The apex court's direction came while dismissing the PSU, Balmer Lawrie Investments Ltd's (BLIL) appeal challenging two decisions of Calcutta High Court terming the company as a state and amenable to writ jurisdiction.
It also disapproved the "hire-and-fire policy" of the company.
A bench of justices B S Chauhan and V Gopala Gowda upheld the high court's decisions after considering factors like the company's formation, objectives, functions, management and control, financial aid received by it, etc and said the "cumulative effect" of the these factors would make BLIL amenable to writ jurisdiction.
"... And have come to the conclusion that the cumulative effect of all the aforesaid facts in reference to a particular company i.E. The appellant, would render it as an authority amenable to the writ jurisdiction of the High Court," the bench said.
Article 12 of the Constitution defines what is a State.
He had challenged the termination order by filing writ petition in the Calcutta High Court.
BLIL had contested the petition saying it was not amenable to writ jurisdiction of the high court as it does not come under the definition of State.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
