S N R SONS CHARITABLE TRUST COIMBATORE Vs. COMMISSIONER COIMBATORE CITY MUNICIPAL CORPORATION COIMBATORE

JUDGEMENT

(1.) THE above writ petition has been filed for a writ of certiorari to call for and quash the records of the respondent relating to the notice of demand in Assessment No. 60511 dated 30-9-1983 in Ref. No. 71240/82/A-7 relating to Sri Ramakrishna Hospital, Coimbatore claimed to be run by the petitioner trust.

(2.) THE petitioner, in the affidavit filed in support of the writ petition, states that a trust was formed on 9-2-1970 under a registered document, that in accordance with the terms of the trust deed, the petitioner trust has been running Sri Ramakrishna Hospital at 2/212-A, Avarampalayam Road, Coimbatore-44 and Sri Ramakrishna Children's School, Nava India, Avarampalayam Road, Coimbatore-6 and that the hospital in question was started during the year 1974 and the school was started from the academic year 1983. It is also stated in the affidavit that prior to 1981, when the Coimbatore City Municipal Corporation Act, came into existence, the Coimbatore Municipality was in existence and though the petitioner sought for exemption from the erstwhile Municipality, it was only in the year 1977 by the proceedings dated 20-9-1977, the petitioner trust was exempted from payment of tax under S. 83(i)(e)of the Tamil Nadu District Municipalities Act, 1920 with effect from 1-4-1977. It is also stated that in respect of the portions occupied by the office, canteen, Doctor's residential quarters and Nurses quarters, the Municipality appears to have been assessing the trust separately to pay a tax of Rs. 1,246-55 per half year. THE petitioner trust appears to have been remitting the tax demand notwithstanding the fact that the canteen and the Doctors' and Nurses' Quarters formed an integral part of the hospital and would be entitled for exemption under S. 83(1)(e) of the Act with effect from 1-4-1977.

(3.) THE learned counsel, in support of his submission relied upon the decision in State of Punjab v. British India Corporation Ltd. (1964) 2 S.C.R. 114. That was a case concerning the property tax exemption claimed, under the provisions of Punjab Urban Immovable Property Tax Act, 1940. Apart from other issues, one of the issues that fell for consideration of the Apex Court was of the meaning to be given to the word ?rent? in Cl. (ii) of R. 18(4) and the Court was of the view that the word ?rent? was used in its narrower sense of payment by tenant to landlord to demised property and does not include payments made by licencees. THE next decision relied on was that of a learned single Judge of the Delhi High Court in New Delhi Holy Family Hospital Society v. Delhi Municipality AIR 1984 Delhi 84. That was a case arising under the Delhi Municipal Corporation Act. THE learned Judge while adverting to the question of exemption claimed by a charitable society in respect of hospital run by it on a non-profiteering basis, held having regard to the scheme of the provisions of the said enactment, as hereunder: