P W MONIE Vs. REVROBERT SCOTT

JUDGEMENT

(1.) This is a case stated for the opinion of the Court under Section 90 and 0. XXXVI of the Code of Civil Procedure. The plaintiffs, who are the Municipal Commissioner and the Municipal Corporation for the City of Bombay, seek to recover from the defendant, who is the present acting Principal of the Wilson College, municipal property taxes in respect of the buildings known as hostels belonging to that College. The Wilson College is affiliated to the University of Bombay. Section 21 (1) of the Indian Universities Act, 1904, provides that a College applying for affiliation to an University must satisfy the Syndicate of the University, inter alia, " (a) that the buildings in which the College is to be located are suitable and that provision will be made in conformity with the Regulations for the residence in the College or in lodgings approved by the College of students not residing with their parents or guardians and for the supervision and physical welfare of students" ; "(f) that due provision will so far as circumstances will permit be made for the residence of the head of the College and some members of the teaching staff in or near the College or the place provided for the residence of students.

(2.) Under Section 25 (1) and (2) (m) "the Senate of an University is impowered with the sanction of the Government to make regulations to provide inter alia for the residence and conduct of students, and the senate of the Bombay University has accordingly made the following regulation, viz., "that each College shall provide residential quarters for such a percentage of its students as the Syndicate may from time to time approve." In order to satisfy the requirements of the provisions of Section 21 (1)(c) of the Indian Universities Act, 1904, and pursuant to the above-quoted regulation, the Wilson College has erected three buildings known as hostels, two of which are in the College compound and the third in close proximity to the same for the use of its students. The first is capable of accommodating thirty students, the second, forty-four students, and the third, one hundred and twenty-six students. It appears that in addition to the students an European Professor and an Indian Superintendent reside in the first and second hostels and an European Superintendent and an Assistant Superintendent reside in the third hostel and that all these are on the staff of the College. In the second hostel a peon is accommodated in the outer compound. The fees payable by students of the Wilson College in respect of each of the two terms in a year are as follows :- 1. Non-resident students, Es. 48, and a sum of Rs. 3 as subscription towards the Gymkhana. 2. Resident students, the above sums of Rs. 48 and Rs. 3 and an additional fee-the average amount of which is about Rs. 23. Pursuant to Section 140(c) of the City of Bombay Municipal Act, 1888, the Municipal Commissioner has caused the three hostels to be assessed for payment of the general tax as set out in paragraphs 8 and 9 of the case.

(3.) The defendant contends that the Wilson College is exempt under Section 143(1) (a) and (2)(d) of the City of Bombay Municipal Act, 1888, from payment of the general tax in respect of the three hostels. Section 143(1)(a) and (2)(d) runs as follows:- (1) The general tax shall be levied in respect of all buildings and, lands in the city, except- (a) Buildings and lands or portions thereof exclusively cccupicd for public worship or for charitable purposes ; (2) the following buildings and lands or portions thereof shall not be deemed to be buildings exclusively occupied for public worship or for charitable purposes within the meaning of Clause (a), viz.: (d) Those in respect of which rent is derived, whether such rent is or is not applied exclusively to religious or charitable purposes.