JUDGMENT

B.P. JEEVAN REDDY, J.- Leave granted.

2. The question arising in this batch of appeals is whether the properties vested in the International Airports Authority of India under the provisions of International Airports Authority Act, 1971 can yet be called the properties of the Union within the meaning of Article 285 of the Constitution of India and, therefore, exempt from all taxes imposed by a State or by any authority within a State - to be more precise by the municipality. The Delhi High Court has answered the said question in the negative, i.e., in favour of the Delhi Municipal Corporation whereas the Calcutta High Court has taken a contrary view. A learned Single Judge of the Bombay High Court has also taken the same view as the Calcutta High Court but the said judgment is now the subject-matter of a letters patent appeal before the Division Bench of the same court.

3. Article 285 comprises two clauses. Though clause (2) is not attracted in these matters, we may yet set out the entire article:

"285. Exemption of property of the Union from State taxation.- (1) The property of the Union shall, save insofar as Parliament may by law otherwise provide, be exempt from all taxes