The Supreme Court has ruled that a government-run body cannot escape constitutional scrutiny just because it is set up as a society.
The bench said the legal form does not decide the matter.
What matters is how much control the government exercises over a body's work and decisions.
The bench applied this test to the National Book Trust (NBT), a body set up by the government.
The Delhi High Court had declared the trust a 'State' under Article 12 of the Constitution.
The Supreme Court upheld that ruling in its judgment dated November 6.
Key points
- Registering as a society does not automatically take a body outside Article 12.
- The test is whether the government has deep and pervasive control.
- The trust was set up through a government resolution in 1957.
- The bench upheld the Delhi High Court ruling on the trust.
So what test did the court use?
The court asked whether the government's control over the body is deep and pervasive.
If it is, the body's financial, functional and administrative freedom is largely limited.
The court looked at the whole relationship, not one factor alone.
Receiving government grants, doing public work, or having some government role does not automatically make a body part of the State.
- 1Ask if control is deep and pervasiveIf government control is deep and pervasive, the body's financial, functional and administrative freedom is largely limited.
- 2Look at the whole relationshipThe court weighed all the factors together, not any one factor alone.
- 3Check grants and public workReceiving grants, doing public work or having some government role does not automatically make a body part of the State.
- 4Check governance linksIn the NBT case, the government appointed the chairman, ministries sat on the governing body, and reports went to the government.
Graphic: News Anek, from the facts in this report
Why did the trust's status matter?
Being a 'State' means the trust can face writ petitions in court.
It must also respect fundamental rights, and its actions must not be arbitrary or discriminatory.
The trust disagreed. It said it was an autonomous society, not a government department or statutory corporation.
But the bench noted that the government appoints its chairman.
Ministries of education, finance, and information and broadcasting are part of its governing body.
Its annual reports and audited accounts must also go to the government.
What does this mean for ordinary citizens?
For you, the core idea is simple.
A government-controlled body cannot hide behind its legal name to avoid constitutional duties.
The court has made clear that the substance of control matters more than the label.
That is the principle other bodies will now be judged by.
Explainer
What happened before
- The National Book Trust was set up through a government resolution in 1957 and reorganised in 1962.
- The Delhi High Court had declared the trust an instrumentality of the government, and therefore a 'State' under Article 12.
- The trust argued that it was an autonomous society and not a government department.
Why it matters
The ruling says a body's legal name does not decide whether it must follow constitutional duties.
What to watch next
- The court said the test looks at the overall relationship, and grants or public functions alone do not make a body part of the State.
Exam Corner
UPSC GS Paper 2 · Polity: Article 12 and the State
What's the news
The Supreme Court upheld a Delhi High Court ruling that the National Book Trust is a State under Article 12. The judgment dated November 6 said the society registration does not decide the matter.
Background
- Article 12 of the Constitution defines the State, which decides who must follow fundamental rights.
- The National Book Trust was set up through a government resolution in 1957 and reorganised in 1962.
- The test is whether the government exercises deep and pervasive control over the body.
Facts for Prelims
- Article 12 of the Constitution
- National Book Trust set up in 1957 through a government resolution
- Test of deep and pervasive control
Content for Mains
- Significance: Clarifies that legal form cannot shield government-controlled bodies from constitutional scrutiny.
- Main issue: Balancing the autonomy of societies with state accountability to fundamental rights.
- Challenges: Assessing control needs many factors, since no single factor is decisive.
- Way forward: Examine substance of control rather than registration, while grants alone are not decisive.
Practice question: Discuss how the test of deep and pervasive government control helps decide whether a body is a State under Article 12, despite its legal form.
Prelims practice questions
Q1. Which Article of the Constitution was examined in the National Book Trust case?
- Article 14
- Article 19
- Article 12
- Article 32
Show answer
Answer: C. The judgment asked whether the trust is a State under Article 12.
Q2. How was the National Book Trust first established?
- Through an Act of Parliament
- Through a government resolution in 1957
- Through a Delhi High Court order
- Through society registration alone
Show answer
Answer: B. The article says the trust was established through a government resolution in 1957.
Key terms
- Article 12: The Constitution's definition of who counts as the State.
- Writ jurisdiction: The power of courts to issue writs to enforce rights.
- Amicus curiae: A lawyer who helps the court as a friend, not for any party.
More stories for exam preparation: UPSC Today
These points come from this news report. Check them with standard sources such as NCERT books and PIB before your exam.
