Promissory estoppel barred retrospective curtailment of Export House Certificate renewal absent proof of overriding public interest.

Promissory estoppel protected the petitioner's accrued entitlement to a three-year renewal of the Export House Certificate because the earlier policy contemplated that period and the petitioner had altered its position in reliance on it. The later policy change could not be applied retrospectively to reduce that entitlement unless the Government proved, on proper material, that overriding public interest justified departure from the promise. As no reply or counter-affidavit was filed and that burden was not discharged, the retrospective curtailment was not sustained and the denial of renewal was quashed.

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Issues: Whether the petitioner was entitled to renewal of the Export House Certificate for the full three-year period under the earlier policy, and whether the subsequent policy change could operate retrospectively so as to defeat that entitlement in the absence of proved overriding public interest.

Analysis: The policy in force when the petitioner's certificate expired contemplated a three-year renewal framework, and the petitioner acted on that representation by altering its position. The later policy change was invoked by the Government to curtail the renewal period, but the earlier policy itself reserved power to amend only in public interest. A change in executive policy does not by itself defeat promissory estoppel; the Government must establish, on proper material, that overriding public interest justified departure from the promise and that the change should affect accrued rights only prospectively. On the record, no reply was filed, no counter-affidavit was produced, and the burden to justify retrospective application was not discharged.

Conclusion: The petitioner succeeded on the plea of promissory estoppel, and the retrospective operation of the later policy, insofar as it reduced the petitioner's entitlement, was not sustained.

Final Conclusion: The denial of the three-year renewal was quashed, and the respondents were directed to grant the Export House Certificate up to 31 March 1993.

Ratio Decidendi: An executive policy promising benefits may not be altered retrospectively to the detriment of an accrued entitlement unless the Government proves overriding public interest on proper material; otherwise, promissory estoppel applies and the change operates only prospectively.

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