A.P. STATE ELECTRICITY BOARD AND ORS. vs SARADA FERRO ALLOYS LTD.

The Supreme Court held that the High Court erred in applying the doctrine of promissory estoppel to the case, as the respondent company did not commence production before the withdrawal of the incentive under Section 49 of the Electricity Supply Act, 1948. The Court clarified that the promise made by the Board was contingent upon the company starting production on or before the specified dates, which it failed to do. Consequently, the Court upheld the decision that the company was not entitled to the rebate, affirming the High Court's judgment was incorrect.