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2025 Supreme(Online)(Kar) 41398

THE HIGH COURT OF KARNATAKA
MR. R. NATARAJ, J
THE NURSERYMEN CO-OPERATIVE SOCIETY LTD., LALBAGH, BANGALORE-560004 – Appellant
Versus
KARNATAKA INFORMATION COMMISSION – Respondent
WRIT PETITION NO. 8060 OF 2018 (GM-RES)



Advocates:
For the Appellants/Petitioners: SRI. RAMACHANDRA N.
For the Respondents:SRI. MAHANTESH SHETTAR, AGA FOR R1 TO R3, SRI.G.B SHARATH GOWDA, ADVOCATE FOR R1, SRI. GANAPATI BHAT VAJRALLI, ADVOCATE FOR R4

Public authorities are defined by substantial financing from the government, directly or indirectly, affecting their operational capacity, regardless of whether this financing exceeds 50%.

Headnote:(A) Karnataka Co-operative Societies Act, 1959 - Right to Information Act, 2005 - Definition of Public Authority - The petitioner contended it was not a public authority as it claimed minimal State assistance, but the court found substantial State involvement and financing. (Para 12, 14, 18)

(B) Substantial financing - The term is interpreted to mean any significant financial support from the government, which can be direct or indirect, impacting the body's operations considerably - The Court explained that mere receipt of minor funds does not exclude it from being termed substantially financed. (Paras 15-18)

Facts of the case:
The petitioner argued against being classified as a public authority, citing minimal government support and control, despite receiving financial assistance under the National Horticultural Mission and having a significant lease agreement with the State. (Paras 2-8)

Findings of Court:
The Court clarified that the petitioner is substantially financed by the State and thereby qualifies as a public authority under the Act, 2005. The Court dismissed the petition challenging the Information Commission's order.

Issues: Whether the petitioner qualifies as a public authority under the Right to Information Act, based on State financial support and control over operations.

Ratio Decidendi: The Court determined that significant State financial assistance and control categorizes the petitioner as a public authority, emphasizing the broader interpretation of substantial financing under the Act.

Result: Petition dismissed.

Table of Content
1. overview of the petitioner and lease background. (Para 1 , 2 , 3 , 4)
2. petitioner's claim of non-public authority status. (Para 5 , 6)
3. respondent's assertion of public authority. (Para 8 , 9)
4. court's evaluation of arguments presented. (Para 10 , 11)
5. legal definition of public authority and substantial financing. (Para 12 , 13 , 14)
6. interpretation of 'substantially financed' by the supreme court. (Para 15 , 16 , 17)
7. court affirming public authority status of the petitioner. (Para 18 , 19)
8. conclusion to dismiss the petition. (Para 20)

ORAL ORDER

The petitioner has challenged an order dated 27.12.2017 passed by the respondent No.1 in Appeal No.KIC/2395APL/2014, by which, it was directed to furnish information sought by the respondent No.4.

2. The petitioner contends that it is a Co-operative Society registered under the Karnataka Co-operative Societies Act, 1959 (henceforth referred to as ‘the Act, 1959’ for short). One of its objectives is to assist its members in the activities of establishing a plant nursery by promoting them to raise plants and seeds and to sell them through it. The petitioner contends that it is run from the share capital collected from its members and as per its bye-laws. The petitioner contends that the State Government passed on a notification dated 18.02.1991 executing lease of its property for a period of 25 years at the rate of Rs.2,500/- per acre. It contends that the period of lease has expired and now a proposal is sent for renewal.

3. The petitioner contends that it was assisted by the Central Government under the National Horticultural Mission Scheme (henceforth referred to as 'NHM' for short) with a grant of Rs.60,00,000/- sanctioned in 2006-07. The society had also sanctioned a loan of Rs.19,25,000/- and partially recovered Rs.12,29,674/- in the year 2015-16 and for the year 2016-17 it had sanctioned loan of Rs.29,75,000/- and partially recovered Rs.20,51,951/-. It claims that it had earned a net profit of Rs.50,65,934/- in the year 2015-16 and Rs.1,46,86,925-05/- from its business in the year 2016-17.

4. The petitioner contends that respondent No.04 submitted an application on 21.11.2013 seeking copies and details of the orders obtained/received by the petitioner from the State and Central Government in the last five years.

5. After receipt of the application, it replied on 27.12.2014 that it was not a public authority as defined under Section 2 (h)(ii) of the Right to Information Act, 2005 (henceforth referred to as 'the Act, 2005' for short). It also claimed that the it did not receive any financial assistance from the State Government. It also contended that it was running its business on land leased by the State Government for which rent was collected.

6. The respondent No.2 noting the contention of the petitioner rejected the application filed by the respondent No.4. The respondent No.4 then filed an appeal under Section 19 (1) of the Right to Information Act, 2005 before the respondent No.3. The petitioner appeared and submitted its objections, reiterating its contention that it was not a public authority and that the State Government was collecting rent for the land leased to it. It also contended that as per the audit report for 2016-17, the assets of the petitioner showed NHM subsidy as an asset. It was also informed that a representative of the State Government working as Additional Director, Horticultural Department was one of the members of the management of the petitioner society and he was acting as the president of the society at that point in time.

7. The respondent No.1 allegedly, without taking into consideration the contentions urged, allowed the appeal filed by the respondent No.4 and directed the respondent No.2 to furnish information in terms of an order dated 27.12.2017. Being aggrieved by the said order, the petitioner is before this Court.

8. The learned counsel for the petitioner contended that the petitioner is not a public authority as it is no

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