The Supreme Court of India has held that a statutory authority or instrumentality of the State cannot invoke its original jurisdiction under Article 131 of the Constitution, reiterating that the provision is strictly confined to inter-governmental disputes involving the Union of India and one or more constituent States.

High Court Erred in Treating Statutory Body as 'State' under Article 131

Setting aside an order of the Allahabad High Court (Lucknow Bench), the apex court found that the High Court fundamentally misconstrued the nature of the dispute involving the Lucknow Development Authority (LDA) and the Union of India over military cantonment land possession.

Key Legal Principles Clarified by the Supreme Court

  • Article 12 vs. Article 131: The Bench emphasized that while a statutory authority (such as the LDA under the UP Urban Planning and Development Act, 1973) may fall under the wider definition of "State" for fundamental rights under Article 12, it does not constitute a "State" for Article 131.
  • Constituent States Only: The term "States" in Article 131 exclusively refers to the constituent States specified in the First Schedule to the Constitution of India.
  • Remand for Fresh Decision: Terming the dismissal of LDA's writ petition a "gross error" after it remained pending for nearly two and a half decades, the apex court remitted the matter back to the High Court for an expeditious hearing on merits.

The decision reinforces jurisdictional boundaries, preventing statutory authorities and public sector corporations from shortcutting ordinary judicial remedies via Article 131 suits.