NEW DELHI: In an important ruling, Supreme Court Tuesday held that a press release issued by govt on Cabinet decision regarding change in policy cannot be treated as a law to claim benefits on that basis and it would be assumed to come into force when notification is issued.
A bench of Justices B R Gavai, Prashant Kumar Mishra and K V Viswanathan said press release by govt would not mean that the existing law or policy stands changed on that day and it is at best a promise by govt and not any alteration of the law proprio vigore (by its own force). The court rejected the plea of Nabha Power Ltd, which sought relief on the basis of a press release issued by Press Information Bureau (PIB) on Cabinet decision on a new legal regime for customs duty exemptions for mega power projects.
Although the press release was issued on October 1, 2009, the finance ministry had issued notifications on Dec 11 and 14, 2009, and the company pleaded that the law should be assumed to have been amended on the date of press release which can be considered as a “law”.
“In our considered opinion, the press release did not alter/amend/repeal the existing law as on 01.10.2009. It was at best the announcement of a proposal approved by the Cabinet which had to be given shape after fulfilment of the conditions mentioned therein…Could the appellant have assumed that the Press Release of 01.10.2009 ordained a new legal regime? We think not and we hold accordingly. The press release is a summary of the Cabinet decision,” Justice Viswanathan, who wrote the judgement for the bench, said.
The court said it (press release) was at best a promise by Union of India and not any alteration of the law proprio vigore (by its own force). It said notifications constituting change in law happened on Dec 11 and 14, 2009 and there is no basis in the contention that on Oct 1 the old legal regime had given way.
Referring to an earlier verdict of SC, the bench said in that case neither the decision of cabinet committee on economic affairs nor the press release was considered as relevant date for change in law and only the date on which the office memorandum was issued providing further instructions regarding the implementation of the New Coal Distributional Policy was considered as the change in law event.
The move can have implications in other areas too as govt goes by press notes on FDI matters, although they are issued after the Cabinet decides on the matter.