Article 12 control test: pervasive Government dominance made the scientific research body a State, overruling earlier authority.

A body falls within Article 12 when, on a cumulative assessment, it is financially, functionally, and administratively dominated by pervasive Government control and operates as an instrumentality of the State. Applying that test, the Supreme Court held that the Council for Scientific and Industrial Research was created for national scientific and industrial development, was extensively controlled by Government in its governing structure, finances, rules, service conditions, and expenditure, and was therefore a State within Article 12. The earlier contrary decision was overruled. The dissent considered the Council non-statutory, lacking governmental or law-making power, and not subject to deep and pervasive control, and would have maintained the earlier view.

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Issues: Whether the Council for Scientific and Industrial Research is a State within Article 12 of the Constitution, and whether the earlier decision holding otherwise should be overruled.

Analysis: The majority revisited the development of Article 12 and held that the expression "State" covers bodies that are financially, functionally, and administratively dominated by or under the pervasive control of the Government. It treated the earlier line of authority as recognising that the relevant inquiry is not the form of the body alone, but the cumulative effect of ownership, funding, control, and the nature of the functions discharged. Applying those principles, the majority found that the Council was created by the Government for national scientific and industrial development, that Government control over its governing body, finances, rules, service conditions, and expenditure was extensive, and that the Council was in substance controlled by the Government. The majority also considered the later administrative tribunals notification as reinforcing the conclusion that the Council was a body owned or controlled by Government.

Conclusion: The Council for Scientific and Industrial Research was held to be a State within Article 12, and the earlier contrary decision was overruled.

Dissenting Opinion: The dissent held that the Council was not an authority within Article 12 because it lacked statutory flavour, did not exercise governmental or law-making power, and was not under deep and pervasive governmental control. On that view, the earlier decision was said to be correct and to continue to hold the field.

Ratio Decidendi: A body is State under Article 12 when, on a cumulative assessment, it is financially, functionally, and administratively dominated by pervasive governmental control and acts as an instrumentality of the Government.

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