DELHI CLOTH & GENERAL MILLS LTD. vs UNION OF INDIA

The Supreme Court dismissed the appeal regarding the Railway Board's freight rates, addressing three key questions: (1) the Board was not bound to grant the concessional rate under the letter dated November 5, 1966; (2) the rates charged for naptha were not deemed unreasonable, as operational costs cannot solely dictate reasonableness; and (3) there was no evidence of undue preference under Section 28 of the Railways Act. The Court clarified the doctrine of promissory estoppel, emphasizing that reliance on a promise is essential for its enforcement, and the Tribunal's rejection of this claim was found to be incorrect.