Sukhdev Singh vs Bhagatram Sardar || (1975) 1 SCC 421 || Article 12 || Case Summary

Sukhdev Singh vs Bhagatram Sardar

BENCH

A.N. Ray, K.K. Mathew, Y.V. Chandrachud, A. Alagirswami and A.C. Gupta

FACTS

Employees of ONGC, LIC, and IFC challenged certain service regulations and actions by their employers, claiming these were arbitrary and violated their fundamental rights, the matter is an appeal from the decision of the Delhi High Court, the case involved enforcing the fundamental rights against few institutes and therefore it was of the question whether ONGC, LIC and IFCI was a "State" under article 12 of the Indian Constitution. ISSUES

1. Whether Oil and Natural Gas Commission, Life Insurance Company of India and Industrial Finance Corporation "State" under article 12?

2. Whether an employee of a statutory corporation can claim protection under Articles 14 and 16?

3. Whether an order for termination of service contrary to regulations give rise to continuance of service or only damages?

LAWS INVOLVED

Article 12 of constitution defines what is state and against whom fundamental rights can be enforced.

JUDGEMENT

The Supreme Court is of the opinion that since ONGC, LIC and IFCI are made by acts of the Parliament, have powers to make rules and regulations and perform public functions and therefore, are "state" under Article 12. Further, these statutory corporations have to follow the principles of natural justice and cannot be arbitrary and should follow principles of equality and non-discrimination. The rules and regulations made by these bodies havethe force of law therefore fundamental rights can be enforced against them, especially in cases where employees are removed or dismissed in contravention of the rules and regulations.