- 1 - HC-KAR NC: 2025:KHC-D:8879 WP No. 104694 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 17TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR WRIT PETITION NO. 104694 OF 2025 (LB-TAX) BETWEEN: HURAKADLI AJJA SHIKSHANA SAMITI (R), A SOCIETY REGISTERED UNDER SOCIETY REGISTRATION ACT, SITUATED AT CTS NO.28/2, DHARWAD TALUKA, NEAR R.N. SHETY STADIUM, BEHIND KANNADA SAHITYA PARISHAT, DHARWAD, REPRESENTED BY ITS SECRETARY, DAYANAND BANDI, AGE: 49, OCC: ADVOCATE, DHARWAD. …PETITIONER (BY SRI. MALLIKARJUNSWAMY B. HIREMATH, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF URBAN DEVELOPMENT, BY ITS PRINCIPAL SECRETARY, VIDHANA SOUDHA, DR. AMBEDKAR VEEDI, BENGALURU-01. 2. THE HUBLI-DHARWAD MUNICIPAL CORPORATION, R/BY ITS COMMISSIONER, HUBBALLI, DIST: DHARWAD-580020. …RESPONDENTS (BY SRI. S.V. MAGADUM, AGA FOR R1; SRI. BHUSHAN KULKARNI, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF CERTIORARI i. TO QUASH THE PROPERTY PAYMENT DEMAND CHALLANS FOR THE YEAR 2023-24 AND FOR THE YEAR 2024-25 ISSUED BY VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:8879 WP No. 104694 of 2025 THE RESPONDENT NO.2 IN RESPECT OF THE PROPERTY BEARING PID.52446 (OLD PID.13/979) OF ZONE.3 IN WARD NO.13 ALL DATED 23/01/2025 VIDE ANNEXURE-C,D AND E TO THE WRIT PETITION IN THE INTEREST OF JUSTICE AND EQUITY. ii. DECLARE THAT PETITIONER BEING AN EDUCATIONAL INSTITUTION IS EXEMPTED FROM PAYING PROPERTY TAX UNDER SECTION 110(1)(I) OF KARNATAKA MUNICIPAL CORPORATIONS ACT 1976 IN RESPECT OF THE PROPERTY BEARING PID.52446 (OLD PID.13/979) OF ZONE.3 IN WARD NO.13, SITUATED IN CTS NO.28A/2 OF DHARWAD TALUKA, NEAR R.N.SHETTY STADIUM, BEHIND KANNADA SAHITYA PARISHAT, DHARWAD, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR) The petitioner is a society registered under the Karnataka Society Registration Act running various educational institutions exclusively for girls with a view to women empowerment in the society. The petitioner is running Pre University College for Girls in the discipline of Arts, Commerce and Science and in the same campus hostel and library are established for accommodation and study purpose for the girls who study in the college run by the petitioner society. - 3 - HC-KAR NC: 2025:KHC-D:8879 WP No. 104694 of 2025 2. This being the state of affairs, respondent No.2 issued demand challans to the education institution of the petitioner directing to pay property tax in respect of the building used for the educational institution. 3. It is the vehement contention of learned 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 demand challans, directing the petitioner 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 - 4 - HC-KAR NC: 2025:KHC-D:8879 WP No. 104694 of 2025 and quash the impugned orders passed by the respondent No.2. 4. Learned counsel for the respondents does not dispute the provisions of the Karnataka Municipal 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. 5. It is relevant to extract Section 110(1)(i) of the Karnataka Municipal Corporations Act, 1976, which reads as under: “110. General exemptions.- (1) The following buildings and lands shall be exempted from the property tax:- (i) building or lands exclusively used for,- (a) students hostels which are not established or conducted for profit; (b) educational purposes by recognised educational institutions; (c) the offices of Labour Associations registered under the Trade Union Act, 1926 and belonging to such Association” - 5 - HC-KAR NC: 2025:KHC-D:8879 WP No. 104694 of 2025 6. On careful perusal of the provisions hereinabove stated, it is apparently clear and there is no ambiguity with regard to the general exemption granted to 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 110(1)(i) of the Act and in view of the judgment of the Co- ordinate Bench of this Court in W.P.No.101205/2024, the petitioner herein also would deserve similar order on the ground of parity. 7. Under the circumstances, I pass the following: ORDER i. Petition is allowed. ii. A writ of certiorari is issued. The impugned property payment demand challans for the year 2023-24 and 2024-25 dated 23.01.2025 issued by the 2nd respondent in respect of property bearing PID 52446 (Old PID:13/979) of Zone: - 6 - HC-KAR NC: 2025:KHC-D:8879 WP No. 104694 of 2025 3 in ward No.:13 vide Annexures-C, D and E are hereby quashed. iii. As the petitioner-Society is an Educational Institution as on the date of assessment and coming within the purview of Section 110(1)(i) of the Act, the petitioner-Society would be exempted from payment of property tax. However, liberty is reserved to the respondent- Corporation to claim/demand property tax in case of change of use of the property from educational purpose to any other purpose and which would not come within the general exception. iv. Respondent-Corporation is also at liberty to impose tax to the building and property which does not fall within the exemption under Section-110(1)(i) of the Act. Sd/- (PRADEEP SINGH YERUR) JUDGE Kmv Ct: mck