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2024 Supreme(Online)(CIC) 6905

CENTRAL INFORMATION COMMISSION
ANANDI RAMALINGAM, J
NITIN SETIA – Appellant
Versus
Bank of Baroda – Respondent
CIC/BKOBD/A/2023/146035



A director's right to access company information is subject to authorization requirements, and third-party privacy protections under the RTI Act must be observed.

Headnote:(A) Right to Information Act, 2005 - Sections 6(1), 8(1)

(D), (E), (J), and 11(1) - RTI application filed by director of company for information on specific bank transactions - CPIO denied information citing third-party exemption - FAA directed CPIO to revisit application - Commission directed CPIO to seek consent of third party before disclosure. (Paras 1-8)

(B) Right to Information - The right of a director to access company records without a board resolution was contested, emphasizing the need for proper authorization from the company. (Paras 6-7)

Facts of the case:
The appellant, a director of Stone Tech Di Abrasive Ltd., sought copies of cheques for company transactions to safeguard interests following the resignation of other directors. The CPIO denied the request citing third-party information exemptions and lack of authorization.

Findings of Court:
The Commission directed the CPIO to seek consent from the third-party signatory and provide a revised response within 30 days.

Issues: The main issues included the director's right to access information without a board resolution and the applicability of third-party exemptions under the RTI Act.

Ratio Decidendi: The court emphasized that the director's right to information must be balanced with the need for proper authorization and third-party privacy protections.

Result: Appeal disposed of.

O R D E R

1. The Appellant filed an RTI application dated 27.07.2023 seeking information on the following points:

“Sir, I'm submitting this application under section 6(1) of the RTI Act 2005 to seek the following information regarding the bank account no xxxx00000885 and xxxxx0000056 which are in your bank of stone Tech Di Abrasive Ltd. I'm director of the above mentioned company i.e. Stone Tech Di Abrasive Ltd. Related documents are attached with application as proof of my identity. I'm seeking the following information about the transactions made in the account.

The following cheque issued by the company which has been presented in the branch for encashment/payment and transfer of money to another account.

kindly provide me the copies of the following cheques. These cheques have been issued by the company from date to date”…etc.

2. The CPIO replied vide letter dated 25.08.2023 and the same is reproduced as under :-

“The information you have asked for in the relevant question cannot be provided to you under Sections 8 (1) (D), (E) and (J) of the Right to Information Act as this information is in respect of a third party and its disclosure does not support any public interest.

We have not received any enclosures as stated in your RTI application and further you are advise to provide Company's Board Resolution along with your RTI Application.”

3. Dissatisfied with the response received from the CPIO, the Appellant filed a First Appeal dated 31.08.2023 alleging that the information provided was incomplete, false and misleading. The FAA vide order dated 15.09.2023 directed the CPIO to revisit the RTI Application dated 27.07.2023 on merits as per the provisions of the RTI Act and dispose of the said application within a period of 15 days from the date of receipt of this order.

4. Aggrieved with the FAA’s order, the Appellant approached the Commission with the instant Second Appeal dated 20.11.2023.

5. The appellant’s representative Mr. Ravi Setia (father) remained present through video conference and on behalf of the respondent Mr. Deepak Kumar Singh, CPIO attended the hearing through video conference.

6. The appellant’s representative inter alia submitted that Nitin Setia (Appellant) is a Director and stake holder in Stone Tech Di Abrasive Ltd., had sought verified copies of specific cheques issued from two company accounts at Bank of Baroda, to verify transactions made on behalf of the company. He claimed this information was necessary to safeguard the company’s interests, especially after the resignation of other directors.

He asserted his right to access the records without requiring a board resolution, as no board resolution can be passed in the absence of other directors.

7. The respondent while defending their case inter alia submitted that a suitable reply as per the provisions of the RTI Act has been furnished to the Appellant stating that a Company being a separate legal entity, the Appellant needs to submit authorization letter/board resolution authorizing him to get information in respect of the Company. In absence of the said document, they are unable to accede to his request and the same is exempted to disclose under Sections 8 (1)(d), (e) and (j) of the Right to Information Act.

8. The Commission after adverting to the facts and circumstances of the case, hearing both parties and perusal of records, directs that Respondent to follow the procedure laid down under Section 11(1) of the RTI Act by seeking the consent of the third party concerned i.e. the authorized signatory of the company on the disclosure of the information and based on their response provide a revised reply to the appellant, under intimation to the commission. The above directions shall be complied with, within a period of 30 days from the date of receipt of this order under intimation to the Commission. Accordingly, the appeal is disposed of.

Copy of the decision be provided free of cost to the parties.

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