- 1 - NC: 2025:KHC-D:1402 WP No. 100254 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 24TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 100254 OF 2025 (LB-TAX) BETWEEN: 1. THE KARNATAKA LINGAYAT EDUCATION SOCIETY, BELGAUM, KLE SOCIETY, COLLEGE ROAD, REPRESENTED BY ITS SECRETARY, DISTRICT: BELAGAVI, SRI. B.G. DESAI, AGE: 63 YEARS, OCC: SECRETARY, R/O. BELAGAVI-590001. 2. K.L.E. SOCIETY’S POLYTECHNIC, MAHALINGAPUR, TALUK: MAHALINGAPUR, DISTRICT: BAGALKOTE, BY ITS PRINCIPAL, SHIDRAMAPPA I. KUNDGOL, AGE: 56 YEARS, OCC: PRINCIPAL, R/O. VIDYANAGAR, MAHALINGAPUR RURAL, MAHALINGPUR, DISTRICT: BAGALKOTE. …PETITIONERS (BY SRI. M.B. HIREMATH, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF URBAN DEVELOPMENT, BY ITS PRINCIPAL SECRETARY, VIDHANA SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU-01. 2. THE TOWN MUNICIPAL COUNCIL, MAHALINGAPUR, BAGALKOTE-587101, BY ITS CHIEF OFFICER. …RESPONDENTS (BY SRI. V.S. KALASURMATH, AGA FOR R1; SRI. B.V. KERUR, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE ASHPAK KASHIMSA MALAGALADINNI Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: High Court of Karnataka, Dharwad Bench Date: 2025.01.27 16:33:48 +0530 - 2 - NC: 2025:KHC-D:1402 WP No. 100254 of 2025 NATURE OF CERTIORARI QUASHING THE IMPUGNED NOTICE DATED 10.12.2024 ISSUED BY THE 2ND RESPONDENT WHICH IS PRODUCED AT ANNEXURE-E DEMANDING SUM OF RS.2,44,81,295/- IN RESPECT OF PROPERTY BEARING NO.12+20-21+33; ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO PASS AN ORDERS EXEMPTING THE EDUCATIONAL INSTITUTIONS FROM PAYING PROPERTY TAX UNDER SECTION 94 OF KARNATAKA MUNICIPALITIES ACT; 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. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. Petitioners are before this Court seeking for the following reliefs : a. Issue a writ in the nature of certiorari quashing the impugned notice dated 10.12.2024 issued by the 2nd respondent which is produced at Annexure- E demanding sum of Rs.2,44,81,295/- in respect of property bearing no.12+20-21+33; b. Issue a writ in the nature of Mandamus directing the respondent No.2 to pass an orders exempting the educational institutions from paying property tax under Section 94 of Karnataka Municipalities Act; c. Issue a writ in the nature of Mandamus directing the Respondent No.2 to refund the tax collected by the petitioner till date: d. Issue such other writ or order as deemed fit in the interest of Justice and Equity. - 3 - NC: 2025:KHC-D:1402 WP No. 100254 of 2025 2. The grievance of the petitioners is that a demand has been raised by the 2nd respondent-Town Municipal Council, Mahalingapur for payment of property tax in respect of the building belonging to the petitioner- Society even though they have been used exclusively for education purposes. 3. The submission of Sri B.V.Kerur, learned counsel for respondent No.2 however is that portions of the properties are not used exclusively for education purposes, some of the properties are used for other commercial purposes etc., where rentals are charged. 4. Even if the submission of learned counsel Sri B.V.Kerur is accepted, the Town Municipal Council cannot raise a demand on the entire property which is exclusively used for education purposes as held by this Court in its order dated 23.05.2023 in W.P.No.87922 of 2012. An educational institution, who uses a premises exclusively for education - 4 - NC: 2025:KHC-D:1402 WP No. 100254 of 2025 purposes, is not liable to make payment of property tax in view of Section 94(1-A)(i) of the Karnataka Municipalities Act, 1964, in that view of the matter, an omnibus demand made as regards the entire property of the petitioners is not sustainable, as such, I pass the following : ORDER (i) Writ petition is allowed. (ii) Writ of certiorari is issued. Impugned notice issued by respondent No.2 vide Annexure-E demanding of property tax in a sum of Rs.2,44,81,295/- in respect of property bearing No.12+20+21=33 is hereby quashed. (iii) Liberty is reserved to respondent No.2 to conduct a survey and identify the portion of the properties which are not exclusively used for education purposes and raise - 5 - NC: 2025:KHC-D:1402 WP No. 100254 of 2025 demand in respect of those properties which are used for commercial purposes and not used exclusively for education purposes. (iv) In view of disposal of petition, pending application, if any do no survive for consideration, hence same are also disposed off. Sd/- (SURAJ GOVINDARAJ) JUDGE CKK List No.: 1 Sl No.: 41