Definition of State :
With a few exceptions, all the fundamental rights are available against the State. Under Article 12, unless the context otherwise requires, “the State” includes –
(a) the Government and Parliament of India;
(b) the Government and the Legislature of each of the States; and
(c) all local or other authorities:
(i) within the territory of India; or
(ii) under the control of the Government of India.
The expression ‘local authorities’ refers to authorities like Municipalities, District Boards, Panchayats, Improvement Trusts, Port Trusts and Mining Settlement Boards. The Supreme Court has held that ‘other authorities’ will include all authorities created by the Constitution or statute on whom powers are conferred by law and it is not necessary that the authority should engage in performing government functions (Electricity Board, Rajasthan v. Mohanlal, AIR 1967 SC 1957). The Calcutta High Court has held that the electricity authorities being State within the meaning of Article 12, their action can be judicially reviewed by this Court under Article 226 of the Constitution of India. (In re: Angur Bala Parui, AIR 1999 Cal. 102). It has also been held that a university is an authority (University of Madras v. Shanta Bai, AIR 1954 Mad. 67). The Gujarat High Court has held that the President is “State” when making an order under Article 359 of the Constitution (Haroobhai v. State of Gujarat, AIR 1967, Guj. 229). The words “under the control of the Government of India” bring, into the definition of State, not only every authority within the territory of India, but also those functioning outside, provided such authorities are under the control of the Government of India. In Bidi Supply Co. v. Union of India, AIR 1956 SC 479, State was interpreted to include its Income-tax department.
The Supreme Court in Sukhdev Singh v. Bhagatram, AIR 1975 SC 1331 and in R.D. Shetty v. International Airports Authority, AIR 1979 SC 1628, has pointed out that corporations acting as instrumentality or agency of government would become ‘State’ because obviously they are subjected to the same limitations in the field of constitutional or administrative law as the government itself, though in the eye of law they would be distinct and independent legal entities. In Satish Nayak v. Cochin Stock Exchange Ltd. (1995 Comp LJ 35), the Kerala High Court held that since a Stock Exchange was independent of Government control and was not discharging any public duty, it cannot be treated as ‘other authority’ under Article 12.