LLM Notes: Are Public Utilities “State” for the Purpose of Article 12 of the Constitution of India?

 Overview of Article 12

Article 12 of the Constitution of India defines "State" for the purposes of Part III (Fundamental Rights) and includes:

• The Government and Parliament of India

• The Government and Legislature of each State

• All local or other authorities within the territory of India or under the control of the Government of India.

Interpretation of “Other Authorities”

The term "other authorities" has been interpreted broadly by the Supreme Court to include bodies that are:

• Statutory or constitutional authorities

• Exercising powers conferred by law

• Performing functions of public importance or governmental character.

Public Utilities as “State”

• Public utilities such as State Electricity Boards, Life Insurance Corporation, Oil and Natural Gas Corporation, and similar statutory corporations have been held by the Supreme Court to fall within the ambit of "State" under Article 12.

• The landmark case of Rajasthan State Electricity Board v. Mohan Lal established that the Electricity Board is an "other authority" under Article 12, even though it also carries out commercial activities, because it is created by statute and performs public functions.

• In Sukhdev Singh v. Bhagatram, statutory corporations like LIC and ONGC were recognized as "State" due to their pervasive governmental control and their role as agencies or instrumentalities of the government.

Tests to Determine “State” Status

The Supreme Court in R.D. Shetty v. International Airport Authority of India laid down several tests to determine if a body is an agency or instrumentality of the State, including:

• Financial resources of the State (majority funding by government)

• Deep and pervasive State control

• Functional character being governmental in essence

• Monopoly status conferred or protected by the State.

Conclusion

Public utilities—especially those created by statute, performing public functions, and under significant government control—are considered "State" for the purpose of Article 12 of the Constitution of India. This means they are subject to fundamental rights obligations and judicial review under Articles 32 and 226.

Key Point:

The inclusion of public utilities as "State" under Article 12 ensures that citizens can enforce their fundamental rights against these bodies, holding them accountable for actions that affect public interest and individual rights.

Article 12: “State” and Public Utilities – Key Points

1. Definition of ‘State’ under Article 12
Article 12 provides an inclusive definition of ‘State’ for Part III (Fundamental Rights), covering the Government and Parliament of India, State Governments and Legislatures, and all local or other authorities within India or under central government control.

2. Purpose of Article 12
The definition ensures that Fundamental Rights are enforceable primarily against the State and its instrumentalities, not private entities.

3. Extended Scope of ‘State’
‘State’ in Article 12 is interpreted broadly to include not just government bodies but also authorities that exercise governmental or public functions.

4. Importance of ‘Other Authorities’
The phrase “other authorities” is crucial, allowing courts to include a wide range of statutory and non-statutory bodies under the definition of ‘State’ if they perform public duties or wield governmental power.

5. Judicial Interpretation and Tests
Courts have developed tests (e.g., in Ajay Hasia and R.D. Shetty cases) to determine if a body is ‘State’: factors include financial, functional, and administrative government control, and whether the body is performing public functions.

6. Government Control Requirement
Absolute government control is not necessary; even substantial or pervasive control, especially in finances or administration, can bring a body within Article 12’s ambit.

7. Public Utilities as ‘State’
Statutory public utilities like Electricity Boards, ONGC, and Delhi Transport Corporation are considered ‘State’ since they are government-created, serve public functions, and are under significant government control.

8. Non-Statutory Bodies
Even non-statutory bodies may be classified as ‘State’ if they are substantially financed and controlled by the government and perform public duties.

9. Exclusions from ‘State’
Entities like NCERT, which lack substantial government financing and control, are not considered ‘State’ under Article 12.

10. Fundamental Rights Enforcement
Identifying an entity as ‘State’ under Article 12 is crucial because it subjects the entity to constitutional scrutiny and allows individuals to seek protection of their Fundamental Rights against it.

Here is a structured text to help you prepare a mind map on Article 12 and the concept of “State” in the Indian Constitution, with clear branches and sub-branches:

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Central Node:
Article 12 – Definition of “State” (Indian Constitution)

Branch 1: Purpose

• Defines “State” for Part III (Fundamental Rights)

• Ensures Fundamental Rights are enforceable against State entities.

Branch 2: Entities Included

• Government and Parliament of India

• Government and Legislature of each State

• All local authorities

• Other authorities within India or under Government of India control.

Branch 3: “Other Authorities”

• Broad interpretation by courts

• Includes statutory bodies, instrumentalities, and agencies performing public functions.

Branch 4: Public Utilities

• Examples: Electricity Boards, ONGC, LIC, DTC

• Considered “State” if created by statute, perform public duties, and are under government control

Branch 5: Judicial Interpretation

• Supreme Court has expanded the scope (e.g., Ajay Hasia, R.D. Shetty cases)

• Tests: government control, public function, financial support.

Branch 6: Exclusions

• Entities without substantial government control/financing (e.g., some NGOs, NCERT) are not “State”

Branch 7: Significance

• Only entities defined as “State” can be challenged for violation of Fundamental Rights

• Ensures accountability and protection of citizens’ rights.

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You can use these branches and sub-points to visually organize your mind map, starting from the central node and expanding outwards for clarity and quick revision.

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