Case Note & Summary
The dispute arose from the termination of the petitioner's services as a Salesman by the U.P. Rajya Karmachari Kalyan Nigam, prompting him to file a writ petition in the High Court of Allahabad. The Corporation contended that it did not fall under the definition of 'State' as per Article 12 of the Constitution, leading to the dismissal of the writ petition. The Supreme Court examined the definition of 'State' in light of previous judgments, particularly the Constitution Bench decision in Pradeep Kumar Biswas v. Indian Institute of Chemical Biology, which established a multiple test for determining whether a body qualifies as a 'State'. The Court noted that the Corporation was not created by statute but was a society registered under the Societies Registration Act, 1860. However, it found that the Corporation was established to provide essential commodities to government employees at reasonable rates, indicating a strong connection to the State. The Court analyzed the administrative, financial, and functional controls exerted by the State over the Corporation, concluding that the State's control was deep and pervasive. The Court emphasized that the Corporation's operations were closely monitored by State officials, and its financial viability was heavily reliant on State funding. Ultimately, the Supreme Court held that the Corporation was indeed an instrumentality of the State, thus amenable to writ jurisdiction under Article 226. The appeal was allowed, the High Court's order was set aside, and the case was remitted for a decision on its merits, with costs to be borne by the parties.
Headnote
A) Constitutional Law - Definition of State - Applicability of Article 12 - U.P. Rajya Karmachari Kalyan Nigam is an instrumentality of the State - Constitution of India, 1950, Article 12 - The court determined that the Corporation is financially, functionally, and administratively dominated by the State, thus qualifying as a 'State' under Article 12. The appeal was allowed, and the High Court's dismissal of the writ petition was set aside, remitting the case for a decision on merits (Paras 1-9).
Issue of Consideration
Whether U.P. Rajya Karmachari Kalyan Nigam is covered by the definition of 'State' under Article 12 of the Constitution of India.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order dismissing the writ petition, and remitted the case for a decision on merits.
Law Points
- Writ jurisdiction
- definition of State
- Article 12
- instrumentality of State
- administrative control
- financial control
- functional control
