHAT BANGALORE MAHANAGARA PALIKE
Location: HIGH
COURT OF REPRESENTED BY ITS CHIEF COMMISSIONER,
KARNATAKA N R SQUARE,
BENGALURU-560001
3. THE ASSISTANT REVENUE OFFICER
OFFICE OF THE ASSISTANT REVENUE OFFICER,
KODIGEHALLI SUB DIVISION,
BENGALURU-560092
4. THE COMMISSIONER
BRUHAT BENGALURU MAHANAGARA PALIKE,
N R SQUARE,
BENGALURU-560001
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WP No. 8197 of 2022
5. THE PRINCIPAL SECRETARY
STATE OF KARNATAKA,
URBAN DEVELOPMENT DEPARTMENT,
VIDHANA SOUDHA,
BENGALURU-560001
6. THE PRINCIPAL SECRETARY
STATE OF KARNATAKA,
DEPARTMENT OF PRIMARY AND
SECONDARY EDUCATION,.
VIDHANA SOUDHA,
BENGALURU-560001
...RESPONDENTS
(BY SRI. NITYANANDA., AGA ., R1, 5, 6;
SRI. SANTOSH KUMAR M.B. HCGP FOR R3 & R4)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO DECLARING THAT THE
IMPUGNED SECTION 152(1) (i)(b) OF THE BBMP ACT (ANNEXURE-A)
IS UNCONSTITUTIONAL FOR BEING VIOLATIVE OF ARTICLES 14,
21A, 38, 39(1)(f) AND 51(A)(k) OF THE CONSTITUTION OF INDIA
AND ETC.
THIS WRIT PETITION, COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE
FOLLOWING:
ORDER
1. The petitioner is before this Court seeking for the following reliefs:
i) Declaring that the impugned Section 152(1)(i)(b) of the BBMP Act (Annexure-A) is unconstitutional for being violative of Articles 14, 21A, 38, 39(1)(f) and 51(A)(k) of the Constitution of India;
ii) Quashing the impugned Circular bearing No.JC(R)/PR 2607:2020-21 dated 29.03.2021 issued by the 4th respondent (Annexure-C);-3- WP No. 8197 of 2022
iii) Directing the respondents to forthwith refund the property tax amounting to Rs.7,44,119/- that was remitted by the petitioner for FY 2021-22 on 30th June 2021 (Annexure-L) together with interest thereon from the date of payment till the date(s) on which the refund is paid to the petitioner:
iv) Quashing the impugned intimation dated 01.04.2022 issued by the 3rd respondent in Form V bearing Version No.9.0-5 vide which the petitioner has been directed to pay Rs.7,44,119/- as property tax under the BBMP Act for FY 2022-23 (Annexure-P);
v) Restraining the respondents from issuing any demand notices to the petitioner or raising any fresh demands on the petitioner under the BBMP Act for payment of property tax; and
vi) Pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity.
2. In the above matter, a declaration has been sought for that Section 152(1)(i)(b) of the Bruhath Bengaluru Mahanaga Palike Act, 2020 (for short the 'BBMP Act') insofar as it excludes education purposes by private education institutions, is violative of Article 14 of the Constitution of India and is discriminatory. It is in that background that a circular which has been issued under Section 152(1)(i)(b) of the BBMP Act by the BBMP notifying that private institutions do not have the benefit of -4- WP No. 8197 of 2022 exemption from payment of property tax has been challenged. Consequently, the demand notice issued by the BBMP calling upon the petitioner to make payment of property tax is also challenged.
3. During the pendency of the above matter, the State Government has amended Section 152(1)(i)(b) of the BBMP Act on 10.03.2023 substituting Section 152(1)(i)(b) of the BBMP Act with the following: "the education institutions established for the purpose of education, recognized by the government or local authority".
4. In view of the said amendment, the discrimination alleged by the petitioner against private education institutions vis-a-vis government education institutions does not survive inasmuch as all education institutions which have been recognized by the government or local authority would be entitled for exemption. Thus, a declaration which has been sought for in the above matter in respect of -5- WP No. 8197 of 2022 152(1)(i)(b) of the BBMP Act has been violative of Article 14 of the Constitution of India does not survive for consideration.
5. In view of the amendment, the circular which has been issued on 29.03.2021 notifying that private institutions do not have the benefit of exemption would be required to be quashed on account of Section 152(1)(i)(b) of BBMP Act has been amended by clarifying that any institution which is recognized by the government or local authority would be entitled for exemption.
6. The consequential prayer seeking for quashing the demand notices which have been issued by the BBMP to the petitioner in furtherance of the circular dated 29.03.2021 would also have to be quashed in view of the circular having been quashed.
7. It is made clear that if the petitioner has deposited any amount in view of any interim orders passed by -6- WP No. 8197 of 2022 this Court, the same is directed to be adjusted to future tax payments due by the petitioner on the said properties.
8. With the above observations, the Writ Petition is disposed of.
Sd/-
JUDGE PRS List No.: 2 Sl No.: 2