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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Jitarani Udgata - Appellant
Versus
Union of India - Respondent
W.P.(C) 4733 of 2021 & CM. No. 14602 of 2021
Decided On : 09-07-2021




The Gem and Jewellery Export Promotion Council does not qualify as an 'instrumentality of the State' under Article 12 due to insufficient governmental control, reinforcing its autonomous status.

Headnote:(A) Constitution of India - Article 12 - Scope of maintainability of writ petition against non-statutory bodies - Petitioner challenged termination from employment by Gem and Jewellery Export Promotion Council (GJEPC), claiming it is an instrumentality of the State given control and financing by the Ministry of Commerce and Industry. Court ruled GJEPC does not meet criteria under Article 12, primarily functioning as a non-governmental body without substantial state control, nor fulfilling public duty obligations per established tests. (Paras 27, 36, 48)

(B) Writ Jurisdiction - Court elaborated criteria for determining if an entity is a 'State' or 'other authority' under Article 12, emphasizing the requirement of deep and pervasive control by the Government which was not the case for GJEPC. (Paras 29, 30, 41)

(C) Principle of Judicial Review in Employment Matters - Arbitrariness in termination questioned, but maintainability pivoted on whether duties of GJEPC constitute public duties; no violation found. (Paras 24, 49)

Findings of Court:
GJEPC deemed an autonomous body incorporated under Companies Act, not performing governmental functions and lack of mandatory conditions under Article 12 renders the petition non-maintainable.

Result: Petition dismissed.

Table of Content
1. petitioner requests to set aside termination. (Para 1)
2. initial matters of maintainability and affidavit filed. (Para 2 , 3)
3. petitioner's claims regarding gjepc as instrumentality of the state. (Para 4 , 5 , 6 , 7 , 8 , 9)
4. arguments against gjepc's characterization as state. (Para 10 , 11 , 12 , 13 , 14 , 15)
5. petitioner's reliance on case precedence for gjepc as state. (Para 16 , 17 , 18 , 19)
6. court references gjepc's operational and financial independence. (Para 20 , 21 , 22)
7. issues of unnecessary party status of the government. (Para 23 , 24)
8. petitioner's arguments regarding employment termination. (Para 25 , 26)
9. legal principles regarding classification under article 12. (Para 27 , 28 , 29 , 30 , 31 , 33)
10. conclusion on gjepc's status and maintainability. (Para 34 , 35 , 36)
11. judgment on gjepc's functions and public duty relevance. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49)
12. final dismissal of the petition. (Para 50)

JUDGMENT

V. Kameswar Rao, J. (ORAL)--This petition has been filed by the petitioner with the following prayers:

    "In the said premises it is most respectfully prayed that Honorable Court may be graciously pleased to pass an order/direction including a suitable WRIT in the nature of MANDAMUS towards undoing the negativity and the disproportionality of the impugned Order of Termination dated 13th Oct, 2020 thereby calling for the whole gamut of the records from, the Respondents while further deeming the petitioner to be in continuous service as from the date of impugned Termination with retrospective effect thereby further directing the respondents to release the illegal withhold financial dues plus the heavy damages without holding any inquiry contra to the legal niceties eventually setting aside the letter of termination in question as illegal and NONEST in the eyes of law pass any other order as this Honorable Court deems fit and proper to meet ends of justice.

    Said petitioner is a lady in person prosecuting her case from a distance place like Berhampur in Odisha the matter on hand deserves to be placed before the Honorable Court subject to discretion of the Court on merits having regard to the justiciability and the location of Respondent no.1 Ministry of Commerce and Industry (MoCI) under which authority Respondent no.2 Sabyasachi Ray is functioning subject to the administrative and financial control. Thus, this Court has got territorial jurisdiction to adjudication the subject."

2. On April 16, 2021 when this matter was first listed, this Court raised an issue on the maintainability of this petition against respondent No.2 i.e., The Gem and Jewellery Export Promotional Council (`GJEPC' for short). Additionally, this Court directed the respondent No.1 to file an affidavit, clarifying the position/status of respondent No.2 as an entity being financed and controlled by respondent No.1 or not. An affidavit dated May 30, 2021 has been filed vide Diary No. 391834/2021 by respondent No.1, along with an application seeking exemption from filing affirmed affidavit, the said application is allowed and the affidavit is taken on record.

3. The Petitioner has also filed her response on the issue of maintainability vide Diary No. 392605 and is accompanied with an application for condoning delay. The application is allowed and the response is taken on record.

4. It is the case of the petitioner who appears in person, that GJEPC functions under the sponsorship of the Ministry of Commerce and Industry (`MOCI' for short) and the said Ministry has effective and all pervasive control over the GJEPC. Respondent No.2 is an instrumentality of State within Article 12 of the Constitution due to the extent of the regulation, control and supervision that the MOCI exercises over respondent No. 2. According to her, respondent No.2 is substantially financed through the MOCI and the main objective of the former is to work towards promotion of export of gems and jewel

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