TaxTMI 
TaxTMI 
TaxTMI 
2008 (4) TMI 724
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....ing and printing of the compilation of local laws at the relevant period and had promised that if they publish those the government of Arunachal Pradesh will purchase at least 500 sets of local Acts and Rules. It was submitted that in view of the direction given by this Court in All India Judges' Association and Ors. v. Union of India & Ors. [AIR 1992 SC 165] and in All India Judges' Association and Ors. v. Union of India & Ors. [AIR 1993 SC 2493] such promise was made. It according to the writ petitioner is a clear case where principles of promissory estoppel and legitimate expectation applied. The stand was resisted by the present appellant contending that there has been manipulation of the notes. The alleged note does not indicate that there was any promise or order for printing/publishing the book. It was merely a departmental note sent to the Planning/Finance/Law Department from the Chief Minister for examination. Further the Minister had specifically stated (in the note) that 400 copies of one book containing all the North Eastern Regional Local Acts and Rules of Rs. 400/- each (total value of Rs. 1,60,000/-) could be purchased as the publisher on his own told that he has pu....
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....ndicated that the view of various departments/Ministries were to be taken and their concurrence was to be obtained. Apart from that, undisputedly there was some factual dispute as to whether the intended purchase was of volumes or sets. There is conceptual different between the two. The books were not even printed at the relevant point of time. The High Court has noticed only one volume had been printed. Further the need for the purchase of the books for the judicial officers was to be assessed in consultation with the High Court. The Law Minister could not have, without taking the view of the High Court, placed orders. In any event the dispute as to the volumes or the sets and the interpolation in the documents were of considerable relevance. Unfortunately the High Court has lightly brushed aside this aspect. 6. The doctrines of promissory estoppel and legitimate expectation were not applicable to the facts of the case. 7. Estoppel is a rule of equity which has gained new dimensions in recent years. A new class of estoppel has come to be recognized by the courts in this country as well as in England. The doctrine of 'promissory estoppel' has assumed importance in recent years th....
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....') which enacts the rule of estoppel, it would still be open to a party who had acted on a representation made by the Government to claim that the Government should be bound to carry out the promise made by it even though the promise was not recorded in the form of a formal contract as required by Article 299 of the Constitution. (See Century Spinning Co. v. Ulhasnagar Municipal Council (AIR 1971 SC 1021), Radhakrishna v. State of Bihar (AIR 1977 SC 1496), Motilal Padampat Sugar Mills Co. Ltd v. State of U.P. (1979 (2) SCC 409), Union of India v. Godfrey Philips India Ltd. (1985 (4) SCC 369), Dr. Ashok Kumar Maheshwari v. State of U.P. & Another (1998 (2) Supreme 100). 8. In the backdrop, let us travel a little distance into the past to understand the evolution of the doctrine of "promissory estoppel". Dixon, J. an Australian Jurist, in Grundt v. Great Boulder Gold Mines Prorietary Ltd. (1939) 59 CLR 641 (Aust) laid down as under: "It is often said simply that the party asserting the estoppel must have been induced to act to his detriment. Although substantially such a statement is correct and leads to no misunderstanding, it does not bring out clearly the basal purpose of the doc....
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....able. The reasonableness in administrative law must, therefore, distinguish between proper course and improper abuse of power. Nor is the test Court's own standard of reasonableness as it might conceive it in a given situation. The point to note is that the thing is not unreasonable in the legal sense merely because the Court thinks it to be unwise. 12. In Union of India and Ors. v. Hindustan Development Corporation and Ors. (AIR 1994 SC 998), it was observed that decision taken by the authority must be found to be arbitrary, unreasonable and not taken in public interest where the doctrine of legitimate expectation can be applied. If it is a question of policy, even by ways of change of old policy, the Courts cannot intervene with the decision. In a given case whether there are such facts and circumstances giving rise to legitimate expectation, would primarily be a question of fact. 13. As was observed in Punjab Communications Ltd. v. Union of India and others (AIR 1999 SC 1801), the change in policy can defeat a substantive legitimate expectation if it can be justified on "Wednesbury reasonableness." The decision maker has the choice in the balancing of the pros and cons releva....
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....rticular case. It follows that the concept of legitimate expectation is 'not the key which unlocks the treasure of natural justice and it ought not to unlock the gates which shuts the Court out of review on the merits,' particularly, when the elements of speculation and uncertainty are inherent in that very concept. As cautioned in Attorney General for New Southwale's case the Courts should restrain themselves and respect such claims duly to the legal limitations. It is a well meant caution. Otherwise, a resourceful litigant having vested interest in contract, licences, etc. can successfully indulge in getting welfare activities mandated by directing principles thwarted to further his own interest. The caution, particularly in the changing scenario becomes all the more important. 15. If the State acts within the bounds of reasonableness, it would be legitimate to take into consideration the national priorities and adopt trade policies. As noted above, the ultimate test is whether on the touchstone of reasonableness the policy decision comes out unscathed. 16. Article 166 of the Constitution deals with the conduct of Government business. The said provision reads as follows: "166.....