Q: Elaborate the citation of Ajay Hasia vs Khalid Mujib Sehravardi & Ors on 13 November, 1980 ?

 Ans: Ajay Hasia vs Khalid Mujib Sehravardi & Ors on 13 November, 1980.

In this case ,the Supreme Court said that the determining test is not whether a body is formulated by or under a statute but the body is acting as instrumentality or agency of the state.

If the body is acting as an instrumentality or agency of state,  it will be considered as state according to perspective of Article 12.

In this case, there are six criteria of determining test which are as follows:

1. Whether entire share capital is held by the Government.

2. A great degree of financial assistance is by government.

3. Monopoly status is protected by state.

4. There is deep and pervasive state control.

5. If the functions are of public importance or related to governmental functions.

6. A department of government is transferred to corporation.



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