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Issues Involved:
1. Whether the M.P. Stock Exchange is a 'State' under Article 12 of the Constitution. 2. Whether the M.P. Stock Exchange is amenable to writ jurisdiction under Article 226 of the Constitution. Detailed Analysis: Issue 1: Whether the M.P. Stock Exchange is a 'State' under Article 12 of the Constitution. The primary question in these appeals is whether the M.P. Stock Exchange qualifies as a 'State' under Article 12. The writ petitions were dismissed by the Writ Court on the grounds that the Stock Exchange was neither a 'State' under Article 12 nor amenable to writ jurisdiction under Article 226, as it did not discharge any public duty. The appellants contended that the Stock Exchange should be considered a 'State' because its functioning is heavily regulated by the Securities Contracts (Regulation) Act, 1956, and the Rules, which confer significant control to the Central Government. They argued that the Government's ability to recognize the Exchange, impose conditions, nominate representatives, audit accounts, and call for reports indicated effective control, making it an 'authority' under Article 12. However, the respondent's counsel argued that the Government's control was regulatory and external, not internal or managerial, and thus the Exchange could not be considered an 'authority' or 'instrumentality' of the State under Article 12. The Court noted that while the Stock Exchange satisfied many tests to qualify as a 'State', it fell short in certain respects, such as the lack of Government involvement in its internal management and financial affairs. Therefore, it was concluded that the Stock Exchange does not qualify as a 'State' under Article 12. Issue 2: Whether the M.P. Stock Exchange is amenable to writ jurisdiction under Article 226 of the Constitution. The Court emphasized that a body need not be a 'State' under Article 12 to be amenable to writ jurisdiction under Article 226. The scope of Article 226 is broader and allows writs against any person or body performing public duties, even if they are not statutory authorities or instrumentalities of the State. The Court cited various Supreme Court judgments affirming that Article 226 could be used to enforce both fundamental and non-fundamental rights against private bodies performing public duties. The Stock Exchange, while not a 'State', was found to be performing public duties under the Act, Rules, and Bye-laws, which involved an element of public interest. The Act and Rules provided for significant Government control over the Exchange's operations, including recognition, conditions of membership, regulation of contracts, and periodic reporting. The Exchange's duties in regulating securities transactions, ensuring compliance with statutory requirements, and maintaining market integrity were deemed public in nature. The Court concluded that the Stock Exchange, though not a 'State', could still be subject to writ jurisdiction under Article 226 in cases where it was shown to be performing statutory public duties. The nature of the action complained of and the obligations arising from the Act, Rules, and Bye-laws would determine the applicability of writ jurisdiction. Therefore, the appeals were allowed in part, reviving the dismissed writ petitions for further examination based on the legal position established. Conclusion: The judgment held that the M.P. Stock Exchange is not a 'State' under Article 12 but is amenable to writ jurisdiction under Article 226 in certain circumstances where it performs public duties and obligations under the statutory framework. The appeals were allowed in part, and the writ petitions were revived for further examination.
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