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, age of superannuation of employees. Any enhancement of age of superannuation would require an amendment of Service Regulations necessitating prior approval of State Government.

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

The recommendation of N-O-I-D-A cannot create or alter a legal relationship since it is subject to approval of Government. Justice H.L. Gokhale in Monnet Ispat & Energy Ltd. v. Union of India, (2012) 11 SCC 1 clarified, Principle of Promissory Estoppel will not apply if 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 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].


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

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