Ajay Hasia vs Khalid Mujib
BENCH
PN Bhagwati, YV Chandrachud, V.R. Krishnaiyer, Syed Murtaza Fazalali and A.D. Koshal FACTS
Certain admissions took place in Regional Engineering College, Srinagar in the academic year 1979-1980, the college was one of fifteen aided colleges in Jammu & Kashmir aided by the central government. However, a society under the Jammu & Kashmir Registration of Societies Act, 1898 performed the administration and management of the college.
A writ petition was filed challenging the validity of the admissions. ISSUES
Whether a society can be called a "State" under Article 12 of the Constitution?
What does "Other authorities" mean under Article 12 of the Constitution? LAWS INVOLVED
Article 12 of the Indian constitution defines "State" It is important since only a state can be sued against for violation of Fundamental Rights. JUDGEMENT
The five-judge bench ruled that a society cannot be called state or central however it falls within 'other authorities' under Article 12 of the Indian constitution. Therefore, the petition is maintainable since the society managing and administering the college was a part of the state. A test for instrumentality was expanded and it was laid that in the following circumstances can an authority be called a state:
If the government holds the entire share capital
When the value of financial assistance of the state is equal to the corporation's entire expenditure
When the corporation enjoys a state, protected monopoly status
When the Corporation performs functions of public importance
When the state holds extensive control
When a department of the government is transferred to a corporation or it is transformed in that manner.
The Supreme Court further on the merits of the case ruled that the process of admission cannot be ruled arbitrary only because it regulated admission only on the basis of oral examination and did not consider written exams. The supreme court however ordered that the State Government, the Society and the College have agreed before us that the best fifty students, out of those who applied for admission for the academic year 1979-80 and who have failed to secure admission so far, will be granted admission for the academic year 1981-82 and the seats allocated to them will be in addition to the normal intake of students in the College.
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