Court caseAIR 1967 SC 1857

Mohan Lal and other employees of the Rajasthan Government's electricity department were transferred to the Rajasthan State Electricity Board, a body constituted under the Electricity (Supply) Act 1948. They complained that the Board's promotion rules discriminated against them and moved the High Court under Article 226, pleading Articles 14 and 16. The Board argued that it was a commercial body, not 'State' within Article 12, so no fundamental right could be enforced against it.

The Supreme Court rejected the ejusdem generis reading. Bhargava J held that the expression 'other authorities' is wide enough to include all constitutional or statutory authorities on whom powers are conferred by law. It is not necessary that the authority be engaged in governmental or sovereign functions; a body carrying on commercial activity is still 'State' if it is a statutory authority with the power to issue directions whose disobedience is punishable. Shah J concurred, adding that the test is whether the body is invested with sovereign power of the State to make rules and regulations binding on citizens. The Board was therefore 'State'.