The Supreme Court has ruled that the Air Force Group Insurance Society (AFGIS) is a 'State' under Article 12 of the Constitution, as it performs public duty by protecting and looking after the welfare of armed forces personnel and their families.
The court overturned the Delhi High Court's view on a pay parity dispute related to AFGIS employees, stating that the society is under the deep and pervasive control of the government.
The bench of Justices Sanjay Karol and Vipul M Pancholi observed that the President of India granted sanction for AFGIS to be established and approved the deputation rules, indicating a high level of administrative control.
The court also noted that the principal director of AFGIS has to apprise the assistant chief of air staff every month about the cash flow of the society, ensuring monitoring by a core member of the IAF on its activities.
The top court said that providing insurance coverage is a public function as it addresses a collective obligation the state has towards a defined public class whose service is indispensable.
The court further elaborated that the role of the State in protecting armed forces personnel does not end upon their superannuation from service, as the life of a person from the forces is forever shaped by their time in service.
The Supreme Court restored the petition of employees seeking sixth pay commission before the Delhi high court, saying it is maintainable as AFGIS is 'State' under Article 12 of the Constitution.
