TMI Blog2019 (9) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... or partially by the Governments essentially maintain the NGO status by excluding Government representations in all their organisations. In some jurisprudence, they are also referred to as civil society organisations - A society which may not be owned or controlled by the Government, may be an NGO but if it is substantially financed directly or indirectly by the government it would fall within the ambit of Sub-clause (ii). While interpreting the provisions of the Act and while deciding what is substantial finance one has to keep in mind the provisions of the Act. This Act was enacted with the purpose of bringing transparency in public dealings and probity in public life. If NGOs or other bodies get substantial finance from the Government, there is no reason why any citizen cannot ask for information to find out whether his/her money which has been given to an NGO or any other body is being used for the requisite purpose or not. These bodies are NGOs, the issue whether these are substantially financed or not needs to be decided by the High Court. The High Court shall give both the parties opportunity to file documents - Appeal disposed off. - Civil Appeal Nos. 9828, 9844-9845 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment and its instrumentalities which are accountable to the Government. It has also been urged that the words 'public authority' mean any authority or body or institution of self-government and such body or institution must be constituted under the Constitution, or by any law of Parliament, or by any law made by the State Legislature or by a notification issued or order made by the appropriate Government. 5. It is urged that unless a specific notification is issued, in terms of Clause (d), no body or institution outside the ambit of Clauses (a) to (c) of Section 2(h) can be deemed to be public authority. It is further urged that there are 4 types of public authorities as pointed out above, i.e., those set up (a) under the Constitution, (b) by an Act of Parliament, (c) by any law made by State Legislature, or (d) by notification issued or order made by the appropriate Government. No other authority can be considered a public authority. Since the Appellants do not fall under any of the above mentioned 4 categories, they cannot be termed to be public authority. 6. As far as definition of public authority is concerned this Court has dealt with the matter in detail in Tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mine whether they fall in the latter part of Section 2(h) of the Act, which embraces within its fold: (5) a body owned, controlled or substantially financed, directly or indirectly by funds provided by the appropriate Government, (6) non-governmental organisations substantially financed directly or indirectly by funds provided by the appropriate Government. 7. At this stage we may note that in the Thalappalam case (supra) there was an order issued directing that cooperative societies would fall within the ambit of the Act. The validity of this order was challenged on the grounds that the cooperative societies were neither bodies owned, controlled and/or substantially financed by the government nor could they be said to be NGOs substantially financed, directly or indirectly, by funds provided by the appropriate Government. 8. It is a well settled statutory Rule of interpretation that when in the definition Clause a meaning is given to certain words then that meaning alone will have to be given to those words. However, when the definition Clause contains the words 'means and includes' then both these words must be given the emphasis required and one word cannot ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The word 'includes' is used to signify that beyond the meaning given in the definition clause, other matters may be included keeping in view the nature of the language and object of the provision. In P. Kasilingam's case (supra) the words 'means and includes' has been used but in the present case the word 'means' has been used in the first part of Sub-section (h) of Section 2 whereas the word 'includes' has been used in the second part of the said Section. They have not been used together. 11. One of the arguments raised before us is that the words self-government occurring in the opening portion of Section 2(h) will govern the words 'authority', 'body' or 'institution'. It is urged that only such authorities, bodies or institutions actually concerned with self-governance can be declared to be public authorities. This objection has to be rejected outright. There are three categories in the opening lines viz., (a) authorities; (b) bodies; and (c) institutions of self-government. There can be no doubt in this regard and, therefore, we reject this contention. 12. The next contention is that a public authority can only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition goes on to say 'and includes any-' and thereafter the definition reads as: (i) body owned, controlled or substantially financed; (ii) non-Government organisation substantially financed, directly or indirectly by funds provided by the appropriate Government; The words 'and includes any', in our considered view, expand the definition as compared to the first part. The second part of the definition is an inclusive Clause which indicates the intention of the Legislature to cover bodies other than those mentioned in Clauses (a) to (d) of Section 2(h). 17. We have no doubt in our mind that the bodies and NGOs mentioned in Sub-clauses (i) and (ii) in the second part of the definition are in addition to the four categories mentioned in Clauses (a) to (d). Clauses (a) to (d) cover only those bodies etc., which have been established or constituted in the four manners prescribed therein. By adding an inclusive Clause in the definition, Parliament intended to add two more categories, the first being in Sub-clause (i), which relates to bodies which are owned, controlled or substantially financed by the appropriate Government. These can be bodies which may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivity: First, the interpreter should assume that the legislature is composed of reasonable people seeking to achieve reasonable goals in a reasonable manner; and second, the interpreter should accept the non-rebuttable presumption that members of the legislative body sought to fulfil their constitutional duties in good faith. This formulation allows the interpreter to inquire not into the subjective intent of the author, but rather the intent the author would have had, had he or she acted reasonably. 21. Justice M.B. Lokur speaking for the majority in Abhiram Singh v. C.D. Commachen (Dead) by L.Rs. and Ors. (2017) 2 SCC 629 held as follows: 39. ...Ordinarily, if a statute is well drafted and debated in Parliament there is little or no need to adopt any interpretation other than a literal interpretation of the statute. However, in a welfare State like ours, what is intended for the benefit of the people is not fully reflected in the text of a statute. In such legislations, a pragmatic view is required to be taken and the law interpreted purposefully and realistically so that the benefit reaches the masses... 22. Therefore, in our view, Section 2(h) deals with six different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word substantially has been defined to mean essentially; without material qualification; in the main; in substance; materially . In Shorter Oxford English Dictionary (5th Edn.), the word substantial means of ample or considerable amount of size; sizeable, fairly large; having solid worth or value, of real significance; solid; weighty; important, worthwhile; of an act, measure, etc. having force or effect, effective, thorough . The word substantially has been defined to mean in substance; as a substantial thing or being; essentially, intrinsically . Therefore the word substantial is not synonymous with dominant or majority . It is closer to material or important or of considerable value . Substantially is closer to essentially . Both words can signify varying degrees depending on the context. 48. Merely providing subsidies, grants, exemptions, privileges, etc. as such, cannot be said to be providing funding to a substantial extent, unless the record shows that the funding was so substantial to the body which practically runs by such funding and but for such funding, it would struggle to exist. The State may also float many schemes generally for the better ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there can be no manner of doubt that it has to be termed as substantially financed. 29. While interpreting the provisions of the Act and while deciding what is substantial finance one has to keep in mind the provisions of the Act. This Act was enacted with the purpose of bringing transparency in public dealings and probity in public life. If NGOs or other bodies get substantial finance from the Government, we find no reason why any citizen cannot ask for information to find out whether his/her money which has been given to an NGO or any other body is being used for the requisite purpose or not. 30. It is in the light of the aforesaid proposition of law that we now propose to examine the cases individually. Civil Appeal No. 9828 of 2013 31. This has been filed by D.A.V. College Trust and Management Society, New Delhi; D.A.V. College, Chandigarh; M.C.M.D.A.V. College, Chandigarh and D.A.V. Senior Secondary School, Chandigarh. 32. Appellant No. 1 is the Society which runs various colleges/schools but each has an identity of its own and, in our view, each of the college/school is a public authority within the meaning of the Act. It has been urged that these colleges/scho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D.A.V. Sr. Sec. School, Sector-8, Chandigarh 3,97,39,280/- 4,17,85,658/- 5,06,88,770/- 35. These are substantial payments and amount to almost half the expenditure of the Colleges/School and more than 95% of the expenditure as far as the teaching and other staff is concerned. Therefore, in our opinion, these Colleges/School are substantially financed and are public authority within the meaning of Section 2(h) of the Act. CIVIL APPEAL Nos. 9844-9845 OF 2013 CIVIL APPEAL Nos. 9846-9857 OF 2013 CIVIL APPEAL No. 9860 OF 2013 36. As far as these cases are concerned, we find from the judgments of the High Court that the aspect with regard to substantial financing has not been fully taken into consideration, as explained by us above. Therefore, though we hold that these bodies are NGOs, the issue whether these are substantially financed or not needs to be decided by the High Court. The High Court shall give both the parties opportunity to file documents and decide the issue in light of the law laid down by us. 37. With these observations, all the appeals are disposed of in the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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