Meaning and Scope of Promissory Estoppel
Promissory estoppel is an equitable doctrine that prevents injustice when a person makes a clear promise and another relies on it. The doctrine applies even when no formal consideration exists. The promisor cannot withdraw the promise if the promisee has acted upon it in good faith. Indian courts trace this principle to Section 115 of the Indian Evidence Act, 1872, which lays down the rule of estoppel. Unlike traditional estoppel, promissory estoppel creates enforceable rights. Courts use it to promote fairness and honesty in legal dealings. The doctrine plays a major role in public law and contractual relations. It ensures that the law does not support unfair conduct. By enforcing promises that induce reliance, courts protect trust and legal certainty in society.
Legal Basis and Judicial Development
Indian courts developed promissory estoppel through judicial interpretation rather than legislation. Section 115 of the Indian Evidence Act, 1872 forms its statutory base. The Supreme Court expanded its scope and applied it against the State. Courts have held that the government must honor its promises when citizens rely on them. However, courts also set clear limits. Promissory estoppel cannot override statutory provisions. It cannot compel an act that violates the law. Courts also refuse its application when public interest demands withdrawal of the promise. These judicial safeguards ensure balance. The doctrine protects individuals without restricting legislative authority or public welfare.
Essential Elements and Limitations
Promissory estoppel requires specific conditions. First, the promisor must make a clear and definite promise. Second, the promisee must rely on that promise. Third, the reliance must cause a change in position. Fourth, injustice must result if the promisor withdraws. Courts strictly examine these elements. The doctrine does not apply to vague statements or moral assurances. It also fails when reliance remains unproven. Courts deny relief if enforcement harms public interest. These limits preserve the doctrine’s equitable nature. Promissory estoppel operates as a shield against unfair conduct, not as a weapon to defeat the law.
Real-Time Practical Example
A State Government announces tax exemptions to attract industries. A company relies on the announcement and invests large capital. It sets up factories and creates employment. Later, the government withdraws the exemption before the promised period ends. Courts have applied promissory estoppel in such cases. They restrain the government from withdrawing the benefit arbitrarily. The investor’s reliance creates an equitable right. This application strengthens public confidence. It also promotes stability in economic policies. The doctrine ensures accountability in government assurances that influence private investment decisions.
Mnemonic to Remember the Concept
Use the mnemonic “PRIDE” to remember promissory estoppel.
P – Promise made clearly
R – Reliance by the promisee
I – Intention to create legal relations
D – Detrimental change in position
E – Equity requires enforcement
This mnemonic simplifies revision. It helps students recall both meaning and conditions quickly. It also reinforces the equitable foundation of the doctrine.
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