SC held NBT’s statutory status and commercial activities do not negate its character as 'State' under Article 12 of the Constitution.
SC Affirms NBT as 'State' Under Article 12 Despite Commercial Activity
The Supreme Court has ruled that the National Book Trust (NBT), though registered as a society and engaged in book sales, qualifies as a 'State' under Article 12 of the Constitution due to deep state control and funding.
The Court rejected arguments that NBT’s autonomy or revenue from commercial operations disentitle it from constitutional obligations. It noted substantial government influence in appointments, policy, and finances—an indicium of State character.
Statutory or institutional form cannot override the substance of State control.
This expands the scope of Article 12. Entities substantially financed and controlled by the government remain subject to fundamental rights enforcement. Practitioners should challenge actions of such bodies under public law remedies, regardless of commercial engagement.
Citations
- Article 12, Constitution of India
