2009 Supreme(Ori) 609
IN THE HIGH COURT OF ORISSA
S.C. Parija, B.P. Das, JJ.
NORTH EASTERN ELECTRICITY SUPPLY COMPANY OF ORISSA LTD. - APPELLANT
Versus
STATE OF ORISSA AND OTHERS - RESPONDENT
Decided On : 09-12-2009
The central legal point established in the judgment is the interpretation of the definition of 'public authority' under the RTI Act and its application to entities engaged in essential public duties.
Headnote:
Right to Information Act - Definition of Public Authority - Section 2(h) - Electricity Act, 2003, Orissa Electricity Reforms Act, 1995 - [Bombay High Court, Punjab and Haryana High Court, Uttar Pradesh High Court Decisions] - The court discussed the definition of 'public authority' under Section 2(h) of the Right to Information Act and its application to entities engaged in essential public duties. The court considered the control, financing, and performance of the distribution companies under the Electricity Act and Orissa Electricity Reforms Act, and concluded that the Petitioner company is a 'public authority' as defined in the RTI Act.
Fact of the Case:
The writ application challenged the State Government's decision that the Petitioner company falls within the definition of 'public authority' as per the Right to Information Act, 2005.
Finding of the Court:
The court found that the Petitioner company, engaged in distribution and supply of electricity, is a 'public authority' as defined in the RTI Act, based on the control, financing, and performance of the distribution companies under the Electricity Act and Orissa Electricity Reforms Act.
Issues: The main issue was whether the Petitioner company qualifies as a 'public authority' under the RTI Act.
Ratio Decidendi: The court applied the definition of 'public authority' under Section 2(h) of the RTI Act and considered the control, financing, and performance of the distribution companies under the Electricity Act and Orissa Electricity Reforms Act to determine the status of the Petitioner company.
Final Decision: The writ application was dismissed as the court concluded that the Petitioner company is a 'public authority' as defined in the RTI Act.
JUDGMENT :
S.C. Parija, J. - This writ application is directed against the letter of the State Government in the Energy Department dated 16.03.2006 (Annexure-2), holding that the Petitioner company falls within the definition of "public authority" as defined in Section 2 (h) of the Right to Information Act, 2005 (for short RTI Act).
2. The sole contention raised by the Learned Counsel for the Petitioner is that the Petitioner company, i.e. North Eastern Electricity Supply Company of Orissa Limited (NESCO) is a public limited company, incorporated under the Companies Act, 1956, on 19.11.1997, having its registered office at Bhubaneswar & commenced its business from 26.11.1998, as a 100% subsidiary of Grid Corporation of Orissa Limited (for short GRIDCO), which is a wholly owned Government Company, with the object of undertaking distribution & supply of electricity. The Petitioner company is engaged in distribution & supply of electricity in the southern parts of Orissa under a statutory licence granted to it by the Orissa Electricity-Regulatory Commission (OERC). The Petitioner company was privatized on 01.04.1999 as per the transfer scheme envisaged under the Orissa Electricity Reforms (Transfer of Assets, Liabilities, Properties & Personnel of GRIDCO to Distribution Companies) Rules, 1998, (for short 1998 Rules), & became a joint venture company between BSES Ltd. & GRIDCO, after 51% equity & management control was divested by the GRIDCO in favour of the Petitioner company. Accordingly, the GRIDCO, which is a wholly owned Government Company, was dissolved & its assets, undertakings, employees & liabilities etc. were vested with the Petitioner company. The business of the Petitioner company is governed by the provisions of the Electricity Act, 2003 & Orissa Electricity Reforms Act, 2005 & rules/regulations framed thereunder & their performance & tariff are regulated by OERC.
3. It is accordingly submitted by the Learned Counsel for the Petitioner that the Petitioner company being a public limited company engaged in distribution & supply of electricity in the southern part" of Orissa, under a licence granted to it by the OERC, it is not a "public authority", as defined in Section 2(h)(i) of the RTI Act & therefore, the decision of the State Government in the Energy Department, holding that the Petitioner company falls within the said definition is erroneous & misconceived. In support of his contention, Learned Counsel has relied upon a Single Bench decision of Bombay High Court, in the case of Dr. Panjabrao Deshmukh Urban Co-operative Bank Ltd., Vidarbha Region Vs. The State Information Commissioner and Others, .
4. In the said decision, Hon'ble Single Judge was considering the question whether the Petitioner, which was Co-operative Bank, was a "public authority" within the meaning of Section 2(h) of the RTI Act. On the tacts of the said case, the Hon'ble Court held that there was nothing to show that the Petitioner-Bank was having any monopoly nor it had any State protection. The Co-operative Bank did not discharge any governmental function & the function of the Bank can be carried out by any private individual or by institution registered under the appropriate law. Accordingly, the Hon'ble Court proceeded to hold that as there was no direct or indirect control over the affairs of the Bank for deep & pervasive control, the Petitioner-Bank was not a "public authority", within the meaning of Section 2(h) of the RTI Act.
5. Learned Advocate General with reference to the counter affidavit filed by the State submits that to provide for restructuring of the electricity industry for rationalization of the generation, transmission, distribution & supply of electricity, for avenues for participation of private sector entrepreneurs in the electricity industry in the State in an efficient, economic & competitive manner including the constitution of an Electricity Regulatory Commission for the State & for matters connected therewith or incident