In Ferani Hotels Pvt Ltd v The State Information Commissioner Greater Mumbai & Ors, Bombay High Court ruled that development plans of a real estate company can be disclosed by the municipal authorities, on an application under the Right to Information Act, 2005.
Ferani Hotels had entered into a contract with Nusli Wadia, the third respondent in the matter, to develop real estate in Mumbai. The development was terminated following a dispute between the parties and Wadia filed a civil suit seeking a declaration that the termination was valid. In the course of the civil suit, Wadia’s lawyers sought documents detailing the development of the real estate, but lawyers for Ferani Hotels refused to comply.
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Wadia then unsuccessfully filed an application under the Right to Information Act to the Bombay Municipal Corporation seeking certified copies of the property card, building and development plans submitted by Ferani Hotels or its architects for the corporation’s approval. On appeal by Wadia, the State Information Commissioner directed the corporation to comply.
Ferani Hotels argued before Bombay High Court that the information sought was exempted under section 8, as development plans were trade secrets and disclosure to a business rival would erode its competitive advantage in the market. Further, it asserted that the development plans were subject to copyright, and their unauthorized reproduction would amount to infringement.
The court held that development plans constituted information of a public nature, and withholding them would deprive the public of the opportunity to examine layout plans approved by the corporation, leading to a “total lack of transparency and accountability” in the manner in which the corporation granted approvals. The court also sought to draw the line between trade secrets protected by section 8 and public records capable of being disclosed under the act, holding that trade secrets became public records when a public authority approved them.
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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
