The amendments to Section 177 of the Act were found to be valid, and the imposition of property tax did not infringe the petitioners' fundamental right to run their educational institution.

JUDGMENT :

Vipin Sanghi, J.

We have heard learned counsels, and proceed to dispose of the present Writ Petition.

2. The petitioners have preferred this Writ Petition, firstly, to assail the amendment made to Section 177 of the Uttarakhand Municipal Corporation Act, 1959 (hereinafter referred to as the “Act”), with the deletion of the words “for charitable purpose” from Section 177(b). The petitioners further challenge Section 177(c) of the Act, as being ultra vires the Constitution on the ground of discrimination.

3. The petitioners also assail the order dated 03.04.2023, passed by the Municipal Commissioner, Nagar Nigam, Dehradun, holding that the petitioner - St. Joseph’s Academy, is liable to pay property tax under Section 174 of the aforesaid Act, and, simultaneously, rejecting the objection of the petitioners herein.

4. Petitioner no. 1, i.e. Society of the Brothers of St. Patrick, claims to be a charitable society, which is running an educational institution under the name “St. Joseph’s Academy”. St. Joseph’s Academy, which has been impleaded as respondent no. 2, is an unaided private minority educational institution. The petitioners claim that petitioner no. 2 has been set-up for the benefit of the public, and it has been running the school for more than 70 years. Petitioner no. 1 was conveyed 86.569 bighas of land bearing Old Plot No. 4 (bearing Plot No. 266), Dehradun, Civil Station, Nazul Khasra situated at Rajpur Road, Dehradun by way of a lease. The leasehold rights were lastly renewed, w.e.f. 04.01.1994 for 30 years, vide registered renewal of lease.

5. The petitioners claim that petitioner no. 2 is being run on no profit basis, and the building of the School is being exclusively used for the cause of education.

6. The petitioners state that they instituted Suit No. 147/1996, titled “Society of Brothers of St. Patrick v. Municipal Board Dehradun” to seek an injunction, restraining the Municipal Board/ Nagar Nigam, Dehradun from claiming/ recovering any municipal tax, particularly House Tax. The said Suit was decreed ex parte, vide judgment/ decree dated 24.02.2000. The application moved by the City Commissioner, Nagar Nigam, Dehradun, i.e. respondent no. 3 herein, under Order 9 Rule 13 CPC, was dismissed on 04.02.2015. The petitioners disclose that respondent no. 3 filed Suit No. 62/2001, titled “Nagar Nigam v. Society of Brothers St. Patrick”, to challenge the ex parte decree passed in Suit No. 147/1996. The stay of the earlier decree dated 24.02.2000, granted by the Trial Court, was vacated in Miscellaneous Civil Appeal No. 137/2005. Eventually, the said appeal was allowed vide order dated 15.09.2005.

7. It is further disclosed that respondent no. 3 issued a notice dated 11.03.2022 to petitioner no. 2, alleging that property of St. Joseph’s Academy is being run for commercial/ non-residential purpose, and, as per the amendment made in the year 2002, in Section 177 of the Uttarakhand Municipal Corporation Act, 1959, the petitioners are liable to pay property tax. A demand notice was issued on 27.05.2019 for an amount of Rs. 11,50,000/-, covering the year up to 2014-15. The petitioners raised their objections to the said demand notice. The petitioners state that the said objections have not been heard, and by the order dated 03.04.2023, the petitioners have been held liable to pay property tax as per the demand notice dated 27.05.2019.

8. At this stage, we may take note of the relevant provision, namely Section 177 of the Uttarakhand Municipal Corporation Act, 1959. The said provision, as it existed prior to its amendment in the year 2002 (vide Uttarakhand Act No. 19 of 2002 w.e.f. 21.12.2002), insofar as it is relevant, reads as follows :-

“177. General tax on what premises to be levied. - The general tax shall be levied in respect of all buildings and lands in the City except –

(a) buildings and lands solely used for purposes connected with the disposal of the dead;

(b) buildings and lands or portions thereof solely occupie