Case Note & Summary
The dispute arose from the appellant's claim for an additional licence for the export of processed iron ore under the Exim Policy 1988-91. The appellant, a recognized trading house, entered into a contract for export on 7.2.1990 and exported processed iron ore during the period April 1990 to March 1991, realizing significant foreign exchange earnings. However, the application for an additional licence was rejected by the authorities based on the new Exim Policy 1990-93, which included processed iron ore in the list of ineligible items. The appellant challenged this decision through various appeals and writ petitions, ultimately leading to a High Court ruling that initially favored the appellant. However, upon appeal to the Supreme Court, the matter was remitted back to the High Court for further examination of the eligibility criteria under the new policy. The High Court subsequently dismissed the writ petition, reaffirming that the new policy applied and the appellant was not entitled to the additional licence. The appellant argued that reliance on the earlier policy and the principle of promissory estoppel should grant them the licence, but the court found that the policy change was valid and that the appellant could not claim the benefit as a matter of right. The court also noted that the principle of promissory estoppel did not apply to policy decisions regarding incentives. Ultimately, the Supreme Court dismissed the appeal, agreeing with the High Court's findings and confirming the denial of the additional licence.
Headnote
A) Administrative Law - Exim Policy - Eligibility for Additional Licence - Exim Policy, 1988-1991, 1990-1993 - The appellant claimed additional licence based on exports made under the earlier policy, but the new policy rendered the exported item ineligible. The court held that the new policy applied, denying the claim for additional licence (Paras 5-9).
Issue of Consideration
Whether the appellant was entitled to the benefit of additional licence for the export of processed iron ore under the Exim Policy 1988-91 despite the subsequent policy change.
Final Decision
The Supreme Court dismissed the appeal, agreeing with the High Court's conclusion that the appellant was not entitled to the additional licence under the new Exim Policy 1990-93, which included processed iron ore in the list of ineligible items.
Law Points
- Exim Policy
- additional licence
- eligibility criteria
- promissory estoppel
- policy change
- discrimination
