High Court of Bombay at Goa Quashes Information Commission Order Against Co-operative Society in RTI Case — Society Not a Public Authority Under Section 2(h) of Right to Information Act, 2005. Co-operative Milk Producers' Union Held Not Substantially Financed by Government, Hence Not Obliged to Furnish Information Under RTI Act.

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

The petitioner, M/s. Goa State Co-operative Milk Producer's Union Ltd., a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960, challenged an order dated 11/02/2011 passed by the Goa State Information Commission (respondent no.1) in Appeal No.308/2008. The Commission had held the petitioner to be a 'public authority' under Section 2(h) of the Right to Information Act, 2005, and directed it to furnish information sought by respondent no.2, Shri Kashinath Shetye, vide his application dated 13/10/2008. The petitioner contended that it was not a public authority as it was not substantially financed by the government; its funds came from its own activities, including sale of milk and milk products, and any government grants or subsidies were minimal. The respondent no.2 argued that the society was a public authority because it was a co-operative society and received government grants. The court analyzed the definition of 'public authority' under Section 2(h), particularly clause (d)(i) which includes bodies owned, controlled, or substantially financed by the government. The court noted that the petitioner's bye-laws specified its sources of funds, which were primarily from its own operations. The court found that the respondent no.2 had not placed any material to show that the petitioner was substantially financed by the government. The court held that the mere fact that the petitioner is a co-operative society does not make it a public authority; the burden of proof lies on the applicant to establish substantial government financing. Since the respondent no.2 failed to discharge this burden, the court quashed the impugned order of the Information Commission and allowed the writ petition.

Headnote

A) Right to Information - Public Authority - Definition under Section 2(h) of RTI Act, 2005 - Co-operative Society - The issue was whether a co-operative milk producers' union registered under the Maharashtra Co-operative Societies Act, 1960, is a 'public authority' under Section 2(h) of the RTI Act. The court held that the society is not a public authority as it is not substantially financed by the government; the mere fact that it is a co-operative society does not bring it within the definition. The burden of proving substantial government financing lies on the applicant seeking information. (Paras 1-10)

B) Right to Information - Substantial Financing - Interpretation - Section 2(h)(d)(i) of RTI Act, 2005 - The court examined whether the society receives 'substantial financing' from the government. It found that the society's funds are generated from its own activities, and any government grants or subsidies are not substantial enough to make it a public authority. The court emphasized that 'substantial' means a significant portion of the entity's total funding. (Paras 5-9)

C) Right to Information - Burden of Proof - Applicant to Establish Public Authority Status - The court held that the burden is on the applicant (respondent no.2) to show that the society is a public authority under Section 2(h). The applicant failed to provide evidence of substantial government financing. (Paras 6-8)

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Issue of Consideration

Whether a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960, which is not substantially financed by the government, falls within the definition of 'public authority' under Section 2(h) of the Right to Information Act, 2005, and is thus obliged to furnish information under the Act.

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Final Decision

The High Court allowed the writ petition and quashed the impugned order dated 11/02/2011 passed by the Goa State Information Commission in Appeal No.308/2008.

Law Points

  • Co-operative society not a public authority under Section 2(h) of RTI Act unless substantially financed by government
  • burden of proof on applicant to show substantial financing
  • definition of public authority under Section 2(h) of RTI Act
  • 2005
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Case Details

2018 LawText (BOM) (08) 139

Writ Petition No.162 of 2011

2018-08-14

Nutan D. Sardessai

Shri A.D. Bhobe for Petitioners, Shri Nigel Da Costa Frias for Respondent No.2, Shri Amogh Prabhudessai (Additional Government Advocate) for Respondents No.1, 3 to 6

M/s. Goa State Co-operative Milk Producer's Union Ltd.

Goa State Information Commission, Shri Kashinath Shetye, Public Information Officer, Deemed Public Information Officer, First Appellate Authority, State of Goa

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Nature of Litigation

Writ petition under Article 227 of Constitution of India challenging order of State Information Commission directing petitioner to furnish information under RTI Act.

Remedy Sought

Petitioner sought quashing of the order dated 11/02/2011 passed by the Goa State Information Commission in Appeal No.308/2008.

Filing Reason

Petitioner challenged the Information Commission's order holding it to be a public authority under Section 2(h) of RTI Act and directing it to furnish information to respondent no.2.

Previous Decisions

Goa State Information Commission in Appeal No.308/2008 held petitioner to be a public authority and directed it to furnish information.

Issues

Whether the petitioner co-operative society is a 'public authority' under Section 2(h) of the Right to Information Act, 2005? Whether the petitioner is substantially financed by the government?

Submissions/Arguments

Petitioner argued that it is a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960, and its funds are generated from its own activities, not substantially financed by the government, hence not a public authority. Respondent no.2 argued that the petitioner is a public authority as it is a co-operative society and receives government grants.

Ratio Decidendi

A co-operative society is not a public authority under Section 2(h) of the RTI Act unless it is substantially financed by the government. The burden of proving substantial government financing lies on the applicant seeking information. Mere registration as a co-operative society does not make it a public authority.

Judgment Excerpts

This petition under Article 227 of the Constitution of India takes exception to the judgment and order dated 11/02/2011 passed by the respondent no.1 in Appeal No.308/2008 pursuant to which the respondent no.1 directed the respondent no.3 therein i.e. the petitioners herein to furnish the information sought by the respondent no.2 vide his application dated 13/10/2008 within the defined time limit. The respondent no.1 had held the petitioners as a Public Authority within the meaning of Section 2(h) of the Right to Information Act, 2005, 'the Act' for short hereinafter, and secondly directed the respondent no.3 before him to furnish information to the respondent no.2.

Procedural History

Respondent no.2 filed an application under RTI Act on 13/10/2008 seeking information from petitioner. Petitioner denied being a public authority. Respondent no.2 appealed to Goa State Information Commission which on 11/02/2011 held petitioner to be a public authority and directed furnishing of information. Petitioner filed Writ Petition No.162 of 2011 under Article 227 of Constitution before High Court of Bombay at Goa challenging the order.

Acts & Sections

  • Right to Information Act, 2005: Section 2(h)
  • Maharashtra Co-operative Societies Act, 1960:
  • Constitution of India: Article 227
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