Ravi Khokhar & Ors v. Union of India & Ors, 2026
The Supreme Court reaffirmed the principle that the term “State” under Article 12 must be interpreted functionally, not just based on formal ownership or origin.
Judgement Details
Court
Supreme Court of India
Date of Decision
16 March 2026
Judges
Justice Sanjay Karol and Justice Vipul M. Pancholi
Citation
Acts / Provisions
Facts of the Case
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The controversy arose from a pay revision dispute in the Air Force Group Insurance Society (AFGIS).
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In December 2016, the Board of Trustees of AFGIS initially resolved to revise employees’ pay scales in accordance with the Sixth Central Pay Commission.
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However, in a subsequent meeting held on February 13, 2017, the Board reversed its earlier decision and resolved to delink the Society’s pay structure from the Central Government pay scales.
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The employees were asked to accept revised service conditions through a notice issued on May 22, 2017.
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Challenging the decision, the employees filed writ petitions before the Delhi High Court under Article 226, contending that AFGIS’s decision violated their statutory and contractual rights.
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The High Court dismissed the petitions, holding that AFGIS was a self-contained welfare and insurance society funded by member contributions and therefore did not qualify as “State” under Article 12. As a result, the Court ruled that the writ petitions were not maintainable.
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The employees then appealed to the Supreme Court.
Issues
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Whether the Air Force Group Insurance Society (AFGIS) qualifies as a “State” under Article 12 of the Constitution?
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Whether employees of AFGIS can invoke writ jurisdiction under Article 226 against decisions of the Society?
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What criteria or tests determine whether a body, though privately constituted, performs a public function closely linked to the State?
Judgement
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The Supreme Court allowed the appeal, overturning the Delhi High Court’s decision.
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The Court held that AFGIS qualifies as a “State” under Article 12, and therefore, the employees’ writ petitions are maintainable.
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The Court observed that AFGIS performs a public function, as the protection and welfare of armed forces personnel is a core government responsibility.
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Providing insurance coverage to members of the Indian Air Force is directly linked to the sovereignty and security of the nation, and the members are required to adhere to strict rules and conduct.
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Several factors demonstrated governmental control and involvement:
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Establishment of AFGIS and its deputation rules were sanctioned by the President of India.
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Financial operations are periodically reported to senior Air Force authorities.
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Both the Board of Trustees and Managing Committee are composed entirely of serving Air Force officers deputed for fixed tenures.
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Membership and deductions are mandatory for serving officers, leaving no personal discretion.
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The Court held that cumulative effect of functional, financial, and administrative control over the Society brings it within the ambit of “State” under Article 12.
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The Court requested the Delhi High Court to decide the employees’ writ petitions expeditiously, keeping in view that the petitions had been filed in 2017.
Held
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AFGIS is a “State” under Article 12 of the Constitution of India.
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Employees of AFGIS are entitled to approach the High Court under Article 226 for enforcement of their rights.
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The test for determining whether a body is a “State” involves examining:
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The nature of functions performed.
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The character of activities and their public relevance.
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The degree of government control over administration and finances.
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Even a body that appears private or self-contained can be treated as a State if administrative, financial, and functional dominance by the government is established.
Analysis
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The Supreme Court reaffirmed the principle that the term “State” under Article 12 must be interpreted functionally, not just based on formal ownership or origin.
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The judgment strengthens the scope of writ jurisdiction by allowing employees of bodies performing public functions linked to the State to seek legal remedies.
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Emphasizes that the public function test, along with administrative and financial control, is critical in assessing State status.
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Ensures that armed forces personnel welfare schemes, though seemingly self-contained, remain subject to accountability under the Constitution.
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Promotes rule of law and oversight over quasi-governmental bodies impacting a defined public class.