The Supreme Court on Friday, November 6 held that the National Book Trust (NBT) qualifies as 'State' under Article 12 of the Constitution, dismissing the Trust's appeal against a Delhi High Court Full Bench judgment that had declared it an 'other authority' for the purpose of enforcing fundamental rights.

Source: LiveLaw

A bench of Justice Prashant Kumar Mishra and Justice Augustine George Masih, in the judgment in The Chairman, National Book Trust, India v. A.R. Abdul Gaffar (Civil Appeal No. 14369 of 2015; 2026 INSC 1202), observed: 'Trust accordingly satisfies the test of being financially, functionally and administratively dominated by or under the control of the Government, with that control being particular to the Trust and pervasive in character. Its registration as a society, or the fact that it generates part of its income independently cannot displace the cumulative constitutional character of the institution.'

Source: LawChakra

Control from creation to audit

Applying the tests in Ajay Hasia and the seven-judge bench ruling in Pradeep Kumar Biswas, the Court said Article 12 status turns on a cumulative assessment, not legal form or income alone. The Government created the Trust by resolution, appoints its Chairman, nominates a substantial part of its governing composition, controls the Chairman's tenure, participates in its financial administration and rule-making, and the Comptroller and Auditor General (CAG) audits its accounts. 'The Government's role begins with the creation of the Trust, extends to its governing composition and appointment of its principal functionary, permeates its executive and financial administration, and continues through audit, reporting and governmental approval,' the bench said, adding that this is not the limited regulatory supervision that falls outside Article 12.

The Court rejected the argument that revenue from publication sales diluted that control: 'Financial autonomy in one aspect cannot be isolated from the statutory or regulatory structure governing the body, its composition, management and governmental supervision.' It also clarified that performing public functions alone does not automatically make a body 'State' — the functions must be read with the extent of government control.

Source: Jurisight

What the ruling does — and does not — do

Because NBT is 'State' under Article 12, its actions can be challenged for violating fundamental rights, as with a government body. But the Court expressly clarified that the declaration does not convert the Trust into a government department, and does not by itself make its employees civil servants or give them the protections of Articles 309, 310 and 311. Senior Advocate Sanjay Jain assisted the Court as amicus curiae in the appeal.