Court caseAIR 1954 SC 282

The Shirur Mutt, one of the eight Udupi maths founded by Madhvacharya, fell into financial difficulty. The Hindu Religious Endowments Board of Madras, under the Act of 1951, moved to settle a scheme for the Mutt, appointed an executive officer and demanded an annual contribution under section 76 as a percentage of the Mutt's income. The Mathadhipati challenged the Act as violating Articles 19(1)(f), 25, 26 and 27. The Madras High Court struck down several provisions and the Commissioner appealed.

Mukherjea J held that "religion" is not confined to belief or doctrine; it includes rituals, ceremonies, modes of worship, food and dress that are regarded as integral parts of the religion, and what constitutes an essential part of a religion is to be ascertained primarily with reference to the doctrines of that religion itself. The Mutt is a "religious denomination" under Article 26. Under Article 26(b) a denomination has a guaranteed right to manage its own affairs in matters of religion, with which the State cannot interfere; under Article 26(d) the State may regulate the administration of its property by law but cannot take administration away altogether. Provisions allowing the Commissioner to enter the premises, settle schemes without judicial check and control expenditure on religious purposes were struck down. The section 76 contribution was a tax, not a fee, since it was not correlated to services rendered, and was beyond State competence; the Court doubted whether it violated Article 27, since the money was for secular administration.