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2021 (7) TMI 472 - DELHI HIGH COURTScope of an entity - GJEPC - comes under definition of 'State' or under 'other authority' - GJEPC functions under the sponsorship of the Ministry of Commerce and Industry (MOCI) and the said Ministry has effective and all pervasive control over the GJEPC - substantial degree of control and regulation over the trading activities of GJEPC - funding of GJEPC - whether the respondent No.2 GJEPC falls under the definition of ‘other Authority’ within Article 12 of the Constitution of India? HELD THAT:- It is not disputed that GJEPC is a Company registered under Section 25 of the Companies Act, 1956 and as such, not a statutory body. It was established by eight persons, not connected with the Government. It has a voluntary Membership and is not controlled by any State. The functions of GJEPC are primarily to support, protect, maintain increase and promote the export of gems and jewellery, a function, which is not a governmental function. As of today, there are 6506 Members, none of whom are representatives of the Central Government. The Committee of administration manages GJEPC consisting of 24 Members, who are neither appointed nor nominated by respondent No.1. The nominated Members of the Government cannot exceed three in number. The nominated Members have no voting rights and therefore, cannot participate in the decision making process of the Committee. The Committee controls the finances, staff and appointments, renewal, cancellation, suspension and termination of its Members. It is the Committee which make Rules in relation to conditions of service, appointment, promotion, dismissal etc. The primary source of funds is the subscription of Membership, which are sufficient for the proper functioning of the GJEPC. It is stated that no funding is provided by respondent No.1. The only funding received by GJEPC from the respondent No.1 is for a particular project as and when certain specific export, promotion activities under the MAI scheme and MDA scheme are taken up, and the said funds are used for the specific use and no portion is utilized for any other activity beyond the scheme - The respondent No.1 states that the only power exercised by the government is enumerated in clause 47 of the AoA. The said clause empowers the Central Government to give direction to the Council in the interest of national security, national economy and public interest. Surely the Government can have such a control on any person / entity within the country in the larger public interest. Connected to such a power is the power of the Central Government to call for reports with respect to property; affairs of the Council, foreign collaboration etc. Similarly, the alteration of AoA or MoA with the approval of the Central Government has to be read in conjunction with clause 47 of the AoA. Mr. Mishra is justified in stating that at no point of time, the grants exceeded more than 27%. GJEPC is not discharging any public / state functions and as such not an ‘other Authority’ within the meaning of Article 12 of the Constitution of India and as such, the present petition under Article 226 of the Constitution of India is not maintainable. The plea of maintainability of the petition, advanced by learned counsel for the respondent No.2 need to be accepted and without going into the merits of the challenge to the termination of the petitioner, and the Judgments relied upon by the petitioner on the merits of the case, the present petition is liable to be dismissed. Petition dismissed - decided against petitioner.
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