The Supreme Court has ruled that the National Book Trust (NBT) qualifies as a 'State' under Article 12 of the Constitution, holding that the Central Government exercises deep and pervasive control over its administration, governing structure and financial affairs.
A Bench of Justice Prashant Kumar Mishra and Justice Augustine George Masih upheld the Delhi High Court Full Bench judgment, observing that the Trust's registration as a society does not take it outside the scope of Article 12.
Background
The National Book Trust was established through Government of India resolutions dated June 15, 1957, and September 28, 1962. Its objectives include publishing quality literature at affordable prices, promoting Indian languages, translating important works and encouraging the dissemination of knowledge.
The question arose before the Delhi High Court as to whether the Trust could be considered an instrumentality of the Government under Article 12. On June 1, 2012, the Full Bench concluded that the Government exercised substantial control over the Trust and declared it an 'other authority' under the Constitution.
The National Book Trust challenged this decision before the Supreme Court, arguing that its status as a society and its independent sources of income distinguished it from a government-controlled organisation.
Examining earlier constitutional decisions, including Ajay Hasia v. Khalid Mujib Sehravardi and Pradeep Kumar Biswas v. Indian Institute of Chemical Biology, the Supreme Court explained that the determination under Article 12 requires an overall assessment of an institution's financial, functional and administrative relationship with the Government.
The Bench noted that the Government appoints the Trust's Chairman, nominates members to its governing and executive committees and retains control over important administrative and financial decisions. Its accounts are also subject to audit by the Comptroller and Auditor-General of India.
The Court observed:
"The question in each case would be - whether in the light of the cumulative facts as established, the body is financially, functionally and administratively dominated by or under the control of the Government. Such control must be particular to the body in question and must be pervasive."
The Bench also rejected the argument that income generated through book sales established the Trust's independence. It explained that financial autonomy in one area could not be examined separately from the institution's overall governing and administrative framework.
The Court further clarified that public functions alone do not automatically make an organisation a State under Article 12. The nature of its activities must be considered alongside the extent of governmental control.
Importantly, the Bench clarified:
"The declaration that the Trust is ‘State’ under Article 12 of the Constitution does not convert the Trust into a department of the Government of India, nor does it make every employee of the Trust a civil servant."
Concluding that the Government's involvement extended from the Trust's establishment to its governing composition, executive functioning, financial administration and audit, the Supreme Court found that the control was pervasive rather than merely regulatory.
The Bench upheld the Delhi High Court's conclusion that the National Book Trust qualifies as an 'other authority' and is therefore a 'State' within the meaning of Article 12 of the Constitution.
Finding no reason to interfere with the impugned judgment, the Supreme Court dismissed the appeal.
Case Details
Case Title: The Chairman, National Book Trust, India and Another v. A.R. Abdul Gaffar and Others
Case Number: Civil Appeal No. 14369 of 2015
Judges: Justice Prashant Kumar Mishra and Justice Augustine George Masih
Decision Date: November 6, 2026
