The Madras high court has held that a co-operative society registered under the Tamil Nadu Co-Operative Societies Act is controlled by the government and hence it is a public authority within the meaning of Section 2 (h) of Right To Information (RTI) Act.
Justice K. Chandru dismissed petitions from the Rasipuram Cooperative Urban Bank Limited in Namakkal district and the Illyankudi Cooperative Urban Bank Limited in Sivagangai district, which sought to declare that the two banks were not a public authority.
Senior counsel R. Muthukumarasamy cited the judgment of the Karnataka and Bombay high courts and contended that the cooperative society was not a public authority within the meaning of Section 2 (h) of the RTI Act.
The judge said a reading of the judgments of both high courts did not indicate the provisions of the co-operative societies Act under which those societies were functioning.
In the present case, the petitioners cooperative societies were registered societies under the Tamil Nadu Cooperative Societies Act, 1983.
These societies were initially formed by members who have contributed shares. They elected their own board of directors.
However, with regard to Tamil Nadu, for the past three decades, there has been no election in terms of bylaws.
On the other hand, the board of directors of the societies have been superseded and the state government had directly appointed a government officer of the department of cooperation holding different ranks as special officers for manning the societies.
“A cumulative reading of the provisions of Tamil Nadu Cooperative Societies Act coupled with the virtual manning of societies by the state appointed special officers will clearly show that the cooperative societies are controlled by the government and will be a ‘public authority’ within the meaning of Section 2 (h) of the RTI Act,” the judge said.
“The peculiar features of the Tamil Nadu Cooperative Societies Act will clearly show that cooperative societies are controlled by the state government. Hence, it is a public authority,” the judge said.