Rajasthan State Electricity Board Vs Mohan Lal

5.5 In Rajasthan State Electricity Board Vs Mohan Lal AIR 1967 SC 1857 though the RSE Board was carrying commercial activities in distinction with the Governmental functions. The same was already to be said on the strength that the Government could carrying commercial activities under the provisions of Article 298 of the Constitution. Similarly the principles of instrumentality was discussed in the matter of R D Ramana Vs International Airport Authority of India AIR 1979 SC 1628 and Somprakash Vs Union of India AIR 1981 SC 212. A new judicial trend emerged in the case of Ajay Hasia Vs Khalid Mujib AIR 1981 SC 487 wherein the concept of instrumentality or change of the Government was not held to be limited to a corporation created by a statute but the same was held to be equally applicable to a company or a society. Thus a registered society was held an authority for the purpose of Article 12 in contradistinction of Sabhajit Tewary Page 25 of 31 (supra). The court laid down the following tests to adjudge whether a body is an instrumentality of government or not: i) If the entire share capital of the body is held by the government; ii) Where the financial assistance given by the government is so large as to meet almost entire expenditure of the body; iii) It is a relevant factor if if the body enjoys monopoly status which is conferred or protected by the State; iv) Existence of deep and pervasive state control may afford an indication that the body is a state instrumentally; v) If the fuctions performed by the body are of public importance and closely related to governmental functions.