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National Book Trust is 'State' under Article 12 due to deep and pervasive government control: Supreme Court

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Published
Case
National Book Trust Qualifies As 'State' Due To Deep And Pervasive Government Control : Supreme Court
Statutes
  • Constitution of India — s.12, s.32, s.226
Source
LiveLaw
Bottom Line Up Front (BLUF)

The Supreme Court held that the National Book Trust (NBT) qualifies as 'State' under Article 12 of the Constitution of India due to the deep and pervasive control exercised by the Central Government over its functioning, funding, and administration.

Ratio Decidendi · Legal Principle Established

An entity qualifies as 'State' under Article 12 of the Constitution of India if there is deep and pervasive governmental control over its financial, functional, and administrative aspects, indicating it is an instrumentality or agency of the government.

Practice & Procedural Impact for Advocates

Advocates can challenge actions of bodies like NBT through writ petitions under Article 32 or 226 if governmental control is demonstrably deep and pervasive. Litigants should gather evidence of government funding, appointment control, and functional oversight to establish an entity as 'State'.

Key Legal Takeaways

  • 1Deep and pervasive control is the key test for an entity to be 'State' under Article 12.
  • 2Financial, functional, and administrative control by the government are crucial factors.
  • 3Entities like NBT, though established by executive resolution, can be deemed 'State'.

The Legal Issue The core legal issue before the Supreme Court was whether the National Book Trust (NBT), an autonomous organization established by an executive resolution of the Government of India, qualifies as 'State' within the meaning of Article 12 of the Constitution of India. This determination is crucial as it dictates whether the NBT's actions can be challenged through writ petitions, thereby subjecting it to constitutional scrutiny.

Court's Reasoning The Supreme Court applied the 'deep and pervasive control' test to determine the NBT's status. The Court observed that the NBT is entirely funded by the Central Government, its governing body members are appointed by the government, and its functions are closely aligned with governmental objectives related to book promotion and literacy. The Court found that the Central Government exercises significant control over the NBT's financial, functional, and administrative aspects. This extensive oversight led the Court to conclude that the NBT acts as an instrumentality or agency of the government, thereby falling within the definition of 'State' under Article 12.

What Follows As a consequence of this ruling, the National Book Trust is now subject to the fundamental rights enshrined in Part III of the Constitution. Any aggrieved party can challenge the actions or inactions of the NBT through writ petitions filed under Article 32 before the Supreme Court or Article 226 before a High Court, asserting violations of their fundamental rights. This decision ensures greater accountability and transparency in the functioning of the NBT.

Read the LiveLaw report