STATE OF U.P. & ANR. versus RADHEY SHYAM RAI

Citation: [2009] 4 S.C.R. 143 · Decided: 06-03-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed

Judgment (excerpt)

[2009] 4 S.C.R. 143 
STATE OF U.P. & ANR. 
V. 
RADHEY SHYAM RAI 
Civil Appeal No. 1572 of 2009 
MARCH 6, 2009 
[S.B. SINHA AND CYRIAC JOSEPH, JJ.] 
Constitution of India, 1950 -Art. 12 - State - Meaning of 
- Uttar Pradesh Ganna Kishan Sansthan, a society registered 
under the Societies Registration Act - Dispute raised whether 
A 
B 
it was a 'State' within meaning of Art.12 - On facts, held: The C 
State established the 'Sansthan' so as to take over its own 
functions - 80 to 90% of the expenditure of 'Sansthan' was 
met out of funds made available to it by the Government -
Composition and constitution of 'Sansthan' and its Governing 
Council was nothing but a show of the Government - Majority o 
of office bearers of the Governing Council were holders of 
various offices of the Government - The State exercised deep 
and pervasive control over the affairs of the 'Sansthan', the 
Cane Commissioner being at the helm of the affairs - Hence, 
the 'Sansthan'was a 'State' within meaning of Art.12- Societies E 
Registration Act. 
The question which arose for consideration in the 
present appeal was whether the Uttar Pradesh Ganna 
Kishan Sansthan, a society registered under the Societies 
Registration Act is a 'State' within the meaning of Article 
F 
12 of the Constitution. 
Dismissing the appeal, the Court 
HELD:1.1. For the purpose of determining the 
question as to whether a society registered under the G 
Societies Registration Act would be a 'State' within the 
meaning of Article 12 of the Constitution or not, the history 
of its constitution plays an important role. The functions 
which are being performed by the Sansthan were used 
143 
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SUPREME COURT REPORTS 
[2009] 4 S.C.R. 
A to be performed by the Government directly. The main 
purpose and object for which the training institutes were 
established at different places in the State of Uttar Pradesh 
was to provide scientific ways of sugarcane cultivation 
and management so as to improve the production of cane 
B with a view to achieve better production of sugar. Such a 
function indisputably is a State function. The State 
established the 'Sansthan' so as to take over its own 
functions. It even transferred the entire management 
relating to imparting of training in various institutes in its 
c favour. All the assets held by it for the aforementioned 
purpose including the infrastructural facilities stood 
transferred in favour of the Sansthan. It was created under 
a Government charter contained in the Government Order 
dated 4.08.1975 issued in the name of the Governor of 
0 Uttar Pradesh. [Para 12] (153-A-E] 
1.2. The documents produced reveal that 80 to 90% 
of the expenditure of Sansthan was met out of the funds 
made available to it by the Government. The majority of 
the office bearers of the Governing Council were holders 
E of various offices of the Government. It had, thus, a 
dominance of the holders of the office in the Government 
of Uttar Pradesh; the Minister-lncharge of Cane 
Department being its ex-officio Chairman of the Governing 
Council. He is the Chief Executive Authority. The Director 
F and Accounts Officer are also the government servants 
and the Sansthan is not free to appoint anybody on those 
posts who is not a government servant. This itself clearly 
shows that the composition and constitution of Sansthan 
and its Governing Council was nothing but a show of the 
G Government and only a cover of the Society was given. 
Rule 41 of the Rules of Sansthan provides that the 
Governor shall have power to issue any directives to the 
Sansthan concerning any matter of public importance and 
the Sansthan shcill give immediate effect to the directives 
H so issued. [Para 14] (155-G-H; 156-A-C] 
STATE OF U.P. & ANR. V. RADHEY SHYAM RAI 
145 
• 
1.3. The functions of the Sansthan are public A 
; 
~ 
functions. From the materials placed before the court there 
cannot be any doubt whatsoever that the State exercises 
a deep and pervasive control over the affairs of the 
Sansthan, the Cane Commissioner being at the helm of 
the affairs. The Accounts Officer is the officer of the State B 
Government and, is also sent on deputation. The Majority 
of members of the Governing Council are holders of 
different offices of the State Government. They play a vital 
role in carrying out the affairs of the Sansthan. They alone 
• 
have power to appoint anybody of their choice on the post. c 
It is required to obey all the directions issued by the State 

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