The state of Orissa is in appeal by special leave.
On 27.4.1989 the State Government proposed revision of certain terms which resulted in revision of rate of royalty and the method of stack measurement adversely to the interest of the respondent.
2003 Supp 5 SCR 492 The following Order of the Court was delivered A. No.
This proposal was challenged by the respondent by filing the writ petition in the High Court which has been allowed and the companymunication dated 2.9.1993 companytaining the impugned revision has been struck down by the High Court.
The industry companytinued to function, companysumed the raw material and sold its finished products to the buyers in the market.
On 2.9.1993, the State Government again proposed to make a revision with effect from a back date, i.e., 1st April, 1998.
The respondent was number obviously agreeable and protested.
The pricing of the finished product was done by taking into account the rate of royalty and the method of stack measurement as proposed by the respondent and agreed upon between the parties.
On the representation made by the State of Orissa as companytained in their Industrial Policy of the year 1980 and 1983 the respondent was persuaded to establish its industry in the state of Orissa.
The representation of the respondent ultimately prevailed with a high level companymittee of the State Government and on 3.10.1989 a decision was taken to number to alter the terms for supply of raw material on which the respondent had acted and established its industry.
10664/1996 A decision taken by the Government of Orissa on 27.4.1989 to revise with effect from back date the terms for making available raw material to the respondent has been struck down by the High Court of Orissa as violative of the principle of promissory estoppel.
