Supreme Court Holds NGOs Substantially Financed by Government Are Public Authorities Under RTI Act. Interpretation of Section 2(h) of Right to Information Act, 2005 clarified to include non-governmental organisations receiving substantial government funds.

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Case Note & Summary

The case involves appeals by D.A.V. College Trust and Management Society and other educational institutions against the Director of Public Instructions and others, challenging the applicability of the Right to Information Act, 2005 (RTI Act) to non-governmental organisations (NGOs) that are substantially financed by the government. The core issue was whether such NGOs fall within the definition of 'public authority' under Section 2(h) of the RTI Act. The appellants argued that the definition of public authority is limited to authorities, bodies, or institutions of self-government established under the Constitution, by law, or by notification, and that NGOs not falling under these categories cannot be public authorities. They contended that the inclusive part of Section 2(h) does not expand the definition to cover them. The respondents, on the other hand, argued that the inclusive part clearly includes bodies owned, controlled, or substantially financed by the government, and NGOs substantially financed by the government. The Supreme Court analysed the structure of Section 2(h), noting that it uses 'means' in the first part (clauses (a) to (d)) and 'includes' in the second part (clauses (i) and (ii)). The court held that the first part is exhaustive of the categories of authorities, bodies, or institutions of self-government, while the inclusive part expands the definition to cover other entities, including NGOs substantially financed by the government. The court rejected the argument that the phrase 'institution of self-government' governs the entire definition, stating that it only applies to the first part. The court emphasised that the purpose of the RTI Act is to ensure transparency and accountability, and entities receiving substantial government funds must be subject to information disclosure. The decision clarifies that NGOs substantially financed by the government are public authorities under the RTI Act, and the appeals were dismissed.

Headnote

A) Right to Information Act - Definition of Public Authority - Section 2(h) - Interpretation of 'means and includes' - The definition of 'public authority' under Section 2(h) of the Right to Information Act, 2005, uses 'means' in the first part and 'includes' in the second part, indicating that the categories in the first part are exhaustive, while the inclusive part expands the definition to cover bodies owned, controlled, or substantially financed by the government, and NGOs substantially financed by the government. (Paras 8-10)

B) Right to Information Act - Public Authority - NGOs Substantially Financed - Section 2(h)(ii) - Non-governmental organisations substantially financed, directly or indirectly, by funds provided by the appropriate government are covered under the definition of 'public authority'. The court held that the term 'substantially financed' must be interpreted to include NGOs that receive significant financial support from the government, making them accountable under the RTI Act. (Paras 15-20)

C) Right to Information Act - Public Authority - Self-Government - Section 2(h) - The phrase 'institution of self-government' in the opening part of Section 2(h) applies only to the categories in clauses (a) to (d) and does not restrict the inclusive part. The inclusive part covers bodies and NGOs irrespective of whether they are institutions of self-government. (Para 11)

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Issue of Consideration

Whether non-governmental organisations substantially financed by the appropriate government fall within the ambit of 'public authority' under Section 2(h) of the Right to Information Act, 2005.

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Final Decision

The Supreme Court dismissed the appeals, holding that non-governmental organisations substantially financed by the appropriate government fall within the ambit of 'public authority' under Section 2(h) of the Right to Information Act, 2005.

Law Points

  • Interpretation of 'means and includes' in statutory definitions
  • Definition of public authority under Section 2(h) of RTI Act
  • Scope of 'substantially financed' for NGOs
  • Applicability of RTI Act to educational institutions receiving government funds
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Case Details

2019 LawText (SC) (9) 106

Civil Appeal No. 9828 of 2013

2019-09-17

Deepak Gupta, J.

D.A.V. College Trust and Management Society & Ors.

Director of Public Instructions & Ors.

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Nature of Litigation

Civil appeals challenging the applicability of the Right to Information Act to non-governmental organisations substantially financed by the government.

Remedy Sought

Appellants sought a declaration that they are not public authorities under Section 2(h) of the RTI Act and are not obliged to provide information under the Act.

Filing Reason

Appellants, being educational institutions, challenged the interpretation that they fall within the definition of 'public authority' under the RTI Act.

Issues

Whether non-governmental organisations substantially financed by the appropriate government fall within the ambit of 'public authority' under Section 2(h) of the Right to Information Act, 2005.

Submissions/Arguments

Appellants argued that public authority under Section 2(h) is limited to authorities, bodies, or institutions of self-government established under the Constitution, by law, or by notification, and NGOs not falling under these categories cannot be public authorities. Respondents argued that the inclusive part of Section 2(h) expands the definition to cover bodies owned, controlled, or substantially financed by the government, and NGOs substantially financed by the government.

Ratio Decidendi

The definition of 'public authority' under Section 2(h) of the RTI Act includes non-governmental organisations substantially financed by the appropriate government, as the inclusive part of the definition expands the scope beyond the exhaustive categories in the first part.

Judgment Excerpts

Whether non-governmental organisations substantially financed by the appropriate government fall within the ambit of ‘public authority’ under Section 2(h) of the Right to Information Act, 2005 is the issue for consideration in this case. The legislature, in its wisdom, while defining the expression “public authority” under Section 2(h), intended to embrace only those categories, which are specifically included, unless the context of the Act otherwise requires. It is thus clear that the word ‘means’ indicates that the definition is exhaustive and complete. It is a hard and fast definition and no other meaning can be given to it. On the other hand, the word ‘includes’ enlarges the scope of the expression.

Acts & Sections

  • Right to Information Act, 2005: Section 2(h)
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