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        2007 (8) TMI 647 - SC - Indian Laws

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        Deep and pervasive government control test: autonomous education society held outside Article 12, and writ directions were set aside. A society is a State or other authority under Article 12 only where the Government exercises deep and pervasive financial, functional and administrative ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Deep and pervasive government control test: autonomous education society held outside Article 12, and writ directions were set aside.

                          A society is a State or other authority under Article 12 only where the Government exercises deep and pervasive financial, functional and administrative control. On the facts, the State Council of Education, Research and Training had administrative autonomy, managed its own finances once available, and was not under pervasive governmental domination, so it was not a State or other authority. As a result, writ directions requiring implementation of the unamended service regulation and related service benefits could not be sustained. The Supreme Court allowed the appeals, set aside the High Court's directions, and dismissed the writ petitions.




                          Issues: (i) Whether the State Council of Education, Research and Training is a State or other authority within the meaning of Article 12 of the Constitution of India; (ii) whether the directions issued by the High Court for implementation of the unamended service regulation and related benefits could be sustained.

                          Issue (i): Whether the State Council of Education, Research and Training is a State or other authority within the meaning of Article 12 of the Constitution of India.

                          Analysis: The test is whether the body is financially, functionally and administratively dominated by or under the control of the Government, and such control must be deep and pervasive. On the facts, the Council was an independent society with administrative autonomy, its finances once made available were administered by itself, and the Government did not exercise pervasive control over its functioning. The framework of its rules and the effect of the Societies Registration Act also indicated subservience to the statute rather than domination by the Government.

                          Conclusion: The Council is not a State or other authority within the meaning of Article 12.

                          Issue (ii): Whether the directions issued by the High Court for implementation of the unamended service regulation and related benefits could be sustained.

                          Analysis: Once the Council was held not to be a State or other authority under Article 12, the writ relief directing it to implement the unamended regulation and confer service benefits could not stand. The Court also noted that in matters involving bodies of this kind, financial implications and the object of the institution are relevant considerations when writ directions are sought.

                          Conclusion: The directions issued by the High Court could not be sustained.

                          Final Conclusion: The appeals succeeded, the High Court's directions were set aside, and the writ petitions were dismissed.

                          Ratio Decidendi: A society will be treated as a State under Article 12 only when the Government exercises deep and pervasive financial, functional and administrative control over it; absent such control, writ directions compelling service-benefit implementation against it cannot be sustained.


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                          ActsIncome Tax
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