- 1 - HC-KAR NC: 2025:KHC-D:8455 WP No. 102446 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 7TH DAY OF JULY 2025 BEFORE THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR WRIT PETITION NO. 102446 OF 2025 (LB-TAX) BETWEEN: 1. K.L.E SOCIETY’S R.L.S. COMPOSITE COLLEGE DHARWAD, BY ITS PRINCIPAL, SHRI. CHANNAPPA KANGABARGI, AGE: MAJOR, OCC: SERVICE, R/O. VIDYANAGAR, HUBBALLI, DISTRICT: DHARWAD-580031. 2. 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-590 001. …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 VEEDI, BENGALURU-01. 2. THE HUBLI-DHARWAD MUNICIPAL CORPORATION, R/BY ITS COMMISSIONER, HUBLI, DISTRICT: DHARWAD-580001. …RESPONDENTS (BY SRI. S.V. MAGADUM, AGA FOR R1; SRI. BHUSHAN KULKARNI, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO VIJAYALAKSHMI M KANKUPPI Digitally signed by VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.07.14 12:35:50 +0530 - 2 - HC-KAR NC: 2025:KHC-D:8455 WP No. 102446 of 2025 A. DECLARE THAT PETITIONER NO.1 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 NO.52043 (OLD PID NO.13/581 JUNIOR COLLEGE), PID NO.52041 (OLD PID NO.13/579 HIGH SCHOOL), AND PID NO.52039 (OLD PID NO.13/577 LABORATORY) SITUATED IN WARD NO.13. B. 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 IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR) 1. The petitioner is a Society established in the field of education and running more than 310 educational institutions not only in the State of Karnataka and country but in overseas locations also. Petitioner No.1 is established by petitioner No.2 society after taking necessary approval. 2. This being the state of affairs, respondent No.2 issued notice to the petitioners-Education Institution, - 3 - HC-KAR NC: 2025:KHC-D:8455 WP No. 102446 of 2025 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 notice, directing the petitioners 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 and quash the impugned order passed by respondent No.2 and for a direction to respondent No.2 to refund the tax so collected by the petitioners. - 4 - HC-KAR NC: 2025:KHC-D:8455 WP No. 102446 of 2025 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 and not for building/property other than the educational institution. 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:8455 WP No. 102446 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. Under the circumstances, I pass the following: ORDER i. Petition is partly allowed. ii. As the petitioner-Institution 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-Educational Institution - 6 - HC-KAR NC: 2025:KHC-D:8455 WP No. 102446 of 2025 would be exempted from payment of property tax in respect of property bearing PID No.52043 (Old PID No.13/581 Junior College), PID No.52041 (Old PID No.13/579 High School) and PID No.52039 (Old PID No.13/577 Laboratory) situated in Ward No.13. iii. 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. Sd/- (PRADEEP SINGH YERUR) JUDGE Kmv CT-MCK