P.C. RAJA RATNAM INSTITUTION versus MUNICIPAL CORPORATION OF DELHI & ORS.

Citation: [1989] SUPP. 1 S.C.R. 66 · Decided: 06-09-1989 · Supreme Court of India · Bench: L.M. SHARMA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
P.C. RAJA RATNAM INSTITUTION 
v. 
MUNICIPAL CORPORATION OF DELHI & ORS. 
SEPTEMBER 6, 1989 
. B 
. [LALIT MOHAN SHARMA, T.K. THOMMEN AND 
c 
K.N. SAIKIA, JJ.) 
Delhi Municipal Corporation Act, 1957: Section 115(4)-
, Charitable purpose'-What is-Relief of the poor, education or rnedical 
relief-Sorne fee charged frorn students-Not decisive_ 
The appellant, a non-profit making registered society, is running 
a school in Delhi. The Municipal Corporation raised a demand of 
general tax on the school building. The appellant claimed exemption 
from the tax on the ground that the society was ruuning the school for a 
charitable purpose and therefore fell within the _ambit of clause (4) of 
D 
section 115 of the Delhi Municipal Corporation Act, 1957. The claim 
was rejected by the Corporation. 
The appellant's writ petition under Article 226 of the Constitution 
was dismissed by the High Court. The High Court held that mere 
imparting of education could not be called giving relief and to qualify 
E for exemption the Society had to give education and medical relief; and 
that fees were charged from students. 
Before this Court it was contended by the appellant that in view of 
the language of s. 115(4)(a) it was not correct to suggest that to qualify 
for exemption from the tax liability it was necessary for the society to 
p 
offer medical relief. 
G 
The respondent on the other hand contended that although it was 
not in a position to support the reasoning given by the High Court, the 
appellant was for other reasons not entitled to the exemption claimed 
and the High Conrt'sjudgment was, therefore, correct. 
Allowing the appeal and remitting the case to the High Court for 
fresh decision on the facts relied upon by the parties, this Court, 
HELD: (1) A "charitable purpose" as defined in the Act, inc-
ludes relief of the poor, education and medical relief. The test of 'charit-
H able purpose' is satisfied by the proof of any of the three conditions, 
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P.C. RAJA v. M.C.D. [SHARMA, J.[ 
67 
namely, relief of the poor, education, or medical relief. [68E-F] 
(2) The fact that some fee is charged from the students is also not 
decisive inasmuch as the proviso to section 115(4)(a) indicates that the 
expenditure incurred in running the society may be supported wholly or 
in.part by voluntary contributions. [68F] . 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 43 of 
1982. 
From the Judgment and Order dated 7 .12.1979 of the Delhi High 
Court in Writ Petition No. 1754 of 1979. 
.. 
AND 
Writ Petition (Civil) No. 265 of 1980. 
(Under Article 32 of the Constitution). 
P.K. Pillai for the Appellant . 
R.K. Maheswari for the Respondents. 
The Judgment of the Court was delivered by 
SHARMA, J. The petitioner claims exemption under s. 115(4)(a) 
of the Delhi Municipal Corporation Act, 1957 from the liability of 
paying general tax leviable under the said section. 
A 
B 
c 
D 
2. The case of the petitioner is that it is a non-profit making 
E 
registered society and its object is to organize and run schools in Delhi 
and elsewhere with a view to promote education and welfare. Accord-
ingly it is running a school with the name of General Raj's School in 
Delhi in a building constructed for that purpose. A demand was made 
by the appropriate authority of the Municipal Corporation for pay-
ment of general tax under the Act and the exemption claimed by the 
F 
petitioner was rejected. In this situation the petitioner moved the 
Delhi High Court under Article 226 of the Constitution for appro-
priate relief. The writ petition was dismissed in iimine by the following 
order: 
-
-
.. 
"The only question that arises for consideration is 
whether the School run by the Society falls within the ambit 
. ·-of clause ( 4) of Section 115 of the Delhi Municipal Corpo-
ration Act. Reading this section it is obvious that exem-
tion for levy for general tax could be granted if the Society 
which is running the school was a Society for charitable 
pmp~es. Charitable purpose is defined in the explanation 
to clause ( 4) of Section 115. No doubt the School is impart-
G 
H 
A 
B 
c 
D 
E 
68 
SUPREME COURT REPORTS 
[1989] Supp. 1 S.C.R. 
ing education but in order to qualify for exemption, it had 
to give education and medical relief. Admittedly fees are 
charged from students. Mere imparting of education can-
not be called giving relief. We, therefore, find nothing 
wrong with the stand taken by the Municipal Corporation 
of Delhi. Dismissed."
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