A body is not considered a 'State' under Article 12 unless it is financially, functionally, and administratively dominated by the government, which was not established in this case.

JUDGMENT :

(BIREN VAISHNAV, J.)

1 This appeal under Clause 15 of the Letters Patent has been filed by the appellant who was the original petitioner before the learned Single Judge. The learned Single Judge, by an oral judgement dated 08.08.2024, held that the petition filed by the petitioner is not maintainable against the respondent No.1-Institute as the Institute is not a “State” within the meaning of Article 12 of the Constitution of India.

1.1 Before the learned Single Judge, the petition was filed by the appellant challenging the order dated 29.09.2015 removing the appellant from services from the post of Engineer (S.C) as well as the order dated 21.12.2015 passed by the Director i.e. the Appellate Authority.

2 Mr.Shalin Mehta, learned Senior Counsel appearing with Ms.Aditi Raol, learned counsel for the appellant, made the following submissions:

2.1 Taking us through the Bye-laws of the Institute annexed to the memo of the appeal, Mr.Mehta, learned Senior Counsel, would submit that the threshold question to be decided in this appeal is whether the Institute of Plasma Research (I.P.R) is a “State” within the meaning of Article 12 of the Constitution of India . Taking us through the Bye-laws, Mr.Mehta, learned Senior Counsel, would submit that apparent it is from the Bye-laws that the Institute is an aided institution under the Department of Atomic Energy, Government of India, and therefore, under the administrative control of the Department of Atomic Energy. The Bye-laws of the Institute came into force from the date of approval by the Central Government. Though the Institute is registered under the Societies Registration Act, reading the Bye-laws would indicate that the property of the Institute, namely, all buildings, land, machinery, equipment and instruments belong to the Department of Atomic Energy, which indicates that the financial control of the Institute is with the Central Government.

2.2 Mr.Mehta, learned Senior Counsel, would submit that even the administrative control of the Institute, as is evident from reading the Constitution of the Government Council is with the Department of Atomic Energy. Taking us through Clause 6 of Chapter 2 of the Bye-laws, Mr.Mehta, learned Senior Counsel, would submit that it is evident on reading the composition of Governing Council that the administrative control of the Department of the Central Government is all pervasive. Secretary of the Department of Atomic Energy is a Chairperson, representative of the State Government, Secretary of Education, Science and Technology, Government of Gujarat is on the governing council. The two scientists on the council are nominated by the Government of India. All these indicate that the administrative control of the Institute completely vests with the Central Government.

2.3 Taking us through the powers of Governing Council, Mr.Mehta, learned Senior Counsel, would submit that Clause 18 indicates that the governing council has various powers, however, they are subject to various orders issued by the Government of India and the Management of the Institute shall be under the supervision of the Council. Further, reading the general powers with regard to adoption of pay-scales, allowances and the revision thereof and creation of posts which needs prior approval of the Government of India, in Mr,Mehta’s submission would indicate control of the State. In Mr.Mehta’s submission, the fact that rules of reservation have to be implemented and necessary provisions have to be made for reservation of post in matters of appointment and promotion also indicates State control on the administrative functions of the Institute.

2.4 As far as financial powers are concerned, reading Bye-law 32, Mr.Mehta, learned Senior Counsel, would submit that the fact that the provisions of the General Financial Rules of the Government of India are applicable would also indicate financial control of the State. On the aspect of financial control, Mr.Mehta, learned Senior Counsel, would r