The State Trading Corporation of India Ltd. & Ors V. The Commercial Tax Ofﬁcer, Visakhapatnam & Ors; 1963
The State Trading Corporation had approached the court for the issuance of special writs against agencies of the state governments based on sales tax which were targeted on the corporation. The petition was to ascertain the facts in Article 32 of the Constitution which allows the Supreme Court to issue special orders for the enforcement of the rights of citizens. The question as to whether the State Trading Corporation which is a company that is registered under the Indian Companies Act, 1956 can be regarded as a citizen and can seek for the enforcement of thefundamental rights of citizens and whether the STO is an organ of the government and can request for the enforcement of the rights of citizens against a state as under part III of the constitution of India.
The Appeal was dismissed by the Supreme Court on the 26 of July 1963 because as implied by the Powers of the Corporate entity; all citizens are persons but all persons cannot be a citizen and a Company or a corporation ceases to be a person from the date of its incorporation. Also, since the corporation performs the functions of a commercial entity, it cannot be regarded as an organ or a department of the government of India.