The doctrine of promissory estoppel is not applicable where there is no evidence of a promise being held out.

1. :- In brief the facts giving rise to this special appeal are these. On 13.6.95 M/s. Jyoti Hotel, Bhilwara through Om Prakash filed writ petition No. 2476/95 under article 226 of the Constitution against Rajasthan Financial Corporation Jaipur through its Chairman and Managing Director and three other officials of the said Corporation (respondents 1 to 4) for issue of a direction to them to consider its (petitioner's) loan application favourably without giving weight to matters that were sub judice between Maheshwari Textiles and Maheshwari Textile Mills and M.Tech Processors Ltd on-one side and the respondents on the other. It was stated in the writ petition that the petitioner, sole proprietor of Jyoti Hotel Bhilwara, had applied to the Rajasthan Financial Corporation respondent in January 1995 for a loan of rupees thirty one lacs for expansion of the Hotel and having been assued by respondent no. 2 to 4 namely Manager City Branch Bhilwara, Manager (Loans) and General Manager (Loans), Jaipur of the respondent Rajasthan Financial Corporation whom he met in the month of January 1995 itself at Bhilwara and Jaipur that the loan would be sanctioned, acting on this promise he (petitioner) had made an investment of rupees twenty lacs by raising construction, purchase of plant and machinery, furniture, air conditioners etc. in the hope that he would pay for the same as soon as the loan was sanctioned by the respondent Rajasthan Financial Corporation. However the petitioner was dismayed to receive letter dated 4.2.95 annexure 1 from the Rajasthan Financial Corporation respondents informing him that his application for the loan has been rejected, necessitating the filing of the writ petition. The impugned rejection was without affording an opportunity of being heard, also Rajasthan Financial Corporation respondent could not go back on its promise to sanction the loan by operation of the doctrine of promissory estoppel. On enquiry the petitioner had come to know that the main reason for not sanctioning of the loan to him was that the other concerns namely Maheshwari Textiles and Maheshwari Textiles Mills in which the petitioner had one third share and M.Tech Processors Ltd. of which he is the Managing Director without a substantial investment owe dues to the Rajasthan Financial Corporation respondent which was not a valid reason to reject his loan application as that matter was sub judice between the parties. The petitioner had deposited rupees three lacs on 30.3.1995 as advised by the Branch Manager respondent No. 2 of the respondent Rajasthan Financial Corporation vide letter dated 2.3.95 annexure 4 to this petition & this taken with representation dated 15.4.95 annexure 2 addressed by him to the respondent Rajasthan Financial Corporation showed that promise had been made so the doctrine of promissory estoppel applies.

2. The respondents contested the writ petition. In their reply to the writ petition the respondents denied that they had held out a promise to the petitioner to sanction the loan or that the petitioner had on such promise having been held oat by them made investment as claimed by him. They (respondents) explained that the petitioner's application for further financial assistance to the tune of rupees thirty one lacs was processed and was, after due consideration, rejected and then the rejection was communicated to the petitioner vide letter dated 4.2.95 annexure R.I. The respondents further explained that mere submission of application for loan by the petitioner did not confer on him (petitioner) any legal right to have the loan sanctioned. According to the respondents there was no promissory estoppel. The respondents further explained that the petitioner had earlier been sanctioned a loan of rupees twenty three lacs thirty six thousand on 20.10.89 by the respondent Rajasthan Financial Corporation to construct Jyoti Hotel in repayment of which loan he (petitioner) had defaulted with the result that on 1.1.95 a