Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | promissory estoppel Electricity Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Administrative law: Policy decision - State of Kerala declared a policy fo give uninterrupted 100% electricity supply at exempted rate for a period of 5 years to newly set up manufacturing units - Pursuant to the said policy, the appellants set up their manufacturing units in the State - However, there were frequent power cuts which adversely affected these units - Respondent-State passed order whereby it granted extension of period of assured power supply to the new units by number of days during which supply of electricity to them was cut to the extent of 50% or more - Challenged on the ground that whenever there was power cut, even if the cut was 50% or less, the said period should have been added to the period of 5 years, for the reason that for proper functioning of the manufacturing units, uninterrupted 100% supply of electricity is a sine qua non - Held: Framing such policies and doing the needful for its implementation are administrative functions of the State and therefore, normally interference with its policies is not called for - But looking at the peculiar facts of the case, where an assurance was given for uninterrupted supply of electricity, respondent-State ought to have made necessary arrangements to provide 100% uninterrupted supply of electricity for 5 years to the new units - Without proper appreciation of all the relevant factors, the State should not give any assurance, not only because that would be in violation of the principles of promissory estoppel but it would be unfair and immoral on the part of the State not to act as per its promise - The benefit extended by the respondent State is not sufficient - The respondent-State ought to have extended the period even for the days when supply of electricity was more than 50% but not 100% as assured - Therefore, the respondents are directed to give the said benefit by extending the period of incentive - Doctrine of promissory estoppel - Electricity Act,1910 - s.22B. |
Judge | Hon'ble Mr. Justice Anil R. Dave |
Neutral Citation | 2014 INSC 81 |
Petitioner | M/s S.v.a. Steel Re-rolling Mills Ltd. Etc. Etc. |
Respondent | State Of Kerala & Ors. Etc. Etc. |
SCR | [2014] 2 S.C.R. 336 |
Judgement Date | 2014-02-06 |
Case Number | 10103-10106 |
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