SC Declares National Book Trust 'State' Under Article 12

The Supreme Court has declared the National Book Trust (NBT) an instrumentality of the State under Article 12 of the Constitution, holding that the Central Government exercises deep and pervasive control over its establishment, governing structure, appointments, administration and financial affairs. The ruling brings the institution within the constitutional framework governing fundamental rights, enabling individuals to seek legal remedies against actions that violate their applicable constitutional rights.

A Bench comprising Justices Prashant Kumar Mishra and Augustine George Masih dismissed an appeal filed by the NBT chairman and another appellant, challenging a 2012 judgment of the Delhi High Court's Full Bench, which had recognised the Trust as an instrumentality of the State. The judgment, authored by Justice Mishra, was delivered in The Chairman, National Book Trust v. A.R. Abdul Gaffar (Civil Appeal No. 14369 of 2015).

Established through Government of India resolutions dated June 15, 1957, and September 28, 1962, the NBT operates under the Ministry of Education to promote quality literature and make books available at affordable prices. Its activities include publishing books in Indian languages, promoting children's literature, translating literary works and organising national and international book fairs.

Explaining its decision, the Supreme Court said the government appoints the Trust's chairman, who holds office at its pleasure, while representatives of the Ministries of Education, Finance and Information and Broadcasting participate in its governing and executive committees. The Finance Ministry's representative also serves as Financial Adviser. The Trust must submit annual reports and audited accounts to the government, while its finances are subject to government oversight and audit by the Comptroller and Auditor-General (CAG). Specified changes to its governing rules also require government approval.

The Bench rejected the argument that revenue generated through book sales established financial independence, stressing that the cumulative effect of government control must be considered. Relying on landmark rulings in Ramana Dayaram Shetty (1979), Ajay Hasia (1981) and Pradeep Kumar Biswas (2002), it reiterated that pervasive financial, functional and administrative control determines an institution's status under Article 12.

The verdict allows applicable fundamental rights challenges under Articles 14 and 19, among others, and access to constitutional remedies under Articles 32 and 226. However, the Court clarified that NBT employees do not automatically become government servants or acquire protections under Articles 309, 310 and 311. The ruling reinforces constitutional accountability without converting the autonomous Trust into a government department.