TOWN MUNICIPAL COUNCIL Vs. VIJAYA COLLEGE

JUDGEMENT

(1.) Petitioner is the Town Municipal Council, Mulki. The Order of the Civil Judge and the Sessions Judge, Mangalore (Exts. B and A) are challenged in this Writ Petition.

(2.) Petitioner-Municipality demanded tax in respect of buildings owned by Vijaya College, Mulki, under Section 124(3) of the Karnataka Municipalities Act, 1964, ('the Act'). This demand was resisted by the respondent-institution before the C.J.M., Dakshina Kannada, Mangalore, in an appeal filed under Section 150 of the Act. It was held in the appeal that the buildings owned by the respondent, which are used for charitable purposes, were entitled to exemption from imposition of property tax.

(3.) Against the said order, the Town Municipal Council preferred a revision before the Sessions Judge, Mangalore, under Section 150(2) of the Act. The Sessions Judge upheld the order passed by the Chief Judicial Magistrate, and agreed with the reasons given for allowing the appeal and dismissed the revision filed by the Municipal Council. Being aggrieved by these two orders, the Town Municipal Council has preferred this Writ Petition and has challenged them. It is vehemently argued by Sri. Ramesh for the petitioner-Municipality that the respondent-Institution is not a charitable institution in the true sense of the term. The institution is run by collecting fees, capitation fee and receives grant from the Government in various forms. Tax is levied on buildings of the respondent-institution under Section 94 of the Town Municipalities Act. This levy was resisted by the respondent on the ground that the buildings which were being used for charitable purpose, viz., for imparting education, should be exempted from payment of duty.