KOTI VIDYA CHARITABLE TRUSTversusGRAM PANCHAYAT SAPGAON THROUGH ITS SARPANCH AND ORS

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                                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                           CIVIL APPELLATE JURISDICTION

                                           WRIT PETITION NO. 10594 OF 2026

                    Koti Vidya Charitable Trust                                  ...Petitioner
                             Vs.
                    Gram Panchayat Sapgaon through
                    its Sarpanch and Others                                      ...Respondents

                                                      -----------------

                    Mr. Shekhar Jagtap a/w. Ms. Sairuchita Chowdhary i/b. J. Shekhar
                    Associates, for the Petitioner.
                    Mr. Mohit A. Singh, for Respondents No.1 and 2.
                    Ms. Kavita N. Solunke, Addl. G.P., for Respondents No.5 and 6 / State.
                                                      -----------------

       Digitally
       signed by
       MAMTA
MAMTA AMAR
AMAR KALE
KALE  Date:
       2026.08.18
       17:42:15
       +0530
                                                      CORAM :         R. I. CHAGLA AND
                                                                      FIRDOSH P. POONIWALLA, JJ.

                                                      DATED       : 17th AUGUST, 2026

                    P.C.:-

                    1.             Rule.   Rule is made returnable forthwith.      Heard finally by

                    consent of the parties.

                    2.             This Petition has been moved on the ground of urgency in view

                    of Demand Notice dated 4th August 2026 whereby demand has been raised

                    of an amount of Rs.1,08,68,676/- alleged to be payable to Respondent

                    Nos.1 and 2 towards Gharpatti / Property Tax in respect of Petitioner’s

                    educational premises.

                     Mamta Kale                                                                    1/4
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3.            Mr. Jagtap, the learned Counsel appearing for the Petitioner,

has referred to the earlier Demand Notice dated 20 th July 2026 issued by

Respondent No.2 on behalf of Respondent No.1 imposing a demand of

Rs.1,50,46,014/-, which is the subject matter of challenge in an Appeal

which has been preferred by the Petitioner under Section 124(5) of the

Maharashtra Village Panchayat Act, 1959.    It is his submission that inspite

of the Appeal having been filed challenging the said Demand Notice, the

Respondents, without deciding that Appeal, have issued the impugned

Demand Notice dated 4th August 2026 by which the said amount of

Rs.1,08,68,676/- has been demanded as Gharpatti / Property Tax and

cautioned the Petitioner that, unless the same is paid on or before 19 th

August 2026, the building of the Engineering College of the Petitioner will

be sealed. Mr. Jagtap has also referred to the Government Resolution dated

31st December 2015, wherein under Rule 7(4), the lands and buildings have

been exempted from the levy of taxes under sub rule (1) of Rule 7,

particularly where the portion of the said lands and buildings is used for

classroom, library, laboratory, office, playground, auditorium i.e. for

educational purposes. He has submitted that, inspite of the aforesaid, the

Demand Notice has been issued levying tax in respect of lands and

buildings for educational purposes. This is the subject matter of the Appeal

which has been preferred by the Petitioner under Section 124(5) before the

Panchayat Samiti, Zilla Parishad, Thane. He has submitted that, without

 Mamta Kale                                                               2/4
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deciding that Appeal, the impugned Demand Notice dated 4 th August 2026

could not have been issued.

4.            Mr.   Mohit   Singh,   the   learned   Counsel   appearing   for

Respondent Nos.1 and 2, has submitted that the Petitioner-Trust has not

paid the Ghatpatti / Property Tax in respect of the said premises since 2023.

He submitted that without applying for stay in the Appeal preferred by the

Petitioner from the Demand Notice dated 20 th July 2026, the Petitioner is

now seeking to challenge the Demand Notice dated 4 th August 2026 which

merely demands the principal amount of Rs.1,08,68,676/- payable towards

Ghatpatti / Property Tax. He submitted that the said Demand Notice has

been rightly issued and that the Petitioner is required to pay the said

Ghatpatti / Property Tax which has been outstanding since 2023.

5.            Having considered the submissions, and particularly taking

note of the fact that the Petitioner-Trust has filed an Appeal challenging the

Demand Notice dated 20th July 2026 issued by Respondent No.2, on behalf

of Respondent No.1, imposing a demand of Rs.1,50,46,014/-, which,

according to the Petitioner, has been imposed without taking into

consideration Rule 7(4), and particularly the Explanation thereto, of the

Maharashtra Village Panchayats Taxes and Fees (Amendment) Rules, 2015,

we are of the view that the subsequent Demand Notice dated 4 th August

2026 has been wrongly issued inspite of the pending Appeal.

6.            We accordingly consider it appropriate in these circumstances

 Mamta Kale                                                                 3/4
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to set aside the Demand Notice dated 4th August 2026 and direct

Respondent No.4 to decide the pending Appeal preferred under Section

124(5) of the Maharashtra Village Panchayat Act, 1959, expeditiously, and

in any event, within a period of three weeks from the date of this Order.

7.            The Rule is made absolute in the aforesaid terms. The Writ

Petition is disposed of. However, there shall be no order as to costs.



     [FIRDOSH P. POONIWALLA, J.]                           [R.I. CHAGLA, J.]




 Mamta Kale                                                                 4/4