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The Supreme Court’s jurisprudence establishes that commercial confidence under the RTI Act refers to information that, if disclosed, would harm the competitive or fiduciary interests of a third party, including trade secrets, intellectual property, or sensitive business data. The Court requires clear and cogent evidence of potential harm before invoking exemptions under Sections 8(1)(d) and (j). While transparency remains a fundamental goal of the RTI Act, the protection of commercial secrets and confidential information is paramount, especially where disclosure could adversely affect the third party’s competitive position or violate fiduciary duties. The Court's rulings underscore a nuanced approach, balancing public interest with the need to protect sensitive commercial information.
References:- Guruswamy K D vs CPIO: Canara Bank, Chikkamagalur, Karnataka - 2025 Supreme(Online)(CIC) 4202 - 2025 Supreme(Online)(CIC) 4202- RAMESH D. SARASIA vs S.V. National Institute of Technology Surat - 2024 Supreme(Online)(CIC) 2021 - 2024 Supreme(Online)(CIC) 2021- NEERAJ SHARMA vs Union Bank of India - 2022 Supreme(Online)(CIC) 2155 - 2022 Supreme(Online)(CIC) 2155- Nallamsetti Siva Prasad Babu vs State Bank of India, Hyderabad - 2025 Supreme(Online)(CIC) 1968 - 2025 Supreme(Online)(CIC) 1968- Prashant Kumar Awasthi vs Baroda U.P. Bank - 2025 Supreme(Online)(CIC) 1974 - 2025 Supreme(Online)(CIC) 1974- Beach Mineral Sands Co. , Pvt. , Ltd. , Tirunelveli VS Central Information Commission, Represented by its Information Commissioner, New Delhi - 2022 0 Supreme(Mad) 793- RAHUL KUMAR SINGH vs State Bank of India - 2023 Supreme(Online)(CIC) 7909 - 2023 Supreme(Online)(CIC) 7909
In the realm of transparency and governance in India, the Right to Information (RTI) Act, 2005, plays a pivotal role. However, not all information can be disclosed freely. A key question often arises: What does the Supreme Court say constitutes 'commercial confidence' under the RTI Act? This blog post delves into the judicial interpretation, drawing from landmark rulings and related cases to provide clarity on exemptions, scope, and practical applications.
Note: This article offers general information based on judicial precedents and is not intended as specific legal advice. Consult a qualified lawyer for personalized guidance.
Under Section 8(1)(d) of the RTI Act, certain information is exempt from disclosure. This includes commercial confidence, trade secrets, or intellectual property, where disclosure is likely to harm the third party's competitive position. The Supreme Court has emphasized that such exemptions must be construed strictly Goods & Service Tax Network VS Information Commissioner, CIC - 2020 0 Supreme(Del) 892.
The core legal finding is that commercial confidence relates to proprietary or confidential business interests. Its release must pose a real threat to the third party's economic or competitive standing. Mere labeling as 'confidential' does not suffice; there must be demonstrable harm 12100143413.
In Supreme Court of India vs. Subhash Chandra Agarwal (2019 SCC OnLine SC 1459), a Constitution Bench provided crucial clarification. The Court held that Section 8(1)(d) exemptions apply to information including commercial confidence, but only where disclosure harms competitive superiority. It stressed strict construction of exemption clauses, confining protection to classic breaches involving commercial information and intellectual property Goods & Service Tax Network VS Information Commissioner, CIC - 2020 0 Supreme(Del) 892.
The judgment underscores: the defense of confidentiality is limited to classic breaches involving commercial information and intellectual property Goods & Service Tax Network VS Information Commissioner, CIC - 2020 0 Supreme(Del) 892. This ruling ensures RTI promotes transparency without unduly shielding non-qualifying information.
The Supreme Court explicitly limits Section 8(1)(d) to scenarios involving trade secrets (e.g., technological know-how, proprietary processes) or intellectual property (e.g., patents). General business data may not qualify unless competitive harm is proven 12100143413.
For instance, in cases involving legal fees, details like names and amounts charged by lawyers were denied as they constitutes information of commercial confidence to the legal professionals involved, the disclosure of which would harm the competitive position of a third party RAMESH D. SARASIA vs S.V. National Institute of Technology Surat - 2024 Supreme(Online)(CIC) 2021. Similarly, board resolutions have been exempted as of commercial confidence and hence exempted from disclosure u/s 8 (1) (d) of the RTI Act NEERAJ SHARMA vs Union Bank of India - 2022 Supreme(Online)(CIC) 2155.
However, mere assertion is insufficient. Authorities must provide clear and cogent evidence that its disclosure would indeed harm the competitive position of a third party RAJEEV KUMAR vs CENTRAL INFORMATION COMMISSION (CIC) - 2024 Supreme(Online)(Del) 33463 - 2024 Supreme(Online)(Del) 33463.
Central Information Commission (CIC) decisions reinforce Supreme Court principles. In one matter, information was denied as treated as commercial confidence, trade secrets or intellectual property, the disclosure of which under Section 8 (1) (d) of the RTI Act, 2005 was not providedGuruswamy K D vs CPIO: Canara Bank, Chikkamagalur, Karnataka - 2025 Supreme(Online)(CIC) 4202.
CIC has also referenced the Subhash Chandra Agarwal case, upholding denials for information falling under commercial confidence and personal information of third party under Sections 8(1)(d) & (j) Nallamsetti Siva Prasad Babu vs State Bank of India, Hyderabad - 2025 Supreme(Online)(CIC) 1968. Yet, erroneous denials occur; in another instance, CIC found the CPIO erroneously denied the information citing commercial confidence Prashant Kumar Awasthi vs Baroda U.P. Bank - 2025 Supreme(Online)(CIC) 1974.
Purchase details from distilleries were ruled not to fall under commercial confidence, as they did not meet Section 8(1)(d) criteria M. Loganathan, Advocate, M. Sc. , B. L. VS Tamil Nadu Public Information Commission, Teynampet - 2023 Supreme(Mad) 759 - 2023 0 Supreme(Mad) 759. This highlights the need for case-specific assessment.
Even qualifying information may be disclosed if:- The competent authority is satisfied that larger public interest warrants it, overriding the exemption Goods & Service Tax Network VS Information Commissioner, CIC - 2020 0 Supreme(Del) 892.- No fiduciary relationship or undue harm is evident Nallamsetti Siva Prasad Babu vs State Bank of India, Hyderabad - 2025 Supreme(Online)(CIC) 1968.
The burden lies on the public authority to justify exemption and balance transparency with confidentiality. As noted, the ‘test of balancing public interest’ needs to be applied in cases of confidential information other than commercial information as well Central Public Information Officer, Supreme Court of India VS Subhash Chandra Agarwal - 2019 Supreme(SC) 1256 - 2019 0 Supreme(SC) 1256.
For businesses and third parties:- Protect trade secrets and IP by demonstrating potential competitive harm.- General operational data (e.g., non-proprietary contracts) may still be accessible.
Public authorities should:- Strictly interpret commercial confidence as tied to trade secrets/IP impacting competition.- Hear third parties before decisions, per procedural fairness Central Public Information Officer, Supreme Court of India VS Subhash Chandra Agarwal - 2019 Supreme(SC) 1256 - 2019 0 Supreme(SC) 1256.- Assess public interest objectively.
RTI applicants can challenge blanket denials by demanding evidence of harm, citing Supreme Court precedents.
Examples of exempted info:- Legal fees and lawyer details RAMESH D. SARASIA vs S.V. National Institute of Technology Surat - 2024 Supreme(Online)(CIC) 2021- Board resolutions NEERAJ SHARMA vs Union Bank of India - 2022 Supreme(Online)(CIC) 2155- Sensitive Supreme Court administrative data Nallamsetti Siva Prasad Babu vs State Bank of India, Hyderabad - 2025 Supreme(Online)(CIC) 1968
The RTI Act fosters accountability while safeguarding legitimate commercial interests. Understanding these nuances empowers informed requests and decisions.
After analyzing the matter CPIO vide reply dated 30.08.2024 to his RTI appeal had replied stating that The information sought by the RTI applicant is treated as commercial confidence, trade secrets or intellectual property, the disclosure of which under Section 8 (1) (J) of the RTI Act, 2005 was not [provided to the RTI applicant.] ... to provide the requested informat....
b) The details of legal fees disclosing the names and fee charged by each lawyer law firm cannot be disclosed as it constitutes information of commercial confidence to the legal professionals involved, the disclosure of which would harm the competitive position of a third party. ... As per Point No. 1(b) and 1(d), it is reiterated that "the details of legal fees disclosing the names and fee charged by each lawyer/law firm cannot be dis....
Copy of the Board resolution cannot be furnished as the same is of commercial confidence and hence exempted from disclosure u/s 8 (1) (d) of the RTI Act. ... d) of the RTI Act. ... Succinctly facts of the case are that the appellant filed an application dated 20.08.2019 under the Right to Information Act, 2005 (RTI Act#HL_E....
In this regard, the attention of the appellant is drawn towards a judgment of the Hon’ble Supreme Court in the matter of Central Public Information Officer, Supreme Court of India Vs. ... Further, information sought falls under the nature of commercial confidence and personal information of third party. Hence, the CPIO correctly denied the information under Section 8(1) (d) & (j) of the ....
In this regard, the attention of both the parties is drawn towards a judgment of the Hon’ble Supreme Court in the matter of Central Public Information Officer, Supreme Court of India Vs. ... The Commission after adverting to the facts and circumstances of the case, hearing the respondent and perusal of records, observes that the CPIO has erroneously denied the information citing commercial confi....
the RTI Act. ... 8 and 9 of the RTI Act. ... )(j) of the RTI Act as well. ... The information sought by the applicant was exempted from disclosure under Section 8(1)(d), 8(1)(j) of the RTI Act. Further, the same issue was pending before the Hon’ble Supreme Court of India, he contended. ... FAA & CPIO, had failed to r....
Section 8 of RTI Act enumerates the exemption for Right to information of a citizen. A careful perusal of Section 8(1)(d) of RTI Act reveals that any information of a third party including the commercial confidence, trade secrets or intellectual property falls within the exemption. ... The learned counsel referred to Paragraph Nos.71,72,126,141,142, 254 and 261 to conte....
Right to Information Act, 2005 ., “RTI Act” Section 8 (1)(d) of the RTI Act. Merely asserting that the thesis involves intellectual property or holds commercial value does not suffice; there must be clear and cogent evidence that its disclosure would indeed harm the competitive position of a third party.
Single Judge of this Court was dealing with a request for information under the RTI Act in the context of Supreme Court Rules, 1966/2013 framed by the Supreme Court. ... Also, the RTI Act does not provide for an appeal against a Supreme Court judgment/order that has attained finality. ... In numerou....
(Emphasis Supplied) Further, applicability of exemption clause of Section 8(1)(j) of RTI Act is in lines with a judgment of the Hon’ble Supreme Court of India in the matter of Central Public Information Officer, Supreme Court of India Vs. ... The information sought by you are exempted from disclosure under Section 8 (1) (d), (e) & (j) of the Right to Information #HL_S....
The informations sought for regarding the purchase of Distillery and Breweries from various factories would not fall under the definition of commercial confidence and therefore, the order impugned is liable to be set aside. The learned counsel for the petitioner mainly contended that the informations sought for by the petitioner would not fall under Section 8(1)(d) of the RTI Act. Such a huge income has been derived from and out of the 2nd respondent Corporation and the State is util....
If the government servant has a right to a particular rank, then the very reduction from that rank will operate as a penalty, for he will then lose the emoluments and privileges of that rank. Therefore even in the extreme case of Termination the protection is not available, in case there is no right to hold the post. A reduction in rank likewise may be by way of punishment or it may be an innocuous thing. Supreme Court also deliberated on what constitutes reduction in rank, in law an....
In this light, the concerned third parties need to be heard and thereafter the authorities are required to pass order as indicated herein. The purport of this Section is that an opportunity should be provided to third party, who treats the information as confidential. 2: INFORMATION AND RIGHT TO INFORMATION UNDER THE RTI ACT The ‘test of balancing public interest’ needs to be applied in cases of confidential information other than commercial information as well, und....
(b) In 2011 (8) SCC 497 (CBSE Vs. Aditya Bandopadhyay), the Honourable Supreme Court, while quoting the earlier decision reported in 2004 (2) SCC 476 (People's Union for Civil Liberties Vs. Union of India), held that the "right to information" is a facet of the freedom of "speech and expression", as contained in Article 19(1)(a) of the Constitution of India and such a right is subject to any reasonable restriction in the interest of the security of the State and subject to exemptions and excep....
It is submitted that the impugned order has been passed mindlessly by respondent No. 2. Mr. Jain submits that even under the Right to Information Act (RTI Act), the information including commercial confidence, trade secrets or intellectual property, the disclosure of which would hurt the competitive position of a third party, need not be disclosed by the public authority, unless the competent authority is satisfied that larger public interest warrants the disclosure of such informati....
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