No Promissory estoppel against State altering/modifying the benefit of concessional tariff: Supreme Court
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Supreme
Court on Friday, has held that State would not be estopped from
altering/modifying the benefit of concessional tariff. Three Judge Bench of
Apex Court comprising of Justices Ranjan Gogoi, Arun Mishra and Prafulla C.
Pant made this observation in M/s. Kothari Industrial Corporation Ltd. vs.
Tamil Nadu Electricity Board.
The
Appeal was against the Order of High Court which had dismissed the plea of
company that the State had promised concessional tariff for a period of five
years starting from the date of commencement of commercial production and it
could not have been revisited by any contrary action.
The
Court referring to its decision in Shree Sidhbali Steels Limited vs. State of
Uttar Pradesh & Ors said that there can be no estoppel against the statute.
The Court answering the reference before it, holding that the principle of
promissory estoppel would have no application to this case so as to entitle the
company any right to the continuation of the concessional tariff earlier
granted.
Read
full judgment at:
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