TaxTMI 
TaxTMI 
2010 (1) TMI 978
X X X X Extracts X X X X
X X X X Extracts X X X X
....s)" within the meaning of the term under Section 2(h) of the said Act. Petitioners‟ facts and contentions: WP 876/2007 2. Briefly the facts of the case in W.P. 876/2007, filed by the IOA are that the IOA is the apex body in the field of Olympic sports in the country and a society registered under the Indian laws. It is an autonomous body controlled and supervised by the International Olympic Committee. The first respondent applied for information from the Central Government, addressing a letter to the Central Public Information Officer (CPIO), seeking particulars relating to the hierarchy of the authorities set-up under the Act, status of the latest audited accounts of the IOA for the years 2004-05, 2005-06 and all particulars of expenses incurred by the IOA in connection with the visits by anyone to Melbourne or any other destination in connection with the Commonwealth Games, from 1st January, 2006 to 15th April, 2006. Not receiving the reply of the kind he expected, the first respondent/information applicant approached the third respondent (referred to as "the CIC") with a complaint. The petitioner, and second respondent (referred to as "the Central Government"), m....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... will of the national federations or other entities belonging to such NOC or represented within it is hampered by the effect of legal provisions or regulations in force in the country concerned or by acts of other entities within such country, whether sporting or otherwise. 32. Composition of the NOCs 4. Governments or other public authorities shall not designate any members of an NOC. However, an NOC may decide, at its discretion, to elect as members representatives of such authorities. Bye-law to Rules 31 and 32. 7. NOCs which cease temporarily or permanently to be recognized by the IOC thereupon lose all rights conferred upon them by the IOC including, but not limited to, the rights; 7.1 to call or refer to themselves as "National Olympic Committee" 7.2 to use their Olympic emblems. 7.3 to benefit from the activity of Olympic Solidarity. 7.4 To take part in activities led or patronized by the IOC (including regional games); 7.5 To send competitors, team officials and other team personnel to the Olympic Games. 7.6 To belong to any association of NOCs. 9.4 seek sources of financing which will enable them to maintain their autonomy in all respects. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....odging and other travel related miscellaneous expenses, which are forwarded to the Central Government, which then, in turn, sanctions 85% of such expenses, after sanction-money is deposited into the IOA account and directly remitted to the service provider/hotel etc. As regards coaching camps, the Central Government reimburses the concerned National Sports Federations for the expenses incurred, or directly makes payments to the players. All funds received from or disbursed by the Central Government are duly accounted for and subject to scrutiny by the Comptroller and Auditor General of India, who addresses the public concern for appropriate utilization and accounting of the amounts. 6. It is contended that completely ignoring these salient aspects, the CIC, by its impugned order dated 28.11.2006, brushed-aside IOA‟s objections and decided that it was a public-authority and thus obliged to comply with the provisions of the Act. 7. The relevant part of the impugned order of CIC reads as follows: "8. In the present case, in terms of Olympic Charter, IOA has the exclusive powers for the representation of India at the Olympic Games and at the regional, continental or mult....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons under the Olympic Charter. Therefore, since IOA is found to be substantially financed either directly or indirectly by the funds provided by the Government, I have no hesitation to hold that it is a public authority governed by the provisions of the RTI Act. IOA has contended that that in terms of Olympic Charter, IOA cannot be under the control of the Government or bureaucrats. Just because, it is a public authority in terms of RTI Act, it neither becomes a governmental organization nor can be treated to be under the control of the Government. Therefore the said contention is misplaced. The object of RTI Act is to bring transparency and since IOA discharges public function in the sense, that it is the nodal agency through which alone citizens could participate in international sports, it should have no hesitation to keep its functions transparent. Being a public authority in terms of RTI Act, does not, and cannot, in any way compromise its position or functioning in relation to the Olympic Charter. 9. Accordingly I direct IOA to publish details as required in terms of 4(b) of RTI Act and also to designate CPIO and AA within a month from the date of this Decision. It will al....
X X X X Extracts X X X X
X X X X Extracts X X X X
....terated by the learned counsel that the IOA is independent and autonomous and a close scrutiny of the audited reports, copies of which are placed on record, disclose that the funds received from the government were for specific performances and must have been directly remitted to the concerned parties, which provided services such as air-travel, ticketing, boarding, transport etc. An objective analysis of the pattern of income and expenditure would reveal that IOA is not dependent on the Central Government largesse or funds; it is autonomous; neither its membership nor its management or office-bearers are subject to government control and importantly, the Central Government has no say in its affairs. Learned counsel points out that the executive or governing council of the IOA or its functionaries do not comprise of any Central Government or public agency representative so far as to remotely suggest that IOA performs any functions of a public character of the kind that would attract provisions of the Act. W.P. 1161/2008 10. The Commonwealth Games Committee, in W.P. 1161/2008 impugns the Office Orders of the Ministry of Sports and Youth Affairs, Central Government, dated 01.11....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hich is, in turn, an autonomous body and an affiliate of the International Olympic Committee). The Games Committee also relies upon the IOA‟s arguments that the latter is autonomous and is only subjected to control by the International Olympic Committee. 12. The Games Committee claims that it owes its existence to Article 27(C) of the Constitution of the Commonwealth Games Federation, which obliges the IOA to create another body like it. Reference is made to recital D of the host-city contract, which reads as follows: "D. IOA will in accordance with Article 27(C) of the Constitution and with the approval of the CGF delegate the Organization of the Games to the OC which, while working in partnership with the IOA, will also be directly responsible to the CGF."" 13. The Committee also relies upon other Articles or provisions of the Contract, to say that Article 3, which lists the role, responsibility of the respondent, does not authorize it to constitute it and, rather emphasizes that the Central Government has to provide the support to the Committee, and the IOA in the manner provided in the Host City Contract. It is said that Article 3 of the Host City Contract does n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Games Committee is revenue-neutral and that contrary to commercial arrangements which the Central Government has with it, all other stakeholders are provided budgetary support for creating infrastructure through grants. The Games Committee places particular emphasis on the submission that its arrangement is a commercial one, such as where any Company or Society is beneficiary to amounts released that are repayable with interest. For this purpose, it relies upon certain loans issued by the Central Government. It is argued that the Committee had requested for waiver of interest on loan and that the Central Government agreed to these by its decision dated 11.10.2007, stating that interest could be paid only from the surplus, out of the receipts from the Games. 17. The Games Committee submits that the returnable loan is not the only source of funds to enable its functioning but that it has the ability to raise funds from the corporate sector through sponsorship, from banks, by applying for loans etc. The Games Committee Society is not in any manner a Society receiving any financial grant and that the mere assurance held out by the Central Government, would not constitute it as a p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er and Auditor General‟s (Duties, Powers and Conditions of Service) Act, 1971 (hereafter called "the CAG Act"). The Explanation to Section 14 (1) of that Act reads what is meant by a body being "substantially financed" in the following terms:- "Explanation: Where the grant or loan to a body or authority from the Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly in a financial year is not less than rupees twenty-five lakhs and the amount of such grant or loan is not less than seventy-five percent of the total expenditure of that body or authority, such body or authority shall be, deemed, for the purposes of this sub-section, to be substantially financed by such grants or loans as the case may be." W.P. 1212/2007 20. The school is aggrieved by an order of the CIC, dated 23-1-2007, declaring it to be a public authority. The facts here are that one Ms. Manju Kumar, the respondent in the petition ("information-applicant") sought particulars about funding to the school by various government departments, details of wards of children of parent(s) belonging to Central Government Services (IAS, IFS, IRTS etc.) and of those belon....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Cabinet Secretary is the Ex- Officio Chairperson of the Board of Management of the School and also that wives of other Civil Service Officers are on the Board of Management. On the basis of these two submission, the Commission decided that the Sanskriti School did come under the purview of the RTI Act, 5 as a "Public Authority". Hence, it was incumbent on them to set up the infrastructure for supply of information as required under the RTI Act and also to respond to the RTI applications. 10. The Commission, therefore, directed the Principal to reply to the application filed by Smt. Manju S. Kumar by 5th February. 11. The Commission ordered accordingly." 22. The School faults the CIC for not giving it appropriate hearing, or opportunity to present its case. It submits to being controlled by the Civil services Society, which is a private, non-profit making, voluntary organization, registered under the Societies Registration Act. The school has its Executive Committee comprising the wives of the serving Civil Services Officers and subsists fully on the fees received from the students. The day today expenses, salary of the teachers, and all recurring expenditure of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f self government and hence not a public authority. There is no material on record to establish that the petitioner school is an authority or body or Institution of self government. II) The Authority, body or institution under clause (a) may be established or constituted: (i) by or under the Constitution (ii) by a law made by Parliament or State Legislature (iii) by a notification issued or made by the Appropriate Government and if so then it can be a NGO or a body owned controlled or substantially financed by the appropriate government. All writ petitioners submit they are not "an authority, body or institution" constituted by or under the Constitution, or by a law made by Parliament or the State Legislature or by a notification issued or made by any Government, and in any event, do not fall within the definition. 25. Besides the contentions mentioned above, all petitioners urge that facially, none of them fall within the description of "public authority". Considerable emphasis is placed upon the structure of the definition (of that term), for this purpose. Learned senior counsel for the Games Committee and the School point out that generically, the description o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ant control in its affairs or management by the Government, or government agencies, the school cannot be termed a public authority, for purposes of the Act. The IOA reiterates the same arguments, as in the case of the Games Committee and says that India is pledged to ensure that its functioning is completely autonomous, and that requiring it to comply with provisions of the Act on an assumption that it is a public authority would result in complete erosion of such autonomy and independence, which would be a blow to the Olympic movement as well as a setback to sports generally, so far as India is concerned. It is emphasized that IOA does not ever depend on government or state funding, as it has independent sources of income, through sponsorships, donations, event fees, etc. That the Central Government assists sports persons selected or endorsed pursuant to the IOA‟s affiliate bodies‟ processes, for which purpose, the amounts are routed through its accounts, does not make its (IOA‟s) functioning dependant on any substantial financing by the Central Government, or public funds. It is also submitted that the concept of "substantial financing" implies that government o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ive crore) Rs.2,00,00,000/- (Rupees two crore) 2 Participation of Indian Contingent in 2nd Asian Indoor Games, 2007 at Macau (China) Rs.1,18,79,000/- (Rupees one crore eighteen lakh seventy thousand) Rs.92,38,303/- (Rupees ninety two lakh thirty eight thousand and three hundred three) [Rs.35,94,375/- paid directly to the IOA and Rs.56,43,928/- to Ms. Balmer Lawrie & Co. towards airfare] 3 Participation of Indian Contingent in Commonwealth Games, 2006 at Melbourne Rs.1,69,00,800/- + Airfare (Rupees one crore sixty nine lakh and eight hundred) Rs.1,10,65,410/- (Rupees one crore ten lakh sixty five thousand four hundred ten only) [Rs. 41,17,629/- released directly to the pensioner and Rs.69,47,781/- released to M/s. Balmer Lawrie & Co. towards air fare] 4 Participation of Indian Contingent in Asian Games, 2006 Rs.3,23,44,768/- + Airfare (Rupees three crore twenty three lakh forty four thousand seven hundred sixty eight) Rs.2,50,83,476/- (Rupees two crore fifty lakh eighty three thousand four hundred and seventy six only) [Rs.1,12,64,839/- paid to the petitioner directly and Rs.1,38,18,637 paid to M/s. Balmer Lawrie and Air India towards airfare].....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the power to affiliate or recognize other domestic sports federations, which in turn can select and sponsor sportsmen to represent the country in games and events. In these circumstances, the IOA‟s funding by other sources, does not deflect from the fact that the Government treats it as the sole representative body, for all manner of sports. Therefore, it is a public authority. 31. The Central Government states that it released following grant-in-aid to the petitioner during the last three years 2006-07 to 2008-09 towards participation of Indian contingents in multi-disciplinary international sports events and hosting of the multi- disciplinary international sports events in India. The details are as follows:- S.No. Year Amount 1. 2006-07 Rs.5.38 crore. 2. 2007-08 Rs.2.44 crore. 3. 2008-09 Rs.2.38 crore. It is submitted that in view of the above details of amounts approved and sanctioned, IOA is receiving substantial Central Government financial assistance and thus falls within the definition of Public Authority under Section 2(h) of the Act. 32. The Central Government denies the IOA‟s contention that it provides financial as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....shortfall in the expenditure and revenue of the Games Committee is to be met by the Government. However any surplus generated, will not be returned to the Government, but will be shared between the IOA and the Commonwealth Games Federation. In this background, it is the statutory duty of the Committee, to use public funds judiciously and be open for scrutiny at all times. The Central Government states that the Games Committee is an asset-less organization, and the loan which sanctioned by it (the Central Government) is unsecured. It is stated that the Central Government has agreed to provide such a huge loan without any security, and has full right to put forth required conditions to ensure, that these funds are used judiciously and reasonably in accordance with norms of transparency and accountability. This cannot be equated with the functioning of Banks/Statutory Financial entities, which would not agree to provide funds without proper safeguards including guarantors. 34. The Central Government submits that it has further undertaken to bear any shortfall in expenditure and revenue of the Games Committee; it also submits that its role is also to committing for the required inst....
X X X X Extracts X X X X
X X X X Extracts X X X X
....IAS, IFS, IPS, IRTS, etc, the school has been recipient of considerable public funds, which fits the definition of a public authority, under the Act. Reliance is placed on the response of the Union Ministry of Personal, Public Grievances & Pensions, Department of Personal & Training letter dated 27th August, 2008, to the queries sought, for the submission that the total grant-in- aid of Rs.15.94 crores and donations of Rs.22.50 lakh were received by the School between the years 1994-95 to 2001-2002. The land, says the applicant, for the School was allotted by the Ministry of Urban Development, at extremely nominal rates. The said letter also says that:- "Unable to meet its capital investment requirements etc the Civil Services Society/ Sanskriti School approached the Department of Personnel and Training for financial assistance. The Department of Personnel and Training released further grants-in-aid to the Sanskriti School with the approval for the Committee of Secretaries/ Cabinet. An amount of Rs.5.50 crore was released to the School by this Department during 2004-05 in installments. In the subsequent years 2006-07 and 2007 -08, an amount of Rs.2.37 crores was released in inst....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n is under a positive obligation to do so; the information seeker is under no obligation to disclose why he requests it. Public authorities, are defined by Section 2(h) as- "Section 2 (h) "public authority" means any authority or body or institution of self government established or constituted - (a) By or under the Constitution; (b) By any other law made by parliament; (c) By any other law made by State Legislature; (d) By notification issued or order made by the appropriate Government. and includes any - (i) Body owned, controlled or substantially financed; (ii) Non- Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government." 40. Section 4 obliges public authorities to publish various specified classes of information. The information provider or the concerned agency is, under the Act, obliged to decide the applications, of information seekers, within prescribed time limits. A hierarchy of authorities is created with the CIC, at the apex to decide disputes pertaining to information disclosure. In this Scheme, the Parliament has in its wisdom, visualized certain exemptions. Section 6 enjoins tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
...." by or under the Constitution, any central enactment, or any state enactment, or "by or under a notification issued by the appropriate government". (The expression "appropriate government" is defined by Section 2 (a) as, "in relation to a public authority which is established, constituted owned, controlled or substantially financed by funds provided directly or indirectly" by (i) the Central Government or the Union Territory administration, the Central Government" likewise, if the funding-substantially, whether directly or indirectly is by the State Government, then the appropriate government is the state government.) The first three categories of this part are fairly clear; those established under the Constitution or any enactment, Parliamentary, or state, are public authorities. The fourth category of institution or body is that set up under notification issued by "the appropriate government". This is if the body, apart from being established by the notification is substantially financed, directly or indirectly by the appropriate government. The fourth category, therefore, presupposes the following: (1) The body or institution to be one of self government; (2) Established ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....definition of "District Judge" in Article 236(a) of the Constitution has been very widely construed to include hierarchy of specialised civil courts viz. Labour Courts and Industrial Courts which are not expressly included in the definition. (See State of Maharashtra v. Labour Law Practitioners‟ Assn. 1998 (2) SCC 628) Therefore, there is no warrant or justification for restricting the applicability of the Act to residential buildings alone merely on the ground that in the opening part of the definition of the word "premises", the words "building or hut" have been used." The principle was endorsed, more recently, in Karnataka Power Transmission Corpn. v. Ashok Iron Works (P) Ltd. (2009) 3 SCC 240: "15. Lord Watson in Dilworth v. Stamps Commr.3 made the following classic statement: (AC pp. 105-06) "... The word „include‟ is very generally used in interpretation clauses in order to enlarge the meaning of words or phrases occurring in the body of the statute; and when it is so used these words or phrases must be construed as comprehending, not only such things as they signify according to their natural import, but also those things which the interpretation c....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... definition can be found in decisions reported as Commissioner Income Tax -vs- Taj Mahal Hotel, Secunderabad AIR 1972 SC 168; Scientific Engineering House Pvt. Ltd. -vs- Commissioner of Income Tax AIR 1986 SC 338 and Lucknow Development Authority - vs- M.K.Gupta 1994 (1) SCC 243. 45. Now, if the Parliamentary intention was to expand the scope of the definition "public authority" and not restrict it to the four categories mentioned in the first part, but to comprehend other bodies or institutions, the next question is whether that intention is coloured by the use of the specific terms, to be read along with the controlling clause "authority...of self government" and "established or constituted by or under" a notification. A facial interpretation would indicate that even the bodies brought in by the extended definition: (i) "....Body owned, controlled or substantially financed; (ii) Non- Government organization substantially financed, directly or indirectly by funds provided by the appropriate Government."are to be constituted under, or established by a notification, issued by the appropriate government. If indeed such were the intention, sub-clause (i) is a surplusage, since t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t representatives from membership in the organization. Unlike the term intergovernmental organization, "non-governmental organization" is a term in general use but is not a legal definition. In many jurisdictions these types of organization are defined as "civil society organizations" or referred to by other names..." Therefore, inherent in the context of a "non-government" organization is that it is independent of government control in its affairs, and is not connected with it. Naturally, its existence being as a non-state actor, the question of its establishment or constitution through a government or official notification would not arise. The only issue in its case would be whether it fulfills the "substantial financing" criteria, spelt out in Section 2(h). Non-government organizations could be of any kind; registered societies, co-operative societies, trusts, companies limited by guarantee or other juristic or legal entities, but not established or controlled in their management, or administration by state or public agencies. 47. In view of the above discussion, it has to be concluded that the requirement for an organization, which is not established by statute, or under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... According to the Legal Glossary - 1992 (published by the Govt. of India) the term means: "finance: 1. the pecuniary resources of a government or a company. 2. to provide with necessary funds." Oxford‟s Shorter English Dictionary defines the term "substantial" as follows: "substantial....A adjective.. 3. Of ample or considerable amount or size; sizeable, fairly large. 4. Having solid worth or value, of real significance; solid, weighty; important, worthwhile.." The term "substantial" denotes something of consequence, and contrary to something that is insignificant or trivial. It implies a matter of some degree of seriousness. The question is whether the term itself suggests, in the context of "substantial financing" a predominant or overwhelming financing. In other words, does "substantial" read with "financing" mean that the major funding should from the relevant source, i.e state or governmental source. 50. It would undoubtedly be tempting to look at previous decisions on what constitutes "public authority" rendered in the context of whether a body is "State" as defined by Article 12 of the Constitution of India, or for its being subject to jurisdi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rtakings. A mandamus would also lie against a company constituted by a statute for the purpose of fulfilling public responsibilities. (See Halsbury's Laws of England (3rd Ed. Vol. II p. 52 and onwards)." 21. Here again we may point out that mandamus cannot be denied on the ground that the duty to be enforced is not imposed by the statute Commenting on the development of this law, Professor De Smith states : "To be enforceable by mandamus a public duty does not necessarily have to be one imposed by statute. It may be sufficient for the duty to have been imposed by charter, common law, custom or even contract." (Judicial Review of administrative Act 4th Ed. p.540). We share this view. The judicial control over the fast expanding maze of bodies affecting the rights of the people should not be put into water-tight compartment. It should remain flexible to meet the requirements of variable circumstances. Mandamus is a very wide remedy which must be easily available 'to reach injustice whenever it is found'. Technicalities should not come in the way of granting that relief under Article 226. We, therefore, reject the contention urged for the appellants on the maintainability of the wr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such as health care, education and personal social services, from funds raised by taxation. A body may perform public functions in the form of adjudicatory services (such as those of the criminal and civil courts and tribunal system). They also do so if they regulate commercial and professional activities to ensure compliance with proper standards. For all these purposes, a range of legal and administrative techniques may be deployed, including: rule-making, adjudication (and other forms of dispute resolution); inspection; and licensing. Public functions need not be the exclusive domain of the state. Charities, self-regulatory organizations and other nominally private institutions (such as universities, the Stock Exchange, Lloyd's of London, churches) may in reality also perform some types of public function. As Sir John Donaldson M.R. urged, it is important for the courts to "recognize the realities of executive power" and not allow "their vision to be clouded by the subtlety and sometimes complexity of the way in which it can be exerted". Non-governmental bodies such as these are just as capable of abusing their powers as is government." 53. In G.Bassi Reddy v. International ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and circumstances in a given case. The distinction between the public law remedy and private law field cannot be demarcated with precision. Each case has to be examined on its own facts and circumstances to find out the nature of the activity or scope and nature of the controversy. The distinction between public law and private law remedy is now narrowed down. The actions of the appellants bear public character with an imprint of public interest element in their offers regarding terms and conditions mentioned in the appropriate table inviting the public to enter into contract of life insurance. It is not a pure and simple private law dispute without any insignia of public element. Therefore, we have no hesitation to hold that the writ petition is maintainable to test the validity of the conditions laid in Table 58 terms policy and the party need not be relegated to a civil action....." 39 The decision relied upon by some of the petitioners, i.e Pradeep Biswas was for interpreting if a body or institution is "State" to be bound to by provisions of Part III of the Constitution of India. After reviewing the previous decisions, the seven member bench of the Supreme Court, in that r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f affairs of the subject body. Here, however, the issue is a wider one. Parliament had the benefit of the debate on the interpretation of the expression "authority" and the rulings of the Supreme Court, which became law under Article 141 of the Constitution. Those decisions were rendered in the context of the court‟s power to enforce fundamental rights, and the jurisdiction to supervise policies and actions of the bodies. In other words the highlight of the judgments was whether the courts could rule on such actions and policies. The object of the Act, here, is entirely different. It is not about the scope of judicial review, and any relief that courts may be capable of granting. The object of the Act is to ensure that information with bodies which are "public authorities" are open to scrutiny to those seeking such information. One may well ask why this is necessary, when courts exist to guarantee enforcement of fundamental and other rights. The answer to this is not in the remedy available to a citizen against wrong- suffered or perceived- but in the value of transparency in decision making and general information dissemination to the people at large, in our knowledge based,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gation. Key growth areas, and general welfare measures which may otherwise not interest business "players" for various reasons such as commercial un- viability and so on, are nevertheless pursued by funding non-government and voluntary agencies, which are not under state control, but perform specific welfare, social and commercial tasks are recipients of funding, assistance and state promotion. Their existence and functions are considered crucial for the growth and development of areas like health care, women and child development, viable and sustainable livelihoods for marginalized sections of the society, education, gender justice, tribal welfare, environment preservation, poverty eradication, and so on. The states‟ policies are aimed at realization of social welfare and social justice objectives through a combination of measures, where these bodies and institutions play a vital role. 56. An interesting aside. Even on the issue of judicial control of non-state bodies, the growth of law in India and other parts of the world have been parallel. In Nagle v. Feilden and Others [1966 (2) QB 633], a Jockey Club was entitled to issue licences training horses meant for races. An....
X X X X Extracts X X X X
X X X X Extracts X X X X
....egulating. The panel wields enormous power. It has a giant's strength. The fact that it is self regulation, which means, presumably, that it is not subject to regulation by others, and in particular the Department of Trade and Industry, makes it not less but more appropriate that it should be subject to judicial review by the courts." [Aston Cantlow, Wilmcote and Billesley Parochial Church Council v. Wallbank [2001] 3 W.L.R. 1323]. In Poplar Housing and Regeneration Community Association Ltd. v. Donoghue [2001] 4 All ER 604, the issue was whether eviction of the defendant by a housing association from one of the premises violated provisions of the Human Rights Act. Lord Woolf CJ upon considering the provisions as well as several previous decisions held that the Association discharged public functions: "The emphasis on public functions reflects the approach adopted in judicial review by the courts and text books since the decision of the Court of Appeal (the judgment of Lloyd LJ) in R v. Panel on Take-overs and Mergers, ex p Datafin plc (Norton Opax plc intervening) [1987] 1 All ER 564, [1987] QB 815. (ii) Tower Hamlets, in transferring its housing stock to Poplar, does not tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1985 (1) SCC 551, that: "But while construing a word which occurs in a statute or a statutory instrument in the absence of any definition in that very document it must be given the same meaning which it receives in ordinary parlance or understood in the sense in which people conversant with the subject matter of the statute or statutory instrument understand it. It is hazardous to interpret a word in accordance with its definition in another statute or statutory instrument and more so when such statute or statutory instrument is not dealing with any cognate subject." This construction was followed in State of Kerala -vs- Mathai Verghese 1986 (4) SCC 746. It is therefore, held that this court cannot accept the petitioner‟s contention that the meaning of the term "substantial financing" has to be gathered from the provisions of the CAG Act. 58. In a previous section of this judgment, this court noted the meanings of "substantial" and "financing". To discover the meaning of the expression, since it is undefined, the common parlance test, as well as the contextual setting (of the term), having regard to objects of the Act, are to be examined. There is no yardstick, in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ommerce and Industry stipulating that petitioner is treated as an autonomous non- Governmental organization and the employees of petitioner are not government servants nor petitioner is required to seek clearance from the Government for the appointment of officers. Post are created and so do the rules are framed by the petitioner governing the service conditions of its employees and therefore it is not under the Administrative Control of Department of Information Technology. 5. The learned Counsel for the petitioner has also contended that the Working Committee members of petitioner are the persons from private industries and has relied on list of Working Committee members of the petitioner for 2004-2006 to contend that it is not a public authority. 6. For the purpose of Section 2(h) of Right to Information Act, 2005, what is to be seen is whether the body is owned and controlled or substantially financed by the Government. Whether the funding is for specific programs/projects carried on by the petitioner or funds are given not for any specific program to the petitioner, will not make the petitioner not financed by the Government. The Government can give the funds without spe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hich is substantially financed by the Union of India. The respondent No. 1 has recorded and the learned Single Judge has affirmed that out of funds of the sum of Rs. 11.8 crore income for the year 2004-05, the Grant-in-aid to the appellant from the Department of Commerce and Information Technology was about Rs. 6.8 crore and consequently, it was held by the respondent No. 1 and affirmed by the learned Single Judge that the appellant was substantially financed by the Government. The appellant has challenged the above finding not on the quantum of the aid given but on the ground that the grant-in-aid is provided by the Government for specific promotional programmes and projects and not for administrative expenses. 11. In our view, all that the Act requires is that the non-governmental organization ought to be substantially financed by the Government. The dictionary meaning of ' substantial' is instructive and reads as follows:- Oxford English Dictionary Constituting or involving an essential point or feature; essential, material..." 60. This court therefore, concludes that what amounts to "substantial" financing cannot be straight-jacketed into rigid formulae, of universa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....information dissemination, as mandated by its provisions. The Indian Olympic Association 62. The facts of the IOA‟s petition have been discussed elaborately earlier. Its assertion that it is not covered by the Act stems from the Olympic Charter, the Aomori resolution, by the International Olympic Committee, both of which require autonomy of the national association (such as IOA). It also contends that there is no state or public involvement in its functioning, constitution or management, and that state financing or funding is directly to the sportspersons who are selected by its affiliate associations. 63. The IOA is a registered society. No doubt, there is no state or public involvement in its establishment, or administration. It does not receive grants as is traditionally understood. It is the national face of the Olympic movement in India. Its word determinates the fate of the sport, and sportspersons, who are to attend and participate in Olympic events (not confined to the Olympics, but also embracing other, sport specific international events, and regional meets, etc). It affiliates or recognizes bodies which regulate sports that aspire to participate in Olympic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot available, an aggrieved party can always seek a remedy under the ordinary course of law or by way of a writ petition under Article 226 of the Constitution, which is much wider than Article 32." Having regard to the pre-eminent position enjoyed by the IOA, as the sole representative of the IOC, as the regulator for affiliating national bodies in respect of all Olympic sports, armed with the power to impose sanctions against institutions -even individuals, the circumstance that it is funded for the limited purpose of air fare, and other such activities of sports persons, who travel for events, is not a material factor. The IOA is the national representative of the country in the IOC; it has the right to give its nod for inclusion of an affiliating body, who, in turn, select and coach sportsmen, emphasizes that it is an Olympic sports regulator in this country, in respect of all international and national level sports. The annual reports placed by it on the record also reveal that though the IOA is autonomous from the Central Government, in its affairs and management, it is not discharging any public functions. On the contrary, the funding by the government consistently is part ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n -as assistance by itself, cannot be considered as "substantial financing". There has to be something more to the transaction. In this case, the Games Committee owns the conduct of the games; it is responsible, and reaps the benefit of the substantial amounts received, by way of licensing fee, sponsorship fee collected, etc. The Central Government does not share these revenues; rather they flow back to the Commonwealth Games and the International Olympic Committee. The Central Government has also agreed to allow the use of the stadia, and other infrastructure, without any user charges. Doubtless, the Central Government has its reasons to extend these benefits to a body which is otherwise private. They may include economic "spin off" that indirectly accrue to the people, as a result of the construction and up-grading of infrastructure, as well as anticipated benefits from tourists who are expected to visit the country before and during the event. Yet, the fact remains that writing off - even on contingent basis- interest on loans, of such scale, and agreeing not to demand any use charges or license fee for infrastructure, as well as agreeing not to take any part of the surplus gene....
X X X X Extracts X X X X
X X X X Extracts X X X X
....available as a matter of right to educational institutions, let alone at rates as not to be called any rate at all. The school asserts that it is run independently, on self-financing basis, which naturally implies that subject to other limitations, there is freedom to charge fees from pupils. This concession - though one time, has placed the school at a great advantage over others run on "commercial" but "self finance" lines. 72. The materials on record, in the form of letters of Directorate of Logistics, Customs and Central Excise, (date 15-7-2008); Department of Personnel and Training (dated 28-8- 2008) and Department of School Education and Literacy, Union Ministry of Human Resource Development show that a total amount of Rs. 23.81 crores was given to the school for cost of construction; the amount included grants for later years, to meet the shortfall in capital expenditure. The letter of the Customs Department, dated 26th April, 1996 whereby the sum of Rs. 3 crores was sanctioned to the school, states that:- "(iv) The Society should abide by Rules 150 & 151 of the Grants-in-aid etc. and loans Rules. These rules require (a) the Accounts of the Institution/ Society to be a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aided institution, and does not charge subsidized fees. Therefore, only children of those wards who can afford such fees, can access its services. Another interesting aspect is that the departments or agencies (or at least some of them) imposed a condition that the wards of their officers would be given admissions. There is nothing on record to suggest any Central Government policy to prioritize education of wards of children of its employees, through donations to private schools - even on one time basis. The school agreed to maintain its accounts in terms of the rules of the Government applicable to Grants in Aid institutions (insisted upon by the Customs Department); its accounts are to be subject to scrutiny and audit by the CAG. Further, nominees of the Central Government are required to be part of its Managing Committee - mandated by the allotment letter, issued by the Union Urban Affairs Ministry. 74. As discussed earlier, grants by the Government retain their character as public funds, even if given to private organizations, unless it is proven to be part of general public policy of some sort. Here, by all accounts, the grants - to the tune of Rs. 24 crores were given to ....