Source: Karnataka High Court

Why in News?

Recently, the High Court (HC) of Karnataka in the case of M J Mathew & Others v. Prestige St. Johns Wood Apartment Owners Association & Anr., held that private association of owners of apartments does not qualify to be a State under Article 12 of the Constitution of India (COI).

Background

• The petitioners claim to be the owners of certain apartments in respect of which an Apartment Owners' Association is constituted as respondents.
• The petitioners filed a writ petition before the Karnataka HC, questioning the amendment of bye laws of the Apartment Owners' Association which paved way for levy of Facilitation Charge from owners who had let out their apartments on lease, licence, tenancy or otherwise.
• The petition was dismissed by the Court.

Court’s Observations

• A single judge bench of Justice R Nataraj observed that respondents are private association of owners of apartments and therefore do not qualify to be a State under Article 12 of the COI.
• The Court further observed that it is also not performing any public duty and hence its activities are not amenable to be scrutinized by this Court in a proceeding for issuance of a prerogative writ.

Legal Provisions

Article 12, COI

• The fundamental rights are contained in Part III of the COI, which starts right from Article 12 to Article 35.
• Article 12 of the COI deals with the definition of State for the purpose of application of the provisions contained in Part III of COI.
• It is an imperative Article and lays down that in Part III of the Constitution,
  • 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.
• The definition of State is inclusive and provides that State includes the following:
  • The Government and Parliament of India, i.e., Executive and Legislature of the Union.
  • The Government and the Legislatures of each state, i.e., Executive and Legislatures of States.
  • All local or other authorities within the territory of India or under the control of the Government of India.
  • Other Authorities:
    • SC has given a broader interpretation to “other authorities” under Article 12, by the following judicial precedents.
    • In Ujjain Bai v. State of U.P (1961), the SC held that other authorities cannot be constricted to mean local authorities, and state and union governments.
    • In Sukhdev Singh v. Bhagatram Sardar Singh Raghuvanshi (1975), the SC held that the Oil and Natural Gas Commission (ONGC), which is a government-owned corporation, is other authority under Article 12.
    • In Rajasthan Electricity Board v. Mohan Lal (1967), the SC held that the Rajasthan Electricity Board is other authority under Article 12.
    • In Pradeep Kumar Biswas v. Indian Institute of Chemical Biology (2002), the SC held that the Indian Institute of Chemical Biology is other authority under Article 12.
  • Justice P.N Bhagwati in the case of R.D Shetty v. Airport Authority of India (1979) had given a 5 Point test to determine whether a body is an agency or instrumentality of the State, and which goes as follows –
    • Financial resources of the State, where the State is the chief funding source i.e., the entire share capital is held by the government.
    • Deep and pervasive control of the State.
    • The functional character being Governmental in its essence, meaning thereby that its functions have public importance or are of a governmental character.
    • A department of Government transferred to a corporation.
    • Enjoys monopoly status which State conferred or is protected by it.
    • Article 12 of the Constitution does not specifically define judiciary and several dissenting opinions exist on the same matter.