LUCKNOW NAGAR NIGAM vs KOHLI BROTHERS COLOUR LAB PVT LTD

The Supreme Court addressed the applicability of the UP Municipal Corporation Adhiniyam, 1959, in relation to property tax exemptions for enemy property under the Enemy Property Act, 1968. The Court held that the statutory vesting of enemy property does not constitute expropriation, thus the Union of India is entitled to exemption from local taxes under Article 285 of the Constitution. Consequently, the Municipal Corporation's demand for property tax from the lessee of the enemy property was deemed invalid, upholding the High Court's decision.