Vairavikulam Lime Products Private ... vs Government Of India, Ministry Of ... on 19 June, 2006
The next case is Shrijee Sales Corporation v. Union of India , wherein A.M. Ahmadi, C.J., speaking for the Bench considered the correctness of the aforesaid decision in Kasinka Trading. A.M. Ahmadi, C.J., while upholding the notification in Shrijee Sales Corporation, would hold that the principle of promissory estoppel is applicable against the Government, but in case there is a supervening public equity, the Government would be allowed to change its stand and to withdraw the representation made by it, which induced persons to take certain steps. It is only if the Court is satisfied, on proper and adequate material placed by the Government that overriding public interest requires that the Government should not be held bound by the promise but should be free to act unfettered by it, that the Court would refuse to enforce the promise against the Government. The Court would not act on the mere ipse dixit of the Government, for it is the Court which has to decide and not the Government whether the Government should be held exempt from liability and the burden would be upon the Government to show that the public interest in the Government acting otherwise than in accordance with the promise is so overwhelming that it would be inequitable to hold the Government bound by the promise and the Court would insist on a highly rigorous standard of proof in the discharge of this burden.