Article 36 of The Indian Constitution - Ipleaders
Article 36 of The Indian Constitution - Ipleaders
Article 36 of The Indian Constitution - Ipleaders
This article is written by Sushree Surekha Choudhury from KIIT School of Law,
Bhubaneswar. The article gives an overview of Article 36 of the Indian Constitution. It
explains what is a ‘State’ under the Constitution and the bodies that come into its
ambit.
Table of Contents
1. Introduction
2. ‘State’ under the Indian Constitution
2.0.1. Legislative and executive organs of the Union Government
2.0.2. Legislative and executive organs of the state government
2.0.3. Local authorities
2.0.4. Other authorities : statutory authorities and non-statutory authorities
2.1. Government, Parliament, and state legislature
2.2. Local authorities
2.3. Other authorities
2.4. Territory of India
2.5. Control of the Government of India
2.6. Does State include the Judiciary
3. Extension in the interpretation of ‘State’ under Part III and IV of the Indian Constitution
4. Landmark judgements on ‘State’ under the Indian Constitution
4.1. Ajay Hasia Etc. v. Khalid Mujib Sehravardi & Ors. Etc. (1980)
4.2. Sukhdev Singh and Ors. v. Bhagat Ram and Anr. (1975)
4.3. M.C. Mehta and Anr. v. Sri Ram Fertilizers Ltd. and Ors. (1987)
4.4. J.P. Unni Krishnan and Ors. v. State of Andhra Pradesh and Ors. (1993)
4.5. Zee Telefilms Ltd. and Anr. v. Union of India and Ors. (2005)
5. Conclusion
6. Frequently Asked Questions (FAQs)
7. References
Introduction
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The Parliament,
Local Authorities,
Other Authorities,
Any other body or authority within the territory of India or under the control of the
Government of India.
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The ambit of Articles 12 and 36 is wide. The Articles cover varied bodies, authorities and
institutions clubbed into these numbered categories. The word ‘includes’ in the Article
suggests that the Article is not exhaustive in nature. It is inclusive in nature. It shall
include all that would match the elements of a State within its ambit through analysis
and judicial interpretations.
The categories to which the definition of State is divided gives rise to a winder
understanding as it is classified in the following manner:
The Parliament – Lok Sabha (House of People) and Rajya Sabha (Council of States).
The State Legislatures – Vidhan Parishad (Legislative Council) and Vidhan Sabha
(Legislative Assembly).
Local authorities
Municipalities – Municipal Corporations, Nagar Panchayats and Nagar Palikas.
District boards.
Local trusts.
National Tribunals,
2. Non-statutory authorities
Vigilance Commission,
Lokpal,
Lokayukta, etc.
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It consists of the Union Executive as well as the State Executive. The executive is the
organ of the government that implements the laws passed by the Parliament and State
Legislatures. The ambit of the executive covers the President of India, the Governors of
different states, the Prime Minister, the Chief Minister, the Union Council of Ministers and
the State Council of Ministers.
Local authorities
Authority means having power. For the definition of a State, authority is the one that has
powers to make laws, regulations, notifications, etc., and regulate them. These laws and
regulations are legally binding and enforceable. Section 3(31) of the General Clauses
Act, 1897 defines a local authority to include municipalities, municipal committees,
district boards, etc. The local authority consists of the local government, whereas, the
local government includes municipal corporations, mining settlement authorities, etc.,
and are governed by village administrations. It also includes a village panchayat. It was
decided in Ajit Singh v. State of Punjab and Anr. (1966) that a village panchayat shall
fall into the ambit of local authorities. This was when a consolidation officer who claimed
to be acting under the authority of the State wanted to acquire lands of common
villagers and put the money into a common pool. He also purported to manage this pool.
But the Court declared that such consolidation was not valid and non-binding on the
villagers. The Court here transferred all the proprietary rights in this arrangement to the
village panchayat (gram panchayat). The Court further clarified that a village panchayat
(herein established under the Punjab Gram Panchayat Act, 1952 falls within the ambit of
local authorities under Article 12 of the Constitution. The Court stated that the
acquisition rights and other bundles of rights would thus, come within the powers of the
local authority in the village, i.e., the village panchayat.
In Mohammad Yasin v. Town Area Committee (1952), the Supreme Court held that the
bye-laws of a municipal committee that changed a prescribed fee to a wholesale dealer
under state authority were violative of Article 19(1)(g) of the Constitution. This
hampered the business of these wholesale dealers. Thus, the Supreme Court listed the
characteristics that make a body a local authority:
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It should be legally and statutorily entrusted with governing functions of the local
area,
It should have the right to raise money by way of taxing, charging fees, etc., in the
local jurisdiction.
Other authorities
The term ‘other authorities’ has neither been defined in the Indian Constitution nor in the
General Clauses Act, 1897. It is not defined in any other legislation either. This has given
the term a broad interpretation but has also created difficulties while dealing with cases.
As the legislation has been silent on defining the term, the Courts have relied on judicial
interpretations and the meaning of the term has been determined through judicial
pronouncements.
In The University of Madras v. Shanta Bai and Anr. (1953), the Madras High Court
described the meaning of ejusdem generis (of the same kind) in the context of
determining ‘other authorities.’ The Court held that the term ‘other authorities’ will only
include the authorities/bodies that perform governmental/sovereign functions. The Court
clarified that no other body, authority, or person (natural/juristic) would come under the
ambit of ‘other authorities.’ This was the first case dealing with this term and the
judgement was somewhat criticised for having a narrow approach.
Finally, in Rajasthan State Electricity Board v. Mohan Lal and Ors. (1967), the Supreme
Court gave a celebrated judgement that widened the ambit of ‘other authorities’ as it is
today. The Supreme Court decided that the ambit of ‘other authorities’ would be
inclusive of all the authorities created under the Constitution or any other law in force.
The Supreme Court rejected the idea that for an authority to come under the ambit of
‘other authorities’ it has to perform governmental or sovereign functions. The Court
stated that the nature of the function is immaterial and even an authority performing
commercial function would come under the ambit of ‘other authorities.’
Territory of India
‘State’ as defined in the Indian Constitution says that it consists of Governments, the
Parliament, the State Legislatures, local authorities and other authorities within the
territory of India or under the control of the Government of India.
This part of the Article 36 and Article 12 specifies that apart from having control over the
authorities and bodies under the Government’s control, a body or authority must be
within the territory of India to be declared as a State for the purpose of application of
laws and legislation applicable to States in India.
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It is further stated that the term ‘territory of India’ is to be understood as it has been
defined under Article 1(3). This interpretation was added through the case of N. Masthan
Sahib v. Chief Commissioner, Pondicherry (1961). The Supreme Court held that
Pondicherry did not fall within the ‘territory of India’ but the Union Government exercised
jurisdiction over it. Thus, there was no de facto French jurisdiction in Pondicherry. Thus,
rules made by the Union Government for this territory shall be final and binding. The
Court rejected an appeal under Article 136 of the Constitution challenging the
administrative validity of the government’s ruling in Pondicherry.
As per Article 1(3) of the Constitution, the territory of India consists of the following:
Thus, anything that falls within the ambit of either of these categories could be stated to
fall within the territory of India. This is a determinant factor in proving a body or
authority to be a State within the meaning of the Constitution.
Interpretation of the word ‘control’ is not absolute in nature. This means the Government
of India does not need to have absolute control of the authority or body that falls under
the meaning of a State. The body or authority does not need to follow the Government’s
directions and instructions absolutely. Minimum control of the Government would render
it eligible. Minimum control is subjective in nature. Usually, the Indian government takes
such control and measures under which the authorities are under scrutiny where they
must adhere to public policy. Upholding public policy, morals, natural justice and decency
could be termed as minimum control. The Government of India needs to have minimum
control over the functioning of this body or authority. If a body or authority seeks and
gets financial assistance from the Government of India, it is said to be under the control
of the Government of India.
Instances of a State: State Electricity Boards, Revenue department, Oil and Natural
Gas Corporation of India.
Not a State: National Council of Educational Research and Training (NCERT) is not
categorised to be a State as there is a complete absence of Government control over it.
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The test to determine whether a body or authority comes under the control of the
Government of India was established in Ajay Hasia Etc. v. Khalid Mujib Sehravardi and
Ors. (1980). The Court decided that if a body or authority is financially, functionally or
administratively dominated by the Government of India then it is said to be under the
control of the Government of India. The control of the Government of India must be
pervasive in nature.
The judiciary should be considered within the ambit of other authorities since the Courts
are statutorily set up and exercise jurisdiction within the territory of India or on the
subjects within the control of the Government of India, by the power conferred on it by
law.
Another school of thought is that the Supreme Court of India performs all the roles of a
State. It has the power to make rules, regulate procedures, appoint staff and uphold law
and justice in the country, it should fall within the ambit of a State. This also ensures
equality by not excluding the judiciary from the obligations under Part III and Part IV of
the Constitution.
Later, a distinction was made between the judicial functions and non-judicial functions of
the judiciary. It was decided that while performing the non-judicial functions, the
judiciary would come under the definition of a State and while performing the judicial
functions, the judiciary would be treated as an exception to the definition. Thus, the
Courts are not obliged under Part III and IV of the Constitution while performing in their
judicial capacity. While performing non-judicial functions (rule-making and other
administrative functions), the Courts are bound by the definition and rules applicable to
a State under the Constitution.
It was first determined in Naresh Shridhar Mirajkar and Ors. v. State of Maharashtra
(1967) that the Court cannot be obliged by Part III rules that are applicable to a State
while it is performing in its judicial capacity to decide on a dispute between two parties.
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This extension was primarily discussed in Pradeep Kumar Biswas v. Indian Institute of
Chemical Biology (2002) where the Court held that the Council of Scientific and
Industrial Research will fall within the definition of a State even though it is a registered
authority. This judgement was in consonance with the case of Rajasthan State Electricity
Board v. Mohan Lal and Ors. (1967) and overturned the judgement of Sabhajit Tewary v.
Union of India and Ors. (1975) whose ruling excluded registered societies from the ambit
of the definition of a State.
In Shrikant v. Vasantrao and Ors. (2006), the Supreme Court observed that even though
the terms ‘State Government’, ‘local authorities’ and ‘other authorities’ fall within a single
definition of State, it is done so for the purpose of Part III and IV of the Constitution.
They are different from one another in their scope, powers and functions in general. The
Court refused to use the meaning of a State Government within the definition of State
under Part III and Part IV of the Constitution in other parts of the Constitution.
The Supreme Court affirmed this stand again in State of Assam v. Barak Upatyaka D.U.
Karmachari (2009) by stating that even though cooperative bodies and societies fall
within the meaning of State, they would not be treated as a State Government outside
the ambit of Part III and Part IV of the Constitution.
This Act of the engineering college management was unreasonable and arbitrary.
Looking at the Memorandum of Association and Registered Society Rules, the Court held
that the engineering college has all the elements to be categorised as a State. The
composition of the society consists of representatives of the Central Government and
also from the State Governments of Jammu & Kashmir, Rajasthan, Uttar Pradesh and
Punjab with the Central Government’s approval. The engineering college is fully aided by
the State and Central governments. The registered society is run and rules are made
with the approval of the representative governments. Annual reports are submitted by
the society to the representative governments. This can be categorised as a pervasive
control by the governments. Thus, it is a State within the meaning of State under the
Constitution. The Court stated that if the interviews were merely 2-3 minutes long and
no relevant questions were asked except the parentage and residence of the students, it
is violative of Article 14 of the Constitution and thus, liable to be struck down to the
extent of arbitrariness. The Court stated that if merit-based questions were asked and
admissions were granted or denied on that basis, it cannot be struck down as arbitrary
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merely for an additional question on the residence of the student. The Court laid various
instructions on the manner and procedures that should be followed while conducting oral
interviews in these colleges. One important instruction was to tape-record the interviews
to avoid questions of fact and law in the future and easy determination of the case. This
was a landmark case in determining the nature of authorities to be termed as a State.
These corporations have a right to make rules and regulations with the approval of
the government (statutorily authorised), and
Justice Mathew further stated about the instrumentality or agency test. He observed that
the States run through the instrumentality or agency of natural or juristic persons. Thus,
an action of these instrumentalities and agencies could be considered an action of the
State. Justice Mathew observed the deciding factors to determine the existence of
instrumentality or agency as:
If the State has financial and administrative control over the functionality of the
instrumentality or agency,
If the State has control over the management and regulations of the instrumentality
or agency,
Whether or not the instrumentality or agency running its administration for the public
benefit.
If the answer to the above questions is affirmative, the State’s relation with the
instrumentality or agency is established.
The instrumentality or agency test was further decided in the Ajay Hasia case, where the
Court laid down the following determinant factors:
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If the entire share capital of the instrumentality or agency is held by the appropriate
Government,
If the major financial requirements of the instrumentality or agency are through aid
from the Government,
These tests were laid to be the minimum standards and the test is inclusive in nature.
M.C. Mehta and Anr. v. Sri Ram Fertilizers Ltd. and Ors.
(1987)
In this case, the Supreme Court held that the ambit of the State under the Indian
Constitution should be widened to include private entities. The action of private
companies can be treated as State action.
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The corporations and societies formed under Article 298 of the Constitution are
formed by the State Government to facilitate trading. The share capital of these
bodies is state-owned. They are financed by the State Government. These bodies are
controlled and maintained under state control.
Even if certain bodies do not perform sovereign functions but primarily work in
research and development for the government or to fulfil governmental functions,
they shall fall within the ambit of other authorities.
When a private entity performs public duties or the duties are of the nature of
governmental duty and owes an obligation to the general public, it is said to fall under
the category of other authorities within the meaning of a State.
Conclusion
Part III and Part IV of the Constitution are often read together. While Part IV is not
enforceable in a court of law, it is a moral obligation of the States to follow it. Part III of
the Constitution is one of the core provisions of the Constitution of India and its
infringement is punishable by law. It is given utmost importance and even the executive,
the legislature and the judiciary (while performing non-judicial functions) are obliged to
adhere to these rights and guarantee them to the citizens of the country. For all these
purposes, the Constitution defines a State. It is essentially required so as to determine
specifically, the bodies, authorities and departments of the Government on which rules of
the obligation under Part III and Part IV of the Constitution are applicable. For this
reason, the Constitution has defined a State in Article 12 (Part III) and Article 36 (Part
IV) of the Constitution. The ambit of the definition has been kept wide, inclusive and
exhaustive in order to bring into its ambit all such bodies and authorities that possess
the elements of a State and make the rules applicable to them.
The most debated subject has been about the Indian judiciary, whether or not the
judiciary would come under the ambit of the definition of a State under the Indian
Constitution. It has been determined through different schools of thought and judicial
pronouncements. It has reached a decisive point where it was confirmed that the
judiciary shall come within the definition of a State while it is performing its non-judicial
functions (rule-making functions and other administrative functions) and while
performing its judicial functions, the judiciary is excluded from the ambit of the definition
of a State. This is done to strike a balance between people’s rights, States’ obligations to
guarantee them their rights and the independence of the judiciary. Various judicial
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pronouncements have helped determine the provisions better and widen the scope of the
Articles.
Article 36 in Part IV of the Constitution states that for the purpose of Part IV of the
Constitution, a State has the same meaning as it has under Article 12 in Part III of the
Constitution. Both Articles 36 and 12 define the State to include Government (Central
and states), the Parliament, the state legislatures, local authorities and other authorities.
The definition of State includes the judiciary to the extent of the non-judicial functions of
the judiciary. These functions include the rule-making powers and administrative
functions of the judiciary. The judiciary is excluded from the definition of State when it is
performing its judicial functions.
Article 12 defines ‘State’ under Part III of the Indian Constitution. This part deals with
the Fundamental Rights and the infringement of the same can be enforced against a
state which falls under the definition of Article 12. Whereas, Article 36 defines the state
the same way as it does in Article 12 but it belongs to Part IV of the Indian Constitution
that deals with the Directive Principles of State Policy. This part of the Constitution
cannot be enforced in a court of law. It is directive in nature.
What are the preconditions for a body or entity to be termed as a State under
the definition in Article 12?
Apart from the elements of the definition, the bodies and authorities to be termed as a
State must fulfil either of the two conditions of the definition of a State:
References
https://lexforti.com/legal-news/article-12-definition-of-state/
https://lawtimesjournal.in/concept-of-state-under-article-12-of-the-indian-
constitution/
https://indiankanoon.org/doc/784506/
https://indiankanoon.org/doc/1186368/
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