Basheer, J.

Is a hospital run by a Charitable Trust entitled to get exemption from payment of property tax leviable under Section 235 of the Kerala Municipality Act, 1994? The learned Single Judge answered the question in the negative holding that the appellant would not come under any one of the exempted categories enumerated in the above statutory provision. This writ appeal is directed against the above judgment.

2. The appellant is a registered charitable trust. It is running Cherupushpam Charitable Hospital at Palai in Kottayam District. The appellant was admittedly exempted from payment of tax by virtue of Section 101 of the Kerala Municipality Act, 1960, the predecessor of Act 1994. It is not necessary to go into the details of the assessment proceedings which were initiated by the Municipality after enactment of Act 1994 in view of the primary issue to be decided in this appeal. Suffice it to say that the appellant was found liable to pay property tax at the rate of Rs.21960/- per annum. This order was challenged in the writ petition. The learned Single Judge held that the appellant was not entitled to claim exemption under the provisions of Act 1994, though it had been granted exemption under the old Act.

3. The contentions of the learned counsel for the appellant are two fold: (i) the appellant is liable to be exempted from payment of property tax by virtue of Section 235 of the Kerala Municipality Act, 1994; and (ii) the tax levied by the Municipality is highly exorbitant and unreasonable.

4. It is not in dispute that the hospital run by the appellant was exempted from payment of property tax when the Kerala Municipalities Act, 1960 was in force. Section 101 of the old Act provided for exemption of certain categories of buildings and lands. Clause (d) of Section 101 with the proviso and explanation thereunder are extracted here in below:

101. Exemption:-

1. The following buildings and lands shall be exempted from the property tax:-

(a)……………………

(b)……………………

(c)………………………

(d) lands and building or portions of lands and buildings exclusively occupied and used for public worship or by a society or body for a charitable purpose.

Provided that such society or body is supported wholly or in part by voluntary contributions and applies its profits, if any, or other income in promoting its objects and does not pay any dividend or bonus to its members.

Explanation:- “Charitable purpose” includes relief of the poor, education and medical relief but does not include a purpose which relates exclusively to religious teaching.”

As mentioned earlier, the appellant was given exemption when Act 1960 was in force. However, the situation changed when Act 1994 came into force with effect from 30th May, 1994.

5. Section 235 of Act 1994 which deals with “Exemption” corresponds to Section 101 of the old Act. Some drastic changes were incorporated in Section 235 in the matter of exemption available to certain categories of lands and buildings as compared to the provisions contained in the old Act. Thus, lands and buildings occupied and used by a society or body for a charitable purpose which were eligible for exemption under sub-clause (d) of sub-section (1) of Section 101 of the old Act were excluded or deleted from the purview of exemption. Similarly, the proviso and explanation in the old Act extracted supra, were also deleted. In other words, lands or buildings which are exclusively occupied or used for charitable purpose like relief of the poor, education and medical relief are no more eligible for exemption under the new Act.

6. But learned counsel for the appellant tried to develop a new argument. It was submitted by the learned counsel that Clause (c) of sub-section (1) of Section 235 of the Act read along with the explanation under the above statutory provision would make the institution of the appellant eligible for exemption. Relevant portion of the above statutory provision and explanation are extract hereunder:

“235. Exemption:-- (