The court is bound to act fairly and in Transparent Manner and must discard the colonial notion: Supreme Court

The state government made appeal in the matter against high court order for granting 50% rebate benefit to brahmputra metallics on electricity duty.

The dispute is connected to one of the clauses of the state’s 2012 Industrial Policy. The Clause 32.10 provided an exemption from the payment of 50 per cent of the electricity duty for a period of five years for captive power plants established for self-consumption or captive use.

Bench of Justices D Y Chandrachud and Indu Malhotra said, “The state must discard the colonial notion that it is a sovereign handing out doles at its will. Its policies give rise to legitimate expectations that the state will act according to what it puts forth in the public realm. In all its actions, the State is bound to act fairly, in a transparent manner. This is an elementary requirement of the guarantee against arbitrary state action which Article 14 of the Constitution adopts”.

Supreme Court held Jharkhand guilty for being unfair and arbitrary in the matter depriving industrial units within the State of their legitimate entitlement, and also the action being violative of Article 14 of Constitution of India.

The court held that respondent would not be entitled to a rebate/deduction for FY 2011-12, and order of the High Court would have to be confirmed for
FYs 2012-13 and 2013-14.

State of Jharkhand vs. Brahmputra Metallics Ltd., Ranchi [Civil Appeal Nos. 3860-3862 of 2020 ]

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