Authority: Supreme Court of India
Order Date: 30 July 2026
Case Overview
- Parties: Zonal Manager Life Insurance Corporation of India (appellant) vs. Deputy Inspector General Registration/Deputy Commissioner, Stamps (respondent).
- Civil Appeals: Nos. 1397‑1398 of 2010 filed before the Supreme Court.
- Nature of Dispute: Demand and collection of stamp duty by the State Government of Uttar Pradesh on insurance policies issued by LIC.
- Background: The Court referred to its earlier judgment in Life Insurance Corporation of India vs. State of Rajasthan (Civil Appeal No.3391 of 2011) 2024 INSC 358, where it held that the Rajasthan Stamp Law (Adaptation) Act, 1952 applies, the state legislature has competence to levy stamp duty on insurance policies under Entry 44 of List III, and directed the state not to collect stamp duty for specific orders dated 16.09.2004, 16.10.2004, 11.10.2004, 01.11.2004, and 28.10.2004.
- Observations: Applying the reasoning of the Rajasthan case, the Court examined the applicability of the Uttar Pradesh stamp law and the legitimacy of the stamp duty demand on LIC.
Final Outcome
- The Supreme Court upheld the High Court order but modified it to the extent that the stamp duty demanded and collected by the State Government shall not be collected from LIC for the period in question.
- The Court ordered that the bank guarantee furnished by LIC to the State Government be returned to LIC.
- Both civil appeals (1397‑1398/2010) are disposed of.
- Any pending applications, if any, are also disposed of.
Topics: Stamp Duty, Life Insurance, Supreme Court