Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Electricity (Supply) Act 1948-s. 49 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Electricity (Supply) Act, 1948 - s. 49 - Notification under - Concession of 33.33% development rebate to new industrial units in hill areas for jive years from the date of commencement of supply of electricity - Subsequent Notifications reducing the concession to 17% - Principle of promissory estoppel - Applicability of - Held: Notification was in the nature of delegated legislation and not an Act framed by State Legislature - In such delegated legislation revocation is permissible, if larger public interest is involved or an Act is passed by legislature - On facts, no evidence to make out the case of public interest to revoke the concession granted - Thus, principle of promissory estoppel applicable - However, units entitled to such benefits till the Act of 1999 came into force since after coming into force the Act of 1999 no such concession was granted - Administrative law - Delegated legislation - UP. Electricity Reforms Act, 1999 - Notifications dated 18.1.1992, 15.7.1994, 18.6.1998 and 25.1.1999.Administrative law - Promissory estoppel - Applicability of, against State or its instrumentalities - Held: Depends on the facts of each case - When State Government makes representation showing benefits to entrepreneurs and entrepreneurs make investment, then revocation of such benefits by State Government would be unfair and arbitrary - Consideration of public interest and that there cannot any estoppel against a Statute are exceptions.The appellant-U.P. Power Corporation Ltd., issued Notifications and allowed 33.33% hill development rebate in consumption of energy to the new industrial units for a period of five years from the date of commencement of the supply of the electricity. The entrepreneurs established industrial units in the hill areas after incurring huge investments. By subsequent Notifications, the appellant-Corporation restructured the tariffs and the concession was reduced from 33.33% to 17%. The entrepreneurs filed writ petitions challenging the Notifications. The Division Bench of the High Court allowed the writ petitions holding that the appellant was bound by the principle of promissory estoppel and could not revoke the benefit of the concession in consumption of energy given to the writ petitioners for establishing industries in the hill areas. It directed the appellant-Corporation to issue electricity bills to the writ petitioners after allowing 33.33% hill development rebate on the total amount of bill for the remaining unexpired period of five years. Hence the present appeals by the appellants-U.P. Power Corporation Ltd. Appellant-U.P. Power Corporation Ltd. contended that the notifications modifying the rebate were issued in exercise of the statutory provisions under section 49 of the Electricity (Supply) Act, 1948; that there was large scale theft of energy in the State of U.P.; that the High Court failed to consider the public interest, specifically pleaded by filing an affidavit; that by virtue of the U.P. Electricity Reforms Act, 1999, the new tariff was fixed from August 2000-2001 by the Commission and no estoppel against the Statute could be pleaded after the Act of 1999 having come into force; that it was not in public interest to continue the benefit to these industries located in hill areas; that the entire benefit was not withdrawn, the benefit was rationalized and as a result the energy consumption of these units increased to manifold; and that the whole exercise of restructuring the rebate was done in the public interest only.Respondent-writ petitioners inter alia contended that these concessions were given to the hill areas in pursuance to the direction by the State Government in exercise of power under section 78A of the Act; that under section 49 of the 1948 Act, there is no such contemplation that the exemption could be revoked; that the change in the tariff would be unconstitutional, unfair, arbitrary to the citizens who acted on the promise made by the appellant-Corporation; that the State Government/Corp. is estopped from withdrawing these concessions; that the concession which were given had a vested right and it could be revoked by the same Statute; that the revocation was not on the basis of general public interest but only on account of losses the Corporation was trying to make up; and that there is no allegation of theft in the hill areas. |
Judge | Hon'ble Mr. Justice A.K. Mathur |
Neutral Citation | 2007 INSC 1252 |
Petitioner | U.p. Power Corporation Ltd. & Anr. |
Respondent | Sant Steels & Alloys (p) Ltd. & Ors. |
SCR | [2007] 12 S.C.R. 1160 |
Judgement Date | 2007-12-10 |
Case Number | 1215-1216 |
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