Administrative lawStateSupreme Court of India

Ajay Hasia v Khalid Mujib Sehravardi

AIR 1981 Supreme Court 48719811 min read
The case in brief30-second read
Facts
Regional Engineering College, Srinagar conducted admission process. Certain candidates challenged the admission criteria as arbitrary and violative of Art.14. College argued it was an autonomous society, not "State" under Art.12.
Issue
Whether a society (Regional Engineering College) substantially funded and controlled by government constitutes "State" under Art.12, making its decisions subject to Part III rights and administrative law.
Held
A body is "State" under Art.12 if government exercises deep and pervasive control.
Principle
Government control test for determining 'State' under Art.12: financial, administrative, and functional control makes a body 'State' regardless of formal autonomy.
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Facts

  • Regional Engineering College, Srinagar conducted admission process
  • Certain candidates challenged the admission criteria as arbitrary and violative of Art.14
  • College argued it was an autonomous society, not "State" under Art.12
  • College received substantial government funding, government nominated board members, and government approved syllabus/fee structure

Issue

  1. Whether a society (Regional Engineering College) substantially funded and controlled by government constitutes "State" under Art.12, making its decisions subject to Part III rights and administrative law.

Held

  • A body is "State" under Art.12 if government exercises deep and pervasive control
  • The test examines: (a) financial control (government funding); (b) administrative control (government appointments and oversight); (c) functional control (government policy directions)
  • Formal autonomy (registered as society) does not matter if substance reveals government control
  • Regional Engineering College was "State"; administrative law and fundamental rights apply

Ratio decidendi

The determination of "State" under Art.12 is not formalistic but functional. If government exercises pervasive control (financial + administrative + functional) over a body, that body is an instrumentality of the State regardless of its corporate form. All administrative law principles (natural justice, non-arbitrariness, reasonableness) apply to its decisions.

Exam use

How to use it in an answer

  • Part A: The multi-factor test for Art.12: financial, administrative, and functional control.
  • Part B: Later refined in Pradeep Kumar Biswas (2002), which clarified that the Ajay Hasia factors are indicative guides, not a mandatory checklist.
  • Key line: "If the financial assistance of the State is so much as to meet almost entire expenditure, it would afford some indication of the body being an instrumentality of the State."

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Citation

Ajay Hasia v. Khalid Mujib Sehravardi AIR 1981 Supreme Court 487

Reported: Massey, Administrative Law; Sathe, Administrative Law. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.