Institute of Legal and Management Studies

The Supreme Court has held that the plea of estoppel cannot be raised against the Government in the exercise of its Legislative, Sovereign, or Executive functions.

"When pressed against the Government, the plea of waiver faces an especially high threshold and rarely succeeds," the Court said.

The bench comprising Justice Surya Kant, Justice Dipankar Datta and Justice NK Singh agreed with the Bombay High Court's observations which were as follows :

"Apart from affirming well known principles that there can be no question of estoppel against the Government in the exercise of legislative, sovereign or executive power. The Apex Court held that the plea of waiver when it is pressed against the Government has an uphill journey to make for success. The Apex Court held that the for establishing the plea of waiver, case of intentional relinquishing the plea of waiver, case of intentional relinquishment of a known right by the Government will have to be made out and in absence of such voluntary and intentional abandonment of a known advantage, waiver cannot be postulated."

The Court further held, "Acquiescence cannot be presumed solely on the basis of delay, and no such conclusion can be sustained without clear and unequivocal conduct amounting to voluntary relinquishment."

The Court made these observations in the context of the arguments of allottees in Dadra and Nagra Haveli who contended that the Alwara lands allotted to them cannot be forfeited after a long time on the ground of failure of cultivation.

The Court ruled that statutory cultivation conditions attached to Portuguese-era land grants in Dadra and Nagar Haveli cannot be waived or condoned, upholding the Collector's 1974 order rescinding “Alvaras” (land concessions) for breach of obligations.

The Court stressed that the grants were conditional tenures, and failure to fulfil conditions disentitled the holders from compensation.

Also from the judgment - Supreme Court Dismisses Allottees' Plea Against Collector's 1974 Order For Forfeiture Of Alwara Lands In Dadra And Nagar Haveli

Case Title: DIVYAGNAKUMARI HARISINH PARMAR AND ORS. Versus UNION OF INDIA AND ORS., C.A. No. 1479/2006 (and connected cases)

Citation : 2025 LiveLaw (SC) 942

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Related - Promissory Estoppel Would Not Apply Against The Exercise Of Legislative Powers Of The State : Supreme Court