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1994 Supreme(SC) 1029

A. S. ANAND, M. N. VENKATACHALIAH
Kasinka Trading – Appellant
Versus
Union Of India – Respondent


Advocates:
A.K.AGRAWAL, A.K.GANGULY, A.SUBBA RAO, A.Subhashini, ALPANA KIRPAL, ALPANA PODDAR, Amita Mitra, ANAND PRASAD, Anip Sachthey, ASHOK DESAI, Ashok Sagar, BINA GUPTA, C.V.SUBBA RAO, D.N.DEVEDI, D.N.Mishra, DILIP TANDON, G.L.RAVAL, HARISH N.SLAVE, JANENDRA LAL, K.K.GUPTA, K.R.NAMBIAR, KAILASH VASUDEV, KAMINI JAISWAL, KISHAN KUMAR, M.K.D.NAMBUDIRY, MINA GUPTA, MINAKSHI AGRAWAL, MONIKA MOHIL, N.D.GARG, P.H.Parekh, P.PARMESHVARAN, PUNAM MADAN, R.K.MEHTA, RAJIV K.GARG, RAJIV TYAGI, Ravindra Narayan, S.GANESH RAO, S.K.DHOLAKIA, SUSHMA SURI, U.A.RAMA, VIMAL ROY, YASMINE TARAPORE

Judgement Key Points

Promissory estoppel is a principle rooted in equity that prevents a party from going back on a clear and unequivocal promise if the other party has relied upon that promise to their detriment. For the doctrine to be invoked successfully, the promise must be intended to create a legal relationship and must have been acted upon by the party relying on it.

In the context of government actions, the application of promissory estoppel is generally limited. It can be invoked against the government to prevent manifest injustice or fraud, especially when the government has made a clear promise or representation that has been relied upon by others. However, the doctrine cannot be used to enforce promises or representations that are outside the scope of lawful authority or made without lawful basis.

Furthermore, the doctrine must be balanced against the public interest and the broader needs of society. If the government’s actions are in the public interest, or if the withdrawal or modification of a promise is necessary for public policy reasons, the courts may refuse to apply promissory estoppel, even if individual parties have relied upon the promise.

In summary, promissory estoppel can bind the government to its promises only when the promise is clear, intended to create legal relations, acted upon by the promisee, and not contrary to the public interest or lawful authority. When the government acts within its statutory powers and in the public interest, it retains the discretion to modify or rescind promises or policies, and the courts are less likely to enforce such promises through the doctrine of promissory estoppel.


JUDGMENT

Dr. ANAND, J.:—Leave granted in (C.A.Nos 6983, 6984 and 6985 of 1994), S.L.P. (C) Nos.7370, 12304/83 and 725/84.

2. These two batches of appeals by special leave are directed against the judgment of the High Court of Delhi dismissing the writ petitions filed by the appellants, challenging the action of the Union of India in withdrawing a time-bound exemption Notification No.66 dated 15-3-1979 for the import of PVC resins. Notification No.66 dated 15-3-1979 reads as follows :

NOTIFICATION

PVC resins are exempt from basic import duty. 66-Cus.dt.15-3-1979 as amended by 178-Cus. dt.29-8-79,37-Cus dt.25-3-80.

G. S. R. - In exercise of the powers conferred by sub-section (1) of Section 25 of the Custom Act, 1962 (52 of 1962), and in supersession of the Notification of the Government of India in the Ministry of Finance, Department of Revenue, No.145-Customs dated 27th July 1978, the Central Government, being satisfied, that it is necessary in the public interest so to do, hereby exempts polyvinyl chloride resins, falling within Chapter 39 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) when imported into India, from the whole of the duty of customs leviable therei



















































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