Kshetriya Shri Gandhi Ashram Not State Under Article 12, Writ Petition Not Maintainable Against It: Allahabad High Court

The Allahabad High Court has held that a writ petition is not maintainable against the Kshetriya Shri Gandhi Ashram as it is not state under Article 12 of the Constitution of India as there is no statue regulating the functions of the Ashram or empower State to control its affairs.

Justice J.J. Munir relied on the decisions in Suresh Ram v. State of U.P. and Ram Bachan Singh v. Chief Executive Officer Khadi Gramodyog & Others where the Allahabad High Court has held that Shri Gandhi Ashram, parent body of Kshetriya Shri Gandhi Ashram, Meerut is not state within Article 12 of the Constitution of India and no writ is maintainable against the Ashram.

In Suresh Ram v. State of U.P., the Allahabad High Court has laid down 6 factors to be considered while deciding whether a cooperative society is 'State' under Article 12 of the Constitution. The factors are:

“(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. (S.C.C. 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. (S.C.C. p. 508, para 15)

(3) It may also be a relevant factor ....... whether the corporation enjoys monopoly status which is State-conferred or State-protected. (S.C.C. p. 508, para 15)

(4) Existence of deep and pervasive State control may afford an indication that the corporation is a State agency orinstrumentality. (S.C.C. 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. (S.C.C. 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. (S.C.C. p. 510, para 18)”

Case Background

Petitioner was a Supervisor in the Kshetriya Shri Gandhi Ashram, Garh Road, Meerut and was thereafter transferred to Shri Gandhi Ashram, Khadi Bhandar, Baraut, District Baghpat. Petitioner filed a complaint before the Branch Manager of the Union Bank and the Canara Bank, where accounts of the Kshetriya Shri Gandhi Ashram, Meerut are maintained regarding misuse of funds and execution of a false sale deed on behalf of the Ashram in favour of on Ranuka Ashiyana Private Limited.

Petitioner pleaded that he was threatened to withdraw his complaint by the Secretary of the Kshetriya Shri Gandhi Ashram when inquiry was conducted, and Bank Accounts of the Ashram were frozen. Subsequently, the petitioner was dismissed from service.

Petitioner challenged his dismissal under Article 226 of the Constitution of India on grounds of violation of principles of natural justice. Counsel for respondent raised a preliminary objection as to the maintainability of the petition. It was argued that the Kshetriya Shri Gandhi Ashram, being a registered society under the Societies Registration Act, 1860, is not an instrumentality of the State. It was argued that the Ashram does not discharge any public functions.

Defending the maintainability of the writ petition, petitioner relied on the provisions of the Uttar Pradesh Khadi and Village Industries Board Act, 1960 to argue that the Ashram performed public duties under the statute.

High Court Verdict

The Court observed that in U.P. State Cooperative Land Development Bank Ltd. v. Chandra Bhan Dubey and others, the Supreme Court held that the Uttar Pradesh Cooperative Land Development Bank was State under Article 12 of the Constitution as though it was registered as a society under the Uttar Pradesh Co-operative. Societies Act, 1965 it was under the statutory control of the State Government.

In Chandra Bhan Dubey, the State Government constituted the Uttar Pradesh Cooperative Institutional Service Board which framed the U.P. Co- operative Societies Employees Service Regulations, 1975 governing and protecting the rights of the employees of the Bank, thereby establishing pervasive control of the State, observed the Court.

Holding that the case of the petitioner-Ashram is different from the case of the Bank in Chandra Bhan Dubey, Justice Munir held that the Kshetriya Gandhi Ashram, Meerut being controlled by Shri Gandhi Ashram at Lucknow was not 'State' under Article 12 as the state had no statutory control over its functioning. Further, being a registered society under the Act of 1965, there was not statue guiding its functioning.

Accordingly, the Court held that the Kshetriya Gandhi Ashram, Meerut is not 'State' under Article 12 of the Constitution of India, and the writ petition was dismissed.

Case Title: Prem Chand v. State Of U.P. And 2 Others 2024 LiveLaw (AB) 401 [WRIT - A No. - 19131 of 2023]

Citation: 2024 LiveLaw (AB) 401

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