I.

SUKHDEV SINGH V BHAGAT RAM:

Statues take for consideration in this case :

(i) The oil and Natural gas commission act 1959

(ii) The Industrial finance corporation Act 1948
(iii) Life Insurance Corporation of India.

Issue :

1. The main issue is whether the regulation framed under the statues have the force of law.

2. The another issue is that whether these statutory corporations are authorities within the
meaning of Article 12(2).

Judgment :

Oil and Natural Gas Commission (ONGC) and Life Insurance Corporation of India
(LIC) and Industrial Finance Corporation of India (IFCI) are considered as “authorities”
within the meaning of article 12 of the constitution.

Ruling :

Based on the facts and arguments, it is held that the rules and regulations framed by
the oil and natural gas commission, Life Insurance Corporation and Industrial Finance
Corporation of India have the force of law. These statutory bodies are considered as
“authorities” within the meaning of Article 12 of the constitution.

Cases discussed during the judgement of the instant case :

In university of Madras vs Shanta Bai case it was held that university is not a state as
it does not perform any government or sovereign function.

In Rajasthan Electricity Board v Mohan Lal Case, the SC held that the term “other
authorities” under Article 12 includes all authorities created by the constitution and other
statutes which are empowered by law.

The statutory authority does not need to be perform governmental or sovereign

functions. This case over ruled the judgement given in the university of Madras v Shanta Bai
case which excludes “Universities” from the definition of state.

In Sukhdev Singh v Bhagatram, the primary question was whether ONGC, IFC and
LIC created by an act come under the purview of “state” under Article 12. The court held that
all the three to be the state following the decision given in Rajasthan Electricity Board v
Mohan Lal. These three bodies were held to be State as they were created by a statute and
had the statutory power to make binding rules and regulations and were subject to
government control. Statutory corporations are agencies of the state for carrying trade or
business which on the other hand carried by the state departments. So statutory corporations
are held as “State” within the meaning of Article 12 of the constitution.