SSRN 1106615
SSRN 1106615
DHRUV SHARMA*
I.
INTRODUCTION
“A man is born with a title to perfect freedom and an uncontrolled enjoyment of all the
rights and privileges of the law of nature and he has by nature a power to preserve his
property – that is his life, liberty and estate, against the injuries and attempts of other
men”
- John Locke
The political implication of the theory of natural rights lays down that these
rights, being inherent in man, existed prior to the birth of the State itself, and cannot,
1
therefore be violated by the State. The Constitution framers of the country with this
notion in mind, inculcated the concept of fundamental rights within our constitution. Far
away from merely paper hopes or fleeting promises, the fundamental rights are the
constitutional guarantees and so long as they find a place in it, they cannot be
emasculated in their application by a narrow and constricted judicial interpretation.2
Part III of the Constitution, which deals with Fundamental Rights, begins with the
definition of `state', as adumbrated in Article 12. Most of the Fundamental Rights are
claimed against the state and its instrumentalities and not against any private bodies.3
Owing to the spaciously worded definition of ‘the state’, the courts of law did not find it
*
Student, B.A.LL.B (Hons.), NALSAR University of Law, Hyderabad.
1
Aquinas, Summa Theologica (tr. by Dawson, Q.94, Art.2); D.D. Basu, Commentary on the Constitution of
India, 8th ed. 2007, Vol. 1, p. 579.
2
Ajay Hasia v. Khalid Mujib Sehravardi, (1981) 1 SCC 722.
3
Shamdasani v. Central Bank of India, AIR 1952 SC 59; Vidya Verma v. Shiv Narain, AIR 1956 SC
108.
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necessary to abridge its contours or amputate its limbs in any manner. However, in the
changed context of globalization and survival of the fittest, there was perceptible change
in the thinking and philosophy towards its interpretation. The public sector entities, be
they statutory bodies, government companies, government departmental undertakings or
societies, were now perceived as the “holy cows”.
With a plethora of judicial precedents, the courts illumed the wider horizon of
article 12, and subjected the public enterprises to judicial scrutiny. The array of decisions
culminated as a settled law in the Pradeep Kumar Biswas Case, where the court taking
into account all the previous precedents, interpreted the term “other authorities” for the
purposes of part III of the constitution, thereby, removing all doubts with regards the
same.
II.
BACKGROUND OF THE CASE
In 1972 Sabhajit Tewary, a Junior Stenographer with the Council of Scientific and
Industrial Research (CSIR) filed a writ petition4 claiming parity of remuneration with the
stenographers who were newly recruited to the CSIR. His claim was based on Article 14
of the Constitution. A Bench of five judges of this Court denied him the benefit of that
Article because they held hat the writ application was not maintainable against CSIR as it
was not an “authority” within the meaning of Article 12 of the Constitution.5
The Hon’ble bench rejected the application on the grounds that the society does
not have a statutory character and was merely registered under the Societies Registration
Act. The, fact that the Prime Minister is the President or that the Government appoints
4
Under Article 32 of the Constitution of India.
5
Sabhajit Tewary v. Union of India and Others, 1975 AIR SC 1329.
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nominees to the Governing Body or that the, Government may terminate the membership
will not establish anything more than the fact that the Government takes special care that
the promotion, guidance and co-operation of scientific and industrial research and other
allied functions conducted under the auspices of the Council towards the development of
industries in the country are carried out in a responsible manner.6
Although the Court noted that it was the Government which was taking the
“special care” nevertheless the writ petition was dismissed ostensibly because the Court
factored into its decision two premises:
i) The society does not have a statutory character like the Oil and Natural Gas
Commission or the Life Insurance Corporation or Industrial Finance Corporation. It is a
Society incorporated in accordance with the provisions of the Society's Registration Act.
ii) Extending the reasoning that it has propounded in the different cases7 relating to non
availability of protection to employees of companies registered under the Companies act
as contemplated in article 311. The companies were held in these cases to have
independent existence of the Government and by the law relating to corporations. These
could not be held to be departments of the Government
The judgment pronounced in the Sabhajit Tewary’s case was affirmed and
followed for nearly three decades in the cases of similar nature. In 2002, the validity of
the case was reconsidered in the Pradeep Kumar case where a writ application filed by
the appellant in Calcutta High Court challenging the termination of their services by the
respondent which is a unit of CSIR. The Court held that on the prima view, that, the writ
application was itself not maintainable against the respondent in view of the decision in
Sabhajit Tewary’s case.8
6
Ibid.
7
Praga Tools Corporation v. Shri C.A. Imanual & Ors. A.I.R. 1969 S.C. 1306; Heavy Engineering
Mazdoor Union v. The State of Bihar & Ors. [1969] 3 SCR 995; S.L. Agarwal v. General Manager
Hindustan Steel Ltd., 1970 (3) SCR 363.
8
Pradeep Kumar Biswas and others v. Indian Institute of Chemical Biology and others, 2002 (5) SCC
111, ¶ 2.
III.
ANALYSIS OF THE JUDGMENT
In the present case, the court had the onus of disproving the precedent which has
stood the test of time for more than a quarter of a century. The court even reiterated that,
“Normally, a precedent like Sabhajit Tewary which was stood for a length of time
should not be reversed, however erroneous the reasoning if it has stood unquestioned,
without its reasoning being “distinguished” out of all recognition by subsequent
decisions and if the principles enunciated in the earlier decision can stand consistently
and be reconciled with subsequent decisions of this Court, some equally authoritative. In
our view Sabhajit Tewary fulfills both conditions.”11
However, despite everything, it became necessary for the court to overrule
Sabhajit Tewary in view of the present era and times. The obsolete nature of the decision
was expressed in many subsequent judgments of the supreme court where the judges
clearly mentioned,
9
Pradeep Kumar Biswas and others v. Indian Institute of Chemical Biology and others, 2002 (5) SCC
111, ¶ 3 [hereinafter as the Pradeep Kumar Case].
10
Ibid, ¶ 4.
11
Ibid, ¶ 21.
In the early days, when the Government had limited functions, it could, operate
effectively through natural persons constituting its civil service and they were found
adequate to discharge governmental functions, which were of traditional vintage. But as
the tasks of the Governments multiplied with the advent of the welfare State, it began to
be increasingly felt that the frame work of civil service was not sufficient to handle the
new tasks which were often of specialised and highly technical character. The inadequacy
of the civil service to deal with these new problems came to be realised and it became
necessary to forge a new instrumentality or administrative device for handling these new
problems. It was in these circumstances and with a view to supplying this administrative
need that the public corporation came into being as the third arm of the Government.14
The court while interpreting the term, begin off with the proposition that the
definition given under article 12 is inclusive and not conclusive. The net of Article 12 has
been expanded by “progressive” judicial thinking, so as to include within its ken several
instrumentalities and agencies performing State function or entrusted with State action.15
Furthermore, an inclusive definition is generally not exhaustive is a statement of the
12
P.K. Ramachandra Iyer and Ors. v. Union of India and Ors., (1984) 2 SCC 141 [where it was held
that both the Indian Council of Agricultural Research (ICAR) and its affiliate Indian Veterinary Research
Institute were bodies as would be comprehended in the expression 'other authority' in Article 12 of the
Constitution.]; Chander Mohan Khanna v. National Council of Educational Research and Training
and others, 1992 AIR SC 76.
13
It reads as, “the State’’ includes the Government and Parliament of India and the Government and the
Legislature of each of the States and all local or other authorities within the territory of India or under the
control of the Government of India.”
14
Sukhdev Singh and Ors. v. Bhagatram Sardar Singh Raghuvanshi and Anr., AIR 1975 SC 1331.
15
N. Masthan Sahib vs. The Chief Commissioner, (1962) Supp 1 SCR 981 ; K.S. Ramamurthy
Reddiar vs. Chief Commissioner, Pondicherry and Anr., 1963 AIR SC 1464.
16
Smt. Ujjan Bais vs. State of Uttar Pradesh, 1961 Indlaw SC 465, 968.
17
See, Benjamin Cardozo: The Nature of the Judicial Process. Pradeep Kumar, supra n.5, ¶ 6.
18
Sukhdev Singh and Ors. v. Bhagatram Sardar Singh Raghuvanshi and Anr., AIR 1975 SC 1331.
19
Latin for “of the same kind”; used to interpret loosely written statutes. Where a law lists specific classes
of persons or things and then refers to them in general, the general statements only apply to the same kind
of persons or things specifically listed. Example: if a law refers to automobiles, trucks, tractors,
motorcycles and other motor-powered vehicles, "vehicles" would not include airplanes, since the list was of
land-based transportation. See, http://legal-dictionary.thefreedictionary.com/ejusdem+generis, last
accessed: 24 February 2008.
20
Praga Tools Corporation vs. Imanual, A.I.R. 1969 S.C. 1306 [....there was neither a statutory nor a
public duty imposed on it by a statute in respect of which enforcement could be sought by means of a
mandamus, nor was there in its workmen any corresponding legal right for enforcement of any such
statutory or public duty. The High Court, therefore, was right in holding that no writ petition for a
mandamus or an order in the nature of mandamus could lie against the company.]
21
Rajasthan Electricity Board vs. Mohan Lal & Ors., 1967 AIR 1857 [The question there was whether
the Electricity Board - which was a Corporation constituted under a statute primarily for the purpose of
carrying on commercial activities could come within the definition of ‘State’ in Article 12.]; Mysore Paper
Mills Ltd. v. The Mysore Paper Mills Officers Association and Anr. JT 2002 (I) SC 61 [What is
significant in this decision is that the conclusion whether an independent entity satisfies the test on
instrumentality or agency of the government is not whether it owes its origin to any particular Statute or
Order but really depends upon a combination of one or more of the relevant factors, depending upon the
essentiality and overwhelming nature of such factors in identifying the real source of governing power, if
need be, by piercing the corporate veil of the entity concerned.]
22
Supra n. 13.
23
Ibid.
24
Ramana Dayaram Shetty v. The International Airport Authority of India and Ors. [1979] 3 SCR
1014 [ The case laid down six tests for determining as to when a corporation can be said to be an
instrumentality or agency of the Government, these can be summarized as:
(1) One thing is clear that if the entire share capital of the corporation is held by Government, it would go a
long way towards indicating that the corporation is an instrumentality or agency of Government.
(2) Where the financial assistance of the State is so much as to meet almost entire expenditure of the
corporation, it would afford some indicating of the corporation being impregnated with governmental
character.
(3) It may also be a relevant factor.......whether the corporation enjoys monopoly status which is State
conferred or State protected.
(4) Existence of deep and pervasive State control may afford an indication that the corporation is a State
agency or instrumentality.
(5) If the functions of the corporation are of public importance and closely related to governmental
functions, it would be a relevant factor in classifying the corporation as an instrumentality or agency of
Government.
(6) Specifically, if a department of Government is transferred to a corporation, it would be a strong factor
supportive of this inference of the corporation being an instrumentality or agency of Government.]
25
Ajay Hasia v. Khalid Mujib Sehravardi, (1981) 1 SCC 722 [The case dealt with a challenge under
Article 32 to admissions made to a college established and administered by a Society registered under the
Jammu & Kashmir Registration of Societies Act 1898. The contention of the Society was that even if there
were an arbitrary procedure followed for selecting candidates for admission, and that this may have
resulted in denial of equality to the petitioners in the matter of admission in violation of Article 14,
nevertheless Article 14 was not available to the petitioners because the Society was not a State within Art.
12. The Court recognised that the Society cannot be equated with the Government of any State nor can it be
said to be a local authority and therefore it must come within the expression “other authorities” if it is to
fall within the definition of ‘State’.]
26
Since in both case the “authority” in fact involved was a statutory corporation.
For the purposes of CSIR to fall within the ambit of article 12, it must fall within
the indicia elaborated in the Ramana Shetty’s case. To ascertain this, the court probed
27
See, B.S. Minhas v. India Statistical Institute & Ors., AIR 1984 SC 363; Central Inland Water
Transport Corporation Ltd. v. Brojo Nath Ganguli, AIR 1986 SC 1571; All India Sainik Schools
Employees' Association v. Defence Minister-cum-Chairman Board of Governors, Sainik Schools
Society, New Delhi and Others, 1988 (1) SCC 237. For a contrary view, see, Chander Mohan Khanna
v. National Council of Educational Research and Training and others, 1992 AIR SC 76; Tekraj
Vasandi alias K.S. Basandhi v. Union of India and others, 1988 (1) SCC 237; The Workmen, Food
Corporation of India vs. Food Corporation of India, AIR 1985 SC 670.
28
Chander Mohan Khanna v. National Council of Educational Research and Training and others,
1992 AIR SC 76.
29
Rajasthan Electricity Board vs. Mohan Lal & Ors., 1967 AIR 1857.
30
According to clause (4) of CSIR’s Memorandum of Association.
10
35
Under clause (5) of the Memorandum of Association of CSIR.
36
S.R.S. Kumar v. Union of India, 1986 Indlaw SC 193; L. Chandra kumar v. Union of India, (1997) 3
SCC 261.
37
Benjamin N. Cardozo - The Nature of the Judicial Process (1921).
11
38
Union of India & Ors. v. Raghubir Singh (dead) By LRs. etc., AIR 1989 SC 19331; Maganlal
Chhaganlal (P) Lts. V. Municipal Corporation of Greater Bombay etc. , (1974) 2 SCC 402.
39
Bengal Immunity Co. Ltd. v. State of Bihar and Ors., AIR 1955 SC 661.
40
Sukhdev Singh and Ors. v. Bhagatram Sardar Singh Raghuvanshi and Anr., AIR 1975 SC 1331.
41
Maneka Gandhi v. Union of India, AIR 1978 SC 597.
12