Ravi Khokhar v. Union of India 2026 INSC 233 - Article 12 Constitution - AGFIS - State
Constitution of India - Article 12 - Air Force Group Insurance Society (AFGIS) is a ‘State’ under Article 12- The administration of the Body is entirely in the hands of Government servants even though the body itself is a purportedly private, a self-contained society- In so far as financial aspects of AFGIS are concerned, the Government may not have a direct role however for a body to be held to be a ‘State’ it is the cumulative effect and impact of deep and pervasive control, financial and administrative control along with other factors such as carrying out of public duty. (Para 7-19)
Case Info
Extracted Information from the Judgment
Case name and neutral citationRavi Khokhar & Ors. v. Union of India & Ors., 2026 INSC 233 (Civil Appeal arising out of SLP (C) No. 27366 of 2023).
CoramJustice Sanjay KarolJustice Vipul M. Pancholi
Judgment date12 March 2026 (New Delhi).
Case laws and citations referred
- Ajay Hasia and Others v. Khalid Mujib Sehravardi and Others, (1981) 1 SCC 722
- Pradeep Kumar Biswas and Others v. Indian Institute of Chemical Biology and Others, (2002) 5 SCC 111
- Chander Mohan Khanna v. National Council of Educational Research and Training, (1991) 4 SCC 578
- Ramana Dayaram Shetty v. International Airport Authority of India, (1979) 3 SCC 489
- Mysore Paper Mills Ltd. v. Mysore Paper Mills Officers’ Assn., (2002) 2 SCC 167 : 2002 SCC (L&S) 223 : JT (2002) 1 SC 61
- Zee Telefilms Ltd. v. Union of India, (2005) 4 SCC 649
- Rajkaran Singh v. Union of India, 2024 SCC OnLine SC 2138
- Sagarika Singh v. Union of India and Others, 2011 SCC OnLine Del 3612
- Ex. Sub. Rajender Singh v. Union of India and Others, 2013 SCC OnLine Del 1598
- Rajasthan Electricity Board v. Mohan Lal, AIR 1967 SC 1857 : (1967) 3 SCR 377 (referred via Mysore Paper Mills discussion)
- Saturday Club Ltd. v. Assistant Commissioner, Service Tax, 2006 (3) STR 305 (Cal HC)
- Federation of Indian Chambers of Commerce & Industry (FICCI) v. Commissioner of Service Tax, Delhi, (2015) 38 S.T.R. 529 (New Delhi – CESTAT)
Statutes / laws referred
- Constitution of India
- Article 12 (definition of “State”)
- Article 32 (writ jurisdiction of Supreme Court)
- Article 226 (writ jurisdiction of High Courts)
- Societies Registration Act, 1860
- Estate Duty Act, 1953
- Section 33(1) and 33(2) (relief and exemption notification for AFGIS benefits)
- Income Tax Act, 1961
- Section 10(23C)(iv) (income exemption for AFGIS)
- Section 194A(3)(iii)(f) (notification regarding interest payments – via Income Tax notification)
- Finance Act, 1994
- Section 66D (negative list / services of “Government” outside service tax)
- Service tax / indirect tax framework
- Referred in context of Finance Act, 1994, and the “principle of mutuality”.
- Various Government of India / Ministry of Defence executive instruments:
- Air Force Instructions (AFI 16/87, AFI 4/S/74, AFI 2/S/74)
- MoD and MoF notifications and letters sanctioning AFGIS, deputation rules, posts and tax exemptions.
Three-sentence brief summary
The Supreme Court held that the Air Force Group Insurance Society (AFGIS), though registered as a society, is functionally and administratively under deep and pervasive control of the Union, performs a core public welfare function for armed forces personnel, and therefore qualifies as “State” under Article 12 of the Constitution. Relying on the cumulative tests in Ajay Hasia, Pradeep Kumar Biswas and related precedents, the Court emphasized compulsory membership, automatic salary deductions, governance by serving IAF officers, presidential sanctions and tax-treatment as indicia of State character and public duty. Consequently, it set aside the Delhi High Court’s finding of non‑maintainability, restored the writ petitions of AFGIS employees (seeking parity with Central Pay Commissions) and directed the High Court to decide them expeditiously.
