NAME – DEEWANSHI AGRAWAL

SAP ID - 500085143
BATCH – BATCH 1 (B.A.LLB)
SUBJECT- CONSTITUTIONAL LAW
ASSESSMENT- CASE ANALYSIS
 CASE ANALYSIS ON
AJAY HASIA Etc.
V
KHALID MUJIB SEHRAVARDI & ORS.
[1981 AIR 487 ], [1981 SCR (2) 79]

In the Supreme Court of India

Petitioner- Ajay Hasia
Respondent – Khalid Mujib Sehravardi & Ors.
Important Statute- Constitution of India
Date of Judgement – 13 November 1980
Bench – Justice Y.V Chandrachud, Justice P.N Bhagwati, Justice Krishnaiyer, Justice Sayed
Murtaza, Justice A.D Koshal.

Bench: Justice Y.V.

Chandrachud, Justice P.N.
Bhagwati, Justice
Krishnaiyer, Justice Syed
Murtaza, Justice A.D.
Koshal.
Relevant citation: [1981
SCC (1) 722]
ABSTRACT
Part III of the Indian constitution talks about the fundamental rights of Indian citizens it
safeguards these rights. These fundamental rights are such that they can be claimed against
the state so the definition of what the state constitutes is very important. This case is one of
the important and primary cases in the history of the Indian constitution and the judgement
passed in this case is one of the landmark judgements. This case talks about the legal
parameters when a case falls in the ambit of article 12 of the Indian Constitution. This case
clarifies the concept that merely if a body has statutory power then it would not be enough to
declare it as a state. the body will only be called a state when it is completely governed by the
government and the body is dependent on the government for its operation.

INTRODUCTION

The validity of the admissions to the Srinagar Regional College of Engineering for the
academic year 1979 was challenged by the written applications under Article 32 of the
Constitution80 The Srinagar Regional College of Engineering (hereinafter referred to as the
College) was one of the fifteen engineering colleges in that of the Indian Government-
sponsored land. The college was established and its administration and administration was
carried out by a company registered under the Jammu and Kashmir Company Registration
Act of 1898 to provide teaching and research in the engineering and technical branches that
the university deems appropriate and to promote learning and knowledge in these branches.

FACTS OF THE CASE

The facts of the case are as follows-

The petitioners applied for a B.E course in engineering and appeared in the viva voce test and
written test. After the result was announced they found that they have secured good marks in
the written test but has scored fewer marks in the viva voce due to which they were unable to
get admission but they observed that other candidates who have applied for the course got
fewer marks in the written test but succeeded in getting higher marks in viva voce and hence
managed to get admission in the course that the petitioner has applied for.
The petitioners submitted a written petition against the validity of the university admissions,
alleging that the society had used an arbitrary process to select applicants for university
admission, resulting in the petitioner's admission equality was denied and against the article.
The Respondent argued that the assaulted college was run by a body which was not a body
established by law but a body registered under the 1898 Act and therefore not an "authority"
within the meaning of Article 12 of the Constitution and a written petition against him could
not be upheld.

ISSUE

 Whether society registered under Societies Registration Act was an authority falling
under the definition of state under section 12 of the India Constitution.
 Whether the procedure used for the selection process was violative under Article 14
of the constitution of India.

ARGUMENTS FROM THE SIDE OF THE PETITIONER

1. As per subclause V of Clause three of memoranda of Association contemplates that the

monies for running the school would be provided by the State and Central Government and
sub-clause vi of Clause 3 says the Society to deposit all monies attributable to its fund in such
banks or to take a position them in such manner because the Society may, with the approval
of the State Government decide.

2. Clause half-dozen of memoranda of Association empowers the State and Central

government to appoint one or additional persons to review the operating and progress of the
society, or the college and to carry inquiries into he affairs thence and to create a report.

3. Clause seven of the memoranda of Association says that just in case school and Society
isn't functioning properly, the government can have the ability to require over the
administration and assets of the school with the previous approval of the Central
Government.

4. Sub Clause (2) of Clause nine of the memo of Association provides that the State and
therefore the Central Government might by mutual consultation at any time appoint the other
person or persons to be a member or members of the society. Therefore, the aforesaid school
comes at intervals the compass of Article twelve of the Constitution.
ARGUMENTS FROM THE SIDE OF RESPONDENT

1. The Respondent contended that the university is administered through society which isn't
an employer created through a statute however is a society registered below Jammu and
Kashmir Societies Act, 1898 and it's far, therefore, now no longer an expert in the that means
of Art. 12 of the Constitution and no writ petition may be maintained in opposition to it nor
can any grievance be made that it has acted arbitrarily withinside the count number of
granting admissions and violated the equality clause of the Constitution.

ANALYSIS

As a long way as India is concerned, the genesis of the emergence of organizations as

instrumentalities or organizations of Government is to be discovered withinside the
Government of India Resolution on Industrial Policy dated sixth April 1948 in which it
became said inter alia that “control of State organizations will more often than not be thru the
medium of public company below the statutory manage of the Central Government who will
anticipate such powers as can be vital to make certain this.” It became in pursuance of the
coverage envisaged on this and next resolutions on Industrial coverage that organizations
have been created with the aid of using the Government for putting in and control of public
organizations and wearing out different public capabilities. Ordinarily, those capabilities
might have been finished with the aid of using Government departmentally thru its provider
employees however the instrumentality or business enterprise of the company became
resorted to in those instances having regard to the character of the assignment to be
performed. The organizations performing as instrumentality or business enterprise of
Government could manifestly be issue to the identical barriers withinside the discipline of
constitutional and administrative regulation as Government itself, even though in the
attention of the regulation, they could be awesome and impartial prison entities. If
Government performing thru its officials is an issue to sure constitutional and public
regulation barriers, it has to comply with a fortiori that the Government performing through
instrumentality or business enterprise of organizations must similarly be an issue to the
identical barriers. By manner of the prevailing case, the Supreme Court laid down the
subsequent checks to adjudge whether or not a frame is an instrumentality of the authorities
or not: If the whole percentage capital of the frame is held through the authorities, it is going
a protracted manner in the direction of indicating that the frame is an instrumentality of the
authorities. Where the economic help given through the authorities is so big as to satisfy
nearly the whole expenditure of the frame, it can imply that the frame is impregnated with
governmental character. It is an application issue if the frame enjoys monopoly repute that's
conferred or included through the country. The existence of deep and pervasive country
management may also come up with the money for an illustration that the frame is a country
instrumentality. If the capabilities done through the frame are of public significance and
intently associated with governmental capabilities, it's miles an applicable issue to deal with
the frame as an instrumentality of the authorities.

HELD

The Court stated that the check for figuring out if an expert falls in the definition of State in
Article 12 is whether or not it's miles an instrumentality or organization of the Government.
The inquiry needs to be now no longer as to how the juristic character is born however why
it's been added into existence. It is, therefore, immaterial whether or not the enterprise is
created with the aid of using a statute or below a statute. The idea of instrumentality or
organization of the Government isn't always restricted to an enterprise created with the aid of
using a statute however is similarly relevant to a Company or society and in a given case it
might be decided, on the attention of the applicable factors, whether or not the Company or
society is an instrumentality or organization of the Government if you want to come in the
that means of the expression “authority” in Article 12.

The Court reiterated the check laid down withinside the case of RD Shetty Case that is: One
factor is apparent that if the complete percentage capital of the enterprise is held with the aid
of using Government, it'd move a protracted manner closer to indicating that the enterprise is
an instrumentality or enterprise of Government. Where the economic help of the State is a lot
as to satisfy nearly complete expenditure of the enterprise, it'd come up with the money for a
few indications of the enterprise being impregnated with governmental character. It will also
be an applicable thing … whether or not the enterprise enjoys monopoly fame that is State
conferred or State protected. Existence of deep and pervasive State manipulate may also
come up with the money for a demonstration that the enterprise is a State enterprise or
instrumentality. If the features of the enterprise are of public significance and intently
associated with Governmental features, it'd be an applicable thing in classifying the enterprise
as an instrumentality or enterprise of Government. ‘Specifically, if a branch of Government
is transferred to an enterprise, it'd be a robust thing supportive of this inference’ of the
enterprise being an instrumentality or enterprise of Government. The Court, in addition,
stated that the above check isn't conclusive or clinching, however, they're simply indicative
indicia which should be used with care and caution, due to the fact at the same time as
stressing the need for an extensive means to be located at the expression “different
authorities”, it has to be realized that it ought to now no longer be stretched up to now as to
usher in each self-sustaining frame which has a few nexus with the Government in the sweep
of the expression. Applying the above ideas to the existing case, it's miles clean that the
Society registered beneath neath the J&K Registration of Societies Act, which set up and
carried at the management and control of the Regional Engineering College, Srinagar, is an
instrumentality or enterprise of the State and the Central Governments and is an “authority”
in the which means of Article 12. The State Government and with the aid of using the motive
of the supply for approval, the Central Government also, have complete manipulate the
operating of the Society and the Society is simply a projection of the State and the Central
Governments and, the voice is that of the State and the Central Governments and the fingers
also are that of the State and the Central Governments.

CONCLUSION

It is irrelevant whether the corporation is founded by law or by law. The test is whether it is a
government tool or agency and not how it is created. the legal entity was born but why it was
incorporated The company may be a company incorporated by law, or it may be a
government company or a company incorporated under the Companies Act of 1956, or it may
be a partnership incorporated in the Companies Act Registry its of Companies of 1860 or
another similar statute. Regardless of its genetic origin, if it were an instrument or body of
government, it would be an "authority" within the meaning of Article 12 and this would have
to be determined through an appropriate assessment of the facts in the light of the relevant
factors The concept of legal entity or the government agency is not limited to a legally
created corporation, but is equally applicable to a company or partnership and would have to
be decided on a case-by-case basis, taking into account the relevant factors. regardless of
whether the enterprise or society is an instrument or agency of government so that it falls
under the term “agency” in Article 12.
Ajay Hasia v. Khalid Mujib, (1981) 1 SCC 722, was a landmark decision by the Supreme Court
of India in which the Court laid down a test to determine whether an individual, corporation, or
society was an instrumentality or agency of the government, and therefore whether it could be
considered a State for the purposes of Article 12 of the Constitution of India.

The petitioners applied for a B.E course in engineering and appeared in the viva voce test and
written test. After the result was announced they found that they have secured good marks in
the written test but has scored fewer marks in the viva voce due to which they were unable to
get admission but they observed that other candidates who have applied for the course got
fewer marks in the written test but succeeded in getting higher marks in viva voce and hence
managed to get admission in the course that the petitioner has applied for.

The petitioners submitted a written petition against the validity of the university admissions,
alleging that the society had used an arbitrary process to select applicants for university
admission, resulting in the petitioner's admission equality was denied and against the article.

Held-

The Hon’ble Supreme Court held that with regard to the Memorandum of Association
and the Rules of the Society, the respondent college was a State within the meaning
of Article 12 of the Constitution. The composition of the Society was dominated by
the representatives appointed by the Central Government and the Governments of
Jammu & Kashmir, Punjab, Rajasthan and Uttar Pradesh with the approval of the
Central Government. The money required for running the college were provided
entirely by the Central Government and the Government of Jammu & Kashmir and
even if any other money was to be received by the Society, it could be done only
with the approval of the State and the Central Governments. The Rules to be made
by the Society were also required to have the prior approval of the State and the
Central Governments. The State Government and by reason of the provision for
approval, the Central Government also, had full control of the working of the Society.
Hence, the Society was an instrumentality or agency of the State and the Central
Governments and it was an ‘authority’ within the meaning of Article 12 of the
Constitution.

Analysis

Judgment –
Justice P. N. Bhagwati delivered the judgment of the Court. [1]: 29  The most influential portion of the
judgment is the summarized six-factor test and largely the reason why it is often cited over
the International Airport Authority case, a previous judgment by Justice Bhagwati. The six factors
were:[2]

1. Whether the share-capital of the corporation is held by the Government

2. Whether the financial assistance of the State meets almost the entire
expenditure of the corporation
3. Whether the corporation enjoys a state-conferred or state-protected monopoly
status
4. Whether there is deep and pervasive state control
5. Whether the functions of the corporation are of public importance and closely
related to Governmental functions
6. Whether a department of Government has been transferred to a corporation

REFERENCE

https://www.jusdicere.in/ajay-hasia-ors-v-khalid-mujib-sehravadi-ors/

https://www.researchgate.net/publication/
348621777_CASE_ANALYSIS_ON_AJAY_HASIA_Etc_V_KHALID_MUJIB_SEHRAV
ARDI_Ors

https://lawsamjho.in/2020/04/11/ajay-hasia-v-khalid-mujib-case-summary/