In another landmark judgement dated 17.08.2010 Hon'ble Justice S. Muralidhar in the matter of IFCI Ltd. vs Ravinder Balwani held that IFCI is a Public Financial Institution. Extracts of judgement are reproduced below: "35. While interpreting the words "established or constituted by or under any Central Act", occurring in the proviso to Section 4A (2) of the Companies Act, the Division Bench held that "an institution constituted by or under any Central Act could have reference to a company which, though formed and registered subsequently under the Companies Act, was conceived and contemplated under a Central Act such as the Repeal Act of 1993." Consequently, it was concluded that "IFCI Limited would have to be regarded as a public financial institution under Section 4A of the Companies Act. As a consequence, it would be a financial institution under Section 2(1)(m)" of the SARFAESI Act. This Court therefore held that even though the Central Government subsequently ceased to hold shares in IFCI Ltd., its essential character as a public financial institution would remain. 36. The above judgment reinforces the submission of the that the Petitioner satisfies the requirements of Section 2(h)(d)(i) of the RTI Act. 37. Consequently the impugned order of the CIC is affirmed, and the writ petition is dismissed with costs of Rs. 10,000/- which will be paid by the Petitioner to the Respondent within four weeks."
This is vindication of stand taken by CIC on this matter.
Regards, VB Singh
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