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J. B. PARDIWALA, K. V. VISWANATHAN
State of Himachal Pradesh – Appellant
Versus
Kundlas Loh Udyog – Respondent
JUDGMENT :
J.B. PARDIWALA, J.
For the convenience of exposition, this judgment is divided into the following parts:-
INDEX
| A. | PARTIES TO THE APPEAL |
| B. | FACTUAL MATRIX |
| C. | SUBMISSIONS OF THE APPELLANTS |
| D. | SUBMISSIONS OF THE RESPONDENT |
| E. | ISSUES FOR THE DETERMINATION |
| F. | ANALYSIS (I). Whether the incentive in the form of concessional rate of electricity charges under Clause 16(a) of the Industrial Policy of 2019, read with Rule 16(i)(a) of the 2019 Rules, was ever intended be provided to the existing industrial enterprises undergoing substantial expansion, and what effect the amendment notification dated 29.04.2022 has on the applicability of the said clauses? (II). Whether the doctrine of promissory estoppel applies in favour of the respondent company? |
| G. | CONCLUSION |
1. Leave Granted.
2. This appeal arises from the judgment and order dated 07.05.2025 passed by the High Court of Himachal Pradesh in Civil Writ Petition No. 1667 of 2021 preferred by the respondent herein by which the High Court directed the appellants herein to issue the enabling notification in terms of the incentives under the Clause 16(A) of the Himach
The State is bound by its promises under the Industrial Policy, and failure to issue enabling notifications for incentives constitutes arbitrary action, invoking the doctrine of promissory estoppel.
Section 3(B)(b) of Act enables levy of electricity duty upon cancellation of exemption.
The principle of promissory estoppel prevents the Electricity Board from withdrawing a promised rebate to new industries before the guaranteed period expires, despite contractual agreements allowing ....
Industrial Policy – Electricity Incentives – Date of energisation has been considered to be touchstone for granting exemption from enhanced power tariff.
The principle of estoppel prevents authorities from withdrawing subsidies once granted, especially when businesses have acted on the original policy.
A new industrial unit under the industrial policy of 1989 is established if fixed capital investments occur post-effective date, independent from existing units; prior subsidies do not limit new unit....
Point of Law : Notification cannot be construed as having retrospective or retroactive effect to whittle down the accrued rights in favour of the Respondent units which were entitled to rebate.
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