M/S Lisie Medical Institutions vs The State Of Kerala . on 9 February, 2023
8 At this stage, it would be material to note the submission of the respondents,
urged by Mr V Giri, senior counsel, to the effect that apart from the
interpretational issue which is addressed in the decision of the two-Judge Bench in
SH Medical Centre Hospital (supra), the Court has dwelt on other aspects of
Section 3(1). Mr. Giri adverted to the expression “buildings used principally for …
charitable … purposes” in Section 3(1)(b) and urges that the interpretation of that
phrase in the decision in SH Medical Centre Hospital is correct.
9 Undoubtedly, Section 3(1)(b) provides that nothing in the Act shall apply to
buildings which are used ‘principally’ for specific purposes, including among them,
‘charitable purposes’. The expression “principally” conveys the meaning of that
which is the dominant purpose. The interpretation placed by the two-Judge Bench
on the expression “principally used for charitable purposes” does not call for
interference in view of the statutory language used in Section 3(1). Principal use
refers to the dominant substantive use as distinguished from an ancillary use.
10 The Explanation goes to indicate that ‘charitable purposes’ includes and is,
therefore, not confined to the relief of the poor and free medical relief.