Promissory Estoppel III

A new class of Estoppel recognised as “Promissory Estoppel” has assumed considerable significance in the recent years. This principle, evolved by equity, to avoid injustice is traceable in the leading case on the subject in Central London Property Trust Ltd. vs. High Trees House Ltd., (1947) 1 KB 130.

This Court in Nestle India Limited, (2006) 6 SCC 465 while referring to the decision of Motilal Padampat Sugar Mills, (1979) 2 SCC 409 quoted para 24 of that judgment to the effect that the Government stood on the same footing as a private individual so far as the obligation in law was concerned and that the former was equally bound as the latter and it was difficult to see on what principle, could a Government, committed to the rule of law, claim immunity from the doctrine of Promissory Estoppel.

The doctrine of Promissory Estoppels may be applied against the Government where the interest of justice, morality and common fairness dictate such a course.”

– Hon’ble Justice Amitava RoyLalaram v. Jaipur Development Authority, [Civil Appeal No. 13940 of 2015].

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