11/17/2018 Cooperative Societies are covered under the ambit of RTI Act | SCC Blog

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Home » Case Briefs » Cooperative Societies Are Covered Under The Ambit Of Rti

Act

Cooperative Societies
are covered under the
ambit of RTI Act
CASE BRIEFS HIGH COURTS

Published on February 15, 2017 – By Saba

1 Comment

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Bombay High Court: Jalgaon Jillha Urban Cooperative

Banks Association Ltd., Credit Societies and other financial
institutions registered under the Maharashtra Cooperative
Societies Act 1960 filed a writ before the Bombay High Court
contending that in view of the provisions of Section 2(h) and
Section 8 of the Right to Information Act 2005, cooperative
institutions registered under the Cooperative Societies Act
cannot be treated as public authority and Section 34-A of the
Banking Regulation Act, 1949 provides that such institutions
are not bound to disclose certain information which, according
to them, is confidential in nature.
It was also contended by the petitioners that these institutions
are not receiving financial aid from the Government directly or
indirectly and so the provisions of the Act cannot be made
applicable to them. In spite of the provisions in existence, the
authorities created under the Cooperative Societies Act are
insisting the institutions to pass on information in respect of
the conduct of business and other things of the societies to
the members or even general public under the provisions of
the RTI Act. They sought a writ of mandamus restraining the
officers of the cooperative department and/or their
subordinates from supplying any information to the members
or general public, which, according to the said societies was
confidential in the commercial interests of the said societies
and for that purpose issue necessary orders.
Supporting the contentions, the petitioner cited Agricultural
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Produce Market Committee v. Meghraj Pundlikrao Dongre,
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11/17/2018 Cooperative Societies are covered under the ambit of RTI Act | SCC Blog

2010 SCC OnLine Bom 1705, wherein it was held that the
provision of the Act cannot be used against cooperative
institutions registered under the Maharashtra
Cooperative Societies Act, 1960. In reply to this, RBI v.
Jayantilal N. Mistry, (2016) 3 SCC 525 was cited in which the
Supreme Court has discussed the effect of the provisions of
the Banking Regulation Act, 1949, Reserve Bank of India Act,
1934, the Credit Information Companies Act, 2005, the State
Bank of India Act, 1955 and the Official Secrets Act, 1923 on
the provisions made under the RTI Act. The defence taken for
such institutions of fiduciary relationship and possible adverse
effect on economic interests of the States was considered by
the Apex Court. The Apex Court held that the decision given
by the Chief Information Officer directing these institutions to
supply information cannot be set aside.
The Court in this case observed that the petitioners and its
members, cooperative institutions, are registered under the
Maharashtra Cooperative Societies Act, 1960 and are bodies
created under statute and right from the registration till the
liquidation there is control over these institutions of the
authority created under the same Act and the authority steps
in to take decision on the rights of the members. Therefore,
such institutions cannot act independently and the apex
bodies are created for such institutions. The Bench
highlighted that even Articles 38, 39, 43 and 48 of the
Directive Principles of State Policy show that to some extent
such institutions are discharging duty of State.
The Court noted that the provisions of the Maharashtra
Cooperative Societies Act show that the authority under the
Act can do audit and inquiry into irregularities and there is
power of suspension of managing committee and removal of
members with the authority under the Act. For such purposes,
the Court held that the cooperative institution is bound to
supply the record to the authority.
The Court elucidated further by reading the provisions of the
Maharashtra Cooperative Societies Act with definition of
information given in Section 2(f) of the RTI Act that everything
which is mentioned in the definition of information needs to be
supplied by the cooperative institution to the authority above
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it. Further, it stated that the definition of ‘Public Authority’

given in Section 2(h) shows that such public authority can be
created by any law made by the State
Legislature. Accordingly, the petition was dismissed by the
High Court. [Jalgaon Jillha Urban Cooperative Banks
Association Ltd. v. State of Maharashtra, 2017 SCC OnLine
Bom 151, decided on 13.02.2017]
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TAGGED WITH: Cooperative Societies, RTI Act

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ONE COMMENT

Leslie Almeida
Feb 16, 2017

The case number is wrong

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