Document Fragment View

Matching Fragments

2. It has been contended by the RBI that it carries out inspections of banks and financial institutions on regular basis and the inspection reports prepared by it contain a wide range of information that is collected in a fiduciary capacity. The facts in brief of the Transfer Case No.91 of 2015 are that during May-June, 2010 the statutory inspection of Makarpura Industrial Estate Cooperative Bank Ltd. was conducted by RBI under the Banking Regulation Act, 1949. Thereafter, in October 2010, the Respondent sought following information from the CPIO of RBI under the Act of 2005, reply to which is tabulated hereunder:

| |Companies Act, 1956. |competitive position | | | |of a third party. | | | |Further such | | | |information is | | | |maintained in a | | | |fiduciary capacity | | | |and is exempted from | | | |disclosure under | | | |Sections 8(1)(d) and | | | |(e) of the RTI Act. | |2. |Action initiated by RBI against the |(a) A penalty of Rs. | | |said bank, including all |1 lakh was imposed on| | |correspondence between RBI and the |Deendayal Nagri | | |said bank officials. |Sahakari Bank Ltd. | | | |for violation of | | | |directives on loans | | | |to directors/their | | | |relatives/concerns in| | | |which they are | | | |interested. The bank | | | |paid the penalty on | | | |08.10.2010. | | | |(b) As regards | | | |correspondence | | | |between RBI and the, | | | |co-operative bank, it| | | |is advised that such | | | |information is | | | |maintained by RBI in | | | |fiduciary capacity | | | |and hence cannot be | | | |given to outsiders. | | | |Moreover disclosure | | | |of such information | | | |may harm the interest| | | |of the bank and | | | |banking system. Such | | | |information is exempt| | | |from disclosure under| | | |Section 8(1)(a) and | | | |(e) of the RTI Act. | |3. |Finding of the enquiry made by RBI, |Such information is | | |actions proposed and taken against |maintained by the | | |the bank and its officials-official |bank in a fiduciary | | |notings, decisions, and final orders |capacity and is | | |passed and issued. |obtained by RBI | | | |during the course of | | | |inspection of the | | | |bank and hence cannot| | | |be given to | | | |outsiders. The | | | |disclosure of such | | | |information would | | | |harm the competitive | | | |position of a third | | | |party. Such | | | |information is, | | | |therefore, exempted | | | |from disclosure | | | |under Section 8(1)(d)| | | |and (e) of the RTI | | | |Act. | | | |As regards action | | | |taken against the | | | |bank, are reply at S.| | | |No.2 (a) above. | |4. |Confidential letters received by RBI |See reply at S. NO.2 | | |from the Executive Director of |(a) above. | | |Vaishnavi Hatcheries Pvt. Ltd. | | | |complaining about the illegal working| | | |and pressure policies of the bank and| | | |its chairman for misusing the | | | |authority of digital signature for | | | |sanction of the backdated | | | |resignations of the chairman of the | | | |bank and few other directors of the | | | |companies details of action taken by | | | |RBI on that. | |

46. In reply to the submission of the petitioner about fiduciary relationship, learned counsel submitted that the scope of Section 8(1)(e) of the RTI Act has been decided by this Court in Central Board of Secondary Education vs. Aditya Bandopadhyay, (2011) 8 SCC 497, wherein, while rejecting the argument that CBSE acts in a fiduciary capacity to the students, it was held that:

“…In a philosophical and very wide sense, examining bodies can be said to act in a fiduciary capacity, with reference to students who participate in an examination, as a Government does while governing its citizens or as the present generation does with reference to the future generation while preserving the environment. But the word ‘information available to a person in his fiduciary relationship’ are used in Section 8(1) (e) of the RTI Act in its normal and well recognized sense, that is to refer to persons who act in a fiduciary capacity, with reference to specific beneficiary or beneficiaries who are to be expected to be protected or benefited by the action of the fiduciary.”

There are also certain relationships where both the parties have to act in a fiduciary capacity treating the other as the beneficiary. Examples of these are : a partner vis-à-vis another partner and an employer vis-à-vis employee. An employee who comes into possession of business or trade secrets or confidential information relating to the employer in the course of his employment, is expected to act as a fiduciary and cannot disclose it to others. Similarly, if on the request of the employer or official superior or the head of a department, an employee furnishes his personal details and information, to be retained in confidence, the employer, the official superior or departmental head is expected to hold such personal information in confidence as a fiduciary, to be made use of or disclosed only if the employee’s conduct or acts are found to be prejudicial to the employer.”