SINGHVI, J.- In this writ petition the petitioner has prayed for quashing order of termination of his service and for issuance of order of appointment on regular basis as well as payment of salary in the regular pay scale with effect from 10.9.90. (2) The petitioners case is that he was initially appointed on the post of Instructor in the service of Gemstones Artisans Training School on being appointed as such by an order dated 28.8.89 issued by the Regional Convener, Gem and Jewellery Export Promotion Council (for short the Council). This appointment was preceded by a regular selection. The petitioner was, however, forced to submit his resignation on the assurance that he will be absorbed in the service in the next Session. An advertisement dated 19.7.90 was issued by the Gem Stones Artisans Training School in Rajasthan Patrika for the purpose of Instructors. The petitioner was interviewed by a Selection Committee on the basis of his application, which he had submitted in pursuance to the advertisement dated 19.7.90. According to the petitioner he was selected in the interview and was appointed with effect from 10.9.90. However, no letter of appointment has been given to him and he was paid wage @ Rs. 60/- per day and not in the regular pay scale prescribed for the post. He was told that the appointment letter will be given after completion of formalities. No letter of appointment was, however, issued by the petitioner even thereafter and suddenly on 1.7.91 he was asked to submit his resignation, as had happened earlier. This time he refused to abide by the wishes of the respondents and therefore, he has been verbally told by the Principal of School that his services will not be continued beyond 5.7.91. The petitioner has sent a telegram dated 2.7.91 against this action of the respondent No.2. (3) In the meantime another advertisement was issued by the respondent No.2 in the Rajasthan Patrika dated April, 91 Since the petitioner was already in the service he has no occasion to apply for appointment. One Shri Arun Sharma has been selected and then appointed as Instructor in the regular pay scale. Although, the petitioner was appointed earlier to Shri Arun Sharma, but he has not been paid salary in the regular pay scale. One Shri Arun Sharma has been selected and then appointed as Instructor in the regular pay scale. Although, the petitioner was appointed earlier to Shri Arun Sharma, but he has not been paid salary in the regular pay scale. (4) The petitioner has challenged the action of the respondents in not giving the appointment on permanent basis and in not giving regular pay scale. His case is that he had applied against the post of Instructor with a legitimate expectancy that after his selection he will be appointed on permanent post and will be paid salary in the regular pay scale. The petitioner has in fact been selected by a duly constituted selection committee. Notwithstanding this, his service has been terminated from 5.7.91, even though the posts are still available and the work is also continuing. The petitioner has been subjected to hostile discrimination in as much as Shri Arun Sharma has been appointed on regular basis and has been given salary in the regular pay scale. This action of the respondents has resulted in violation of fundamental rights of the petitioner, guaranteed to him by Articles 14 and 16 of the Constitution. (5) Additional Affidavit dated 12.7.91 has been filed by the petitioner in which he has stated that the Gem and Jewellery Export Promotion Council has been sponsored by the Ministry of Commerce, Government of India. 80% of the funds of the Council are provided by the Central Government and the Central Government also provides fund for the School run by the said council. The Budget of the Council is passed by the Ministry of Commerce and the Council cannot incur any expenditure outside the budget. The policy decisions are taken by the Central Government and the same are implemented through the Council. All the actions of the Council are required to be approved by the Ministry of Commerce, Government of India. All salaried posts in the Council and the School are sanctioned by the Ministry of Commerce, Government of India. The appointment of the Secretary of the Council has to be approved by the Ministry of Commerce. Similarly, the appointment of the Principal of the School has also to be approved by the Ministry of Commerce, Government of India. Rules of the Central Government are applicable for regulating the conditions of service of the employees of the Council and the school. Similarly, the appointment of the Principal of the School has also to be approved by the Ministry of Commerce, Government of India. Rules of the Central Government are applicable for regulating the conditions of service of the employees of the Council and the school. (6) The Petitioner has also stated that the statement contained in the order dated 5.7.91 is not correct. In fact there one post of Sr. Instructor (pay scale starting from 2200/-) was vacant. That was filled by promoting Shri Sajid Ali. Shri Sajid Ali was working as Instructor in the pay scale starting from Rs. 1460-. That post was filled by promoting Shri Surendra Khadiya. His post carrying starting salary of Rs. 1200/- and has thus fallen vacant and Shri Arun Sharma has been absorbed against that post. (7) The respondents have filed reply to the writ petition in which it has been started that the respondent Council is the parent body of the School and under its guidance the school functions. There is a Local Advisory Committee headed by a Regional Convener of the Council, who looks after its management. The respondent Council is a Company duly incorporated and registered in the year 1966 under the Indian Company Act, 1956. It is neither a State nor an instrumentality of the State. It does not come within the scope of the term other authorities used in Article 12 of the Constitution of India. The activities of the Council are neither controlled nor directly governed by Government of India (Ministry of Commerce). The respondent Council is not engaged in any statutory activities. It is not a statutory body created or set up under any statute. The Counsel has in fact been floated by the individuals as per the Memorandum and Articles of Association. The main source of the funds of the Company comes from the membership subscriptions, donations and other activities. Grant-in-aid is also received from the Government of India, Ministry of Commerce. It has then been stated that the affairs of the Council are controlled and managed by the "Working Committee" consisting of 34 members, out of which only 3 are the nominees of the State. Grant-in-aid is also received from the Government of India, Ministry of Commerce. It has then been stated that the affairs of the Council are controlled and managed by the "Working Committee" consisting of 34 members, out of which only 3 are the nominees of the State. Since the Council is engaged in the promotion and research for the benefit of Gem and Jewellery Industry and to advise or represent to the Government in respect of this industry, the Council is bound by instructions as well as direction given by the Government of India. Respondent School has been set up by the Council in order to impart technical to know how on Gem Cutting and polishing to the students so that trained persons may be available to the industry. It has further been stated that although all the proposals are prepared by the Council and submitted on the Working Committee and the Union Government and all expenses are incurred on sanction by the Working Committee in consultation with the Union Government but this exercise is done only with the object that the Government of India shall feel satisfied that the grant-in-aid given by it is utilized properly and in a responsible manner and for the purpose of achieving object of the Council. The respondents have raised other objections about maintainability of the writ petition by urging that the petitioner has not completed 240 days in the service and therefore, was not entitled to the benefit of provisions contained in the Industrial Disputes Act, 1947. (8) A preliminary objection about maintainability of the writ petition has been raised by learned counsel for the respondents. They have argued that the respondent Council is neither a creature of statute nor it is an agency of the State. It does not discharge any sovering, regal or governmental functions. Its functioning is not of public nature and activities of the Council and the School do not affect the public at large. It is also their argument that the Government of India does not have any direct control over the working of the Council. The Council is not engaged in any activity, which was being previously carried out by a department of the Government of India. The Government of India does not provide 100% finances to the Council or to the School. Funds are arranged by the Council also. The Council is not engaged in any activity, which was being previously carried out by a department of the Government of India. The Government of India does not provide 100% finances to the Council or to the School. Funds are arranged by the Council also. On that premise it has been submitted that no writ could be issued in favour of the petitioner for his re-employment/reinstatement or for enforcement of his so called fundamental rights. Shri P.K. Sharma, learned Counsel for the petitioner on the other hand argued that the Council is fully controlled by the Government of India (Ministry of Commerce). Huge funds are provided by the Government of India. The Government of India keeps full control over the working of the Council. Therefore, it must be held to be an instrumentality of the State and it must be held to be a body covered by the scope of the term "other authorities" as used in Article 12 of the Constitution of India. (9) It is an admitted position of both the parties that the Council is a body registered under the Companies Act, 1958. The Council was formed by 8 individuals who applied for registration of the Council under the Companies Act as its subscribers. These persons were : (10) Sarvashri Khailshankar Durlabhji, Bhola Nath, Sultan Singh Backliwal, Vrij Lal C. Mehta, Pravin N. Nanavati, Kantilal Chhotalal, Kirtilal K. Doshi and Jaisukhlal D. Jhaveri. (11) The Memorandum of Association of the Council specifies its objects. The main objects for which the Company has been established are to support, protect, maintain increase and promote the export of gems and jewellery including pearls, coloured gemstones, diamonds, synthetic stones, costume, fashion jewellery, gold and non-gold jewellery and articles thereof by such methods as may be necessary or expedient. The main objects for which the Company has been established are to support, protect, maintain increase and promote the export of gems and jewellery including pearls, coloured gemstones, diamonds, synthetic stones, costume, fashion jewellery, gold and non-gold jewellery and articles thereof by such methods as may be necessary or expedient. There are several ancillary objects and two of them are advised or represent to Government, local authorities and Public bodies on: — (a) the policies and other measures, including direct and indirect taxation, adopted by them in relation to their effect on industry or commerce; (b) the steps to be taken by them to prevent and contravention of the codes of practices laid down by the Company, by any of the persons concerned where such contravention would affect the exports of gems and jewellery provided that such advice or representation shall be only so far as such policies or measures have a bearing directly or otherwise on the export of aforesaid goods. (12) Another ancillary object is to assist the Government authorities in appraisement of aforesaid goods, as and when called upon to do so. Clause 5 of the Memorandum of Association contemplates that every member of the Company other than the officials of the Government undertakes to contribute to the assets of the company in the event of the same being wound up during the time, he is a member or within one year afterwards, for payment of the debts and liabilities of the Company contracted prior to the date on which he ceases to be a member and of the costs, charges and expenses of winding up the same........ (13) Articles of the Association of the Company contain other details. Paras 5,10,13,18,25,34,65 A of the Articles of Association are relevant and are therefore, reproduced below : — "5. All rights and privileges of members shall be as laid down in the bye-laws framed by the Working Committee from time to time. 10. The affairs of the Council shall be managed by a Working Committee. 13. There shall be an elected Chairman and an elected Vice Chairman for the Council. The term of office of the Chairman shall be two years and that of the Vice-Chairman, one year. 10. The affairs of the Council shall be managed by a Working Committee. 13. There shall be an elected Chairman and an elected Vice Chairman for the Council. The term of office of the Chairman shall be two years and that of the Vice-Chairman, one year. The Chairman and Vice Chairman shall be elected from amongst the elected members of the Working Committee and they shall be Chairman and Vice-Chairman respectively of the Working Committee, Committee of Administration and all other Committees of the Council. From among the Chairman and Vice-Chairman, atleast one of them shall be a person residing in bombay. 18. The Working Committee shall delegate such functions as it deems fit for the administration and management of the affairs of the Council to the Committee of Administration consisting of the Chairman, the Vice Chairman, six members nominated by the Chairman of the Council in consultation with the panel members of the Working Committee and two nominees of the Union Government. 25. The Secretary shall not be a member of the Council and shall be a full time and paid officer whose appointment will be approved by the Government. 34. There shall be a full time and paid Secretary and such other officers to the Council as may be determinated from time to time by the Council. 65A. The Central Government shall have the power : — (i) To give general directions to the Council as to the exercise and performance of its functions in matters involving National security or substantial public interest and to ensure that the Council gives effect to such directions; (ii) To call for such reports returns and other information with respect to the property and activities of the Council as may be necessary and required from time to time; (iii) To approve the Councils revenue and capital budget i.e. the Revised Estimates and Budget Estimates; and (iv) To approve such agreements involving foreign collaboration proposed to be entered into between the Council and the Foregin Collaborators." (14) Apart from the provisions Article 54 provides that accounts and books of the Council shall be open for inspection by officer duly authorised in this behalf by the Union Government for ascertaining or verifying the income and expenditure of the Council or for such other purpose as may by an agreement between the Council and the Union Government be specified in this regard. (15) Article 65 provides that a certified copy of the Accounts and the Auditors report shall be forwarded to the Union Government. The budget is required to be sanctioned by the Working Committee in consultation with the Union Government as per Article 66. The current account of the Council is required to be kept in a Bank approved by the Union Government. Article 73 provides that no change, alteration or modification shall be made in any of the foregoing articles than the prior concurrence of the Union Government. (16) All these provisions show some degree of control of the Government of India in the functioning of the Council. However, the question is as to whether the control of the Government of India can be described as so wide, deep and pervasive to such an extent as to convert the Council into an agency or instrumentality of the Government of India. The main object of the Council which has been referred to herein above shows that the Council has been established for furtherance of the interest of the Gemstone and Jewellery industry. The fact is that it came into the existence on account of the choice and agreement of few individual persons. The Government had not played any role in the creation of the Council. It is true that the Government provides funds to the Council but this is not the only source of income of the council. The Control which the Government of India exercises on it is by the large limited to oversee that the funds provided by it are utilised properly and are not misused by the Council. The entire functioning of the Council is carried on by the Working Committee. There is no direct interference of the Government of India in the functioning of the Council or its working. The Working Committee consists of dozens of persons and only 3 of them are nominated by the Government. They too do not have a power of veto in the management of the affairs of the Company. The general direction that the Government of India can give to the Council do not have any direct impact on the day today functioning of the Council. There is no indication in the Memorandum of Association or Articles of Association that the Council discharges any governmental or State function nor can it be said that its functioning is of a public importance. There is no indication in the Memorandum of Association or Articles of Association that the Council discharges any governmental or State function nor can it be said that its functioning is of a public importance. There is also nothing to show that the Council is a body having a public character. Therefore, in my opinion the composition of the Council, its functioning, its objects are no such which can bring it within the scope of the term "other authorities" used in Article 12 of the Constitution of India. (17) There Lordships of the Supreme Court had considered the scope of the term "other authorities in several decisions. Starting from Rajasthan State Electricity Board vs. Mohan Lal (1) and continuing with Sukhdeo Singh vs. Bhakat Ram (2), R.D. Shetty vs. International Air port Authority (3), Som Prakash Rekhi vs. Bharat Petroleum Corporation (4), Ajay Hasia vs. Khalid Mujib Sherwadi (5), P.K. Ram Chandra Ayer vs. Indian Council for the Agriculture Research (6), Central Inland and Water Transport Corporation vs. Brojonath Gaunguli (7), Tek Raj Vasandhi vs. U.O.I. (8) and lastly in Chandra Mohan Khanna vs. NCERT & Others (9). The tests which have been evolved by the Supreme Court in Ajay Hasiyas case are following: — (1) One thing is clear that if the entire share carital of the corporation is held by Government, it would go a long way towards indicating that the corporation is an instrumentality or agency of Government. (2) Where the financial assistance of the State is so much as to meet almost entire expenditure of the corporation, it would afford some indication of the corporation being impregnated with Governmental character. (3) It may also be a relevant factor....whether the corporation enjoys monopoly status which is State conferred or State protected. (4) Existence of deep and pervasive State control may afford an indication that the corporation is a State agency or instrumentality. (5) If the functions of the corporation are of public importance and closely related to governmental functions, it would be a relevant factor in classifying the corporation as an instrumentality or agency of Government. (6) "Specifically, if a department of Government is transferred to a corporation, it would be a strong factor supportive of this inference" of the Corporation being an instrumentality or agency of Government. (6) "Specifically, if a department of Government is transferred to a corporation, it would be a strong factor supportive of this inference" of the Corporation being an instrumentality or agency of Government. (18) In that case their Lordships of the Supreme Court further held that the factum of the body being created by a statute or under a statute is immaterial for the purpose of deciding as to whether the body comes within the ambit of the term "other authorities" as used in Article 12 of the Constitution of India. (19) The tests evolved in Ajay Hasiyas case continued to be followed in various subsequent decisions. In Tek Raj Vasandhis case (supra) their Lordships noticed the provisions relating to composition and objects of Indian Council for Parliamentary Studies and proceeded to hold that the Institute of Constitutional and Parliamentary Studies does not fall within the purview of the term other authorities. It would be appropriate to refer paragraphs 4,5,16,17 and 20 of that decision. The same are reproduced as under : — "4. ICPS, respondent 2, is a society registered under the Societies Registration Act, 21 of 1860, and was registered on March 9, 1965. As would appear from its memorandum of Association, the foundation members were 19 in number 13 being members besides a President and five Vice Presidents. The First President of the Society was the then Speaker of the Lok Sabha. The five Vice-Presidents were the then Minister of Railways, Minister of Law and Social Security, Minister of Communication and Parliamentary Affairs, a Former Chief Justice of India and a former Attorney General of India. Dr. L.M. Singhvi the then a member of the Lok Sabha, was its Executive Chairman. The public Trustee in the Department of Company Affairs and Insurance in the Ministry of Finance was the Director and a member of the Lok Sabha was the Societys Treasurer. The then Minister of Cultural Affairs in the Ministry of Education along with three members of the Lok Sabha, a Senior Advocate of the Supreme Court, a member of the Rajya Sabha, the then Vice-Chancellor of Rajasthan University, the respective Secretaries of the Lok Sabha and the Rajya Sabha, Secretariats and the Secretary in the Ministry of Law were its Members. The registered office of the society was initially located within the Parliament House but was later on shifted to the Vithailbhai Patel House, Rafi Marg, new Delhi. The objects of the Society inter alia were : (1) to promote and provide for constitutional and parliamentary studies with special reference to comparative studies in constitutional systems of various countries and working of the Indian Constitution and parliamentary and governmental institutions in their various aspects; (2) to undertake study of courses and fundamental research relating to developments in constitutional law, conventions and practices, parliamentary procedure, legislative drafting, trends in judicial interpretation and allied matters; (3) to organise inter alia training programmes in constitutional problems and matters of current parliamentary importance; (4) to set up a legislative research and reference service for the benefit of all interested members of the Union Parliament and State legislatures irrespective of their party affiliations; (5) to undertake and provide for the publication of a journal and of research papers and of books and brochures with a view to disseminate democratic values and to foster broad based civil education and awareness, and in particular, to promote study of constitutional and parliamentary affairs; (6) to establish and maintain libraries and information services to facilitate the study of constitutional and parliamentary subjects and spread information in regard thereto; (7) to invite as and when feasible, scholars who may or may not be members of the Society, to take advantage of the facilities offered by the Society and to benefit the society by their knowledge and experience; and (8) to institute appropriate fellowships, offer prizes and arrange scholarships and stipends in furtherance of the objects of the Society. 5. The memorandum permitted the Society to accept gifts, donations and subscriptions of cash and securities and of any property either movable or immovable. The rule classifies the members under heads like Founder Members, Life Members, Honorary Members, Ordinary Members, Corporate Members and Associate Members. Ordinary membership, according to the Rules, would extend to members of Parliament or of any State legislature or those who have been or are members of the judiciary or advocates of the Supreme Court or the High Courts or persons employed in public service or persons engaged in teaching of study of social sciences particularly of Political Science, Law or subjects related thereto. In the category of Honorary Members were the President, the Vice-President and the Prime Minister of India. Though the Memorandum permitted receipt of gifts and donations from outside, it is not disputed that the main source of income of the Society has been the annual Central Government grant. 16. The objects of the Society were not governmental business but were certainly the aspects which were expected to equip Members of Parliament and the State legislatures with the requisite Knowledge and experience for better functioning. Many of the objects adopted by the Society were not confined to the two Houses of Parliament and were intended to have an impact on society at large. 17. The Memorandum of the Society permitted acceptance of gifts, donations and subscriptions. There is material to show that the Ford Foundation, a US based. Trust had extended support for some time. Undoubtedly, on annual contribution from the Government has been substantial and it would not be wrong to say that they perhaps constitute the main source of funding, yet some money has been coming from other sources. In later years, foreign funding came to be regulated and, therefore, it became necessary to provide that without Government clearance like any other institution, ICPS was not to receive foreign donations. No material has been placed before us for the stand that the Society was not entitled to receive contributions from any indigenous source without government sanction. Since government money has been coming, the usual conditions attached to Government grants have been applied and enforced. If the Societys affairs were really intended to be carried on as a part of the Lok Sabha or Parliament as such, the manner of functioning would have been different. The accounts of the Society are separately maintained and subject to audit in the same way as the affairs of societies receiving government grants are to be audited. Government usually impose certain conditions and restrictions when grants are made. No exception has been made in respect of the Society and the mere fact that such restrictions are made is not a determinative aspect. 20. Government usually impose certain conditions and restrictions when grants are made. No exception has been made in respect of the Society and the mere fact that such restrictions are made is not a determinative aspect. 20. We have several cases of societies registered under Societies Registration Act which have been treated as State but in each of those cases it would appear on analysis that either governmental business had been undertaken by the Society or what was expected to be the public obligation of the State had been undertaken to be performed as a part of the Societys function. In a Welfare State, as has been pointed out on more than one occasion by this Court, governmental control is very pervasive and in fact touches all aspects of social existence. In the absence of a fair application of the tests to be made, there is possibility of turning every non-governmental society into an agency or instrumentality of the State. That obviously would not serve the purpose and may be far from reality. A broad picture of the matter has to be taken and a discerning mind has to be applied keeping the realities and human experiences in view so as to reach a reasonable conclusion. Having given our anxious consideration to the facts of this case, we are not in a position to hold that ICPS is either an agency or instrumentality of the State so as to come within the purview of other authorities in Article 12 of the Constitution. We must say that ICPS is a case of its type-typical in many ways and the normal tests may perhaps not properly apply to test its character." (20) In Chandra Mohan Khannas case (supra) their Lordships were considering the question as to whether National Council of Educational Research and Training is State. After referring to the cases of Sukh Dev Singh vs. Bhagat Ram, R.D. Shetti vs. International Airport Authority, Ajay Hasiya vs. Khalid Mujib Sehravardhi and Som Prakash Rekhi vs. Union of India, their Lordships observed as under: — "The State control, however, vast and pervasive is not determinative. The financial contribution by the State is also not conclusive. After referring to the cases of Sukh Dev Singh vs. Bhagat Ram, R.D. Shetti vs. International Airport Authority, Ajay Hasiya vs. Khalid Mujib Sehravardhi and Som Prakash Rekhi vs. Union of India, their Lordships observed as under: — "The State control, however, vast and pervasive is not determinative. The financial contribution by the State is also not conclusive. The combination of State and coupled with an unusual degree of control over the management and policies of the body and rendering of an important public service being the obligatory functions of the State may largely point out that the body is State." (21) The Court took notice of the objects of NCERT and observed that the Government control is confined only to the proper utilisation of the grant and the Council was an autonomous body. Merely because the funds were being provided by the Government of India, it cannot be said that its activities are regulated government. The affairs of the NCERT are conducted by the Executive Committee comprising of Government Servants and educationists. The source of funds of the Council are other than the grants made by the Governmental so. On that basis the Court held that NCERT cannot be treated as falling within the ambit of the term, "other authorities " used in Article 12 of the Constitution of India. (22) The principles of law down in Tek Raj Vasandhis case (supra), Chandra Mohan Khannas case (supra) are fully attracted in the facts of this case. I find that the respondent Council is a body created by a group of people who were interested in advancing the cause of the Gemstone and Jewellery Industry. The entire control over the working and functioning of the respondents Council vests in the Working Committee. The Government has a very limited role to play in the functioning of the Council. The Government no doubt provides some funds to the Council but the control of the Government is limited to the extent that the Government checks misuse of funds provided by it. None of the functions of the Council can be described as Governmental functions or functions of public nature. The councils activities affect only a small segment of the society and the activities are not such, which were earlier being carried by a department of the Government. It cannot therefore, be held to be an agency or instrumentality of the State. None of the functions of the Council can be described as Governmental functions or functions of public nature. The councils activities affect only a small segment of the society and the activities are not such, which were earlier being carried by a department of the Government. It cannot therefore, be held to be an agency or instrumentality of the State. (23) In view of my finding on the preliminary objection, I do not consider it necessary to deal with the controversy raised by the petitioner on the merits. (24) The preliminary objection raised by the respondents is sustained and therefore the writ petition is dismissed. No costs.