The Supreme Court has ruled that the welfare of armed forces personnel is a core government function, qualifying a group insurance society for serving and retired Air Force members as a 'State' under the Constitution.
The court held that providing insurance coverage to service members addresses a collective obligation the State has towards a defined public class whose service is indispensable.
The ruling significantly broadens the interpretation of 'State' under Article 12, allowing entities performing essential public functions under deep governmental influence to fall within the constitutional definition.
The judgment came on an appeal by employees of the Air Force Group Insurance Society who challenged a decision to delink their pay structure from Central government pay commissions.
The Supreme Court set aside the Delhi High Court's ruling, saying the question of whether an entity qualifies as 'State' cannot be determined merely by its formal legal structure or funding pattern.
The bench noted several factors indicating deep and pervasive governmental involvement in the Air Force Group Insurance Society, including compulsory membership and insurance premiums deducted from salaries.
The court underscored that the role performed by the society goes beyond a purely private insurance arrangement, safeguarding the dignity, economic security, and well-being of service members and their families.
