THE STATE TRADING CORPORATION OF INDIA LTD. & OTHERS versus THE COMMERCIAL TAX OFFICER, VISAKHA- PATNAM AND OTHERS

THE STATE TRADING CORPORATION OF INDIA LTD. & OTHERS versus THE COMMERCIAL TAX OFFICER, VISAKHA- PATNAM AND OTHERS

A company registered under the Indian Companies Act, even if its entire shareholding is with Indian citizens (including the Government of India), is not a citizen under Part II of the Constitution or the Citizenship Act, 1955, and therefore cannot enforce fundamental rights under Article 19(1)(f) and (g). Part III of the Constitution intentionally restricts certain rights to natural persons, and there is no constitutional or statutory basis to include juristic persons or incorporated companies as citizens. The State Trading Corporation is not a citizen and cannot claim rights exclusive to citizens.

Parties
Petitioners: The State Trading Corporation of India Ltd. & Others; Respondents: The Commercial Tax Officer, Visakhapatnam and Others
Jurisdiction
India
Judgment Date
26 July 1963
Procedural Posture
Writ Petition Under Article 32 of the Constitution of India / Judgment on Preliminary Questions Referred to Special Bench
Outcome
Petitions dismissed; questions answered in the negative (majority).
Legal Topics
Citizenship, Fundamental Rights, Corporate Personality, Enforcement of Fundamental Rights by Juristic Persons
Constitutional Law Corporate Law Citizenship Fundamental Rights Corporate Personality Enforcement of Fundamental Rights by Juristic Persons

Case Brief

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Parties

The State Trading Corporation of India Ltd. & Others

Petitioners

The Commercial Tax Officer, Visakhapatnam and Others

Respondents

Procedural Posture

Writ Petition Under Article 32 of the Constitution of India / Judgment on Preliminary Questions Referred to Special Bench

Legal Issues

  1. 1 Whether the State Trading Corporation, a company registered under the Indian Companies Act, 1956, is a citizen within the meaning of Article 19 of the Constitution and can seek enforcement of fundamental rights granted to citizens under the said article.
  2. 2 Whether the State Trading Corporation is, notwithstanding the formality of incorporation, in substance, a department and organ of the Government of India and can enforce fundamental rights under Part III of the Constitution against the State as defined in Article 12.

Ratio Decidendi

A company registered under the Indian Companies Act, even if its entire shareholding is with Indian citizens (including the Government of India), is not a citizen under Part II of the Constitution or the Citizenship Act, 1955, and therefore cannot enforce fundamental rights under Article 19(1)(f) and (g). Part III of the Constitution intentionally restricts certain rights to natural persons, and there is no constitutional or statutory basis to include juristic persons or incorporated companies as citizens. The State Trading Corporation is not a citizen and cannot claim rights exclusive to citizens.

Court Disposition

Petitions dismissed; questions answered in the negative (majority).

Orders

  • The State Trading Corporation is not a citizen within the meaning of Article 19 and cannot seek enforcement of fundamental rights reserved for citizens.
  • State Trading Corporation does not become a department or organ of Government of India by virtue of its shareholding or incorporation and cannot claim fundamental rights under Article 19.