U.P.Power Corporation Ltd. & Anr vs Sant Steels & Alloys (P) Ltd & Ors

The Supreme Court upheld the Allahabad High Court's decision striking down the reduction of hill development rebate from 33.33% to 17% by U.P. Power Corporation Ltd., asserting that such a reduction violated the principle of promissory estoppel as established in Pawan Alloys & Casting Pvt. Ltd. v. U.P. State Electricity Board [(1997) 7 SCC 251]. The Court emphasized that the Corporation's actions were arbitrary and not permissible under Section 49 of the Electricity (Supply) Act, 1948. Consequently, the Court directed the Corporation to issue electricity bills with the original rebate for the remaining period of five years.