# RAJASTHAN STATE ELECTRICITY BOARD, JAIPUR v. MOHAN LAL & ORS

- **Citation:** [1967] 3 S.C.R. 377
- **Court:** Supreme Court of India
- **Decided:** 1967-04-03
- **Case number:** Civil Miscellaneous Writ Petition No. 469 of 1963
- **Bench:** K. Subba Rao, J. C. Shah, J. M. Shblat, V. Bhargava B, G. K. Mitter
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/rajasthan-state-electricity-board-jaipur-v-mohan-lal-ors-4057
- **Pages:** 11

## Headnote

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Employer and employee-Employees of State
Electricity BoardTrans/erred to Board by State Government and treated as pmnane11t employees of Board-No order making rhem permanent-If permanent employus of Board.
Constitution of India, 1950, Art. 12-"0ther authority', n>!aning of.
Electricity (Supply) Act (54 of 1948)-.s'tate Electricity Board co11-
,1·1ituted under Act-If "State".
In 1958 the services of respondents I and 4 to 14, who were permanent em~loyees of the State C?overnment holding posts C?f. foremen.
were provis1onally placed at the disposal of the State Electnc1ty Board
(appellant) constituted under the Electricity (Supply) Act, 1948,
The
Electricity Board was directed to frame its own grades and service conditions, but this was never done. Jn 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. When hi• request that he was also entitled to be considered for promotion as Assistant Engineer was rejected, he moved the High Coun under
Arts. 226 and 227 of the Constitution the ground that there was a violation of Ans. 14 and 16; and the High Coun allowed the petition.
In appeal to this Coun, 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 : (I) The words "deputation" and "reversion" used in the orders
of the State Government and the Electricity Board implied that the first
'":"l?"ndent was being sent back to his parent department, namely, the Electric1ty_ Board, from the P.W.D. where he had been sent on deputation. Moreover Ill the case of respondents 4 to 14 who were identically placed with
th.e first respondent, there was nothing to show that after their services
were provisionally placed at the dispooal of the Board any order was
!>'Ssed permanently transferring them to the Board, and yet they were
treated as permanent employees of the Board. Thus, both the Government
an~ the Board, in dealing with respondent 1 and 4 to 14, treated them
as 11 they bad become employees of the Board. Since the Board did not
frame any new grades or service conditions, these respondents continued
to he governed by identical rules, namely, the old grades and service conditions applicable to them when they were servants of the State Government ~d 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; 3820-HJ
378
SUPREME COURT REPORTS
[1967] 3 S.C.R
(2) (Per Subba Rao, C.J., Shela!, 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 o·r 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 activ:ties, 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

## Text

A
RAJASTHAN STATE ELECTRICITY BOARD, JAIPUR
v.
MOHAN LAL & ORS.
April 3, 1967
[K. SUBBA RAO, C.J., J. C. SHAH, J. M. SHBLAT, V. BHARGAVA
B
AND G. K. MITTER, JJ.]
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Employer and employee-Employees of State
Electricity BoardTrans/erred to Board by State Government and treated as pmnane11t employees of Board-No order making rhem permanent-If permanent employus of Board.
Constitution of India, 1950, Art. 12-"0ther authority', n>!aning of.
Electricity (Supply) Act (54 of 1948)-.s'tate Electricity Board co11-
,1·1ituted under Act-If "State".
In 1958 the services of respondents I and 4 to 14, who were permanent em~loyees of the State C?overnment holding posts C?f. foremen.
were provis1onally placed at the disposal of the State Electnc1ty Board
(appellant) constituted under the Electricity (Supply) Act, 1948,
The
Electricity Board was directed to frame its own grades and service conditions, but this was never done. Jn 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. When hi• request that he was also entitled to be considered for promotion as Assistant Engineer was rejected, he moved the High Coun under
Arts. 226 and 227 of the Constitution the ground that there was a violation of Ans. 14 and 16; and the High Coun allowed the petition.
In appeal to this Coun, 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 : (I) The words "deputation" and "reversion" used in the orders
of the State Government and the Electricity Board implied that the first
'":"l?"ndent was being sent back to his parent department, namely, the Electric1ty_ Board, from the P.W.D. where he had been sent on deputation. Moreover Ill the case of respondents 4 to 14 who were identically placed with
th.e first respondent, there was nothing to show that after their services
were provisionally placed at the dispooal of the Board any order was
!>'Ssed permanently transferring them to the Board, and yet they were
treated as permanent employees of the Board. Thus, both the Government
an~ the Board, in dealing with respondent 1 and 4 to 14, treated them
as 11 they bad become employees of the Board. Since the Board did not
frame any new grades or service conditions, these respondents continued
to he governed by identical rules, namely, the old grades and service conditions applicable to them when they were servants of the State Government ~d 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; 3820-HJ
378
SUPREME COURT REPORTS
[1967] 3 S.C.R
(2) (Per Subba Rao, C.J., Shela!, 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 o·r 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 activ:ties, 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]
Ujjambai v. St<Ne 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 E/ect,ic Co. Ltd. v. Attorney General for Newfound·
land, [1939) 1 All. E.R. 423 (P.C.) applied.
Oooervations 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.LR. 1964 Mys. 6, 9 and Krishan Gopal Ram Chand Sharma v. Punjab
University & An,., A.I.R. 1966 Punj 34, not approved.
(P'Y 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 bodi""
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 tights 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 res·
trictions 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 po\\o-er of the State
delegated to the Board.
Since the
Board is an authori!y invested ~y
the Statute with sovereign powers of the State it is "other authority" within
the meaning of Art. 12.
[386F-G: 387A-B]
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ELECTRICITY BOARD v. MOHAN LAL (Bhargava, J.)
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CIVIL APPELLATE JURISDICTION : Civil Appeal No. 466 of
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1966.
Appeal by special leave from the judgment and order dated
May 14, 1965 of the Rajasthan High Court in D. B. Civil Miscellaneous 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 constit11tion 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 transferred to the Board, were to exercise option either to
accept these new grades and service conditions, or to continue in
their 1μ:isting 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
SUPREME COURT RP.PORTS
(1967) 3 S.C.R.
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 postiiig 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 .
l 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 fromoted as Assistant Engineer under
the Board, because some o 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" ail
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 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
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ELECTRICITY BOARD v. MOHAN LAL (Bhargava, J.)
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 Court, on 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 re·
tained 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. I 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 Mechanical 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
SUPREME COURT REPORTS
[!967] 3 S.C.R.
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 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 1 lth 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 I,
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. ln 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 alt ornatives to be
given to each employee, whose services were placed at the disposal
of the Board, was either to be governed by these n~w 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. I as well as respondents 4 to 14 continued
to be governed by the old grades 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. I was entitled to be considered for
promotion under the Board on the basis of equality with respondents Nos. 4 to 14.
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BLBCTRICITY BOARD v. MOHAN LAL (Bhargava, J.)
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('). The High Court, considering the question whether a University can be held to be local
or other authority as defined in Art. 12, held : "These words must
be construed 'ejusdem g~nerls' 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 fiilancial 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. The Selection Committee for Admission of
Students to the Karnatak Engineering .College, and Others('), 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 associatin'1:
themselves together giving rise to a power which operates not in the
manner in which imperative law operates, but bv virtue of its acceptance by such associati~g 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 01 ~ group of persons who exercise the legislative
or executive functions of a State or through whom or through the
(ll A.1.R. 19~4 ~~:-d. ~i.
384
SUPREME COURT REPORTS
[1967] 3 s.c.R.
instrumentality of wllom the State exercises its legislative or executive power." The latest case on the point cited by Mr. Desai is lhe
decision of the Punjab High Court in Krishan Gopal Ram Chand
Sharma v. Punjab University and Another('), where the decision
given in the case of University of Madras(') 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 gener/s 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 rule there must be a dis- .
tinct 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 constitute a genus(8)."
Maxwell in his book on 'Interpretation of Statutes' explained the
prlnciple 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(')." In
United Towns Electric_ Co., Ltd. v. Attorney-General for Newfoundland(8), 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. Jn 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
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(!) A.I.R. 1966 Punj. 34,
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(3) Craies on Statute Law, 6th Edn., p, 181.
(4) Maxwell on Interpretation of Statutes, 11th Edn. pp, 326, 327.
(S) (1939) 1 All B.R. 423.
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ELECTRICITY BOARD v. MOHAN LAL (Bhargava, J.)
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 "authonty" 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('), 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 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
Jaws." In K. S. Ramamurthi Reddiar v. The Chlef Commissioner,
Pondicherry and Another('), 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-
(!} [1963] I S.C.R. 778,
(2) [1964] I S.C.R. 656.
386
SUPREME COURT .RJ!PORTS
[l 967] 3 s.c.R.
tioned in Art. l 9(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 tenns 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 prc>moting 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 transmiision; to close down 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 undertakines: 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
A
B
c
D
E
F
G
H
A
B
c
D
E
F
G
l!LBCTRICITY BOARD v. MOHAN LAL (Bhargava, J.)
3 8 7
those directions. The l3oard ~ also invested by statute with ex·
tensive powers of control over electrici~m1:~gs. The power
to make rules and regulations and to a
· · ter the Act is in sub·
stance the sovereign power of the State delegated to the l3oard.
The Board is, in my judgment, "other authority" within the mean·
ing of Art. 12 of the Constitution.
I am unable, however, to agree that every constitutional or sta·
tutory authority on whom powers are conferred by law is "other
authority" within the meaning of Art. 12. The expression "autho·
rity" 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 ill 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 ill 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 allot·
ted 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 res·
trictions 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 invest·
ed with power by Jaw 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
H
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. Cl/67-12