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Karnataka High Court

Bharath Education Society (R) vs State Of Karnataka on 2 June, 2023

Author: R Devdas

Bench: R Devdas

                                          -1-        W P No. 4881 OF 2023



                   IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                          DATED THIS THE 2ND DAY OF JUNE, 2023

                                          BEFORE
                            THE HON'BLE MR JUSTICE R DEVDAS
                        WRIT PETITION NO. 4881 OF 2023 (LB-
                                                       (LB-BMP)


                   BETW EEN:

                   BHARATH EDUCATION SOCIETY (R)
                   4TH BLOCK, JAYANAGAR,
                   BENGALURU -560011
                                560011
                   REPRESENTED BY ITS SECRETARY,
                   N KRISHNADAS.
Digitally signed
by JUANITA                                                    ...PETITIONER
THEJESWINI
Location:          (BY SRI. MAHESH A S., ADVOCATE)
HIGH COURT
OF                 AND:
KARNATAKA

                   1.   STATE OF KARNATAKA
                        DEPARTMENT OF URBAN DEVELOPMENT,
                        VIKASA SOUDHA,
                        BENGALURU -560001,
                        REPRESENTED BY ITS
                        PRINCIPAL SECRETARY.

                   2.   THE COMMISSIONER
                        BRUHAT BENGALURU MAHANAGARA PALIKE,
                        N R SQUARE,
                        BENGALURU -560002.


                   3.   ASSISTANT REVENUE OFFICER
                        JAYANAGAR SUB DIVISION,
                           -2-         W P No. 4881 OF 2023



     BRUHAT BENGALURU MAHANAGARA PALIKE,
     JAYANAGAR,
     BENGALURU -560011.
                                      ...RESPONDENTS
(BY AGA FOR R1
    SRI. P. CHIDANANDA., ADVOCATE FOR R2 & R3)

     THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF

THE CONSTITTUTION OF INDIA PRAYING TO ISSUE AND WRIT

IN   THE   NATURE    OF   DECLARATION,      OR   ANY       OTHER

APPROPRIATE WRIT, ORDER OR DIRECTION, AND DECLARE

SEC 151(1)(B) OF THE BBMP, ACT 2020 FAR AS EXCLUDES

EDUCATIONAL    PURPOSES         BY    PRIVATE    EDUCATIONA
                                                 EDUCATIONAL

INSTITUTIONS FROM THE BENEFIT OF EXEMPTION AS HIGHLY

DISCRIMINATORY      AND   VIOLATIVE    OF   ARTICLE   14    VIDE

ANNEXURE-A
         A THE EDUCATIONAL PURPOSES BY GOVERNMENT

AND LOCAL AUTHORITY EDUCATIONAL INSTITUTIONS UNDER

SEC 152(1)(B) AND UNDER 110(1)(1)(B) OF THE KARNATAKA
                                            KARNATAK

MUNICIPAL CORPORATION ACT, 1976 AND HENCE ULTRA-
                                          ULTRA

VIRES THE CONSTITUTION OF INDIA AND ETC.,


     THIS PETITION, COMING ON FOR PRELIMINARY HEARING

IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
                              -3-           W P No. 4881 OF 2023


                                ORDER

R.DEVDAS J., (ORAL):

(ORAL) The petitioner, an educational institution is before this Court aggrieved of the demand notice dated 17.01.2023 raised by the respondent-Bruhath respondent Bruhath Bengaluru Mahanagara Palike, seeking payment of property tax. The petitioner has also called in question the provisions contained in Section 152(1)(b) of the Bruhath Bengaluru Mahanagara Palike Act, 2020 (hereinafter referred to as the 'BBMP Act' for short); Circular dated 29.03.2021 issued by the second respondent-Commissioner, respondent Commissioner, BBMP etc.

2. It appears that the Karnataka Municipal Corporations orporations Act, 1956 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 pur purpose of education, recognized by the Government or local

-4- W P No. 4881 OF 2023 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 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 10.03.2023 0.03.2023 substituting the provision re introducing re-introducing similar provisions that were earlier available in the Karnataka Municipal Corporations Act, 1956, 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 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 for the respondent-BBMP respondent BBMP submits that similar orders may

-5- W P No. 4881 OF 2023 be passed in this writ petition taking note of the amendment brought to the BBMP Act.

3. Consequently, this Court proceeds to pass the following wing order:

       i)     Writ petition is allowed.


       ii)    The    impugned       demand        notice   dated

17.01.2023 is hereby quashed and set aside.

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.

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

Ordered accordingly.

Sd/-

JUDGE JT/-