Nagar Nigam, Allahabad Through Its ... vs Life Insurance Corporation Of India ...

The Supreme Court held that the Life Insurance Corporation of India (LIC) does not fall under the definition of 'insurance company' as per the notification dated 30.01.1999 issued by the Nagar Nigam, based on the interpretation of Item No. 25 of the Schedule which distinguishes between general insurance companies and LIC. The Court emphasized the principle of statutory interpretation favoring the assessee when multiple interpretations exist, referencing Section 438 of the Uttar Pradesh Municipal Corporations Act, 1959, which governs the levy of license fees. The judgment of the Allahabad High Court was upheld, confirming that LIC is not liable for the license fee imposed by the Nagar Nigam.