Point out the incorrect response The tests propounded by Bhagwate J in R D Shetty Vs International A...........

Constitutional Law Judicial System

Point out the incorrect response. The tests propounded by Bhagwate J in R.D. Shetty Vs. International Airport Authority are as follows.

The entire share capital of the corporation is held by the state

Existence of deep and pervasive statement control

Monopoly status to corporation which is state conferred and state protection

The corporation is the instrumentation agency of the state

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Explanation:

The corporation is the instrumentation agency of the state.

This test was followed by Ray, C.J., in Sukhdev v. Bhagat Ram (supra). Mathew, J., however, in the same case, propounded a broader test, namely, whether the statutory corporation or other body or authority, claimed to fall within the definition of State', is as instrumentality or agency of Government: if it is, it would fall within the meaning of the expression 'other authorities' and would be State'.

Where a corporation is an instrumentality or agency of Government it would be subject to some constitutional or public law limitations ns Government. The rule inhibiting arbitrary action by Government must apply equally where such corporation is dealing with the public and it cannot act arbitrarily and c into relationship with any person it likes at its sweet will. Its action must be in conformity with some principles which meet the test of reason and relevance.

Hence option 4th is incorrect.