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2022 Supreme(Online)(KER) 63682
HIGH COURT OF KERALA
AMIT RAWAL, J
COCHIN INTERNATIONAL AIRPORT LIMITED – Appellant
Versus
THE STATE INFORMATION COMMISSION – Respondent
WP(C)/20452/2019
P.BENNY THOMAS, SRI.D.PREM KAMATH, SRI.C.E.UNNIKRISHNAN, SRI.M.AJAY, SRI.P.K.IBRAHIM, SMT.K.P.AMBIKA
A public limited company may be classified as a public authority under the RTI Act if it is significantly financed or controlled by the government, regardless of private shareholding status.
Headnote:
Public Authority - Right to Information - RTI Act, 2005 Section 2(h) - The court determined that the petitioner, Cochin International Airport Limited (CIAL), qualifies as a public authority under the RTI Act, interpreting 'public authority' in line with its statutory definitions and established judicial interpretations, particularly focusing on control and substantial financing aspects.
Fact of the Case:
The case involved multiple writ petitions where Cochin International Airport Limited (CIAL) contested being labeled a 'public authority' under the RTI Act. It asserted that its majority shares were held by private entities, claiming independence from government control despite some state investment.
Issues: The two primary issues were whether CIAL qualifies as a public authority under section 2(h) of the RTI Act and if it was obliged to disclose information requested by the responding parties.
Ratio Decidendi: The court concluded that the government’s equity stake and control mechanisms (such as director appointments) were sufficient to classify CIAL as a public authority under the RTI Act, citing the definitions and relevant judicial rulings.
Final Decision: The writ petitions were dismissed and it was affirmed that CIAL is a public authority bound by the provisions of the RTI Act.
JUDGMENT
This judgment of mine shall dispose of batch of writ petitions bearing Nos. 19656/2019, 20175/2019, 20201/2019, 20209/2019, 20214/2019, 20280/2019, 20373/2019, 20383/2019, 20387/2019, 20432/2019, 20435/2019, 20452/2019, 20462/2019, 20497/2019, 20528/2019, (hereinafter called as first writ petition), W.P.(C) No. 19452/2019 (hereinafter called as second writ petition).
2. Pertaining to the first writ petition, batch cases, where the petitioner is Cochin International Airport Limited (CIAL) and respondents are The State Information Commission along with party respondents who were earlier residents of the locality where CIAL is situated now had given their land for project CIAL on assurance that the needy displaced people from the project site will be given employment, by way of direct employment, in agencies or other facilities associated with airport.
3. The batch of writ petitions bearing nos. 19656/2019, 20175/2019, 20201/2019, 20209/2019, 20214/2019, 20280/2019, 20373/2019,20383/2019, 20387/2019,20432/2019, 20435/2019, 20452/2019, 20462/2019, 20497/2019, 20528/2019, the petitioners aggrieved by Ext. P10 order have come to this court seeking common prayer which is as follows;
I.To issue a writ of certiorari calling for records leading to Ext. P10 order of the Respondent no. 1 dated 20.06.2019 and quash the same;
II. To declare that the petitioner is not a public authority within the meaning of section 2(h) of the Right To Information Act, 2005 and is not amenable to the provisions of the RTI Act;
III. Stay the operation and implementation of the impugned order Ext.P10 during the pendency of this writ petition.
4. The facts in brief in all the above mentioned writ petitions are as follows:- The petitioner, Cochin International Airport Limited (CIAL)
is a public limited company incorporated under the Companies Act, 1956. The main object of the company is to construct, develop, and maintain an airport of International standards with all modern facilities for domestic and international flights by Indian and Foreign Airlines and all other related activities as detailed in main object clause III(A) in the Memorandum and Articles of Association of the Company Ext. P1. The petitioner company was promoted by seven (7) promoters viz., Kochi International Airport Society (KIAS), Cochin Chamber of Commerce, Indian Chamber of Commerce and Industry, R. Madhavan Nair, C.V. Jacob and B. Govinda Rao. Till date the majority of the paid up share capital (67.58%) of the petitioner was held by private parties/persons other than Government of Kerala, which had no investment in the equity capital of CIAL at the time of its incorporation and had invested in the share capital of CIAL only after two years from its date of incorporation after which the petitioner had commenced the airport construction facilities utitlizing Rs. 40 crores term loan from HUDCO and over Rs. 10 crores from equity contributed by private players. It is evident from Ext.P2 share holding pattern as on 01.10.2018 that the percentage of CIAL's equity held by the Government of Kerala is only 32.42% at date therein. Government of Kerala has only invested in the 'share capital' of CIAL and not made any financing or funding to CIAL. There was no free funding from Government of Kerala to CIAL and for the entire money put in by the Government of Kerala CIAL has issued shares.
5. The Government of Kerala's first investment in the petitioner CIAL was in April 1996, an amount of Rs.1 crore, followed by investments in 1996-97, 1998-99, 1999-2000, with amounts of Rs.5 crores, Rs15.85 crores, Rs.6 crores, respectively making its total investment Rs. 27.85 crores as on 31.03.2000 out of Rs. 78 crores. Though Government of Kerala vide G.O. had committed to invest Rs. 45.90 crores ( 51 % of the authorised share capital of CIAL), but did not invest Rs.15.7 crores and hence CIAL was forced to borrow funds from financial institutions at an exorbitant rate which led to its debt trap in the initial
