Article 12 of the Constitution of India defines the term ‘ State’ as used in different article of Part III of the Constitution. According to Article 12, in this part unless the context otherwise requires the ‘State’ includes the Government and Parliament of India and the Government and legislation 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.
Thus on the basis of the definition given under Article 12 following are included in the definition of the State –
1 – The Government and Parliament of India, i.e. Executive and legislative of the Union;
2 – The Government and the Legislative of each State, i.e Executive and legislature of States.
3 -All local or other authorities within the territory of India.
4 – All local and other authorities under the control of Government of India.
Government (Union and state), Parliament and State Legislature
The term ‘State’ includes executive as well as the legislative organs of the Union and States. It is therefore, actions of these bodies that can be challenged before the courts as violating fundamental rights.
The parliament comprises of the President of India, the lower house of the parliament that is the Lok Sabha as well as the upper house of the Parliament, that is the Rajya Sabha.
Authorities
The term ‘authority’ is defined as the person or persons in whom government or command is vested.((Rajasthan Electricity Board v. Mohanlal 1967 SCR (3) 377 (The services of the permanent employees were placed at the disposal of the appellant, Electricity Board. While framing its own grades and conditions for promotions the Board discriminated the employees and this matter went in appeal before the Supreme Court from Madras High Court).)) It means a person or body exercising power to command . According to Webster’s Dictionary; “Authority” means a person or body exercising power to command. In the context of article 12, the word ‘authority’ has the power to make laws. order, legislations, bye laws, notifications etc. which have the force of law and power to enforce these laws.
Local Authorities
The expression ‘local authorities’ has not been defined in the Constitution but is defined in the General Clauses Act, 1897.
Local authorities as defined in Section 3 (31) of the General Clauses Act, 1897 refers to authorities like municipalities, District boards, Panchayats, Improvements trusts and Mining settlement Boards.
Local Authority shall mean a municipal committee, district board, body of commissioner or other authority legally entitled to or entrusted by the Government within the control or management of a municipal or local fund.”
Section 3(31) of Genenral Clauses Act, 1897
According to Entry 5 of the List II of VII Schedule ‘local government’ includes a municipal corporation, improvement trust, district boards, mining settlement authorities and other local authorities for the purpose of local self-government or village administration.
These bodies must be legally entitled to or entrusted by the Government with the control or management of municipal fund. Thus autonomy regarding the affairs financial as well as administrative is necessary to fall under the term ‘local authority’ under Article 12.
Article 367 of the Constitution of India lays down that unless the context otherwise requires, the General Clauses Act, 1897, shall subject to any adaptations and modifications apply for the interpretation of the Constitution also.
Thus the definition can be well applied for the purpose of interpretation of Article 12. According to the Court the criteria which must be present in order to hold an authority as a local authority apart from the above are that
- it must have a separate legal existence as a corporate body having an independent legal entity.
- It must have function in a defined area and must ordinarily, wholly or partly, directly or indirectly, be elected by the inhabitants of the area.
- It must enjoy a certain degree of autonomy, with freedom to decide for it questions of policy affecting the area administered by it.
- It must be entrusted by the statute with the performance of civic duties and functions.
- Finally it must have power to raise funds for the furtherance of its activities and fulfillment of its projects by levying taxes, rates, charges or fees in addition to the monies provided by Government or obtained by borrowing or otherwise.
Applying this test it was held that Local authorities like Municipalities,((in Rashid Ahmed v. M. B. Kairana AIR 1950 SC 163 (It was held that the right to occupation, trade and business guaranteed under Article 19 (1) (g) was available against municipal board). Followed in State of Gujarat v. Shantilal Mangaldas (1969) 1 SCC 509: Also Municipal Corporation of Delhi v. Birla Cotton Mills AIR 1968 SC 1232: Ashok Kumar v. Ajay Biswas (1985) 1 SCC 151)) District Boards,((Hari Nath v. State of Bihar AIR 1967 Pat.305 (It was held that the fundamental rights guaranteed under Articles 14 and 16 were available against the District Board, Patna).)) Panchayats,((Ajit Singh v. State of Punjab AIR 1967 SC 355; Bhagat Ram v. State of Punjab AIR 1967 SC 927; Kishan Singh v. State of Punjab AIR 1961 Punj. 1.)) Improvement Trusts, Port Trusts,((S. Sarangapani v. Madras Port Trust AIR 1961 Mad. 234; Dwarkadas Marfatia & Sons v. Bombay Port Trust 1990 (1) Bom. C.R. 405.)) and Mining Settlement Trusts etc. are local authorities and was also held by the court through various judicial decisions.
In the case of Ajit Singh v. State of Punjab, it was held that within the meaning of the term local authority, village panchayat is also included.
In Union of India v/s R.C.Jain, to be considered a “local authority”, an authority must fulfill the following tests-
- Separate legal existence.
- Function in a defined area.
- Has the power to raise funds.
- Enjoys autonomy.
- Entrusted by a statute with functions which are usually entrusted to municipalities ?
Other Athorities.
In Article 12 the expression ‘other authporities’ is used after mentioning few words such as the Government, Parliament of India, the Government and Legislature of each of the States and all local authorities.
Article 12 ends up enumerating the authorities under Article 12 by referring finally ‘other authorities’ within the territory of India and under the control of government of India.
Interpretation of ‘Within the Territory of India or Under the Control Government of India’
In the draft Constitution the words ‘under the control of Government of India’ were not there and it was subsequently made part of Article 12 by Dr. B.R. Ambedkar to expressly guarantee fundamental rights to those who are staying in the territories not under the control of Government of India for e.g. Trust territories.
The terms ‘within the territory of India’ and ‘under the control of Government of India’ are interconnected by the word ‘or’ which implies that they are disjunctive.
The term ‘under the control of Government India’ is meant to bring into the definition of
State, not only every authority within the territory of India but also those functioning outside, provided they are under the control of the Government of India.((V.N. SHUKLA, THE CONSTITUTION OF INDIA 27 (2003) ))
In N. Masthan Sahib v. Chief Commissioner, Pondicherry((7(1962) Supp (1) SCR 981. )) and in K.S.Ramamurthi Reddiar v. Chief Commissioner, Pondicherry (((1964) 1 SCR 656. )) it was said that the words ‘under the control of the government of India’ qualified the words ‘other authorities’ and not the territory.
Judicial Interpretation of ‘Other authorities’
The most important term in Article 12 is ‘Other authorities’ regarding interpretation. The term ‘Other authorities has nowhere been defined in Constitution of India or any other Statute. Therefor to determine the actual meaning of the term ‘other authorirties’ judiciary has pronounced several judgments and has evolved several tests.
Ejusdem Generis Rule
The fist test which court evolved to interpret the term ‘other authorities’ is Ejusdem Generis Rule. The expression ‘other authorities’ is used after mentioning government of India, State Government, Union legislature and State legislature and local authorities, it is thus reasonable to construe this expression in relation only to government or legislature.
This test was applied by Madras High Court in University of Madras v.Shantha Bai wherein Madras High Court interpreted the term ‘other authority’ by applying the test of ejusdem generis and by applying this test it was held that only such authorities could be included within the term ‘other authorities’ as possessed governmental power. Further, it cannot include persons, natural or juristic, for example, Unaided universities.
In the case of Ujjammabai v. the State of U.P., the court rejected the above restrictive scope and held that the ‘ejusdem generis’ rule could not be resorted to the in interpreting ‘other authorities’. The bodies named under Article 12 have no common genus running through them and they cannot be placed in one single category on any rational basis.
Sovereign Power Test
In the case of Rajasthan Electricity Board v Mohanlal (( 1967 SCR (3) 3771. The Bench consisted of Subba Rao C.J., Shelat J., Bhargava J., G.K. Mitter J.,Vishishta J)) wherein the Apex Court overruled Shanta Bai and declared that for the interpretation of ‘other authority’ in Article12 ejusdem generis rule would be inapplicable because there was no common genus present in the authorities specially enumerated in the Article.
According to the Court only such statutory or constitutional authorities are ‘state’ which possesses power to make law and to administer such law or have the power to make binding directions, the disobedience of which is punishable as offence.
According to this view it is immaterial if such bodies are performing commercial functions because under Article 19(g) and 298 the state is specifically empowered to carry on any business or trade. The importance was attached to the fact that the Board was established by a statute. This was the finding made by Bhargava J. Though Shah J. agreed with the above order proposed by Bhargava J. he disagreed with the latter’s view that every constitutional or statutory authority on whom powers is conferred by law is ‘other authority’ within the meaning of Article 12. According to him ‘authority’ means a body invested with ‘sovereign power’ to make rules and regulations and to administer or enforce them to the detriment of the citizens and such a body will fall within the definition of State in Article 12.
Agency or Instrumentality of State Test
🔹 Article 12 – Definition of “State”
For Part III (Fundamental Rights):
- Government & Parliament of India
- Government & Legislature of each State
- Local Authorities
- Other Authorities → (expanded meaning through case laws).
🔹 Why Important?
👉 If a body = “State” → Fundamental Rights are enforceable against it under Art. 32 & 226.
🔹 Evolution of the Concept
📌 Key Cases
- Rajasthan Electricity Board v. Mohan Lal (1967)
- Statutory bodies = State.
- Sukhdev Singh v. Bhagatram (1975)
- ONGC, LIC, IFC = State.
- R.D. Shetty v. International Airport Authority (1979)
- Introduced agency or instrumentality test.
- Ajay Hasia v. Khalid Mujib (1981)
- Expanded tests → “deep & pervasive control” matters.
- Pradeep Kumar Biswas v. CSIR (2002)
- Constitution Bench → CSIR = State.
🔹 Tests Laid Down (Ajay Hasia Case)
A body will be “State” if:
- ✅ Entire share capital held by Government.
- ✅ Government provides substantial funding.
- ✅ Deep & pervasive control by Government.
- ✅ Functions are of public importance (education, transport, etc.).
- ✅ Former Govt. department transferred to the corporation.
📝 Simple Definition
👉 Agency or Instrumentality of State =
An organization that is owned, controlled, funded, or performing essential public duties on behalf of the Government.
📊 Flowchart – “Is it State under Article 12?”
┌─────────────┐
│ Authority? │
└──────┬──────┘
│
▼
┌────────────────────────┐
│ Govt. Owned/Funded? │
└─────────┬─────────────┘
│ Yes
▼
┌────────────────────────┐
│ Deep Govt. Control? │
└─────────┬─────────────┘
│ Yes
▼
┌────────────────────────┐
│ Performs Public Duty? │
└─────────┬─────────────┘
│ Yes
▼
┌─────────────┐
│ It's STATE! │
└─────────────┘
✨ Exam Tip
- Always cite Ajay Hasia (1981) for tests.
- Quote Pradeep Kumar Biswas (2002) for final clarity.
- Remember: Private bodies without govt. control ≠ State.
