Whether the press release of 01.10.2009 announcing modifications ...

Press Release Proposal /= Change in Law: Clarity, No Legal Uncertainty Estoppel.

Case Laws     Customs

November 7, 2024

Whether the press release of 01.10.2009 announcing modifications to the Mega Power Policy 2006 constitutes a 'Change in Law' under Article 13 of the Power Purchase Agreement (PPA). The key points are: The press release did not alter/amend/repeal the existing law as of 01.10.2009, it merely announced a proposal approved by the Cabinet subject to certain conditions. No vested rights were created for any party to the PPA on 01.10.2009. Accepting the argument would create legal uncertainty with two regimes operating between 01.10.2009 and 11.12.2009/14.12.2009, contrary to the rule of law principles of clarity and predictability. The doctrine of promissory estoppel is inapplicable as the respondent PSPCL was not the promisor. The customs duty exemption and policy document constituting the 'Change in Law' came into effect on 11.12.2009 and 14.12.2009 respectively, not on 01.10.2009. The State Commission rightly held that benefits under the Mega Power Status would accrue only from 30.07.2010, when it was granted, and not from any prior date.

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