In Brief
The Union of India challenged multiple lower court judgments that had quashed subsequent industrial policy notifications on the ground that they violated the doctrine of promissory estoppel. The lower courts held that withdrawal of industrial incentives was retrospective and barred by promissory estoppel. The Supreme Court allowed the appeals, holding that subsequent policy notifications modifying or withdrawing incentives operate prospectively and are not barred by promissory estoppel. The State retains the sovereign right to change its industrial policy prospectively.
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