Larger Bench Overturns Previous Ruling, Establishing Government-Controlled Status
In a landmark judgment dated December 11, 2025, the Gujarat High Court has ruled that the Institute for Plasma Research (IPR) qualifies as a "State" under Article 12 of the Constitution of India. The decision comes after a detailed analysis by a Full Bench, which overturned a prior Division Bench ruling that had excluded IPR from the purview of Article 12.
The case, originally brought by Dr. Indranil Bandyopadhyay, centered around the legal status of IPR as a "State," impacting the recovery and re-fixation of pay for Dr. Bandyopadhyay, a Scientific Officer at the institute. The appellant challenged the decision of pay re-fixation based on audit objections, arguing that IPR's status as a State entity should afford him certain constitutional protections.
The Full Bench, comprising Justices A.S. Supehia, Aniruddha P. Mayee, and Pranav Trivedi, meticulously examined the institute's funding, control, and statutory obligations. The judges applied established legal precedents, including the "piercing the veil" principle and the Ajay Hasia tests, to ascertain the true nature of IPR's relationship with the government.
The court noted several critical factors that contributed to its decision. IPR is entirely funded by the Department of Atomic Energy (DAE), a government department, and operates under statutory powers with public obligations, fulfilling functions akin to governmental duties. The creation of IPR was facilitated by the Atomic Energy Act, 1962, and it operates under governmental control, with its by-laws requiring approval from the Central Government.
The ruling emphasized that IPR serves public interest through its research, development, and educational initiatives, making it an extension of the State. The institute's integration with the DAE, including adherence to government-issued directives and policies, further solidified its status as a State instrumentality.
This judgment has significant implications, not only for the appellant but also for the functioning and governance of IPR. It ensures that the institute and its employees are subject to constitutional protections and obligations applicable to State entities, including adherence to public law limitations.
The case has been referred back for further proceedings in light of the newly established status of IPR as a State under Article 12.
Bottom Line:
The Institute for Plasma Research (IPR) is held to be a "State" under Article 12 of the Constitution of India, owing to its creation under a statute, complete funding by the Government of India, pervasive control by the Department of Atomic Energy (DAE), and its public obligations and functions.
Statutory provision(s): Article 12 of the Constitution of India, Atomic Energy Act, 1962
