Meaning of state under part iii of constitution
Querist :
Anonymous
(Querist) 11 September 2011
This query is : Resolved
Dear Experts,
What I should be looking for in an organization to ascertain if it is State within the meaning of Part III of Constitution? If an organization is receiving some grants or funds from the government, does it make the organization a State? If the government is holding some shares of a company listed in the stock exchange, does it make the company a State?
Shailesh Kr. Shah
(Expert) 12 September 2011
Q. If an organization is receiving some grants or funds from the government, does it make the organization a State?
Ans. no as per Article 12.
Q. If the government is holding some shares of a company listed in the stock exchange, does it make the company a State?
Ans. No unless that company under the Control of the Government of India.
Extract of Article 12 of the Constitution of India:-
“12. In 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”
Shailesh Kr. Shah
(Expert) 12 September 2011
It is to be noted that The Supreme Court of India has held in number of decisions that Public Corporations and Undertakings fall within the inclusive definition of “State”. Therefore these corporation and undertakings are subject to Part – III of the Constitution. Consequently the Supreme Court and High Courts have power of judicial review under Article 32 and 226 of the Constitution. The Supreme Court has interfered with the orders of Public Corporations and Undertakings in relation to service matters and also with regard to commercial transactions.
Advocate. Arunagiri
(Expert) 12 September 2011
Any organization which is controlled by the State or Central Government, either directly or indirectly, is called state owned organization.
By giving grants, the government will not control the organization.
But, if the government invests in the share capital and holding more than 50% shares, this is called State owned / controlled organisation.
prabhakar singh
(Expert) 12 September 2011
Expert : Shailesh Kr. Shah has very aptly explore the topic and Expert : Advocate. Arunagiri has put valuable in puts to remove your doubts on topic under consideration,hence no addition needed.
