IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE EIGHTEENTH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 8325 of 2008 Between: Dr.M.C.Satyanarayana Memorial Charitable Trust Vizianagaram, Rep by its Trustee, Dr. Satish Maturu, S/o. Ramamohana Rao, aged 40 yrs, President, Dr.Besent English Medium School, Nagavamsam Street, Vizianagaram. ..... PETITIONER AND 1 The Vizianagaram Municipality, rep by the Municipal Council, Vizianagaram. 2 The Vizianagaram Municipality, rep by the Commissioner, Vizianagaram. .....RESPONDENT(S) Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed herein the High Court will be pleased to issue an appropriate writ, order or direction more particularly one in the nature of writ of Mandamus declaring the resolution dated 3.4.2008 under item No.26 passed by the 1st respondent council canceling the exemption granted by the 2nd respondent vide L.Dis.No.2412/02-03 dated 3.12.2002 as arbitrary, illegal, null and void and contrary to the Section 88 of the Municipalities Act and to set aside the same and to pass Counsel for the Petitioner: MR.BALAJI MEDAMALLI Counsel for the Respondents: MR.S.NAGESWARA REDDY The Court at the stage of admission made the following : ORDER: This writ petition has been instituted seeking a writ of mandamus to declare the resolution dated 3-4-2008 under item No. 26 passed by the 1st respondent – Municipal Council canceling the exemption granted by the 2nd respondent on 3-12-2002 as illegal. The essential grievance of the writ petitioner is that it is a charitable institution which runs an educational institution and, therefore, it has solicited exemption from taxation and the 2nd respondent – Municipality had passed orders granting it exemption from payment of property tax on 3-12-2002, from the year 1999-2000 onwards. But, however, on the plea that the petitioner has been charging the students tuition fee of Rs.780/- and also a building development fee of Rs.780/-, the 1st respondent – Municipal Council has cancelled the earlier orders dated 3-12-2002 granting it exemption from payment of property tax. The petitioner has not been provided with any opportunity prior to the cancellation of exemption granted in its favour earlier. However, the basis for the resolution passed by the 1st respondent – Municipal Council is that the petitioner is not liable to be treated as a charitable institution in view of the fees charged by it from its students. By the judgment dated 28-12-2006 rendered in a batch of writ petitions bearing Writ Petition No. 4214 of 2006 and batch, a Full Bench of this Court had taken the view that as to whether an institution is a charitable institution or not will depend upon variety of facts and, therefore, it is only appropriate to give liberty to the institution to move a representation with all the relevant facts and place the same before the Municipal Council which will consider the same and pass appropriate orders thereon. In fact, in a batch of writ petitions such as Writ Petition No. 4493 of 2007, a Division Bench, to which I am a party, had an occasion to dispose of them in the following manner: “Whether the petitioner is entitled to exemption of the property tax in terms of the Full Bench judgment or not is a matter, which will have to be considered by the respondent. As such, we dispose of the writ petition, at this stage, with the consent of the learned counsel for the parties, granting liberty to the petitioner to move a representation before the respondent, within a period of two weeks from today and the respondent may consider the representation of the petitioner in the light of the Full Bench judgment of this Court supra and pass appropriate orders. Till the representation is decided by the respondent, the impugned demand notice may not be given effect to.” I, therefore, direct the writ petitioner to submit all the relevant data and details to establish itself as a charitable institution before the 1st respondent - Municipal Council, which duly considering the same will pass appropriate orders thereon. The petitioner may file the representation in this regard together with the material within a period of 15 days from today. Till such time, the Municipal Council reconsiders the matter, no precipitative steps should be taken against the petitioner. With this, the writ petition stands disposed of. ---------------------------------- Nooty Ramamohana Rao, J Dated: 18-04-2008 ks ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Vizianagaram Municipality, rep by the Municipal Council, Vizianagaram. 2 The Commissioner, Vizianagaram Municipality, Vizianagaram. 3 2CD copies