INDIAN INSTITUTE OF MANAGEMENT, BANGALORE Vs. STATE OF KARNATAKA DEPT. OF HOUSING AND URBAN DEVELOPMENT AND ORS.

JUDGEMENT

(1.) Petitioner is before this court to issue a writ of certiorari or any other similar writ or direction to quash the order bearing number Jam. As (Bo)/PR/77/12 -13 dated 25.02.2013 passed by the 2nd respondent vide Annexure -P and to issue a writ of mandamus directing the 2nd respondent - Corporation to receive only service charges as per SAS Scheme.

(2.) Sri. K.N. Subba Rao, learned Senior Counsel appearing for the petitioner submits that petitioner is a public institution imparting education in Management Studies and Research and is wholly controlled and managed by the Ministry of Human Resource and Development, Government of India. The petitioner - institution was established in the year 1973 entirely with the budgetary support of the Government of India, and since then it is one of the world class premier institutes for Management education and Research, promoting Managerial Excellence in the country. It falls under the general exemptions under Sec. 110 (i) of the Karnataka Municipal Corporations Act, 1976 ('Act' for short) which provides for exemption. Firstly, since the petitioner is providing student hostels which are not established or conducted for profit. Secondly, the institution is meant for educational purposes by recognized educational institutions. Therefore, the entire institutions and establishments within the campus of the petitioner -institution are to be treated for the purpose of general exemption under Sec. 110 of the Act.

(3.) Further he submits that notwithstanding the same, the 2nd respondent -Corporation without authority has issued demand notice dated 10.01.2012 directing the petitioner -institution to pay the service charges vide Annexure - J amounting to Rs. 7,63,478/ - within thirty days to the office of the 2nd respondent - Corporation. Since the petitioner -institution comes under exemption clause, a letter was addressed to the 2nd respondent -Corporation on 14.02.2012 and brought to the notice of the 2nd respondent -Corporation that it falls under exemption clause and it is applicable to the petitioner -institution and it cannot be charged with service charges. One more representation was also made on 02.02.2013 requesting for exemption from paying property tax and the same has been acknowledged by the respondent. On acknowledging the representation of the petitioner -institution, an enquiry notice was issued by the 2nd respondent -Corporation dated 15.02.2013 directing the petitioner to appear on 22.02.2013 at 3.00 P.M. Though the petitioner appeared before the 2nd respondent -Corporation, but has not been provided any opportunity and Annexure -P has been issued rejecting the claim of the petitioner for exemption and confirming the demand notice for payment of service charges vide Annexure -P.