Central Information Commission Judgements

Shri R. Appu Nadesan vs Indian Rare Earths Ltd. on 30 March, 2010

Central Information Commission
Shri R. Appu Nadesan vs Indian Rare Earths Ltd. on 30 March, 2010
             CENTRAL INFORMATION COMMISSION
            Room No. 308, B-Wing, August Kranti Bhawan, Bhikaji Cama Place, New Delhi-110066



                                File No. CIC/LS/A/2010/000034

Appellant                :                 Shri R. Appu Nadesan

Public Authority         :                 Indian Rare Earths Ltd.
                                           (through : Shri K. Suresh, DGM(Legal).

Date of hearing          :                 30.03.2010

Date of Decision         :                 30.03.2010


Facts

:-

Vide RTI application dated 10.8.2009, the appellant had sought information on 05
paras essentially relating to the procedure being followed by Indian Rare Earths Ltd.
(IREL) in marketing Garnet mineral in India and the matters related therewith. Vide
letter dated 15.9.2009, the CPIO had refused to disclose any information essentially for
the reason that the requested information was of commercial nature and thereby
exempted from disclosure u/s 8(1)(d) of the RTI Act. The Appellate Authority had
upheld the decision of the CPIO vide order dated 12.10.2009.

2. The present appeal is directed against the above orders.

3. Heard on 30.03.2010. The appellant is represented by Adv. Shinoj Narayanan.
The IREL is represented by officer named above. It is the principal submission of Adv.
Narayanan that he is seeking the requested information primarily for the reason that
corruption is rampant in the functioning of IREL. Besides, environmental issues are
involved in the running of the project in that IREL is involved in a mindless mining
activity, thereby creating environmental degradation in the area and depriving the local
populace of their livelihood. It is also his plea that the information sought by the
appellant does not fall in the ambit of clause (d) of section 8(1) of the RTI Act in as much
as no breach of commercial confidence is involved.

4. On the other hand, Shri Suresh would submit that IREL had monopoly in the
matter till 1998 where-after the Government opened up the sector to the private players.
The RIEL has now to compete with a number of private players and to devise suitable
strategies to survive in the market. He would plead that the requested information is
being sought essentially to under-cut IREL in the market. He claims privilege under
clause (d) of section 8(1) of the RTI Act.

5. The IREL is a Public Sector Company. We find weight in the submission of Shri
Suresh that the identity of buyers of Garnet, the quantum of purchases and the rate(s) of
supply to them cannot be disclosed as it is a matter of commercial confidence and to keep
this information confidential is essential for the survival of the company. However, we
cannot be unmindful of the fact that being a public sector Company, IREL is supposed to
conduct its business in a fair and transparent manner, without, of course, compromising
the commercial confidence. In this context, the Commission raised a query as to whether
IREL would be agreeable to disclose a few supplies made by IREL to an entity called
Indian Garnet Sand Company. To this, Shri Suresh would respond that the buyer is a
third party and, therefore, before taking any decision in the matter, procedure of section
11(1) is required to be followed.

DECISION

6. In view of the above discussion, as regards para 04 of the RTI application, the
CPIO is hereby directed to follow the procedure prescribed under section 11(1) of the
RTI Act and communicate his decision to the appellant in 06 weeks time. As regards the
response of the CPIO in regard to other paras of the RTI application, the same is upheld
in terms of section 8(1)(d) of the RTI Act.

7. The matter is decided accordingly.

Sd/-

( M.L. Sharma )
Central Information Commissioner

Authenticated true copy. Additional copies of orders shall be supplied against application
and payment of the charges, prescribed under the Act, to the CPIO of this Commission.

(K.L. Das)
Assistant Registrar

Address of parties :

1. The Dy. Genl. Manager(HRM) & CPIO,
Indian Rare Earths Ltd., Plot No. 1207,
Veer Savarkar Marg,
Near Siddhi Vinayak Temple,
Prabhadevi,
Mumbai-400028.

2. Shri R. Appu, Nadesan,
The Coastal Environment & Ecological Conservation Committee,
Keeraikaranthattu Thisaiyanvilai-627657,
Tamilnadu.