B L BHATIA Vs. INDIAN STANDARDS INSTITUTION

JUDGEMENT

(1.) Broadly speaking, three questions arise in this writ petition. The first question is whether the Indian Standard Institution, hereinafter referred to as "the Institution", which is a Society registered under the Societies Registration Act, 1860. is an authority and, therefore, "State" within the meaning of Article 12 of the Constitution. The second question is whether in retiring the petitioner at the age of 58. the Institution lias violated Article 14 or Article 16 of file Constitution. The third question is whether the petitioner who is an employee of the Institution is the holder of a civil post under the Union to attract Article 311 of the Constitution.

(2.) According to the petitioner, he joined Government service as an Assistant in June, 1937. In September, 1946 the Government of India m its Department of Industries & Supplies passed a resolution (Resolution No. I STD(4)/45) for the establishment of an Indian Standards Institution and prepared a scheme. In pursuance of this resolution, the Institution was set up as an organisation for fixing Indian standards. One of the object of the Institution was "to prepare and promote the general adoption of standards on national and international basis, relating to structures, commodities, materials, practices, operations, matters and things, and, from time to time, to revise, alter and amend the same." The affairs of the Institution were to be managed by a General Council which was to be composed of representatives of various Departments of the Government of India, of the then Governors' Provinces, of the then Indian States and various other private bodies. Its finances were to be derived from (a) Government grants, (b) contributions from industry, the Provinces, the States and other interested public bodies, (c) subscription from members, and (d) sale of Indian Standards; Specification, etc. The resolution also incorporated the decision of the Government of India that the Institution should be registered under the societies Registration Act, I860. The Institution was registered as a Society on January 6, 1947, Its objects as set out in its Memorandum were substantially the same as were set out in the aforesaid Government resolution. Among its powers to achieve these objects was the power to employ such staff as may be considered necessary. It had also the power to invest the monies of the Institution which were not immediately required; to be purchase or otherwise acquire real and personal property which may be deemed necessary for any of its purposes and to enter into other contracts and engagements; to accept any gift of property for any one or more of its objects; to sell or otherwise dispose of or deal with any part of its property and to borrow monies. The General Council of the Institution was to be the Governing Body of the Society. On its winding up, its assets were not to be distributed amongst its members but were to be dealt with in such manner as the Government of India may determine.

(3.) The Rules and Regulations of the Institution provided for its working. Rule 2 provides for three categories of members of the institution, nemely, Subscribing Members, Committee Members and Fellows. Amongst the Subscribing Members, associate membership Jvas made available to companies, firms, corporate or non-corporate commercial bodies, professional, scientific, technological, educational and other institution and individuals on payment of specified subscripion. Rule 7 provides for the management of the affairs of the nstitution by a General Council whose consitution is provided by ule 8. Amongst the membership of the General Council are ren-esentatives of the various Government, of various semi-Governnent bodies and various private associations and individuals. Rule U provides that the Minister of the Government of India in charge if the Ministry dealing with the subject is to be the President of the nstitution and of the General Council whereas its two Vice-Presients are to be elected from amongst members of the General Counil. Rule 15 provides for the constitution of the Executive Committe" which is to manage the day-to-day affairs of the Institution. This also is to consist of Government nominees and representatives of private organisations which are its members. Rule 17 provides for the appointment of a Director General of the Institution who is to be responsible for the conduct and of the activities of the Institution. The power to appoint, dismiss, remove or replace the Director General and other employees of the Institution and fix and vary their respective salaries and terms of apointment is vested in the General Council or in committees or officers of the Institution under powers conferred on them by the General Council from time to time, subject to the sanction of the Government of India for all employees so appointed on a scale of pay maximum of which exceeds Rs. 1250 per month. Under rule 31, the annual report of the proceedings of the Institution and all work undertaken during the year is to be prepared and published by the Executive Committee and is to be laid upon the tables of the Parliament. By rule 32, the accounts of the Institution are subject to the audit of the Comptroller and Auditor General of India. Rule 34 provides that byelaws relating to accounts and aucdit shall require the approval of the Government of India with the concurrence of the Comptroller and Auditor General of India. Rule 35 provides for alteration or amendment of the Rules and Regulations of the Institution either bv a resolution of the General Council or in pursuance of an order of the Government of India under section 19 of the Indian Standards Institution (Certification Marks) Act, 1952, after circulation to the General Council or in a meeting of the General Council.