IMPORTANT POINT
The doctrine of promissory estoppel applies also in the realm of a statute.

JUDGMENT

S.B. Sinha, J. —

1. Leave granted.

2. Validity of an action of withdrawal of a circular letter dated 8.09.2000 issued by the U.P. Power Corporation Ltd. (Respondent No. 2 herein) was the subject matter of ten writ applications filed before the High Court. The said writ petitions were dismissed.

3. The writ petitioners preferred appeals before us upon obtaining special leave. This Court in LML Ltd. v. State of Uttar Pradesh and Others1 [(2008) 3 SCC 128] allowed the appeals against the Corporation. The appellant before us is against the said common judgment of the High Court. In LML Ltd. (supra), this Court, inter alia, held:

“50. The proximity of issuance of the circular vis-‘-vis notification must also be noticed. The tariff was framed on 7-8-2000 which came into force from 9-8-2000 whereas the Circular was issued on 8-9-2000. The consumers exercised their option on 31-10-2000. The judgment in LML1 was delivered on 25-4-2001. The Circular dated 31-8-2001 undoubtedly was issued in view of the said judgment. The said judgment did not deal with the questions raised before us. In any event if the licensee violates the tariff approved by the Commission appropriate legal action can be taken against it. But it would be too much to contend that for a mistake on the part of the Corporation, the consumers would suffer. In this view of the matter, we are of the considered view that the doctrine of estoppel shall apply in the cases where the promise was made. However, the principle of said doctrine would, however, not be applicable where no such promise was made.”

4. Mr. Pradeep Misra, learned counsel appearing on behalf of the respondent No. 1 - corporation, however, would submit that the said decision should not be followed by us as a review petition had been filed. It was urged that in any event the said decision requires reconsideration. The said review petition, we may place on record, has been dismissed by a Bench of this Court by an order dated 20.02.2008.

5. We, therefore, proceed to deal with the submission of Mr. Misra before us that the said decision requires reconsideration.

For the purpose of appreciating the said contention, we may notice at the outset the basic fact of the matter.

Legislature of the State of Uttar Pradesh enacted the Uttar Pradesh Electricity Reforms Act, 1999 (for short “the 1999 Act”) in terms whereof the U.P. Electricity Regulatory Commission (for short “the Commission”) was constituted. For determination of tariff in terms of the 1999 Act, the Commission was approached by the respondent No. 2. Tariff was determined, relevant portion whereof reads as under:

“RATE SCHEDULE HV-2

LARGE AND HEAVY POWER

1. Applicability

This rate schedule shall apply to all consumers who have contracted load of more than 75 kW (100 BHP) for industrial and/or processing purposes as well as to Arc/induction, furnaces rolling/re-rolling mills, mini steel plants and to any other power consumers not covered under any other rate schedule.

This rate schedule shall also apply to commercial light, fan and power consumers (LMV-2) and power consumers of Rate Schedule LMV-6, subject to the condition that they opt for this rate schedule.

The contracted demand shall be expressed in whole number only.

2.-3. * * *

4. Rate of charge Description Demand charge Energy charge

A. Basic rate (applicable to urban consumers)

Rs 130 per kVA/month PLUS 390 paise/kWh

Notes.—(a) In respect of consumers who opt for power supply during restricted/peak hours an additional surcharge of 15% on the amount billed at the “Rate of Charge” under Item 4-A above i.e. demand charge and energy charge shall be levied. However, in respect of consumers getting power supply on independent feeders emanating from 400/220/132 kV substations an additional surcharge of 15% on demand and energy charges shall be charged further subject to the condition that these consumers will get an assured supply of minimum 500 hours in