DEVI MULTIPLEX &ANR. versus STATE OF GUJARAT & ORS.

DEVI MULTIPLEX &ANR. versus STATE OF GUJARAT & ORS.

Appellants are entitled to full benefit of Clause 10 of the Scheme; Government is bound by promissory estoppel and cannot curtail period and opportunity by subsequent G.R. dated 28.06.2000, which was bad and ineffective as not issued statutorily under Section 29. High Court’s order restricting extension is set aside. State Level Committee must assess eligibility for extension and incentives under the Scheme.

Parties
Appellant: Devi Multiplex; Respondent: State of Gujarat; Respondent: Others
Jurisdiction
India
Judgment Date
13 May 2015
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 26.06.2009 of Gujarat High Court at Ahmedabad in Special Civil Application No. 18692 of 2005
Outcome
Appeals allowed
Legal Topics
Promissory Estoppel, Government Incentive Schemes, Entertainment Tax, Tourism Policy, Statutory Notification
Administrative Law Tax Law Statutory Interpretation Promissory Estoppel Government Incentive Schemes Entertainment Tax Tourism Policy Statutory Notification

Case Brief

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Parties

Devi Multiplex

Appellant

State of Gujarat

Respondent

Others

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 26.06.2009 of Gujarat High Court at Ahmedabad in Special Civil Application No. 18692 of 2005

Legal Issues

  1. 1 Whether the State Government is estopped from curtailing the period and opportunity available under Clause 10 of the New Package Scheme of Incentives for Tourism Projects, 1995-2000 by subsequent Government Resolution dated 28.06.2000.
  2. 2 Whether the appellants are entitled to incentives and benefits under the Scheme despite not commencing commercial operations within the operative or extended period due to force majeure events.

Ratio Decidendi

Appellants are entitled to full benefit of Clause 10 of the Scheme; Government is bound by promissory estoppel and cannot curtail period and opportunity by subsequent G.R. dated 28.06.2000, which was bad and ineffective as not issued statutorily under Section 29. High Court’s order restricting extension is set aside. State Level Committee must assess eligibility for extension and incentives under the Scheme.

Court Disposition

Appeals allowed

Orders

  • Order of High Court set aside regarding period and extension.
  • State Level Committee directed to assess justifiable claim for extension under Clause 10 within three months.