The main legal point established was that for an entity to be classified as a 'public authority' under the RTI Act, it must receive substantial finance from the government or be controlled by the government.

Vipin Sanghi, J.

1. These are two petitions, preferred by the Northern Zone Railway Employees Cooperative Thrift and Credit Society Limited (in short “NZRE”), to assail two orders, dated 15th June, 2009 (in W.P.(C) No. 12210/2009 ) and dated 22nd June, 2009 (in W.P.(C) 13550/2009) passed by the CIC, whereby the learned CIC has, inter alia, held that the petitioner is a “public authority” within the meaning of Section 2(h) of the Right to Information Act, 2005 (in short “RTI Act”), and on that basis, issued directions to the petitioner and imposed penalty on the petitioner.

2. The queriests in these cases raised various queries relating to the petitioner, upon Northern Railway. In those proceedings, wherein the petitioner was not a party and was not noticed at all, the learned CIC has taken a view that the petitioner is a public authority. For this purpose, the CIC has relied upon an earlier order dated 14th July, 2008 passed in case no. CIC/OK/A/2008/00211 wherein also, the respondent/public authority before the CIC, was Northern Railway. In the said order dated 14th July, 2008 the CIC had observed as follows:-

“……During the hearing, the Respondents admitted that the NZRE was a Society of the Railway Employees and that deductions made from the employees salaries towards the payment of premium of LIC policies was sent to them. Moreover, the land on which the office of the NZRE was located was given to them by the Railways (this would amount to indirect funding) and the Railways issued free passes to the Members for attending the meetings. In fact, there was a close coordination between the NZRE and the Railway authorities. Under the circumstances, the Commission fails to understand as to how the NZRE can take a stand they were not a public authority – though they may function in an autonomous manner.

7. Accordingly, the Commission directs the NZRE to provide to the Applicant the information asked for. Infact, it seems strange that the NZRE should hold an LIC policy and not divulge its contents when the policy holder needs the detail thereof. If thereof, directs the NZRE to open up all the files and records regarding the LIC policy held by them of the employees concerned. This they should do by 5 August 2008.”

3. It appears that this order was also passed by the CIC without notice to or hearing the petitioner.

4. The first submission of learned counsel for the petitioner is that the CIC should not have ruled on the status of the petitioner as being a “public authority”, when the case of the petitioner was that it was not a “public authority” within the meaning of Section 2(h) of the RTI Act, without notice to, and granting hearing to the petitioner. I fully agree with this submission of the learned counsel for the petitioner, as an order, which has a bearing on the status, rights and obligations of a party qua the RTI Act, could not have been passed without even complying with the basic principles of natural justice, which are embedded and engrained in the RTI Act. On this short ground, the conclusion drawn by the learned CIC that the petitioner is a “public authority” within the meaning of Section 2(h) of the RTI Act cannot be sustained, and is liable to be set aside.

5. I would have considered remanding the case back to the CIC for determination of the said issue afresh after granting an opportunity to the petitioner and the other parties to put forward their case, but the parties have made detailed submissions on the said legal aspect before me. The submissions of the parties are premised on documents placed on record, and the said issue is a legal issue. I have heard them at length and, consequently, I proceed to consider the said submissions and decide the issue as to whether the petitioner is, or is not, a public authority.

6. The submission of Mr. Bhaduri is that the petitioner is a society which has been constituted with the object to promote the interests of all its members to attain their social and economic