Quick answer
Yes. In Rajasthan State Electricity Board v. Mohan Lal (3 April 1967), a Constitution Bench of the Supreme Court held that the Rajasthan State Electricity Board is an "other authority" and therefore "State" under Article 12. Fundamental rights, including equality in public employment under Articles 14 and 16, bind the Board. The majority held that "other authorities" is wide enough to include all constitutional or statutory authorities on whom powers are conferred by law. It is "not at all material" that some of those powers are used for commercial activities.
The case
Rajasthan State Electricity Board, Jaipur v. Mohan Lal, AIR 1967 SC 1857; 1967 SCR (3) 377. Supreme Court of India, 3 April 1967. Bench: K. Subba Rao, C.J., J.C. Shah, J.M. Shelat, Bhargava and G.K. Mitter, JJ. Bhargava, J. wrote the majority judgment. Shah, J. agreed with the result but gave separate, narrower reasons. The Board had been set up in 1957 under the Electricity (Supply) Act, 1948.
Facts
Mohan Lal was a permanent State Government employee holding the post of Foreman in the Electrical and Mechanical Department. In 1958 his services were provisionally placed at the disposal of the Electricity Board, which had been constituted on 1 July 1957. In 1960 he was sent on deputation to the Public Works Department. Meanwhile the Board promoted several others, some of them junior to him, to Assistant Engineer without considering him. In 1963 he was reverted to the Board as a Foreman. He filed a writ petition under Articles 226 and 227, alleging a violation of Articles 14 and 16. The Rajasthan High Court quashed the promotions and directed fresh consideration. The Board argued in appeal that it was not "State" and so could not be bound by fundamental rights.
What the Court held
- Ejusdem generis rejected: ejusdem generis (reading general words in the light of the specific words before them) did not apply. The bodies named in Article 12 (the Government, Parliament, State Legislatures and local authorities) share no common category, so "other authorities" cannot be confined to bodies like them.
- Wide test: "other authorities" includes all constitutional or statutory authorities on whom powers are conferred by law, within the territory of India or under the control of the Government of India.
- Commercial work is irrelevant: it does not matter that some of the Board's powers are for trade. The State itself may carry on trade (Article 298).
- Result: the Board was "State". Since it had not treated Mohan Lal equally with his juniors in considering promotion, the appeal was dismissed with costs.
Majority and Shah, J. compared
| Point | Majority (Bhargava, J.) | Shah, J. |
|---|---|---|
| Test for "other authority" | Any constitutional or statutory authority on whom powers are conferred by law | Authority that exercises the sovereign power of the State, such as making and enforcing rules |
| Effect of commercial activity | Immaterial | Not every statutory body is covered; one without sovereign power is not "State" |
| Result for the Board | "State" | "State", because it has delegated rule-making and enforcement powers |
Example
Zoya and Armaan are engineers with a statutory State power corporation that sells electricity to consumers. The corporation promotes Armaan, who is junior, without even considering Zoya. The corporation argues that it is a business and not the "State". Under Mohan Lal, a body created by statute and given legal powers is an "other authority", whatever its commercial character. Zoya can file a writ petition alleging violation of Articles 14 and 16.
Later development
Mohan Lal settled the position for statutory bodies. Later cases extended Article 12 to non-statutory bodies such as registered societies. In Pradeep Kumar Biswas v. Indian Institute of Chemical Biology (16 April 2002), a seven-judge bench, by majority, relied on Mohan Lal and asked whether the body is financially, functionally and administratively dominated by, or under the control of, the Government. Each case therefore still depends on how the body was created and how far the Government controls it.
Exam point
Rajasthan SEB v. Mohan Lal (1967): ejusdem generis does not apply to "other authorities" in Article 12. Every constitutional or statutory authority on whom powers are conferred by law is "State", even if it carries on commercial activity.
