Administrative lawPromissory estoppelSupreme Court of India

Union of India v Anglo Afghan Agencies

AIR 1968 Supreme Court 71819681 min read
The case in brief30-second read
Facts
Government issued an export promotion scheme promising full import entitlements to exporters meeting specified targets. Anglo Afghan Agencies met the targets and earned entitlement.
Issue
Whether promissory estoppel operates against the government, binding it to clear representations on which parties have relied to their detriment?
Held
Promissory estoppel applies against the government. Equity operates against all parties who retract representations others acted on to their detriment. Executive privilege does not override the equitable obligation created by the representation.
Principle
Promissory estoppel operates against the government; the government is bound by its representations when parties have acted in reliance on them to their detriment.
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Facts

  • Government issued an export promotion scheme promising full import entitlements to exporters meeting specified targets
  • Anglo Afghan Agencies met the targets and earned entitlement
  • The government then reduced the entitlement citing changed policy

Issue

  1. Whether promissory estoppel operates against the government, binding it to clear representations on which parties have relied to their detriment?

Held

  • Promissory estoppel applies against the government. Equity operates against all parties who retract representations others acted on to their detriment. Executive privilege does not override the equitable obligation created by the representation.

Ratio decidendi

The government is bound by clear representations when: (1) representation made; (2) party relied; (3) detriment resulted from reliance. The government cannot shelter behind policy prerogative to escape equitable obligations created by its own published promises.

Exam use

How to use it in an answer

Foundational case for promissory estoppel against government in ADM-5.6. Precedes Motilal Padampat (1979) which systematised the four-element test.

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Citation

Union of India v Anglo Afghan Agencies AIR 1968 Supreme Court 718

Reported: AIR 1968 Supreme Court 718. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.