RTI Act Applies To Cochin International Airport Ltd : Supreme Court Upholds Kerala High Court Order

The Supreme Court today upheld the Kerala High Court order which held that the Cochin International Airport (CIAL) is a 'public authority' coming within the purview of the Right to Information Act, 2005.A bench of Justices Vikram Nath and Sandeep Mehta passed the order, after hearing Senior Advocate Mukul Rohatgi (for CIAL). It was of the view that the impugned order furthered transparency and did not call for interference. At the same time, the Court waived the cost of Rs.1 lakh imposed on the Managing Director of CIAL by the High Court.To briefly put facts of the case, in 2019, the State Information Commission held CIAL to be a 'public authority' under the RTI Act and directed it to disclose certain information. The decision was challenged by CIAL before the High Court, contending that Kerala government had no control over the decisions taken by the Board, and the ultimate decision maker as per the Articles of Association was CIAL's Board of Directors.The Court was told that Kerala government was holding only 32.42% of paid-up share capital of the company and "the dividend more than the investments has been returned". It was also averred that the nomination of appointment of Directors including Managing Director of the Company was subject to the decision of the Board of Directors though Articles of Association.The respondents, on the other hand, referred to the CIAL website to argue that the company had arranged a 100 Million bridge loan from Federal Bank and the Kerala government stood as a guarantee, as it had nothing to offer as a security. The Housing and Urban Development Corporation of India (HUDCO) also, on the guarantee of the State Government, provided a term loan of 1 billion at the fixed interest rate of 18% for ten years, repayments of which began in 2000 when the project became operational.In December, 2022, a Single Bench of the High Court upheld the State Information Commission's view and ruled that CIAL was a public authority under the RTI Act. It observed that the aims and object of CIAL, read with provisions of Article 95 and 125 of the Articles of Association, lead to an irresistible conclusion that Kerala Government had a "deep and pervasive control" over the company.CIAL preferred writ appeals against this decision, but the same were dismissed by a Division Bench in early August. The Division Bench looked into the process by which the predecessor of CIAL, KIAS (Kochi International Airport Society), came into existence and found that KIAS was constituted through a government order by the erstwhile District Collector of Ernakulam.It also noted that the land acquisition for the airport was done by the government of Kerala in the name of KIAS. The land was thereafter, transferred to CIAL and thus, the Court remarked that the entire asset and land base of CIAL was consolidated at the instance of the government.Further, considering the Memorandum of Association and Articles of Association of CIAL as well as the constitution of the Board of Directors (BoD) of the company, the Court opined that the government had control over the affairs and management of CIAL.Ultimately, the Division Bench dismissed the appeals and directed CIAL to dispose of the RTI applications made to it within the statutory timeline provided under the Act.Aggrieved by the Division Bench's judgment, CIAL approached the Supreme Court. In August last year, the impugned judgment was stayed by the top Court.Appearance: Senior Advocates Mukul Rohatgi and PB Krishnan, AoR Arsh Khan, Advocates A Karthik, Harikrishnan Sreekumar, Smrithi Suresh and Anila T Thomas (for petitioner); Advocates Patanjal Chapalgaonkar and Aswathi (for respondents)Case Title: M/S.COCHIN INTERNATIONAL AIRPORT LIMITED Versus THE STATE INFORMATION COMMISSION AND ANR., SLP(C) No. 23330-23345/2025

RTI Act Applies To Cochin International Airport Ltd : Supreme Court Upholds Kerala High Court Order

Debby Jain

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