Bombay High Court Quashes Information Commission Order Against Cooperative Bank in RTI Case — Bank Not a Public Authority Under Section 2(h) of Right to Information Act, 2005. Cooperative Bank Not Obliged to Supply Information to Non-Member as It Is Not a Public Authority.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Shikshak Sahakari Bank Ltd., a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, challenged an order of the State Information Commissioner directing it to supply information to respondent No.2, Madan Rangdevji Nagpure, under the Right to Information Act, 2005. Respondent No.2 had applied on 10/09/2013 seeking details of payments made by the bank towards cheques drawn in his favor. The bank replied that the RTI Act was not applicable to it. The first appellate authority dismissed respondent No.2's appeal on 26/11/2013, but the State Information Commissioner allowed the second appeal, holding that since the bank received commission while clearing cheques, the applicant should be treated as a deemed member and supplied the information. The petitioner argued that it was not a public authority under Section 2(h) of the RTI Act, relying on the Supreme Court's decision in Thalappalam Service Cooperative Bank Limited v. State of Kerala (2013) 6 SCC 82 and a Bombay High Court decision in Dr. Panjabrao Deshmukh Urban Cooperative Bank Ltd. v. State Information Commissioner. The court analyzed the definition of 'public authority' under Section 2(h) of the RTI Act, which includes bodies established or constituted by the Constitution, by law made by Parliament or state legislature, by notification of the appropriate government, or owned, controlled, or substantially financed by the government. The court found that the petitioner bank was not established by any statute but was a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, and there was no government control or substantial financing. The concept of deemed membership under the Cooperative Societies Act could not be imported into the RTI Act to treat the respondent as a member entitled to information. The court held that the State Information Commissioner had no jurisdiction to direct the petitioner to supply information as it was not a public authority. The writ petition was allowed, and the impugned order was quashed.

Headnote

A) Right to Information - Public Authority - Definition under Section 2(h) of RTI Act, 2005 - Cooperative Bank - The petitioner, a cooperative bank, was held not to be a public authority under Section 2(h) of the Right to Information Act, 2005, as it was not established or controlled by the government. The State Information Commissioner erred in treating the respondent as a deemed member under the Maharashtra Cooperative Societies Act, 1960 to compel disclosure of information. Held that the RTI Act does not apply to cooperative societies that are not public authorities (Paras 2-5).

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Issue of Consideration

Whether a cooperative bank registered under the Maharashtra Cooperative Societies Act, 1960 is a 'public authority' under Section 2(h) of the Right to Information Act, 2005, and whether it can be directed to supply information to a non-member.

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Final Decision

The writ petition is allowed. The order passed by the State Information Commissioner is quashed and set aside. Rule is made absolute accordingly. No order as to costs.

Law Points

  • Right to Information Act
  • 2005
  • Section 2(h) definition of public authority
  • Cooperative societies not public authorities unless controlled by government
  • Deemed membership under Maharashtra Cooperative Societies Act
  • 1960 not applicable for RTI purposes
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Case Details

2015 LawText (BOM) (12) 107

Writ Petition No.4384 of 2015

2015-12-15

A.S. Chandurkar

Shri D. V. Chauhan for petitioner, Shri M. A. Sable for respondent No.1, Shri A. Gedam for respondent No.2

Shikshak Sahakari Bank Ltd.

State Information Commissioner, State of Maharashtra, Nagpur Bench, Nagpur & Madan Rangdevji Nagpure

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Nature of Litigation

Writ petition challenging order of State Information Commissioner under Right to Information Act, 2005 directing cooperative bank to supply information.

Remedy Sought

Petitioner sought quashing of the order of the State Information Commissioner directing it to supply information to respondent No.2.

Filing Reason

The State Information Commissioner held that the petitioner bank was obliged to supply information to respondent No.2, treating him as a deemed member, despite the bank not being a public authority under the RTI Act.

Previous Decisions

The first appellate authority dismissed respondent No.2's appeal on 26/11/2013, but the State Information Commissioner allowed the second appeal on the ground of deemed membership.

Issues

Whether the petitioner cooperative bank is a 'public authority' under Section 2(h) of the Right to Information Act, 2005. Whether the State Information Commissioner could direct the petitioner to supply information to a non-member by applying the concept of deemed membership under the Maharashtra Cooperative Societies Act, 1960.

Submissions/Arguments

Petitioner argued that it is not a public authority under Section 2(h) of the RTI Act, relying on Thalappalam Service Cooperative Bank Ltd. v. State of Kerala and Dr. Panjabrao Deshmukh Urban Cooperative Bank Ltd. v. State Information Commissioner. Respondent No.1 supported the impugned order, contending that the bank received commission and thus the applicant should be treated as a deemed member.

Ratio Decidendi

A cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, which is not established or controlled by the government and not substantially financed by the government, is not a 'public authority' under Section 2(h) of the Right to Information Act, 2005. The concept of deemed membership under the Cooperative Societies Act cannot be used to compel disclosure of information under the RTI Act.

Judgment Excerpts

The provisions of the said Act were not applicable to the petitioner in as much as it was not a public authority within the meaning of Section 2(h) of the Act of 2005. The concept of deemed membership under provisions of Maharashtra Cooperative Societies Act, 1960 could not be applied in the present facts for the purposes of holding the respondent No.2 entitled to receive information.

Procedural History

Respondent No.2 applied for information on 10/09/2013. Petitioner replied that RTI Act not applicable. First appeal under Section 19(1) dismissed on 26/11/2013. Second appeal under Section 19(3) allowed by State Information Commissioner. Petitioner filed writ petition challenging that order.

Acts & Sections

  • Right to Information Act, 2005: Section 2(h), Section 19(1), Section 19(3)
  • Maharashtra Cooperative Societies Act, 1960:
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