Prakash Nandedkar vs Indore Municipal Corporation Indore Through Commissioner

NEUTRAL CITATION NO. 2026:MPHC-IND:24359
1 WP-35196-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT INDORE

BEFORE
HON'BLE SHRI JUSTICE SANDEEP N. BHATT
st
ON THE 1 OF SEPTEMBER, 2026
WRIT PETITION No. 35196 of 2026
PRAKASH NANDEDKAR
Versus
INDORE MUNICIPAL CORPORATION INDORE THROUGH
COMMISSIONER AND OTHERS
Appearance:
Shri Lokesh Mehta - Advocate for the petitioner.
Shri Shashank Shrivastava - Advocate for the respondents.
ORDER
Heard counsel for the petitioner.
This petition has been filed by the petitioner under Article 226 of the
Constitution of
India praying for the following reliefs :-
"(a) Issue a Writ of Certiorari or any other appropriate writ, order, or
direction, quashing the impugned order dated 04/08/2026 (Annexure
P/5) passed by the Respondent No. 1, being arbitrary, illegal, and
violative of the principles of natural justice and statutory provisions;
(b) Issue a Writ of Certiorari or any other appropriate writ, order, or
direction, quashing the impugned demand notice bearing No. 08/30
dated 05/12/2025 (Annexure P/2) issued by the Respondent No. 2,
being based on an illegal reclassification;
(c) Issue a Writ of Mandamus or any other appropriate writ, order, or
direction, commanding the respondents to forthwith restore the
classification of the petitioner's property as "Residential/Educational"
and to assess the property tax in accordance with law, after granting the
applicable exemptions under Section 136(c) of the Madhya Pradesh
Municipal Corporation Act, 1956;
(d) Issue a Writ of Mandamus or any other appropriate writ, order, or
direction, commanding the respondents to forthwith refund the amount
of Rs. 1,00,000/- (Rupees One Lakh Only) deposited by the petitioner
in compliance with the order dated 24/04/2026, along with interest at a
Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 01-09-2026
17:19:44

NEUTRAL CITATION NO. 2026:MPHC-IND:24359
2 WP-35196-2026
rate deemed fit and proper by this Hon'ble Court from the date of
deposit till the date of actual refund;
(e) Pass any other or further order(s) as this Hon'ble Court may deem
fit and proper in the facts and circumstances of the case, in the interest
of justice and equity."

2. Learned counsel for the petitioner has submitted that in view of
the various judgments passed by the co-ordinate Bench of this Court
whereby the educational institutions are exempted from the payment of the
tax. He has relied upon the judgments passed in W.P. No.1587 of 2016
passed by the Gwalior Bench of this Court dated 20.03.2018 and other
identical matters. He has submitted that since the petitioner is running a
school in the residential premises which is taken on rent/lease from the
owner of the premises and therefore being an educational institute, the
petitioner is exempted in view of Section 136 of the Municipal Corporation
Act, 1956.
3. Counsel for the respondent has opposed the same by submitting
that, in view of the earlier order, the representation of the petitioner is
already decided. By drawing attention to Section 136 , more particularly
Section 136(c) of the Madhya Pradesh Municipal Corporation Act, 1956, he
has submitted that exemption is given to the educational institute which is
owned by the educational institute.
4. In the present case, it is an admitted position that the said premises
are residential and are not owned by the present petitioner. The provision of
Section 136 of the Act, 1956 is reproduced as under :
"136. [ Exemptions. [Substituted by M.P. Act No. 50 of 1976.]
- The property tax levied under Section 135 shall not be leviable in
respect of The following properties, namely :-
(a)buildings and lands owned by or vesting in-
(i)the Union Government;
(ii)the State Government;
Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 01-09-2026
17:19:44

NEUTRAL CITATION NO. 2026:MPHC-IND:24359
3 WP-35196-2026
(iii)the Corporation;
(b)[ buildings and lands the annual value of which does not exceed six
thousand rupees in case of Municipal area having population of one lac
or above and four thousand eight hundred rupees in case of Municipal
area having population below one lac] :
Provided that if any such building or land is in the ownership of a
person who owns any other building or land in the same city, the
annual value of such building or land shall for the purposes of this
clause, be deemed to be the aggregate annual value of all buildings or
lands owned by him in the city;
(c)buildings and lands or portions thereof used exclusively for
educational purposes including schools, hoarding houses, hostels and
libraries if such buildings and lands or portions thereof are either
owned by the educational institutions concerned or have been placed at
the disposal of such educational institutions without payment of any
rent;
(d) public parks and playgrounds which are open to the public and
building and land attached thereto if the rent derived therefrom is
exclusively spent for the administration of parks and playgrounds to
which they are attached;
(e) buildings and lands or portions thereof used exclusively for public
worship or public charity such as mosques, temples, churches,
dharmashalas, gurudwaras, hospitals, dispensaries, orphanages, alms
houses, drinking water fountains, infirmaries for the treatment and care
of animals and public burial grounds, or other places for the disposal of
the deal:
Provided that the following buildings and lands or portions thereof
shall not be deemed to be used exclusively for public worship or for
public charity within the meaning of this section, namely :-
(i)buildings in, or lands on, which any trade or business is carried on
unless the rent derived from such buildings or lands is applied
exclusively to religious purposes or to public charitable institutions
aforesaid;
(ii)buildings or lands in respect of which rent is derived and such rent is
not applied exclusively to religious purposes or public charitable
institutions aforesaid;
(f) buildings and lands owned by widows or minors or persons subject
to physical disability or mental infirmity owning to which they are
incapable of earning their livelihood, where the main source of
maintenance of such widows or minors or persons is the rent derived
from such buildings and lands :
Provided that such exemption shall relate only to the first [twelve
thousand rupees] [Substituted by M.P. Act No. 18 of 1997.] of the
annual value of such buildings and lands.]
(g)[ buildings and lands owned by freedom lighters, retired members of
Defence Services and their widows during their life time if they are
exempted from income tax;] [Inserted by M.P. Act No. 18 of 1997.]
(h)[ buildings and lands owned by blind persons, abandoned women
and mentally incapacitated persons if sufficient proof is produced in
this behalf and if the main source of their maintenance is the rent
derived from such buildings and lands.] [Substituted by M.P. Act No.

Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 01-09-2026
17:19:44

NEUTRAL CITATION NO. 2026:MPHC-IND:24359
4 WP-35196-2026
12 of 2000.]
(i)[ buildings and lands in occupation of owner for his residence shall
be exempted from property tax to the extent of fifty percent.] [Inserted
by M.P. Act No. 18 of 1997.]
(j)[ the Electric pole erected by the Madhya Pradesh Electricity Board
or its successor companies.] [[Substituted by M.P. Act No. 16 of 2007.
Prior to substitution it read as under :-
(j) the Electric poles erected by the Madhya Pradesh Electricity
Board.']
(k)[ property owned by such political party in the State which has been
recognised by the Election Commission of India.] [Inserted by M.P.
Act No. 29 of 2003.]"

5. Considering the prayer of the present petitioner and considering the
limited position, the petitioner being a tenant/lessee of the premises and not
the owner the premises, the same cannot be exempted for the purpose of
running a school. Therefore, he is liable to pay tax as per Section 135 of the
Act. The petition is devoid of any merit and requires to be dismissed.
(SANDEEP N. BHATT)
JUDGE
jyoti

Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 01-09-2026
17:19:44