A lipase producing alkalophilic yeast species was isolated, identified, classified and termed as Candida BG-55, from a sample of nickel catalyst of a vegetable oils industry near Chandigarh, INDIA. The lipase from this microorganism had temperature and pH optima of 40 degrees C and 8.5 respectively and was stable at 45 degrees C for 4 hrs. Enzyme activity, was stimulated by Ni++ and Ca++ ions whereas Fe++ and Fe+++ ions inhibited the activity.