Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1992 (1) TMI 362

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... han Patrika for the purpose of Instructors. The petitioner was interviewed by a Selection Committee on the basis of his application, which he had submitted in pursuance to the advertisement dated 19.7.90. According to the petitioner he was selected in the interview and was appointed with effect from 10.9.90. However, no letter of appointment has been given to him and he was paid wage @ ₹ 60/- per day and not in the regular pay scale prescribed for the post. He was told that the appointment letter will be given after completion of formalities. No letter of appointment was, however, issued by the petitioner even thereafter and suddenly on 1.7.91 he was asked to submit his resignation, as had happened earlier. This time he refused to abide by the wishes of the respondents and therefore, he has been verbally told by the Principal of School that his services will not be continued beyond 5.7.91. The petitioner has sent a telegram dated 2.7.91 against this action of the respondent No. 2. 3. In the meantime another advertisement was issued by the respondent No. 2 in the Rajasthan Patrika dated April, 91 Since the petitioner was already in the service he has no occasion to apply fo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the statement contained in the order dated 5.7.91 is not correct. In fact there one post of Sr. Instructor (pay scale starting from 2200/-) was vacant. That was filled by promoting Shri Sajid Ali. Shri Sajid Ali was working as Instructor in the pay scale starting from ₹ 1460-. That post was filled by promoting Shri Surendra Khadiya. His post carrying starting salary of ₹ 1200/- and has thus fallen vacant and Shri Arun Sharma has been absorbed against that post. 7. The respondents have filed reply to the writ petition in which it has been started that the respondent Council is the parent body of the School and under its guidance the school functions. There is a Local Advisory Committee headed by a Regional Convener of the Council, who looks after its management. The respondent Council is a Company duly incorporated and registered in the year 1966 under the Indian Company Act, 1956. It is neither a State nor an instrumentality of the State. It does not come within the scope of the term 'other authorities' used in Article 12 of the Constitution of India. The activities of the Council are neither controlled nor directly governed by Government of India (Ministry .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... working of the Council. The Council is not engaged in any activity, which was being previously carried out by a department of the Government of India. The Government of India does not provide 100% finances to the Council or to the School. Funds are arranged by the Council also. On that premise it has been submitted that no writ could be issued in favour of the petitioner for his re-employment/reinstatement or for enforcement of his so called fundamental rights. Shri P.K. Sharma, learned Counsel for the petitioner on the other hand argued that the Council is fully controlled by the Government of India (Ministry of Commerce). Huge funds are provided by the Government of India. The Government of India keeps full control over the working of the Council. Therefore, it must be held to be an instrumentality of the State and it must be held to be a body covered by the scope of the term other authorities as used in Article 12 of the Constitution of India. 9. It is an admitted position of both the parties that the Council is a body registered under the Companies Act, 1958. The Council was formed by 8 individuals who applied for registration of the Council under the Companies Act as its .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e Council. The term of office of the Chairman shall be two years and that of the Vice-Chairman, one year. The Chairman and Vice Chairman shall be elected from amongst the elected members of the Working Committee and they shall be Chairman and Vice-Chairman respectively of the Working Committee, Committee of Administration and all other Committees of the Council. From among the Chairman and Vice-Chairman, atleast one of them shall be a person residing in bombay. 18. The Working Committee shall delegate such functions as it deems fit for the administration and management of the affairs of the Council to the Committee of Administration consisting of the Chairman, the Vice Chairman, six members nominated by the Chairman of the Council in consultation with the panel members of the Working Committee and two nominees of the Union Government. 25. The Secretary shall not be a member of the Council and shall be a full time and paid officer whose appointment will be approved by the Government. 34. There shall be a full time and paid Secretary and such other officers to the Council as may be determinated from time to time by the Council. 65A. The Central Government shall have t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nly source of income of the council. The Control which the Government of India exercises on it is by the large limited to oversee that the funds provided by it are utilised properly and are not misused by the Council. The entire functioning of the Council is carried on by the Working Committee. There is no direct interference of the Government of India in the functioning of the Council or its working. The Working Committee consists of dozens of persons and only 3 of them are nominated by the Government. They too do not have a power of veto in the management of the affairs of the Company. The general direction that the Government of India can give to the Council do not have any direct impact on the day today functioning of the Council. There is no indication in the Memorandum of Association or Articles of Association that the Council discharges any governmental or State function nor can it be said that its functioning is of a public importance. There is also nothing to show that the Council is a body having a public character. Therefore, in my opinion the composition of the Council, its functioning, its objects are no such which can bring it within the scope of the term other autho .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ts evolved in Ajay Hasiya's case continued to be followed in various subsequent decisions. In Tek Raj Vasandhi's case (supra) their Lordships noticed the provisions relating to composition and objects of Indian Council for Parliamentary Studies and proceeded to hold that the Institute of Constitutional and Parliamentary Studies does not fall within the purview of the term other authorities. It would be appropriate to refer paragraphs 4, 5, 16, 17 and 20 of that decision. The same are reproduced as under:-- 4. ICPS, respondent 2, is a society registered under the Societies Registration Act, 21 of 1860, and was registered on March 9, 1965. As would appear from its memorandum of Association, the foundation members were 19 in number 13 being members besides a President and five Vice Presidents. The First President of the Society was the then Speaker of the Lok Sabha. The five Vice-Presidents were the then Minister of Railways, Minister of Law and Social Security, Minister of Communication and Parliamentary Affairs, a Former Chief Justice of India and a former Attorney General of India. Dr. L.M. Singhvi the then a member of the Lok Sabha, was its Executive Chairman. The pub .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f the objects of the Society. 5. The memorandum permitted the Society to accept gifts, donations and subscriptions of cash and securities and of any property either movable or immovable. The rule classifies the members under heads like Founder Members, Life Members, Honorary Members, Ordinary Members, Corporate Members and Associate Members. Ordinary membership, according to the Rules, would extend to members of Parliament or of any State legislature or those who have been or are members of the judiciary or advocates of the Supreme Court or the High Courts or persons employed in public service or persons engaged in teaching of study of social sciences particularly of Political Science, Law or subjects related thereto. In the category of Honorary Members were the President, the Vice-President and the Prime Minister of India. Though the Memorandum permitted receipt of gifts and donations from outside, it is not disputed that the main source of income of the Society has been the annual Central Government grant. 16. The objects of the Society were not governmental business but were certainly the aspects which were expected to equip Members of Parliament and the State legislatur .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o an agency or instrumentality of the State. That obviously would not serve the purpose and may be far from reality. A broad picture of the matter has to be taken and a discerning mind has to be applied keeping the realities and human experiences in view so as to reach a reasonable conclusion. Having given our anxious consideration to the facts of this case, we are not in a position to hold that ICPS is either an agency or instrumentality of the State so as to come within the purview of other authorities in Article 12 of the Constitution. We must say that ICPS is a case of its type-typical in many ways and the normal tests may perhaps not properly apply to test its character. 20. In Chandra Mohan Khanna's case (supra) their Lordships were considering the question as to whether National Council of Educational Research and Training is State. After referring to the cases of Sukh Dev Singh vs. Bhagat Ram, R.D. Shetti vs. International Airport Authority, Ajay Hasiya vs. Khalid Mujib Sehravardhi and Som Prakash Rekhi vs. Union of India, their Lordships observed as under:-- The State control, however, vast and pervasive is not determinative. The financial contribution by the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates