Full Judgment Text
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CASE NO.:
Writ Petition (civil) 541 of 2004
PETITIONER:
M/S. Zee Telefilms Ltd. & Anr.
RESPONDENT:
Union of India & Ors.
DATE OF JUDGMENT: 02/02/2005
BENCH:
N Santosh Hegde,B P Singh & H K Sema
JUDGMENT:
J U D G M E N T
( With S.L.P. (c) No. 20186 of 2004 )
Santosh Hegde, J.
I have had the benefit of reading the judgment of Sinha, J. I regret I
cannot persuade myself to agree with the conclusions recorded in the said
judgment, hence this separate opinion. The Judgment of Sinha, J. has
elaborately dealt with the facts, relevant rules and bye-laws of the Board of
Control for Cricket in India (the Board). Hence, I consider it not necessary
for me to reproduce the same including the lengthy arguments advanced on
behalf of the parties except to make reference to the same to the extent
necessary in the course of this judgment.
Mr. K.K. Venugopal, learned senior counsel appearing for the Board
has raised the preliminary issue in regard to the maintainability of this
petition on the ground that under Article 32, a petition is not maintainable
against the Board since the same is not "State" within the meaning of
Article 12 of the Constitution of India. It is this issue which is being
considered in this judgment.
In support of his argument Mr. K.K. Venugopal has contended the
Board is not created by any statute and is only registered under the Societies
Registration Act 1860 and that it is an autonomous body, administration of
which is not controlled by any other authority including Union of India,
(U.O.I.) the first respondent herein. He further submitted that it also does
not take any financial assistance from the Government nor is it subjected to
any financial control by the Government or its accounts are subject to the
scrutiny of the Government. It is his submission that though in the field of
Cricket it enjoys a monopoly status the same is not conferred on the Board
by any statute or by any order of the Government. It enjoys that monopoly
status only by virtue of its first mover advantage and its continuance as
the solitary player in the field of cricket control. He also submitted that
there is no law which prohibits the coming into existence of any other
parallel organisation. The learned counsel further submitted that as per the
parameters laid down by this Court in Pradeep Kumar Biswas vs. Indian
Institute of Chemical Biology & Ors. (2002 5 SCC 111), the Board cannot
be construed as a State for the purpose of Article 12 and the said judgment
being a judgment of Seven Judge Bench of this Court is binding on this
Bench. The argument of Mr. K.K. Venugopal is supplemented and
supported by the arguments of Dr. A.M. Singhvi and Soli J. Sorabjee
appearing for the other contesting respondents.
Mr. Harish N. Salve, learned senior counsel appearing on behalf of the
petitioners opposing the preliminary objections submitted that the perusal
of the Memorandum and Articles of the Association of the Board as also
the rules and regulations framed by the Board indicate that the Board has
extensive powers in selecting players for the Indian National team
representing India in test matches domestically and internationally. He also
pointed out that the Board has the authority of inviting foreign teams to play
in India. He also further contended that the Board is the sole authority for
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organising major cricketing events in India and has the disciplinary power
over the players/umpires and other officials involved in the game and sports
being a subject under the control of the States, in substance the Board
exercises governmental functions in the area of Cricket. He submitted that
this absolute authority of the Board is because of the recognition granted
by the Government of India, hence in effect even though it is as an
autonomous body the same comes under "other authorities" for the
purpose of Article 12. He also contended that the Board has the authority to
determine whether a player would represent the country or not. Further,
since playing cricket is a profession the Board controls the fundamental
right of a citizen under Article 19 (1) (g) of the Constitution. It is his
further contention that many of the vital activities of the Board like sending
a team outside India or inviting foreign teams to India is subject to the prior
approval of the Government of India. Hence, the first respondent Union of
India has pervasive control over the activities of the Board. For all these
reasons, he submitted that the Board is "other authorities" within the
meaning of Article 12.
Respondent No. 1-Union of India has filed a counter affidavit which
is subsequently supplemented by an additional affidavit in which it is stated
that the Board was always subjected to de-facto control of the Ministry of
Youth Affairs and Sports in regard to international matches played
domestically and internationally. In the said affidavit, it is also stated that
the Government of India has granted de-facto recognition to the Board and
continues to so recognise the Board as the Apex National Body for
regulating the game of Cricket in India. In the said affidavit it is also stated
that it is because of such recognition granted by the Government of India
that the team selected by the Board is able to represent itself as the Indian
cricket team and if there had not been such recognition the team could not
have represented the country as the Indian cricket team in the international
cricket arena. It is also stated that Board has to seek prior permission and
approval from the Government of India whenever it has to travel outside the
country to represent the country. Even in regard to Board’s invitation to
the foreign teams to visit India the Board has to take prior permission of the
Government of India and the Board is bound by any decision taken by the
Government of India in this regard. It is further stated that in the year 2002
the Government had refused permission to the Board to play cricket in
Pakistan. It is also submitted that the Government of India accepts the
recommendation of the Board in regard to awarding "Arjuna Awards" as
the National Sports Federation representing cricket. In the said affidavit the
Government of India has stated before this Court that the activities of the
Board are like that of a public body and not that of a private club. It also
asserted that it had once granted an amount of Rs. 1,35,000/- to the Board
for the payment of air fares for nine members of the Indian cricket team
which went to Kuala Lumpur (Malaysia) to participate in the 16th
Commonwealth Games in September 1998. It is further stated that some of
the State Cricket Associations which are members of the Board have also
taken financial assistance of land lease from the respective State
Governments. It is also stated that though the Government does not
interfere with the day to day autonomous functioning of the Board, if it is
required the Board has to answer all clarifications sought by the
Government and the Board is responsible and accountable to the people of
India and the Government of India which in turn is accountable to
Parliament in regard to team’s performance.
Mr. K.K. Venugopal, learned senior counsel has taken serious
objections to the stand taken by the Government of India in its additional
affidavit before this Court on the ground that the Government of India has
been taking contrary positions in regard to the status of the Board in
different writ petitions pending before the different High Courts and now
even in the Supreme Court, depending upon the writ petitioners involved.
He pointed out that in the stand taken by the Government of India in a writ
petition filed before the Delhi High Court and before the Bombay High
Court as also in the first affidavit filed before this Court it had categorically
stated that Government of India does not control the Board and that it is not
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a State under Article 12 of the Constitution of India. He pointed out from
the said affidavits that the first respondent had taken a stand in those
petitions that the Government plays no role in the affairs of any member
association and it does not provide any financial assistance to the Board for
any purpose. It had also taken the stand before the Delhi High Court that the
Board is an autonomous body and that the government had no control over
the Board. The learned counsel has also relied upon an affidavit filed by the
Board in this Court wherein the Board has specifically denied that the first
respondent has ever granted any recognition to the Board.
Hence the question for consideration in this petition is whether the
Board falls within the definition of "the State" as contemplated under Article
12 of the Constitution. Article 12 reads thus :-
"12. Definition\027In this part, unless the context otherwise
requires, "the State" includes the Government and
Parliament of India and the Government and the Legislature
of each of the States and all local or other authorities within
the territory of India or under the control of the Government
of India."
A perusal of the above Article shows that the definition of State in
the said Article includes the Government of India, Parliament of India,
Government of the State, Legislatures of the States, local authorities as also
"other authorities". It is the argument of the Board that it does not come
under the term "other authorities", hence is not a State for the purpose of
Article 12. While the petitioner contends to the contrary on the ground that
the various activities of the Board are in the nature of public duties. A
literal reading of the definition of State under Article 12 would not bring the
Board under the term "other authorities" for the purpose of Article 12.
However, the process of judicial interpretation has expanded the scope of
the term "other authorities" in its various judgments. It is on this basis that
the petitioners contend that the Board would come under the expanded
meaning of the term "other authorities" in Article 12 because of its
activities which is that of a public body discharging public function.
Therefore, to understand the expanded meaning of the term "other
authorities" in Article 12, it is necessary to trace the origin and scope of
Article 12 in the Indian Constitution. Present Article 12 was introduced in
the Draft Constitution as Article 7. While initiating a debate on this Article
in the Draft Constitution in the Constituent Assembly, Dr. Ambedkar
described the scope of this Article and the reasons why this Article was
placed in the Chapter on fundamental rights as follows :-
"The object of the fundamental rights is
twofold. First, that every citizen must be in a
position to claim those rights. Secondly, they
must be binding upon every authority \026 I shall
presently explain what the word ’authority’
means \026 upon every authority which has got
either the power to make laws or the power to
have discretion vested in it. Therefore, it is
quite clear that if the fundamental rights are to
be clear, then they must be binding not only
upon the Central Government, they must not
only be binding upon the Provincial
Government, they must not only be binding
upon the Governments established in the Indian
States, they must also be binding upon District
Local Boards, Municipalities, even village
panchayats and taluk boards, in fact, every
authority which has been created by law and
which has got certain power to make laws, to
make rules, or make bye-laws.
If that proposition is accepted \026 and I do not
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see anyone who cares for Fundamental Rights
can object to such a universal obligation being
imposed upon every authority created by law \026
then, what are we to do to make our intention
clear ? There are two ways of doing it. One way
is to use a composite phrase such as ’the State’,
as we have done in Article 7; or, to keep on
repeating every time, ’the Central Government,
the Provincial Government, the State
Government, the Municipality, the Local
Board, the Port Trust, or any other authority’. It
seems to me not only most cumbersome but
stupid to keep on repeating this phraseology
every time we have to make a reference to
some authority. The wisest course is to have
this comprehensive phrase and to economise in
words." (1948 (Vol. VII) CAD 610]
(Emphasis supplied)
From the above, it is seen that the intention of the Constitution
framers in incorporating this Article was to treat such authority which has
been created by law and which has got certain powers to make laws to make
rules and regulations to be included in the term "other authorities" as
found presently in Article 12.
Till about the year 1967 the courts in India had taken the view that
even statutory bodies like Universities, Selection Committee for admission
to Government Colleges were not "other authorities" for the purpose of
Article 12 (See The University of Madras vs. Shantha Bai & Anr. (AIR
1954 Madras, 67), B.W. Devadas Vs. The Selection Committee for
Admission of Students to the Karnatak Engineering College and Ors.
(AIR 1964 Mysore 6). In the year 1967 the case of Rajasthan State
Electricity Board Vs. Mohan Lal & Ors. (AIR 1967 SC 1857) a
Constitution Bench of this Court held that the expression "other
authorities" is wide enough to include within it every authority created by
a Statute on which powers are conferred to carry out governmental or quasi-
governmental functions and functioning within the territory of India or
under the control of the Government of India.(Emphasis supplied) Even
while holding so Shah, J. in a separate but concurring judgment observed
that every constitutional or, statutory authority on whom powers are
conferred by law is not "other authority" within the meaning of Article
12. He also observed further that it is only those authorities which are
invested with sovereign powers, that is, power to make rules or regulations
and to administer or enforce them to the detriment of citizens and others that
fall within the definition of "State" in Article 12 : but constitutional or
statutory bodies invested with power but not sharing the sovereign power of
the State are not "State" within the meaning of that Article. (Emphasis
supplied)
Almost a decade later another Constitution Bench of this Court
somewhat expanded this concept of "other authority" in the case of
Sukhdev Singh & Ors. Vs. Bhagatram Sardar Singh Raghuvanshi & Anr.
(1975 3 SCR 619), in this case the Court held the bodies like Oil and
Natural Gas Commission, Industrial Finance Corporation and Life Insurance
Corporation which were created by statutes because of the nature of their
activities do come within the term "other authorities" in Article 12. Even
though in reality they were really constituted for commercial purposes while
so holding Mathew J. gave the following reasons for necessitating to
expand the definition of the term "other authorities" in the following words:-
"The concept of State has undergone drastic
changes in recent years. Today State cannot
be conceived of simply as a coercive
machinery wielding the thunderbolt of
authority. It has to be viewed mainly as a
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service Corporation. A State is an abstract
entity. It can only act through the
instrumentality or agency or natural or
juridical persons. There is nothing strange in
the notion of the State acting through a
Corporation and making it an agency or
instrumentality of the State. With the advent
of a welfare State the framework of civil
service administration became increasingly
insufficient for handling the new tasks which
were often of a specialised and highly
technical character. The distrust of
Government by civil service was a powerful
factor in the development of a policy of public
administration through separate Corporations
which would operate largely according to
business principles and be separately
accountable. The Public Corporation,
therefore, became a third arm of the
Government. The employees of public
Corporation are not civil servants. In so far as
public corporations fulfil public tasks on
behalf of government they are public
authorities and as such subject to control by
Government. The public Corporation being a
creation of the State is subject to the
constitutional limitation as the State itself.
The governing power wherever located must
be subject to the fundamental constitutional
limitations. The ultimate question which is
relevant for our purpose is whether the
Corporation is an agency of instrumentality of
the Government for carrying on a business for
the benefit of the public."
From the above, it is to be noticed that because of the change in the
socio-economic policies of the Government this Court considered it
necessary by judicial interpretation to give a wider meaning to the term
"other authorities" in Article 12 so as to include such bodies which were
created by Act of Legislature to be included in the said term "other
authorities".
This judicial expansion of the term "other authorities" came about
primarily with a view to prevent the Government from by-passing its
constitutional obligations by creating companies, corporations etc. to
perform its duties.
At this stage it is necessary to refer to the judgment of Sabhajit
Tewary vs U.O.I. & Ors. [(1975) 3 SCR 616] which was delivered by the
very same Constitution Bench which delivered the judgment in Sukhdev
Singh & Ors. on the very same day. In this judgment this court noticing its
judgment in Sukhdev Singh & Ors (supra), rejected the contention of the
petitioner therein that council for Scientific and Industrial Research the
respondent body in the said writ petition which was only registered under
the Societies Registration Act would come under the term "other
authorities" in Article 12.
The distinction to be noticed between the two judgments referred to
hereinabove namely Sukhdev Singh & Ors and Sabhajit Tewary (supra), is
that in the former the Court held that bodies which were creatures of the
statues having important State functions and where State had pervasive
control of activities of those bodies would be State for the purpose of Article
12. While in Sabhajit Tewary’s case the Court held a body which was
registered under a statute and not performing important State functions and
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not functioning under the pervasive control of the Government would not be
a State for the purpose of Article 12.
Subsequent to the above judgments of the Constitution Bench a Three
Judge Bench of this Court in the case of Ramana Dayaram Shetty Vs.
The International Airport Authority of India & Ors. (1979 3 SCR 1014)
placing reliance on the judgment of this Court in Sukhdev Singh (supra)
held that the International Airport Authority which was an authority created
by the International Airport Authority Act, 1971 was an instrumentality of
the State, hence, came within the term "other authorities" in Article 12,
while doing so this Court held :-
"To-day the Government, in a welfare State, is the
regulator and dispenser of special services and provider
of a large number of benefits. The valuables dispensed by
Government take many forms, but they all share one
characteristic. They are steadily taking the place of
traditional forms of wealth. These valuables which derive
from relationships to Government are of many kind :
leases, licenses, contracts and so forth. With the
increasing magnitude and range of governmental
functions as we move closer to a welfare State, more and
more of our wealth consists of these new forms. Some of
these forms of wealth may be in the nature of legal rights
but the large majority of them are in the nature of
privileges. But on that account, it cannot be said that they
do not enjoy any legal protection nor can they be regarded
as that they do not enjoy any legal protection nor can they
be regard as gratuity furnished by the State so that the
State may withhold, grant or revoke it at its pleasure.
The law has not be slow to recognize the importance of
this new kind of wealth and the need to protect individual
interest in it and with that end in view, it has developed
new forms of protection. Some interest in Government
largess, formerly regarded as privileges, have been
recognised as rights while others have been given legal
protection not only by forging procedural safeguards but
also by confining/structuring and checking Government
discretion in the matter of grant of such largess. The
discretion of the Government has been held to be not
unlimited in that the Government cannot give or withhold
largess in its arbitrary discretion or at its sweet will.
It is in the above context that the Bench in Ramana Dayaram
Shetty’s case laid down the parameters or the guidelines for
identifying a body as coming within the definition of "other
authorities" in Article 12. They are as follows :-
"(1) One thing is clear that if the entire share
capital of the corporation is held by
Government, it would go a long way
towards indicating that the corporation is an
instrumentality or agency of Government.
(SCC p. 507, para 14)
(2) Where the financial assistance of the State is
so much as to meet almost entire
expenditure of the corporation, it would
afford some indication of the corporation
being impregnated with governmental
character. (SCC p.508, para 15)
(3) It may also be a relevant factor \005 whether
the corporation enjoys monopoly status
which is State-conferred or State-protected.
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(SCC p. 508, para 15)
(4) Existence of deep and pervasive State
control may afford an indication that the
corporation is a State agency or
instrumentality. (SCC p. 508, para 15)
(5) If the functions of the corporation are of
public importance and closely related to
governmental functions, it would be a
relevant factor in classifying the corporation
as an instrumentality or agency of
Government. (SCC p.509, para 16)
(6) ’Specifically, if a department of Government
is transferred to a corporation, it would be a
strong factor supportive of this inference’ of
the corporation being an instrumentality or
agency of Government. (SCC p.510, para
18)" (extracted from Pradeep Kumar
Biswas’s case (supra)
The above tests propounded for determining as to when a
corporation can be said to be an instrumentality or agency of the
Government was subsequently accepted by a Constitution Bench
of this Court in the case of Ajay Hasia & Ors. Vs. Khalid Mujib
Sehravardi & Ors. (1981 1 SCC 722). But in the said case of Ajay
Hasia (supra) the court went one step further and held that a
society registered under the Societies Registration Act could also
be an instrument of State for the purpose of the term "other
authorities" in Article 12. This part of the judgment of the
Constitution Bench Ajay Hasia (supra) was in direct conflict or
was seen as being in direct conflict with the earlier Constitution
Bench of this Court in Sabhajit Tewary’s case (supra) which had
held that a body registered under a statute and which was not
performing important State function or which was not under the
pervasive control of the State cannot be considered as an
instrumentality of the State for the purpose of Article 12.
The above conflict in the judgments of Sabhajit Tewary
(supra) and Ajay Hasia (supra) of two coordinate Benches was
noticed by this Court in the case of Pradeep Kumar Biswas and
hence the said case of Pradeep Kumar Biswas (supra) came to be
referred to a larger Bench of seven Judges and the said Bench,
speaking through Ruma Pal, J. held that the judgment in Sabhajit
Tewary (supra) was delivered on the facts of that case, hence could
not be considered as having laid down any principle in law. The
said larger Bench while accepting the ratio laid down in Ajay
Hasia’s case (supra) though cautiously had to say the following
in regard to the said judgment of this Court in Ajay Hasia :-
"Perhaps this rather overenthusiastic
application of the broad limits set by Ajay
Hasia may have persuaded this Court to curb
the tendency in Chander Mohan Khanna vs.
National Council of Educational Research and
Training. The court referred to the tests
formulated in Sukhdev Singh, Ramana, Ajay
Hasia and Som Prakash Rekhi but striking a
note of caution said that (at SCC p.580, para 2)
"these are merely indicative indicia and are by
no means conclusive or clinching in any case".
In that case, the question arose whether the
National Council of Educational Research
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(NCERT) was a "State" as defined under
Article 12 of the Constitution. NCERT is a
society registered under the Societies
Registration Act. After considering the
provisions of its memorandum of association as
well as the rules of NCERT, this Court came to
the conclusion that since NCERT was largely
an autonomous body and the activities of
NCERT were not wholly related to
governmental functions and that the
governmental control was confined only to the
proper utilisation of the grant and since its
funding was not entirely from government
resources, the case did not satisfy the
requirements of the State under Article 12 of
the Constitution. The Court relied principally
on the decision in Tekraj Vasandi v. Union of
India. However, as far as the decision in
Sabhajit Tewary v. Union of India was
concerned, it was noted (at SCC p.583 para 8)
that the "decision has been distinguished and
watered down in the subsequent decisions."
(para38)
Thereafter the larger Bench of this Court in Pradeep Kumar
Biswas (supra) after discussing the various case laws laid down the
following parameters for gauging whether a particular body could
be termed as State for the purpose of Article 12 :-
"The picture that ultimately emerges is that the
tests formulated in Ajay Hasia are not a rigid
set of principles so that if a body falls within
any one of them it must, ex hypothesi, be
considered to be a State within the meaning of
Article 12. The question in each case would be
\026 whether in the light of the cumulative facts as
established, the body is financially, functionally
and administratively dominated by or under the
control of the Government. Such control must
be particular to the body in question and must
be pervasive. If this is found then the body is a
State within Article 12. On the other hand,
when the control is merely regulatory whether
under statute or otherwise, it would not serve to
make the body a State." (para 40)
Above is the ratio decidendi laid down by a seven Judge Bench of
this Court which is binding on this Bench. The facts of the case in hand
will have to be tested on the touch stone of the parameters laid down in
Pradeep Kumar Biswas’s case (supra). Before doing so it would be
worthwhile once again to recapitulate what are the guidelines laid down
in Pradeep Kumar Biswas’s case (supra) for a body to be a State under
Article 12. They are :-
(1) Principles laid down in Ajay Hasia are not a rigid
set of principles so that if a body falls within any one
of them it must ex hypothesi, be considered to be a
State within the meaning of Article 12.
(2) The Question in each case will have to be considered
on the bases of facts available as to whether in the
light of the cumulative facts as established, the body
is financially, functionally, administratively
dominated, by or under the control of the
Government.
(3) Such control must be particular to the body in
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question and must be pervasive.
(4) Mere regulatory control whether under statute or
otherwise would not serve to make a body a State.
The facts established in this case shows the following :-
1. Board is not created by a statute.
2. No part of the share capital of the Board is held by the
Government.
3. Practically no financial assistance is given by the
Government to meet the whole or entire expenditure of the
Board.
4. The Board does enjoy a monopoly status in the field of
cricket but such status is not State conferred or State
protected.
5. There is no existence of a deep and pervasive State control.
The control if any is only regulatory in nature as applicable
to other similar bodies. This control is not specifically
exercised under any special statute applicable to the Board.
All functions of the Board are not public functions nor are
they closely related to governmental functions.
6. The Board is not created by transfer of a Government owned
corporation. It is an autonomous body.
To these facts if we apply the principles laid down by seven Judge
Bench in Pradeep Kumar Biswas (supra), it would be clear that the facts
established do not cumulatively show that the Board is financially,
functionally or administratively dominated by or is under the control of
the Government. Thus the little control that the Government may be said
to have on the Board is not pervasive in nature. Such limited control is
purely regulatory control and nothing more.
Assuming for argument sake that some of the functions do partake
the nature of public duties or State actions they being in a very limited
area of the activities of the Board would not fall within the parameters
laid down by this Court in Pradeep Kumar Biswas’s case. Even
otherwise assuming that there is some element of public duty involved in
the discharge of the Board’s functions even then as per the judgment of
this Court in Pradeep Kumar Biswas (supra) that by itself would not
suffice for bringing the Board within the net of "other authorities" for
the purpose of Article 12.
The learned counsel appearing for the petitioners, however,
contended that there are certain facets of the activities of the Board
which really did not come up for consideration in any one of the earlier
cases including in Pradeep Kumar Biswas case (supra) and those facts if
considered would clearly go on to show that the Board is an
instrumentality of the State. In support of this argument, he contended
that in the present day context cricket has become a profession and that
the cricketers have a fundamental right under Article 19 (1) (g) to pursue
their professional career as cricketers. It was also submitted that the
Board controls the said rights of a citizen by its rules and regulations and
since such a regulation can be done only by the State the Board of
necessity must be regarded as an instrumentality of the State. It was also
pointed out that under its Memorandum of Association and the rules and
regulations and due to its monopolistic control over the game of Cricket
the Board has all pervasive powers to control a person’s cricketing career
as it has the sole authority to decide on his membership and affiliation
to any particular Cricketing Association, which in turn would affect his
right to play cricket at any level in India as well as abroad.
Assuming that these facts are correct the question then is, would it
be sufficient to hold the Board to be a State for the purpose of Article 12?
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There is no doubt that Article 19(1)(g) guarantees to all citizens the
fundamental right to practise any profession or to carry on any trade
occupation or business and that such a right can only be regulated by the
State by virtue of Article 19(6). Hence, it follows as a logical corollary
that any violation of this right will have to be claimed only against the
State and unlike the rights under Articles 17 or 21 which can be claimed
against non state actors including individuals the right under Article
19(1)(g) cannot be claimed against an individual or a non State entity.
Thus, to argue that every entity, which validly or invalidly arrogates to
itself the right to regulate or for that matter even starts regulating the
fundamental right of the citizen under Article 19(1)(g), is a State within
the meaning of Article 12 is to put the cart before the horse. If such logic
were to be applied every employer who regulates the manner in which his
employee works would also have to be treated as State. The pre-requisite
for invoking the enforcement of a fundamental right under Article 32 is
that the violator of that right should be a State first. Therefore, if the
argument of the learned counsel for the petitioner is to be accepted then
the petitioner will have to first establish that the Board is a State under
Article 12 and it is violating the fundamental rights of the petitioner.
Unless this is done the petitioner cannot allege that the Board violates
fundamental rights and is therefore State within Article 12. In this
petition under Article 32 we have already held that the petitioner has
failed to establish that the Board is State within the meaning of Article 12.
Therefore assuming there is violation of any fundamental right by the
Board that will not make the Board a "State" for the purpose of Article 12.
It was then argued that the Board discharges public duties which are
in the nature of State functions. Elaborating on this argument it was
pointed out that the Board selects a team to represent India in international
matches. The Board makes rules that govern the activities of the cricket
players, umpires and other persons involved in the activities of cricket.
These, according to the petitioner, are all in the nature of State functions
and an entity which discharges such functions can only be an
instrumentality of State, therefore, the Board falls within the definition of
State for the purpose of Article 12. Assuming that the abovementioned
functions of the Board do amount to public duties or State functions, the
question for our consideration is: would this be sufficient to hold the
Board to be a State for the purpose of Article 12. While considering this
aspect of the argument of the petitioner, it should be borne in mind that
the State/Union has not chosen the Board to perform these duties nor has
it legally authorised the Board to carry out these functions under any law
or agreement. It has chosen to leave the activities of cricket to be
controlled by private bodies out of such bodies’ own volition (self-
arrogated). In such circumstances when the actions of the Board are not
actions as an authorised representative of the State, can it be said that the
Board is discharging State functions? The answer should be no. In the
absence of any authorisation, if a private body chooses to discharge any
such function which is not prohibited by law then it would be incorrect to
hold that such action of the body would make it an instrumentality of the
State. The Union of India has tried to make out a case that the Board
discharges these functions because of the de facto recognition granted by
it to the Board under the guidelines framed by it but the Board has denied
the same. In this regard we must hold that the Union of India has failed to
prove that there is any recognition by the Union of India under the
guidelines framed by it and that the Board is discharging these functions
on its own as an autonomous body.
However, it is true that the Union of India has been exercising
certain control over the activities of the Board in regard to organising
cricket matches and travel of the Indian team abroad as also granting of
permission to allow the foreign teams to come to India. But this control
over the activities of the Board cannot be construed as an administrative
control. At best this is purely regulatory in nature and the same according
to this Court in Pradeep Kumar Biswas’s case (supra) is not a factor
indicating a pervasive State control of the Board.
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Be that as it may, it cannot be denied that the Board does discharge
some duties like the selection of an Indian cricket team, controlling the
activities of the players and others involved in the game of cricket. These
activities can be said to be akin to public duties or State functions and if
there is any violation of any constitutional or statutory obligation or rights
of other citizens, the aggrieved party may not have a relief by way of a
petition under Article 32. But that does not mean that the violator of such
right would go scot-free merely because it or he is not a State. Under the
Indian jurisprudence there is always a just remedy for violation of a right
of a citizen. Though the remedy under Article 32 is not available, an
aggrieved party can always seek a remedy under the ordinary course of
law or by way of a writ petition under Article 226 of the Constitution
which is much wider than Article 32.
This Court in the case of Andi Mukta Sadguru Shree Muktajee
Vandas Swami Suvarna Jayanti Mahotsav Smarak Trust & Ors. vs.
V.R. Rudani & Ors. (1989 2 SCC 691) has held :
"Article 226 confers wide powers on the
High Courts to issue writs in the nature of
prerogative writs. This is a striking
departure from the English law. Under
Article 226, writs can be issued to "any
person or authority". The term "authority"
used in the context, must receive a liberal
meaning unlike the term in Article 12 which
is relevant only for the purpose of
enforcement of fundamental rights under
Article 32. Article 226 confers powers on
the High Courts to issue writs for
enforcement of the fundamental rights as
well as non-fundamental rights. The words
"any person or authority" used in Article
226 are, therefore, not to be confined only to
statutory authorities and instrumentalities of
the State. They may cover any other person
or body performing public duty. The form of
the body concerned is not very much
relevant. What is relevant is the nature of the
duty imposed on the body. The duty must be
judged in the light of positive obligation
owned by the person or authority to the
affected party, no matter by what means the
duty is imposed. If a positive obligation
exists mandamus cannot be denied."
Thus, it is clear that when a private body exercises its public
functions even if it is not a State, the aggrieved person has a remedy not
only under the ordinary law but also under the Constitution, by way of a
writ petition under Article 226. Therefore, merely because a non-
governmental body exercises some public duty that by itself would not
suffice to make such body a State for the purpose of Article 12. In the
instant case the activities of the Board do not come under the guidelines
laid down by this Court in Pradeep Kumar Biswas case (supra), hence
there is force in the contention of Mr. Venugopal that this petition under
Article 32 of the Constitution is not maintainable.
At this stage, it is relevant to note another contention of
Mr. Venugopal that the effect of treating the Board as State will have far
reaching consequences in as much as nearly 64 other national sports
federations as well as some other bodies which represent India in the
international forum in the field of art, culture, beauty pageants, cultural
activities, music and dance, science and technology or other such
competitions will also have to be treated as a "State" within the meaning
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of Article 12, opening the flood gates of litigation under Article 32. We
do find sufficient force in this argument. Many of the above mentioned
federations or bodies do discharge functions and/ or exercise powers
which if not identical are at least similar to the functions discharged by
the Board. Many of the sport persons and others who represent their
respective bodies make a livelihood out of it (for e.g. football, tennis,
golf, beauty pageants etc.). Therefore, if the Board which controls the
game of Cricket is to be held to be a State for the purpose of Article 12,
there is absolutely no reason why other similarly placed bodies should
not be treated as State. The fact that game of Cricket is very popular in
India also cannot be a ground to differentiate these bodies from the
Board. Any such differentiation dependent upon popularity, finances and
public opinion of the body concerned would definitely violate Article 14
of the Constitution, as any discrimination to be valid must be based on
hard facts and not mere surmises (See State of Kerala v. T.P. Roshana,
(1979) 1 SCC 572) Therefore, the Board in this case cannot be singly
identified as "other authority" for the purpose of Article 12. In our
opinion, for the reasons stated above none of the other federations or
bodies referred to hereinabove including the Board can be considered as a
"State" for the purpose of Article 12.
In conclusion, it should be noted that there can be no two views
about the fact that the Constitution of this country is a living organism
and it is the duty of Courts to interpret the same to fulfil the needs and
aspirations of the people depending on the needs of the time. It is noticed
earlier in this judgment that in Article 12 the term "other authorities"
was introduced at the time of framing of the Constitution with a limited
objective of granting judicial review of actions of such authorities which
are created under the Statute and which discharge State functions.
However, because of the need of the day this Court in Rajasthan State
Electricity Board (supra) and Sukhdev Singh (supra) noticing the socio-
economic policy of the country thought it fit to expand the definition of
the term "other authorities" to include bodies other than statutory
bodies. This development of law by judicial interpretation culminated in
the judgment of the 7-Judge Bench in the case of Pradeep Kumar Biswas
(supra). It is to be noted that in the meantime the socio-economic policy
of the Government of India has changed [See Balco Employees’ Union
(Regd.) v. Union of India & Ors. (2002 2 SCC 333)] and the State is
today distancing itself from commercial activities and concentrating on
governance rather than on business. Therefore, the situation prevailing at
the time of Sukhdev Singh (supra) is not in existence at least for the time
being, hence, there seems to be no need to further expand the scope of
"other authorities" in Article 12 by judicial interpretation at least for the
time being. It should also be borne in mind that as noticed above, in a
democracy there is a dividing line between a State enterprise and a non-
State enterprise, which is distinct and the judiciary should not be an
instrument to erase the said dividing line unless, of course, the
circumstances of the day require it to do so.
In the above view of the matter, the second respondent-Board
cannot be held to be a State for the purpose of Article 12. Consequently,
this writ petition filed under Article 32 of the Constitution is not
maintainable and the same is dismissed.