Doctrine of Legitimate expectations under administrative law
The principle of legitimate expectations means that expectations raised by administrative conduct have to be respected and fulfilled, at least for the public interest, unless betterment demands otherwise. And non-fulfillment can have some serious legal consequences. The main role played by the courts in the entire transaction of this doctrine is to safeguard individuals’ expectations in the face of changes in policy.
Legitimate expectation is a concept in administrative law that refers to the reasonable expectation of a person or a group of people to be treated in a certain way by a public authority, such as a government agency or a court. Legitimate expectations can arise from:
- An express promise or assurance made by the authority.
- A regular practice or policy of the authority.
- A legal provision or a general principle of law.
Legitimate expectations can be classified into two types:
- Procedural legitimate expectation: This is the expectation of a fair and transparent process before a decision affecting one’s rights or interests is made by the authority. For example, a person may have a legitimate expectation to be given a hearing or a notice before their license is revoked.
- Substantive legitimate expectation: This is the expectation of a favorable outcome or a benefit from the authority based on its promise, practice, or policy. For example, a person may have a legitimate expectation to receive a grant or a subsidy if they meet the eligibility criteria.
Legitimate expectation is not an absolute right but a ground for judicial review of administrative actions. If the authority breaches the legitimate expectation of a person or a group of people, the court may intervene and order the authority to:
- Fulfill the legitimate expectation.
- Provide a valid justification for departing from the legitimate expectation.
- Compensate the affected person or group for the loss or damage caused by the breach.
Legitimate expectation is a dynamic and evolving concept that aims to protect the interests of the people and promote good governance, accountability, and fairness in public administration.
Legitimate expectation under administrative law in India is similar to the concept in the UK, but with some differences. According to the Supreme Court of India, a legitimate expectation is:
- A right that arises from the principles of natural justice, equity, and good conscience
- A reasonable and rational expectation of a person or a group of people from a public authority based on its past actions, representations, or promises
- A flexible and pragmatic tool to ensure fairness and justice in administrative actions
- A ground for judicial review of administrative actions, but not a source of substantive rights
Some of the case laws that illustrate the concept of legitimate expectation in India are:
The doctrine of legitimate expectation is a principle of administrative law that grants a person the right to a fair hearing or a fair procedure when a public authority makes a decision affecting their interests. The doctrine is based on the idea that a person who has a reasonable expectation of a certain outcome from a public authority should not be disappointed by a sudden change of policy or action by the authority.
In India, the doctrine of legitimate expectation was first recognized by the Supreme Court in the case of Navjyoti Coop. Group Housing Society vs. Union of India (1992), where the court held that the allottees of flats under a housing scheme had a legitimate expectation of getting possession of the flats as per the terms and conditions of the scheme, and any arbitrary cancellation of the allotment by the authority would violate their right to a fair hearing.
Some other cases where the doctrine of legitimate expectation was applied in India are:
- Union of India vs. Hindustan Development Corporation (1993): The court held that the respondent company had a legitimate expectation of getting a renewal of its mining lease as per the previous practice of the government, and the government’s refusal to renew the lease without giving any reasons or hearing the company was arbitrary and unjust.
- Food Corporation of India vs. Kamdhenu Cattle Feed Industries (1993): The court held that the appellant corporation had a legitimate expectation of getting a supply of rice bran from the respondent industry as per the agreement between them, and the industry’s unilateral termination of the agreement without any notice or opportunity to the corporation was illegal and unfair.
- Rajasthan State Industrial Development and Investment Corporation vs. Subhash Sindhi Cooperative Housing Society (2013): The court held that the respondent society had a legitimate expectation of getting a lease of land from the appellant corporation as per the allotment letter issued by the corporation, and the corporation’s cancellation of the allotment on the ground of non-payment of dues without giving any notice or hearing to the society was violative of the doctrine of legitimate expectation.
Limitations or Restrictions of Doctrine of Legitimate Expectation
The restriction of legitimate expectation is a concept that limits the scope and application of the doctrine of legitimate expectation in administrative law. The doctrine of legitimate expectation grants a person the right to a fair hearing or a fair procedure when a public authority makes a decision affecting their interests based on a reasonable expectation of a certain outcome from the authority.
However, the doctrine of legitimate expectation is not an absolute or inflexible rule of law but a flexible and pragmatic tool of justice. It is subject to certain restrictions, such as:
- The doctrine cannot override or contradict the statutory provisions or the public interest.
- The doctrine cannot create a substantive right or entitlement that does not exist in law.
- The doctrine cannot be invoked to challenge a policy decision or a legislative act of the government.
- The doctrine cannot be based on an illegal, irrational, or unreasonable expectation.
- The doctrine cannot be applied retrospectively to nullify a valid decision or action of the authority.
These restrictions are meant to balance the interests of the individual and the authority and to prevent the abuse or misuse of the doctrine of legitimate expectation.
Some of the cases where the restriction of legitimate expectation was applied are:
- Rajasthan State Road Transport Corporation vs. Krishna Kant (1995): The Supreme Court held that the doctrine of legitimate expectation cannot be invoked to challenge the policy decision of the government to abolish the post of General Manager in the corporation, as it was a matter of public interest and administrative efficiency, and the petitioner had no legal right or entitlement to the post.
- Reliance Energy Ltd. vs. Maharashtra State Road Development Corporation Ltd. (2007): The Supreme Court held that the doctrine of legitimate expectation cannot create a substantive right or entitlement in favour of the respondent company to get the contract for the construction of a bridge, as it was subject to the statutory provisions and the competitive bidding process, and the appellant corporation had the discretion to award the contract to the best bidder.
- State of Bihar vs. Bihar Distillery Ltd. (1997): The Supreme Court held that the doctrine of legitimate expectation cannot be based on an illegal or irrational expectation, and the respondent company had no legitimate expectation of getting a renewal of its license to manufacture liquor, as it was contrary to the prohibition policy of the state government and the public interest.
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Conclusion:
The doctrine of legitimate expectation is a principle of administrative law that grants a person the right to a fair hearing or a fair procedure when a public authority makes a decision affecting their interests. The doctrine is based on the idea that a person who has a reasonable expectation of a certain outcome from a public authority should not be disappointed by a sudden change of policy or action by the authority.