( 1 ) A short question falls for determination in this appeal. It runs as under:can the alleged arbitrary action of a Government Company which is a State within the meaning of Art. 12 of the Constitution emanating from the alleged breach of binding executive instructions issued to it by the Central Government for regulating the Companys dealings with third parties with whom such Company might have entered into contracts be brought in challenge under Art. 226 of the Constitution of India for testing it on the anvil of Art. 14 of the Constitution ?

( 2 ) FACTUAL backdrop: In order to appreciate the aforesaid question in its correct perspective the factual matrix leading to the present proceedings deserve to he noted at the outset. The appellant is a partnership film which was appointed as a dealer entrusted with the task of selling petroleum products in retail. The appellant was appointed by the respondent-Corporation which is wholly owned by the Central Government. It is a Government Company incorporated under the Indian Companies Act 1956 The respondent Corporation discharges Government functions which were being initially discharged by the Department of the Centra