PRADEEP KUMAR BISWAS VS INDIAN INSTITUTE OF CHEMICAL BIOLOGY : CASE SUMMARY

The Supreme Court in Pradeep Kumar Biswas Vs Indian Institute of Chemical Biology  (2002) 3 SCR 100 overruled Sabhajit Tewary Vs Union of India (1975) AIR 1329 and held  that Council for Scientific and Industrial Research (CSIR) is covered under “state” as defined in Article 12 of the Constitution.

FACTS OF THE CASE

The appellants in this case had challenged their termination in a Writ Application before the Calcutta High Court.  The Writ Application before Calcutta High Court was rejected on the ground that CSIR was not covered under “authority” as defined under Article 12 in light of judgment of the Supreme Court in Sabhajit Tiwary.  Aggrieved by the dismissal by Calcutta High Court, Appellants filed appeal before the Supreme Court. The matter was referred to Constitution Bench to reconsider the judgment in Sabhajit Tewary. 

The issue before the Supreme Court was whether CSIR was covered under definition of State ?

FINDINGS OF THE COURT

Article 12 defines State. State includes the Government and Parliament of India, Government and Legislature of each state and all local and other authorities within the territory of India or under the Control of Government of India.  The Supreme Court noted that definition of “state” is inclusive and not exhaustive.

The Supreme Court noted that earlier “authorities” were interpreted ejusdem generis with the authorities mentioned in Article 12. The next stage was reached when the definition of State was understood in light of remedies available against it.

In Rajasthan Electricity Board vs Mohan Lal (1967) 3 SCR 377 the Supreme Court held that “other authorities” will include all constitutional or statutory authorities on whom powers are conferred by law.

In Praga Tools Corporation Vs Sri C A Imanual, (1969)3SCR773 the Supreme Court held that no mandamus will be issued  against  Praga Tools Corporation as there was neither statutory nor public duty imposed on it by a statute in respect of which mandamus could be enforced.

In  Sukhdev Singh Vs Bhagatram Sardar Singh Rabhuvanshi , (1975) 3 SCR 619 the issue was whether Oil and Natural Gas Commission, Industrial Finance Corporation and Life Insurance Commission were covered under definition of State. The Supreme Court scrutinized the formation of these orgnisations , financial support given to them, nature of services rendered and held that they are covered under “authorities” as defined under Article 12.

The Supreme  Court noted that there has been drastic changes in approach of perception of “State” in Sukhdev Singh and Ramana Vs International Airport Authority of India (1979) SC 1628.

The Supreme Court held that form of an orgnisation is immaterial what is relevant is whether such orgnisation is acting as instrumentality of state.

The test formulated by Mattew Judge in Sukhdev Singh was reformulated in Ajay Hasia Vs Khalid Mujib Sehravardi (1981) 1 SCC722. The Supreme Court reiterated the view that concept of instrumentality or agency of state is not limited to corporations created by statute but also companies and society if it is covered under term “authority”.

In Som Prakash Rekhi vs Union of India AIR (1981) SC 212 again Ramana was followed and Bharat Petroleum Corporation was held to be State.

In P. K. Ramchandra Iyer Vs. Union of India (1984) 2 SCC 141 it was held that Indian Council of Agricultural Research and Indian Vetenary Research Institute are covered under “other authorities”. The Supreme Court in this case noted that ratio of Sabhajit tewari has  considerably watered down.

Subsequently in several judgments Indian Statistical Institute, Central Inland Water Transport Corporation, Sainik School Society were covered under definition of “State”.

The Court concluded that test propounded in Ajay Hasia are not rigid set of principles. The question in each case would whether in light of cumulative facts, the body in question  is financially, functionally and administratively dominated by or under the control of Government.

The Supreme Court analysed  the objects, functions, management, control and finances and held that CSIR is covered under the definition of State.  

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