03 April 1967
Supreme Court
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RAJASTHAN STATE ELECTRICITY BOARD, JAIPUR Vs MOHAN LAL & ORS.

Bench: RAO, K. SUBBA (CJ),SHAH, J.C.,SHELAT, J.M.,BHARGAVA, VISHISHTHA,MITTER, G.K.
Case number: Appeal (civil) 466 of 1966


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PETITIONER: RAJASTHAN STATE ELECTRICITY BOARD, JAIPUR

       Vs.

RESPONDENT: MOHAN LAL & ORS.

DATE OF JUDGMENT: 03/04/1967

BENCH: BHARGAVA, VISHISHTHA BENCH: BHARGAVA, VISHISHTHA RAO, K. SUBBA (CJ) SHAH, J.C. SHELAT, J.M. MITTER, G.K.

CITATION:  1967 AIR 1857            1967 SCR  (3) 377  CITATOR INFO :  RF         1970 SC1446  (19)  RF         1971 SC1828  (12)  F          1975 SC1331  (26,37,63,76,78,124,182,192)  RF         1976 SC2216  (7)  E&R        1978 SC 548  (22)  D          1979 SC  65  (3,10)  E          1979 SC1628  (27)  RF         1981 SC 212  (38,53)  RF         1986 SC1571  (46)  RF         1987 SC1086  (11)  RF         1988 SC 469  (6,7,8)

ACT: Employer  and employee-Employees of State Electricity  Board Transferred  to  Board by State Government  and  treated  as permanent employees of Board-No order making them permanent- If  permanent  employees of Board.  Constitution  of  India, 1950,  Art.  12-"Other authority’, meaning  of. Electricity  (Supply)  Act (54  of  1948)-State  Electricity Board constituted under Act-If "State".

HEADNOTE: In 1958, the services of respondents I and 4 to 14, who were permanent employees of the State Government holding posts of foremen.  were provisionally placed at the disposal  of  the State  Electricity Board (appellant), constituted under  the Electricity  (Supply) Act, 1948, The Electricity  Board  was directed  to frame its own grades and  service  condi(.ions, but this was never done.  In 1960, the first respondent  was taken on deputation from the Board and posted to the  P.W.D. of   the  State  Govvernment  retaining  his  lien  in   the Electricity  Board.  The first respondent remained with  the P.W.D.  for  about three years, and during  that  time,  the Electricity Board promoted respondents 4 to 14 as  Assistant Engineers  under the Electricity Board.  In 1963, the  State Government directed the reversion of the first respondent to his  parent department, namely. the Electricity  Board;  and the  latter  posted  him as one of  its  foremen.   Zen  big request that he was also entitled to be considered for  pro-

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motion as Assistant Engineer was rejected, he moved the High Court under Arts. 226 and 227 of the Constitution the ground that there was a violation of Arts. 14 and 16; and the  High Court allowed the petition. In appeal to this Court, the appellant-Board contended  that :  (1)  the  first respondent  never  became  its  permanent servant  and so could not claim to be considered along  with respondents 4 to 14 ; and (2) the appellant-Board could  not be held to be "State" as defined in Art. 12 and consequently no direction could be issued to it under Art. 226 and 227. HELD  : (1) The words "deputation" and "reversion"  used  in the orders of the State Government and the Electricity Board implied that the first respondent was being sent back to his parent  department, namely, the Electricity Board, from  the P.W.D.  where he had been sent on deputation.   Moreover  in the case of respondents 4 to 14 who were identically  placed with  the first respondent, there was nothing to  show  that after  their  services  were  provisionally  placed  at  the disposal  of  the Board, any order  was  passed  permanently transferring them to the Board, and yet they were treated as permanent employees of the Board.  Thus, both the Government and  the  Board, in dealing with respondent 1 and 4  to  14, treated  them as it they had become employees of the  Board. Since  the  Board did not frame any new  grades  or  service conditions,  these respondents continued to be  governed  by identical  rules,  namely, the old grades and  service  con- ditions  applicable to them when they were servants  of  the State  Government  and therefore, the first  respondent  was entitled  to be considered for promotion under the Board  on the basis of equality with respondents 4 to 14. [381E-F; 382D-H] 378 (2)(Per Subba Rao, C.J., Shelat, Bhargava and Mitter JJ.): The appellant-Board is "other authority" within the  meaning of  Art. 12 and therefore, is "State" to  which  appropriate directions could be given under Arts. 226 and 227. [386D] The  expression "other authority" 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. It is not at all material that some, of the powers conferred may be for the purpose of carrying on commercial activities, because,  under  Arts. 19(1) (g) and 298 even the  State  is empowered   to   carry  on  any  trade  or   business.    In interpreting the expression "other authority" the  principle of  ejusdem generis should not be applied, because, for  the application  of that rule, there must be distinct  genus  or category  running through the bodies previously named.   The bodies  specially  named  in  Art.  12  are  the   Executive Government of the Union and the States, the Legislatures  of the Union and the States and local authorities.  There is no common  genus running through these named bodies, nor  could the bodies be placed in one single category on any  rational basis. [384C-D, G-N, 385-A, C-D; 386B-C] Ujjamnbai  v. State of U.P., [1963] 1 S.C.R. 778 and  K.  S. Ramamurti  Reddiar v. The Chief Commissioner, Pondicherry  & Anr., [1964] 1 S.C.R. 656, followed. United  Town  Electric  Co. Ltd.  v.  Attorney  General  for Newfoundland, [1939] 1 All.  E.R. 423 (P.C.) applied. Observations contra in University of Madras v. Shanta Bai  & Anr.  A.I.R. 1954 Mad. 67, 68 B.W. Devadas v. The  Selection Committee   for  Admission  of  Students  to  the   Karnatak Engineering  College  & Others.  A.I.R. 1964 Mys. 6,  9  and Krishan Gopal Ram Chand Sharma v. Punjab University & Anr,.,

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A.I.R. 1966 Punj 34, not approved. (Per   Shah,  J.)  :  Every  constitutional  or,   statutory authority on whom powers are conferred by law is not  "other authority" within the meaning of Art. 12.  It is only  those authorities  which are invested with sovereign  power,  that is, power to take rules or regulations and to administer  or enforce  them to the detriment of citizens and  others  that fall  within  the  definition of "State" in Art.  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. [389B-C, G-H] Since,  under  Art.  13,  it is  only  the  State  which  is prohibited from taking away or abridging fundamental -rights in considering whether a statutory or constitutional body is "other authority" within the meaning of Art. 12, it would be necessary   to  consider  not  only  whether  against   that authority, fundamental rights in terms absolute are intended to  be  enforced, but also whether it was  intended  by  the Constitution-makers that the authority was invested with the sovereign  power  to  impose  restrictions  on   fundamental rights. [387F] The  State  Electricity  Board has the  power  of  promoting coordinated development, generation supply and  distribution of electricity and for that purpose is invested by the State with   extensive   powers  of   control   over   electricity undertakings, The power to make rule and regulations and  to administer  the Act is in substance the sovereign  power  of the  State  delegated to the Board.  Since the Board  is  an authority  invested by the Statute with sovereign powers  of the State it is "other authority" within the meaning of Art. 12. [386F-G; 387A-B] 379

JUDGMENT: CIVIL APPELLATE JURISDICTION : Civil Appeal No. 466 of 1966. Appeal  by special leave from the judgment and  order  dated May 14, 1965 of the Rajasthan High Court in D. B. Civil Mis- cellaneous Writ Petition No. 469 of 1963. S.T. Desai, H. K. Puri and K. K. Jain, for the appellant. R.K. Garg and S. C. Agarwala, for respondent No. 1. The  Judgment  of  SUBBA RAO,  C.J.,  SHELAT,  BHARGAVA  and MITTER,  JJ. delivered by BHARGAVA, J. SHAH, J. delivered  a separate Opinion. Bhargava,  J.  The appellant in this appeal  is  Electricity Board of Rajasthan, Jaipur (hereinafter referred to as  "the Board"),  a  body corporate constituted on 1st  July,  1957, under  the Electricity (Supply) Act, 1948 (No. 54 of  1948). Before  the  constitution  of  the  Board,  the  supply   of electricity  in the State of Rajasthan was being  controlled directly  by a department of the State Government  named  as the Electrical and Mechanical Department.  Respondent No. 1, Mohan Lal, as well as respondents 4 to 14 were all permanent employees  of the State Government holding posts of  Foremen in the Electrical and Mechanical Department.  On the consti- tution of the Board, the services of most of the  employees, including  all these respondents, were provisionally  placed at the disposal of the Board by a notification issued by the Government  on 12th February, 1958, purporting  to  exercise its  powers  under section 78A of Act 54 of 1948.   In  this notification a direction was included that the Board was  to frame  its own new grades and service conditions  under  its regulations,   and  the  employees,  whose   services   were

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transferred to the Board, were to exercise option either  to accept  these  new  grades and  service  conditions,  or  to continue  ill their existing grades and service  conditions, except  in regard to conduct and disciplinary rules,  or  to obtain relief from Government service by claiming pension or gratuity as might be admissible on abolition of posts  under the  Rajasthan Service Rules.  The Board, however,  did  not frame  any new grades and service conditions at least up  to the time that the present litigation arose.  Respondent  No. 1 was, however, deputed by the State Government by its order dated  27th  January, 1960, after having  worked  under  the Board  for a period of about two years, to the Public  Works Department  of  the Government.  On 10th  August,  1960,  an order was made by the Government addressed to the  Secretary of  the  Board indicating that respondent No. 1 as  well  as respondents  4 to 14 were to be treated as on deputation  to the  Board.   On  24th  November,  1962,  the  Public  Works Department passed an order reverting respondent No. 1 to his parent department with effect 380 from  1st December, 1962, but the period of  deputation  was later extended till 25th July, 1963.  On 11th July, 1963, he was  actually  reverted to the Board from the  Public  Works Department,  and the Board issued orders posting  respondent No. 1 as a Foreman.  In the interval, while respondent No. 1 was working in the Public Works Department, respondents 4 to 14  had been promoted by the Board as  Assistant  Engineers, while  respondent  No. 1 was promoted to work  as  Assistant Engineer in the Public Works Department.  On his  reversion, respondent  No.  1 claimed that he was also entitled  to  be promoted as Assistant Engineer under the Board, because some of  the other respondents promoted were junior to him,  and, in the alternative, that, in any case, he was entitled to be considered  for promotion.  This request made by him to  the Board  as  well as to the State Government was  turned  down and,  thereupon,  respondent No. 1 filed  a  petition  under Articles  226 and 227 of the Constitution in the High  Court of Rajasthan.  Respondent No. 1 claimed that he was entitled to  equality  of treatment with respondents 4  to  14,  and, inasmuch  as he had not been considered for  promotion  with them  by  the  Board, the Board had acted  in  violation  of Articles 14 and 16 of the Constitution.  The Board contested the  petition  on two grounds.  The first  ground  was  that respondent No. 1 had never become a permanent servant of the Board and never held any substantive post under it, so  that he  could  not  claim to be considered  for  promotion  with respondents  4 to 14.  The second ground was that the  Board could not be held to be "State" as defined in Article 12  of the  Constitution  and, consequently no direction  could  be issued to the Board by the High Court under Art. 226 or Art. 227 of the Constitution on the basis that the actions of the Board  had violated Articles 14 and 16 of the  Constitution. The  High  Court rejected both these grounds,  accepted  the plea of respondent No. 1, quashed the order of promotion  of respondents  4 to 14 and issued a direction to the Board  to consider  promotions  afresh after taking into  account  the claims  of  respondent No. 1. The Board has now come  up  in appeal to ’this Court, by special leave, against this  order of  the  High  Court.  Apart from the Board,  the  State  of Rajasthan, and the Chief Engineer & Technical Member of  the Rajasthan   State  Electricity  Board,  Jaipur,  were   also impleaded as opposite parties in the writ petition; and they are respondents 2 and 3 in this appeal. On  the  first question, Mr. S. T. Desai on  behalf  of  the appellant drew our attention to the notification dated  12th

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February, 1958, in which it was specifically laid down  that the  services  of respondent No. 1 and respondents 4  to  14 were   being   placed   at  the  disposal   of   the   Board ’provisionally’.   He  has  taken  us  through  the  various pleadings in the petition filed by respondent No. 1 to  show that the case put forward by respondent No. 1 before the 381 High  Court was that he never became a permanent servant  of the Board and was claiming that, after the winding up of the Electrical  and Mechanical Department of the Government,  he was  temporarily  with  the  Board  and,  later,  became   a permanent   servant  of  the  State  in  the  Public   Works Department.  The High Courtion the other hand, held that the pleadings  of  respondent No. 1 were obscure  and  that  the correct  position  was that respondent No. 1 had  become  an employee  of  the Board, so that he was  entitled  to  claim promotion  in the service of the Board.  There is  no  doubt that in paragraphs 5, 7, 9 and 14 of the petition respondent No.  1  had put forward the case that he  was  originally  a servant  of the State of Rajasthan and continued to be  such throughout and retained his lien on that Government service. In  paragraph  27,  an alternative  pleading  was  also  put forward  on  his  behalf that, if it be held  that,  on  the abolition of the Electrical and Mechanical Department of the State,  he had no lien with the Government and his  services were permanently transferred to the Board, he was placed  in identical circumstances as the other respondents 4 to 14 and continued  to  be governed by the service  conditions  which were  applicable  to him when he was in the service  of  the State  Government, so that he was entitled to be  considered for promotion with respondents 4 to 14.  It is also  correct that,   initially,   when  the  services  of   the   various respondents  were placed at the disposal of the  Board,  the Government purported to do so provisionally, and at no later stage  did the Government pass any order transferring  their services  to  the Board permanently.  It,  however,  appears that  both  the Government and the Board,  in  dealing  with respondent  No. 1 as well as the other respondents,  treated them  as  if they had become employees of  the  Board.   The services of respondent No. 1 were placed at the disposal  of the  Public Works Department where he remained for a  period of  a  little  over three years, but he  was  all  the  time treated there as on deputation.  At that time, in the  order posting him to the Public Works Department, it was laid down that  he  would  retain his lien in  the  Power  Department. According  to Mr. Desai, the Power Department  mentioned  in this  order was meant to refer to the Electrical and  Mecha- nical  Department  of  the  Government  which  used  to   be popularly  known  by that name.  We, however, found  in  the judgment of the High Court that the High Court attempted  to gather  the meaning of the expression "Power Department"  by questioning  the counsel for the Board and  the  officer-in- charge  of the Board who appeared before the High Court  and was  able  to  discover that there is  no  Power  Department existing as such and that this was just another name for the State  Electricity Board.  On this view of the  High  Court, the order of the Government dated 27th January, 1960,  would indicate  that  the lien of respondent No. 1 was on  a  post under  the  Board.   Further,  when  respondent  No.  1  was relieved 382 from  the  post of Assistant Engineer in  the  Public  Works Department,   the   order  which   the   Government   passed specifically mentioned that he was taken on deputation  from the  Board,  and  directed  his  reversion  to  his   parent

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department.  In the order of reversion, respondent No. 1 was thus  treated  as  an  employee  of  the  Board  which   was described,as  his  parent department and from which  he  had been  taken  on deputation in the Public  Works  Department. Even  the Board itself, in its order dated 11th July,  1963, proceeded  on the basis that respondent No. 1  had  reverted from the Public Works Department and made a direction  that, on reversion from that Department, he was posted as  Foreman 1,  Chambal  Grid  Sub-Station,  Udaipur,  against  a  newly sanctioned post.  Thus, the Board accepted the positon  that respondent  No.  1  was a servant of the Board  and  not  an employee  of  the  State  Government  in  the  Public  Works Department.  The word "reversion" used in the order  clearly implied that, even according to the Board, respondent No.  1 was  being  sent  back  to  his  parent  Department  from  a Department   where  he  had  been  sent  on  deputation   or temporarily.   A further consideration is  that  respondents Nos.  4  to 14 were treated by the Board  as  its  permanent employees  and were actually granted promotion to the  posts of  Assistant  Engineers from the posts of Foremen  on  that basis.   In  the cases of these respondents also,  there  is nothing   to   show   that,  after   their   services   were provisionally  placed  at the disposal of the Board  by  the notification dated 12th February, 1958, any order was passed permanently  transferring them to the Board and,  yet,  they were   treated   as  permanent  employees  of   the   Board. Respondent  No.  1  was identically placed;  and,  in  these circumstances,  we  are unable to hold that the  High  Court committed any error in holding that respondent No. 1 was  in the  service of the Board just as were respondents 4 to  14. The notification dated 12th February, 1958, had specifically laid  down  that the Board was to frame its new  grades  and service  conditions and one of the alternatives to be  given to each employee, whose services were placed at the disposal of the Board, was either to be governed by these new  grades and service conditions, or to continue to be governed by the grades  and  service conditions already applicable  to  them when they were in the Electrical and Mechanical  Department. Since the Board did not frame any new grades or new  service conditions,  it  is clear that respondent No. 1 as  well  as respondents  4  to 14 continued to be governed  by  the  old grade-, and service conditions applicable to them when  they were servants of the State Government in the Electrical  and Mechanical  Department  where  they  were  all  serving   as Foremen.  All of them being governed by identical rules,  it is clear that respondent No. 1 was entitled to be considered for promotion under the Board on the basis of equality  with respondents Nos. 4 to 14. 383 On  the  second point that the Board cannot be  held  to  be "State"  within its meaning in Art. 12 of the  Constitution, Mr. Desai urged that, on the face of it, the Board could not be  held  to be covered by the  authorities  named  therein, viz.,  the  Government  and  Parliament  of  India  and  the Government  and  the Legislature of each of the  States  and local  authorities, and the expression "other  authorities", if  read ejusdem generis with those named, cannot cover  the Board which is a body corporate having a separate  existence and  has  been  constituted primarily  for  the  purpose  of carrying  on  commerical  activities.   In  support  of  his proposition  that the expression "other authorities"  should be  interpreted ejusdem generis, he relied on a decision  of the Madras High Court in The University of Madras v. Shantha Bai  and  Another(1).   The  High  Court,  considering   the question  whether  a University can be held to be  local  or

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other  authority as defined in Art. 12, held:  "These  words must  be  construed  ’ejusdem generis’  with  Government  or Legislature,  and, so construed, can only  mean  authorities exercising  governmental functions.  They would not  include persons  natural  or  juristic who  cannot  be  regarded  as instrumentalities  of  the Government.   The  University  of Madras  is  a body corporate created by Madras  Act  VII  of 1923.   It  is  not  charged  with  the  execution  of   any governmental  functions;  its purpose is purely  to  promote education.   Though  section  44 of  the  Act  provides  for financial   contribution  by  the  local   Government,   the University  is authorised to raise its own funds  of  income from  fees,  endowments and the like.  It is  a  State-aided institution,  but it is not maintained by the State." In  B. W.  Devadas  v. Tile Selection Committee  for  Admission  of Students to the Karnatak Engineering College, and Others(1), the   High  Court  of  Mysore  similarly  held:  "The   term ’authority’  in the ordinary dictionary sense  may  comprise not  merely  a  person  or a  group  of  persons  exercising governmental power, but also any person or group of  persons who, by virtue of their position in relation to other person or persons, may be able to impose their will upon that other person  or  persons.  But there is an  essential  difference between  a  political  association of  persons  called  ’the State’ giving rise to political power connoted by the  well- known  expression  ’imperative  law’  and  a   non-political association  of  persons  for other  purposes  by  contract, consent  or similar type of mutual understanding related  to the  common  object  of persons  so  associating  themselves together  giving rise to a power which operates not  in  the manner  in which imperative law operates, but by  virtue  of its  acceptance  by  such  associating  persons  based  upon contract,  consent  or  mutual  understanding."   Proceeding further, the Court held : "The term ’authorities’ occurring, in  Art. 12 could only mean a person or a group  of  persons who  exercise  the legislative or executive functions  of  a State or through whom or through the (1) A.1,R. 1954 Mad.67. (2) A.T.R. 1964 Mysore 6. 384               instrumentality of whom the State exercise its legislative  or  executive power." The latest  case  on  the point cited by Mr. Desai is the decision of the Punjab  High Court in Krishan Gopal Ram Chand Sharma v. Punjab University and  Another(1),  where the decision ,given in the  case  of University  of  Madras (2 ) was followed and  the  principle laid down therein was approved and applied.  On the basis of these  decisions, and the principles laid down  therein,  it was  urged  that  an examination of the  provisions  of  the Electricity  Supply  Act  will show that  the  Board  is  an autonomous body which cannot be held to be functioning as an agent  of  the Executive Government  and,  consequently,  it should be held that it is not "State" within the meaning  of Art. 12 of the Constitution. In  our  opinion,  the High Courts fell  into  an  error  in applying the principle of ejusdem generis when  interpreting the  expression  "   other authorities" in Art.  12  of  the Constitution,  as  they overlooked the  basic  principle  of interpretation  that, to invoke the application  of  ejusdem generis  rule, there must be a distinct genus  or  -category running  through  the  bodies  already  named.   Craies   on ,Statute Law summarises the principle as follows :-               "The ejusdem generis rule is one to be applied               with  caution  and not pushed too  far....  To               invoke the, application of the ejusdem generis

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             rule  there  must  be  a  distinct  genus   or               category.   The specific words must apply  not               to  different  objects of a  widely  differing               character but to something which can be called               a  class  or kind of objects.  Where  this  is               lacking,  the  rule  cannot  apply,  but   the               mention  of  a single species  does  not  con-               stitute a genus(3)." Maxwell   in  his  book  on  ’Interpretation  of   Statutes’ explained  the principle by saying : "But the  general  word which  follows  particular and specific words  of  the  same nature  as  itself  takes  its meaning  from  them,  and  is presumed  to  be  restricted  to the  same  genus  as  those words .... Unless there is a genus or category, there is  no room   for   the   application  of   the   ejusdem   generis doctrine(4)."   In  United  Towns  Electric  Co.,  Ltd.   v. Attorney-General for Newfoundland(5), the Privy Council held that, in their opinion, there is no room for the application of  the principle of ejusdem generis in the absence  of  any mention  of a genus, since the mention of a single  species- for  example, water rates-does not constitute a  genus.   In Art.  12 of the Constitution, the bodies specifically  named are  the Executive Governments of the Union and the  States, the  Legislatures  of the Union and the  States,  and  local authorities.  We are unable to find any common genus running through these (1)  A.I.R. 1966 Punj. 34. (3)  Craies on Statute Law, 6th Edn., p. 181. (4)  Maxwell  on Interpretation of Statutes, 11th  Edn.  pp. 326, 327. (5)  (1939) 1 All E.R. 423.               (2)  A.I.R. 1954 Mad.67. (2) A.I.R. 1954 Mad. 67. 385 named  bodies, nor can these bodies be placed in one  single category  on  any rational basis.  The doctrine  of  ejusdem generis   could   not,  therefore,  be,   applied   to   the interpretation of the expression "other authorities" in this article. The meaning of the word "authority" given in Webster’s Third New International Dictionary, which can be applicable, is "a public  administrative agency or corporation  having  quasi- governmental powers and authorised to administer a  revenue- producing public enterprise." This dictionary meaning of the word  "authority"  is  clearly wide enough  to  include  all bodies created by a statute on which powers are conferred to carry out governmental or quasigovernmental functions.   The expression  "other  authorities" is wide enough  to  include within   it  every  authority  created  by  a  statute   and functioning  within  the territory of India,  or  under  the control  of the Government of India; and we do not  see  any reason  to narrow down this meaning in the context in  which the  words  "other authorities" are used in Art. 12  of  the Constitution. In Smt,.  Ujjam Bai v. State of Uttar Pradesh(1),  Ayyangar, J.,  interpreting the words "other authorities" in Art.  12, held  :  "Again, Art. 12 winds up the  list  of  authorities falling  within  the  definition  by  referring  to   ’other authorities  within  the  territory of  India  which  cannot obviously  be  read  as  ejusdem  generis  with  either  the Government  and the Legislatures or local authorities.   The words  are  of wide amplitude and capable  of  comprehending every  authority  created under a  statute  and  functioning within  the territory of India or under the control  of  the Government  of India.  There is no characterisation  of  the

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nature  of  the  ’authority’ in this  residuary  clause  and consequently it must include every type of authority set  up under  a  statute  for the  purpose  of  administering  laws enacted  by the Parliament or by the State  including  those vested with the duty to make decisions in order to implement those  laws."  In  K. S. Ramamurthi  Reddiar  v.  The  Chief Commissioner,   Pondicherry  and  Another(2),  this   Court, dealing  with Art. 12, held : "Further, all local  or  other authorities  within  the  territory  of  India  include  all authorities within the territory of India whether under  the control  of  the Government of India or the  Governments  of various States and even autonomous authorities which may not be  under  the  control of the  Government  at  all."  These decisions of the Court support our view that the  expression "other   authorities"   in   Art.  12   will   include   all constitutional  or statutory authorities on whom powers  are conferred  by law.  It is not at all material that  some  of the  powers conferred may be for the purpose of carrying  on commercial activities.  Under the Constitution, the State is itself  envisaged as having the right to carry on  trade  or business as men- (1) [1963] I S.C.R. 778. (2) [1964] I S.C.R. 656. 386 tioned  in  Art. 19(1)(g).  In Part IV, the State  has  been given  the  same  meaning  as in Art.  12  and  one  of  the Directive Principles laid down in Art. 46 is that the  State shall promote with special care the educational and economic interests of the weaker sections of the people.  The  State, as  defined  in  Art. 12, is thus  comprehended  to  include bodies created for the purpose of promoting the  educational and  economic  interests  of  the  people.   The  State,  as constituted  by  our Constitution, is  further  Specifically empowered under Art. 298 to carry on any trade or  business. The circumstance that the Board under the Electricity Supply Act is required to carry on some activities of the nature of trade  or commerce does not, therefore, give any  indication that  the Board must be excluded from the scope of the  word "State"  as used in Art. 12.  On the other hand,  there  are provisions in the Electricity Supply Act which clearly  show that the powers conferred on the Board include power to give directions,  the  disobedience of which is punishable  as  a criminal  offence.   In  these  circumstances,  we  do   not consider  it at all necessary to examine the cases cited  by Mr. Desai to urge before us that the Board cannot be held to be an agent or instrument of the Government.  The Board  was clearly an authority to which the provisions of Part III  of the Constitution were applicable. We have already held earlier that, in dealing with the  case of respondent No. 1, the Board did not treat him on terms of equality with respondents Nos. 4 to 14 and did not afford to him  -the opportunity for being considered for promotion  to which  he was entitled on that basis.  The High  Court  was, therefore, right in allowing the petition of respondent  No. 1. The appeal is dismissed with costs. Shah, J. I agree with the order proposed by Bhargava, J. The  Board is an authority invested by statute with  certain sovereign  powers  of  the  State.   It  has  the  power  of promoting  coordinated development, generation,  supply  and distribution  of electricity and for that purpose  to  make, alter,  amend  and  carry out schemes under Ch.   V  of  the Electricity  (Supply)  Act,  1948,  to  engage  in   certain incidental undertakings; to organise and carry out power and hydraulic   surveys;  to  conduct  investigation   for   the improvement  of the methods of transmission; to  close  down

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generating  stations;  to compulsorily  purchase  generating stations,  undertakings,  mains and transmission  lines;  to place wires, poles, brackets, appliances, apparatus, etc; to fix  grid  tariff;  to issue  directions  for  securing  the maximum   economy  and  efficiency  in  the   operation   of electricity undertakings, to make rules and regulations  for carrying  out  the  purposes  of  the  Act;  and  to   issue directions  under  certain  provisions of  the  Act  and  to enforce compliance with 387 those  directions.   The Board is also invested  by  statute with   extensive   powers  of   control   over   electricity undertakings.   The power to make rules and regulations  and to administer the Act is in substance the sovereign power of the  State  delegated  to the Board.  The Board  is,  in  my judgment, "other authority" within the meaning of Art. 12 of the Constitution. I am unable, however, to agree that every constitutional  or statutory  authority on whom powers are conferred by law  is "other  authority"  within  the meaning  of  Art.  12.   The expression  "authority"  in its etymological sense  means  a body  invested  with power to command or  give  an  ultimate decision,  or enforce obedience, or having a legal right  to command and be obeyed.’ The expression "State" is defined in Art. 12 for the purpose of  Part III of the Constitution.  Article 13 prohibits  the State  from  making any legislative or  executive  direction which  takes away or abridges the rights conferred  by  Part III   and  declares  any  law  or  executive  direction   in contravention  of the injunction void to the extent of  such contravention.  "In determining what the expression "  other authority" in Art. 12 connotes, regard must be had not  only to  the  sweep of fundamental rights over the power  of  the authority, but also to the restrictions which may be imposed upon the exercise of certain fundamental rights (e.g., those declared  by Art. 19) by the authority.  Fundamental  rights within  their allotted fields transcend the legislative  and executive power of the sovereign authority.  But some of the important fundamental rights are liable to be  circumscribed by  the imposition of reasonable restrictions by the  State. The  true  content of the expression " other  authority"  in Art.  12 must be determined in the light of this dual  phase of  fundamental rights.  In considering whether a  statutory or constitutional body is an authority within the meaning of Art.  12,  it would be necessary to bear in  mind  not  only whether  against the authority, fundamental rights in  terms absolute  are intended to be enforced, but also  whether  it was  intended by the Constitution makers that the  authority was invested with the sovereign power to impose restrictions on very important and basic fundamental freedoms. In  my  judgment, authorities  constitutional  or  statutory invested  with  power by law but not sharing  the  sovereign power  do not fall within the expression "State" as  defined in  Art.  12.   Those authorities which  are  invested  with sovereign power i.e., power to make rules or regulations and to  administer or enforce them to the detriment of  citizens and others fall within the definition of "State" in Art. 12, and  constitutional or statutory bodies which do  not  share that  sovereign power of the State are not, in my  judgment, "State" within the meaning of Art. 12 of the Constitution.               V.P.S.                    Appeal dismissed. L 5 Sup.  CI/67-12               L5 sup. CI/67-12 388

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