ISSUE:
Intention and knowledge are different things. In order to possess and to form an intention, there must be a capacity for reason. And when by some extraneous force the capacity for reason has been ousted, it seems that the capacity to form an intention must have been unseated too. But to the minds of the judges, knowledge stands upon a different footing. Some degree of knowledge must, we think, be attributed to every sane person.
RULE:
Bodies like LIC and ONGC were created by statutes and had the statutory power to make binding rules and regulations, and were under the pervasive control of the Government. In light of these facts, and the combination of State aid and furnishing of an important public service by these corporations, made these corporations to be State under Art 12.