Query

Government agencies are not entirely immune from the operation of promissory estoppels. Government agencies are required to work within the framework of the legal structure. Government agencies are not allowed to backtrack on their promises.

In the case of Motilal Padampat Sugar Mills vs. State of U.P,  the Court concluded that government was bound by promise and was liable for the same. Doctrine of promissory estoppels can be invoked if even it does not satisfy the conditions given under Section 115 of the Act. However, in certain scenarios the Government is spared from the doctrine of promissory estoppels. Estoppel cannot be stretched to the extent of restricting the State from exercising its sovereign and legislative powers. It cannot be claimed on the basis of a contract which does not satisfy the requirements provided under Article 299 of the Indian Constitution. The plea of promissory estoppels would not be entertained if done against the legislative functions of the state, preventing government from discharging its legal functions and duties, when an officer acts beyond the scope of his employment, against the general interest of the state or if an officer acts on his whim or self benefit. Estoppel can be invoked against the Government regardless of its executive or administrative character. Doctrine of promissory estoppels cannot be build against those agreements which are in contravention of the law. If a promise made by an executive officer is beyond his power, no estoppel can be imposed.