MAHARAJA SHREE UMAID MILLS LTD. vs UNION OF INDIA

The Supreme Court ruled that the 1941 agreement between the Ruler of Jodhpur and the appellant, which exempted the appellant from excise duty and income-tax, did not constitute law under Article 295 of the Constitution of India. The Court held that the agreement was purely contractual and lacked the characteristics of law, thus the appellant was liable to pay the excise duty and income-tax imposed by the Union. The Court clarified that the obligations under the agreement were not binding on the Government of India post-independence, as there was no affirmation of the agreement by succeeding sovereigns.