'Government Company' – Is It 'State' For the Purpose of Constitutional Law

The Companies Act, 2013 is a milestone legislation framework with far-reaching effects on all the companies registered or working in India. The major focus of this research paper is to analyses whether the Government Company can be regarded as a ‘State’ under the ambit of Article 12 of the Constitution of India? In this research paper, the researcher attempts to explain the meaning of a company and what is meant by a Government Company. An attempt is also made to clarify the definition of State provided under Article 12 of the Constitution of India. Definitions and other information are taken from the authorised sources. The paper attempts to bring light on various aspects and provisions related to the Government Company. The researcher has particularly discussed the provisions applicable on the Government Company. The paper also focuses on the efforts made by the Hon’ble Supreme Court and various High Courts in clarifying that what all companies can come under the ambit of ‘State’ under Article 12 of the Constitution. The consequences of including a Government Company under the definition of ‘state’ provided under Article 12 of the Constitution of India have also been examined by the researcher. There is also a brief portion on the privileges provided under Article 311 of the Constitution of India to the person employed by the Government of India or State in civil capacities. This is included to elucidate that the Government Company is separate entity from the Government. Such of the points are discussed in sufficient detail. Before going on these issues, the researcher has tried to explain the meaning of ‘company’.