M/S. SHREE SIDHBALI STEELS LTD. AND ORS. versus STATE OF U.P. AND ORS.

M/S. SHREE SIDHBALI STEELS LTD. AND ORS. versus STATE OF U.P. AND ORS.

The State Government is empowered by Sections 14 and 21 of the General Clauses Act, 1897, and Section 49 of the Electricity (Supply) Act, 1948 to withdraw or modify the rebate by issuing a fresh notification. There can be no promissory estoppel against exercise of statutory powers or against statute, particularly when withdrawal was in larger public interest. The policy decision of not granting rebate is a fiscal matter not subject to judicial review absent arbitrariness or unreasonableness; no breach of Article 14 exists.

Parties
Petitioner: M/S. Shree Sidhbali Steels Ltd. and others; Respondent: State of U.P. and others
Jurisdiction
India
Judgment Date
20 January 2011
Procedural Posture
Writ Petition (civil) / Supreme Court Final Judgment
Outcome
Petition dismissed
Legal Topics
Rebate on Electricity Charges, Promissory Estoppel Against State, Judicial Review of Fiscal Decisions, Policy Withdrawal, Subordinate Legislation, General Clauses Act Applicability, Powers of Electricity Regulatory Commission
Electricity Law Administrative Law Constitutional Law Rebate on Electricity Charges Promissory Estoppel Against State Judicial Review of Fiscal Decisions Policy Withdrawal Subordinate Legislation +2 more

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Parties

M/S. Shree Sidhbali Steels Ltd. and others

Petitioner

State of U.P. and others

Respondent

Procedural Posture

Writ Petition (civil) / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether the State Government can withdraw or reduce Hill Development Rebate granted under Section 49 of the Electricity (Supply) Act, 1948
  2. 2 Applicability of doctrine of promissory estoppel against withdrawal/reduction of rebate by the State
  3. 3 Judicial review of State Government's fiscal/policy decisions under Article 32 of the Constitution

Ratio Decidendi

The State Government is empowered by Sections 14 and 21 of the General Clauses Act, 1897, and Section 49 of the Electricity (Supply) Act, 1948 to withdraw or modify the rebate by issuing a fresh notification. There can be no promissory estoppel against exercise of statutory powers or against statute, particularly when withdrawal was in larger public interest. The policy decision of not granting rebate is a fiscal matter not subject to judicial review absent arbitrariness or unreasonableness; no breach of Article 14 exists.

Court Disposition

Petition dismissed

Orders

  • Rule discharged
  • No order as to costs