Ravi Khokhar & Ors. Vs Union of India & Ors. (Supreme Court of India)
The Supreme Court considered an appeal involving employees of the Air Force Group Insurance Society (AFGIS), a society established in 1976 under the Societies Registration Act, 1860, with the sanction of the President of India. The dispute arose after the Board of Trustees initially decided in December 2016 to revise employee pay scales in accordance with the Sixth Pay Commission of the Government of India, but subsequently resolved in February 2017 to revise the pay structure without any linkage or parity with Central Government pay scales. Employees were then asked to accept the revised terms through a notice issued in May 2017. Aggrieved employees approached the Delhi High Court.
High Court decision
The Delhi High Court dismissed the writ petitions filed by the employees. The Court held that the respondent organisations, including the Air Force Group Insurance Society, could not be treated as “State” or “other authority” within the meaning of Article 12 of the Constitution. The High Court considered this determination essential because the maintainability of the writ petitions under Article 226 depended on whether the organisations fell within Article 12.
The High Court examined the structure and functioning of AFGIS and observed that it is a society created as a welfare and insurance scheme for Air Force personnel and their families. Although senior Air Force officers were part of the Board of Trustees and some officers served on deputation, the Court held that this association did not amount to deep or pervasive governmental control. The High Court found that the organisation operated through its own internal governance structure and was financed entirely through member contributions rather than government budgetary allocations.
