Promissory Estoppel VII

The New Okhla Industrial Development Authority is constituted under provisions of The U.P. Industrial Area Development Act, 1976. Regulation 25 of The New Okhla Industrial Development Authority Service Regulations, 1981 states, the age of superannuation of employees. Any enhancement of the age of superannuation would require an amendment of the Service Regulations necessitating prior approval of the State Government.

Whether the age of superannuation should be enhanced is a matter of policy. If a decision has been taken to enhance the age of superannuation, the date with effect from which the enhancement should be made falls within the realm of policy. High Court has trenched upon the realm of policy making and has assumed jurisdiction over a matter which lies in the domain of the Executive.

The recommendation of N-O-I-D-A cannot create or alter the legal relationship since it is subject to the approval of the Government. Justice H.L. Gokhale in Monnet Ispat and Energy Ltd. v. Union of India, (2012) 11 SCC 1 clarified, Principle of Promissory Estoppel will not apply if the communication issued was either a proposal or a recommendation. The representation of N-O-I-D-A was a mere recommendation which was subject to approval of the State Government. Doctrine of Legitimate Expectation also finds no application.

Hon’ble Justice Dr. D.Y. Chandrachud, New Okhla Industrial Development Authority v. B.D. Singhal, [Civil Appeal No. 2310 of 2021].

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“The ratio in New Okhla Industrial Development Authority, 2021 SCC OnLine SC 466 cannot in our opinion be applicable here, to defeat the legitimate expectation.”

Hon’ble Justice Hrishikesh Roy, NDMC v. Dr. Ram Naresh Sharma, [Civil Appeal No. 4578 of 2021] decided on 03.08.2021.