ORDER

C.A.No. 10664/1996

A decision taken by the Government of Orissa on 27.4.1989 to revise with effect from back date the terms for making available raw material to the respondent has been struck down by the High Court of Orissa as violative of the principle of promissory estoppel. The State of Orissa is in appeal by special leave.

2. On the representation made by the State of Orissa as contained in their Industrial Policy of the year 1980 and 1983 the respondent was persuaded to establish its industry in the State of Orissa. On 27.4.1989 the State Government proposed revision of certain terms which resulted in revision of rate of royalty and the method of stack measurement adversely to the interest of the respondent. The respondent was not obviously agreeable and protested. The representation of the respondent ultimately prevailed with a high level committee of the State Government and on 3.10.1989 a decision was taken to not to alter the terms for supply of raw material on which the respondent had acted and established its industry. The industry continued to function, consumed the raw material and sold its finished products to the buyers in the market. The pricing of the finished