- 1 - HC-KAR NC: 2025:KHC-D:18049 WP No. 102562 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 11TH DAY OF DECEMBER 2025 BEFORE THE HON'BLE MR. JUSTICE ANANT RAMANATH HEDGE WRIT PETITION NO. 102562 OF 2025 (LB-RES) BETWEEN: B.V.PEETHA’S SRI JEENASENACHARAYYA VIDYAMANDAL, TERDAL, REPRESENTED BY ITS EXECUTIVE CHAIRMAN/ACTING PRESIDENT, DADASAHEB RAYAGOUDA PATIL, AGED. ABOUT 76 YEARS, OCC. CHAIRMAN, R/O. GOLABHAVI, TQ. RABAKAVI-BANAHATTI, DIST. BAGALKOT-587 315. …PETITIONER (BY SRI. GIRISH A. YADAWAD, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF URBAN DEVELOPMENT, REPRESENTED BY IT PRINCIPAL SECRETARY, VIDHAN SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU-560 001. CHANDRASHEKAR LAXMAN KATTIMANI Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Date: 2025.12.16 11:21:19 +0530 - 2 - HC-KAR NC: 2025:KHC-D:18049 WP No. 102562 of 2025 2. THE TOWN MUNICIPAL COUNCIL TERDAL, REPRESENTED BY ITS COMMISSIONER, TQ. RABAKAVI-BANAHATTI, DIST. BAGALKOT-587 315. …RESPONDENTS (BY SRI. ASHOK T. KATTIMANI, AGA FOR R1; SRI. MAHANTESH R. PATIL, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, 1950 PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDERS FOR TAX LEVYING DATED 16.01.2025 ISSUED RESPONDENT NO.2 VIDE ANNEXURE-B TO B16 AND DEMAND NOTICES (THAGADE NOTICE) DATED 13.02.2025 ISSUED BY THE RESPONDENT NO.2 VIDE ANNEXURE-C TO C16 IN KRA.SAM/PUSATE/KAM VI/CR-2024-2025 IN RESPECT OF CMC NO.3179-A-4252-A, CMC NO.3179-B-4252-B, CMC NO.3179-C-4252-C, CMC NO.3179-D-4252-D, CMC NO.3179-E- 4252-E, CMC NO.3179-F-4252-F, CMC NO.3179-G-4252-G, CMC NO.3179-H-4252-H, CMC NO.3179-I-4252-I, CMC NO.3179-J- 4252-J, CMC NO.3179-K-4252-K, CMC NO.3179-L-4252-L, CMC NO.3179-M-4252-M, CMC NO.3179-N-4252-N, CMC NO.3179-O- 4252-O, CMC NO.3179-4252 AND CMC NO.4253 RESPECTIVELY, IN THE INTEREST OF JUSTICE AND EQUITY; ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO PASS AN ORDER EXEMPTING THE PROPERTIES BELONGING TO THE PETITIONER FROM PROPERTY TAX IN TERMS OF SECTION 94-A (I) OF KARNATAKA MUNICIPALITIES ACT, 1964, IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION COMING ON FOR FURTHER PRELIMINARY HEARING IN ‘B’ GROUP , THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:18049 WP No. 102562 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE) Heard the learned counsel appearing for the petitioner and the learned counsel appearing for respondent No.2 and also learned Additional Government Advocate appearing for respondent No.1. 2. This petition is filed assailing the show-cause notices and demand notices issued by respondent No.2/Town Municipal Council, Terdal. 3. Petitioner contends that the show-cause notices and demand notices are untenable in view of the exemption available to the petitioner-Institution under Section 94-A(i) of the Karnataka Municipalities Act, 1964 (‘Act of 1964’, for short) and would refer to the judgment of the Co-ordinate Bench of this Court in W.P.No.100260/2025 and this Court in W.P.No.101312/2024. 4. Learned counsel for 2nd respondent would urge that the petitioner has to deposit 50% of the demanded amount, in case, the petitioner is to challenge the demand notice in view of - 4 - HC-KAR NC: 2025:KHC-D:18049 WP No. 102562 of 2025 mandate of Rule 10B of the Karnataka Municipalities Taxation Rules, 2025 (‘Rules’, for short) amended on 10.02.2025. 5. In addition to that, it is also urged that the petitioner can seek exemption in respect of staff quarters, provided the staff quarters is occupied by the staff of the Medical College and not otherwise. 6. Learned counsel would also urge that the choutry built in the petition premises is not exempt from the property tax and the restroom and Mahabalamuni Maharaja Niwas are also not exempt from the property tax under Section 94-A(i) of Act of 1964. 7. The Court has considered the contentions raised at the Bar and perused the records. 8. No provision relating to an appeal or revision is pointed out to invoke Rule 10B of the Rules referred to above. Apart from that, it is also noticed that in view of the exemption under Section 94-A(i) of the Act of 1964, 2nd respondent does not have the jurisdiction to impose tax in respect to the properties covered under the said provision. - 5 - HC-KAR NC: 2025:KHC-D:18049 WP No. 102562 of 2025 9. It is also noticed that the Co-ordinate Bench of this Court in W.P.No.100260/2025 and this Court in W.P.No.101312/2024 held that the property tax is exempted in respect of certain properties covered under Section 94-A of Act of 1964. 10. For the aforementioned reasons, the impugned demand notices have to be set aside. 11. However, it is required to be noticed that the petitioner must establish that the staff quarters are used by the staff of the Medical College and for this purpose, there has to be an inspection by 2nd respondent-authority. As far as the exemption sought in respect of Mahabalmuni Maharaja Niwas, Mangala Karyalaya and restroom, there has to be an inspection in the presence of the petitioner and only after the inspection, the respondent - authorities have to pass a reasoned order as to why such properties are not coming under the exemption under Section 94-A of Act of 1964. - 6 - HC-KAR NC: 2025:KHC-D:18049 WP No. 102562 of 2025 12. The impugned notices at Annexures-B to B16 and C to C16 and corresponding demand orders are quashed. 13. The matter is remitted to respondent No.2 to consider the case afresh the demand notices at Annexures-B5, B9, B10 and B12 corresponding to Annexures-C7, C11, C12 and C15. 14. It is made clear that this Court has not expressed anything on the merits of the claim of either of the parties in respect of the matters for which there is a remand order. 15. Hence, the following: ORDER i. The petition is allowed in part to the extent referred to above. Sd/- (ANANT RAMANATH HEGDE) JUDGE CLK CT-MCK LIST NO.: 1 SL NO.: 83