What are the essentials to determine whether a particular institution is other authority within the meaning of the Article 12 of the Indian Constitution?
In Ajay Hasia v. Khalid Mujib, the Supreme Court laid down the following test to adjudge whether a body is an instrumentality of the government or not:-
(i) If the entire share capital of the corporation is held by Government it would go a long way towards indicating that the Corporation is an instrumentality or agency of Government.
(ii) Where the financial assistance of the State is so much as to meet almost entire expenditure of the corporation, it would afford some indication of the corporation being impregnated with governmental character.
(iii) It may also be a relevant factor if the corporation enjoys monopoly status which is the State conferred or State protected.
(iv)Existence of deep and pervasive State control may afford an indication that the Corporation is a state agency or instrumentality.
(v) If the functions of the corporation of public importance and closely related to governmental functions, it would be a relevant factor in classifying the corporation an instrumentality or agency of Government.
(vi)Specifically, “if a department of Government is transferred to a corporation, it would be a strong factor supportive of this inference” of the corporation being an instrumentality or agency of Government.
Category: Indian Constitution Short Questions