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2008 Supreme(Mad) 2815

High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. A.K. GANGULY & HE HONOURABLE MR. JUSTICE F.M. IBRAHIM KALIFULLA
Tamil Nadu Road Development Company Limited, Rep. by its Director-in-Charge
Versus
Tamil Nadu Information Commission, rep. by its Registrar & Another
W.A.No.811 of 2008 and M.P.No.1 of 2008
Decided on : 05-08-2008

Advocates Appeared:
For the Appellant :R.Muthukumarasamy, Senior Counsel, V. Ramajegadeesan, Advocate.
For the Respondents:R1, G. Rajagopalan, Senior Counsel, M/s. S.R.Associates, R2, D. Nagasila Advocate.

The main legal point established is that the interpretation of the term 'public authority' under the RTI Act should be purposive and broad, considering the control and substantial financing by the government, to promote transparency and accountability.

Headnote:

RTI Act - Public Authority - Section 2(h)

Fact of the Case:

The appellant, a company, refused to furnish details requested under the RTI Act, claiming it was not a public authority under Section 2(h). The court examined the composition of the company, its financing, and control by the government to determine its status as a public authority.

Finding of the Court:

The court found that the appellant company, despite being a limited company incorporated under the Companies Act, fell within the definition of a public authority under Section 2(h)(d)(i) of the RTI Act due to substantial government control and financing. The court emphasized the importance of transparency and accountability in the functioning of public authorities.

Issues: The main issue was whether the appellant company qualified as a public authority under Section 2(h) of the RTI Act.

Ratio Decidendi: The court interpreted the definition of 'public authority' liberally, considering the control and substantial financing by the government, in line with the purpose of the RTI Act to promote transparency and accountability in public authorities.

Final Decision: The court upheld the decision that the appellant company was a 'public authority' under Section 2(h)(d)(i) of the RTI Act and dismissed the appeal.

Judgment :

This writ appeal is directed against the judgment and order dated 17th July, 2008 passed by a learned Judge of the writ Court, whereby the learned Judge was pleased to dismiss the writ petition and inter alia upheld the order passed by the Tamil Nadu Information Commission dated 21.05.2008, whereby the State Commission, the first respondent herein, held that the appellant is a ‘public authority’ under Section 2(h) of the Right to Information Act, 2005 (herein after referred to as the “RTI Act”) and directed the appellant to furnish the required information to the second respondent.

2. The material facts of the case which are not disputed are that the second respondent in her letter dated 210. 2007 requested the appellant to furnish the following details.

(i)Who are the contractors for constructing the IT corridor?

(ii)Copies of contract agreements with the contractors constructing the IT corridor?

(iii)Copies of documents published by TNRDC or other consultants about the IT corridor?

The appellant refused to furnish those details. The main ground of objection on which the matter was argued before us is that the appellant is not covered under the RTI Act, inasmuch as it is not a public authority within the meaning of Section 2(h) of the RTI Act. Section 2(h) of the RTI Act defines a public authority as follows:-

“2(h). “public authority” means any authority or body or institution of self-government established or constituted –

(a)by or under the Constitution;

(b)by any other law made by Parliament;

(c)by any other law made by State Legislature;

(d)by notification issued or order made by the appropriate Government,

and includes any –

(i)body owned, controlled or substantially financed;

(ii)non-government organization substantially financed,

directly or indirectly by funds provided by the appropriate Government.”

3. Learned counsel for the appellant submits that the order of the first respondent dated 21.05.2008 which held that the appellant is a public authority under Section 2(h) of the RTI Act is erroneous and the learned writ court by affirming the said decision committed an error of law. The said error should be corrected by this appeal Court. Learned counsel for the appellant further submitted by referring to the definition under Section 2

(h) that the appellant is not established or constituted under the Constitution, by any law of the Parliament or any State Legislature, nor by any notification issued or order made by the appropriate Government. He also submitted that the appellant couldn’t be included within the definition of a body owned, controlled or substantially financed, or a non-Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government. Learned counsel submitted that the appellant is a limited company incorporated under the provisions of the Companies Act in the year 1998 and was jointly promoted by the Tamil Nadu Industries Development Corporation (TIDCO), which is a public sector undertaking, wholly owned by the Government of Tamil Nadu, and M/s.Infrastructure Leasing and Finance Services Limited (IL&FS), which is a non-Government investment company. Thus, both TIDCO and IL&FS have equal stakes in the appellant company having 50% shares. Therefore, it would not fall within the ambit of a public authority under the provisions of Section 2(h) of the RTI Act.

4. When the matter was heard on the first day viz., 28.07.2008, this Court adjourned it to the next day and directed learned counsel for the appellant to file the Memorandum and Articles of Association of the appellant company.

5. Pursuant to such direction, the Memorandum and Articles of Association were filed before this Court. From a perusal of the said Memorandum it appears that the appellant company was incorporation on 28th May, 1998 under the Companies Act as a Public Limited Company, and thereafter, its Memorandum of Association was amended in 1999, as a result the Articles



























































































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