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explanations:fiduciary-relationship
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explanations:fiduciary-relationship [2023/04/15 10:54] – Shrawanexplanations:fiduciary-relationship [2026/04/20 01:14] (current) – external edit 127.0.0.1
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 ====== What is Fiduciary Relationship ====== ====== What is Fiduciary Relationship ======
-{{:explanations:fiduciary-relationship-rti.jpg| }}+ 
 +{{htmlmetatags>metatag-keywords=(explanations fiduciary relationship rti right to information india) 
 +metatag-description=(A fiduciary relationship is defined as “a relationship in which one person is under a duty to act for the benefit of the other on the matters within the scope...)}} 
 + 
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 +<WRAP center round info 95%> 
 +**In one line.** Section 8(1)(e) protects information held in a **fiduciary** relationship — but the Supreme Court has read this narrowly, especially after //RBI v. Jayantilal Mistry// (2016). 
 + 
 +**What that means in practice.** 
 +  * A **fiduciary** relationship requires trust + a duty to act in the other's interest. 
 +  * Regulator/regulated, employer/employee, or data-handler/data-subject are **not** automatically fiduciary. 
 +  * The PIO must identify the specific fiduciary duty, not merely use the label. 
 +  * On appeal, Section 8(2) public-interest override often defeats a weak 8(1)(e) claim. 
 +</WRAP> 
 + 
 +{{page>_snippets:dpdp-banner}} 
 +{{:explanations:fiduciary-relationship-rti.jpg?424x283| }}
 A fiduciary relationship is defined as “a relationship in which one person is under a duty to act for the benefit of the other on the matters within the scope of   the relationship.” “Fiduciary relationship usually arises in one of the four situations:  A fiduciary relationship is defined as “a relationship in which one person is under a duty to act for the benefit of the other on the matters within the scope of   the relationship.” “Fiduciary relationship usually arises in one of the four situations: 
 (1) when one person places trust in the faithful integrity of another, who as a result gains superiority or influence over the first,  (1) when one person places trust in the faithful integrity of another, who as a result gains superiority or influence over the first, 
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 The traditional definition of a fiduciary is a person who occupies a position of trust in relation to someone else, therefore requiring him to act for the latter's benefit within the scope of that relationship. In business or law, it generally means someone who has specific duties, such as those that attend a particular profession or role, e.g. doctor, lawyer, banker, financial analyst or trustee. The traditional definition of a fiduciary is a person who occupies a position of trust in relation to someone else, therefore requiring him to act for the latter's benefit within the scope of that relationship. In business or law, it generally means someone who has specific duties, such as those that attend a particular profession or role, e.g. doctor, lawyer, banker, financial analyst or trustee.
  
-Another characteristic of such a relationship is that the information is given by the holder of information out of choice. When a litigant goes to a particular lawyer, a customer chooses a particular bank, or a patient goes to a particular doctor he has a choice whether he wishes to give the information. An equally important characteristic for the relationship to qualify as a fiduciary relationship is that the provider of information gives the information for using it for his benefit. It is true that such a relationship is based on trust. A person will not choose a doctor, lawyer, banker or trustee unless there is trust. All relationships usually have an element of trust, but all of them cannot be classified as fiduciary. Information provided in the discharge of a statutory requirement,  or to obtain a  job, or to get a license or passport, cannot be considered to have been given in a fiduciary relationship. In such a situation, it cannot be claimed that the information has been given in a fiduciary relationship.+Another characteristic of such a relationship is that the [[explanations:information|information]] is given by the holder of information out of choice. When a litigant goes to a particular lawyer, a customer chooses a particular bank, or a patient goes to a particular doctor he has a choice whether he wishes to give the information. An equally important characteristic for the relationship to qualify as a fiduciary relationship is that the provider of information gives the information for using it for his benefit. It is true that such a relationship is based on trust. A person will not choose a doctor, lawyer, banker or trustee unless there is trust. All relationships usually have an element of trust, but all of them cannot be classified as fiduciary. Information provided in the discharge of a statutory requirement,  or to obtain a  job, or to get a license or passport, cannot be considered to have been given in a fiduciary relationship. In such a situation, it cannot be claimed that the information has been given in a fiduciary relationship.
  
 Another aspect to be taken into account is that information provided by the beneficiary to a fiduciary is held in trust and cannot be shared with anyone, but the reverse is not true. A doctor is not free to discuss a patient’s information without the patient ’s consent, but there is no such binding on the patient sharing the doctor’s advice or medication. Another aspect to be taken into account is that information provided by the beneficiary to a fiduciary is held in trust and cannot be shared with anyone, but the reverse is not true. A doctor is not free to discuss a patient’s information without the patient ’s consent, but there is no such binding on the patient sharing the doctor’s advice or medication.
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 Fiduciary Relationship although arises out of a transaction involving trust between two parties, it requires **something more than mere trust to make the relationship fiduciary**.  Fiduciary Relationship although arises out of a transaction involving trust between two parties, it requires **something more than mere trust to make the relationship fiduciary**. 
  
-It also cannot be equated with mere privacy or confidentiality ((reference IN THE HIGH COURT OF KERALA AT ERNAKULAM W.P. (C) No. 6532 of 2006 (C) Decided On: 30.08.2010+It also cannot be equated with mere [[explanations:privacy|privacy]] or confidentiality ((reference IN THE HIGH COURT OF KERALA AT ERNAKULAM W.P. (C) No. 6532 of 2006 (C) Decided On: 30.08.2010
  
 Appellants: Treesa Irish W/o Milton Lopez Vs.Respondent: The Central Public Information Officer, The Appellate Authority, The Central Information Commission and Union of India (UOI).)) At the heart of fiduciary relationship lie **reliance, de facto control and dominance**. A fiduciary relationship exists when confidence is reposed on one side and there is resulting superiority and influence on the other. The Canadian Courts have developed the following tests for determining whether the fiduciary relationship has been established, viz. Appellants: Treesa Irish W/o Milton Lopez Vs.Respondent: The Central Public Information Officer, The Appellate Authority, The Central Information Commission and Union of India (UOI).)) At the heart of fiduciary relationship lie **reliance, de facto control and dominance**. A fiduciary relationship exists when confidence is reposed on one side and there is resulting superiority and influence on the other. The Canadian Courts have developed the following tests for determining whether the fiduciary relationship has been established, viz.
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 A fiduciary relationship ((IN THE HIGH COURT OF KERALA AT ERNAKULAM W.P. (C) No. 6532 of 2006 (C) Decided On: 30.08.2010 Appellants: Treesa Irish W/o Milton Lopez Vs.Respondent: The Central Public Information Officer, The Appellate Authority, The Central Information Commission and Union of India (UOI))) is one where the key element is that the relationship is **principally characterized by trust and the information is given for use only for the benefit of the giver**. The traditional definition of a fiduciary is a person who occupies a position of trust in relation to someone else, therefore requiring him to act for the latter's benefit within the scope of that relationship (([[http://rti.india.gov.in/cic_decisions/SG-10072009-07.pdf|Rakhi Gupta v. Jt. Director & PIO, National Institute of Open Schooling, Decision No. CIC/SG/A/2009/001343/4053]])) A fiduciary relationship ((IN THE HIGH COURT OF KERALA AT ERNAKULAM W.P. (C) No. 6532 of 2006 (C) Decided On: 30.08.2010 Appellants: Treesa Irish W/o Milton Lopez Vs.Respondent: The Central Public Information Officer, The Appellate Authority, The Central Information Commission and Union of India (UOI))) is one where the key element is that the relationship is **principally characterized by trust and the information is given for use only for the benefit of the giver**. The traditional definition of a fiduciary is a person who occupies a position of trust in relation to someone else, therefore requiring him to act for the latter's benefit within the scope of that relationship (([[http://rti.india.gov.in/cic_decisions/SG-10072009-07.pdf|Rakhi Gupta v. Jt. Director & PIO, National Institute of Open Schooling, Decision No. CIC/SG/A/2009/001343/4053]]))
  
-In business or law, we generally mean someone who has specific duties, such as those that attend a particular profession or role, e.g., financial analyst or trustee. In the case citation here: {{:explanations:sg-27022009-11.pdf|Mahesh Kumar Sharma v. PIO, Delhi Jal Board Decision}} the CIC noted that "a key element of the relationship between the applicant for a water connection and the Delhi Jal Board certainly cannot be said to be primarily of trust by the applicant in the Public authority, nor can it be said that the information was given for the benefit of the giver. The information was provided to get an authorization for a water connection." ((MANOJ B. PATEL Blog Post titled [[http://www.rtiindia.org/forum/blogs/manoj-b-patel/4638-fiduciary-relationship.html|Fiduciary Relationship]]))+In business or law, we generally mean someone who has specific duties, such as those that attend a particular profession or role, e.g., financial analyst or trustee. In the case citation here: {{:explanations:sg-27022009-11.pdf|Mahesh Kumar Sharma v. PIO, Delhi Jal Board Decision}} the CIC noted that "a key element of the relationship between the applicant for a water connection and the Delhi Jal Board certainly cannot be said to be primarily of trust by the applicant in the [[explanations:public-authority|Public authority]], nor can it be said that the information was given for the benefit of the giver. The information was provided to get an authorization for a water connection." ((MANOJ B. PATEL Blog Post titled [[http://www.rtiindia.org/forum/blogs/manoj-b-patel/4638-fiduciary-relationship.html|Fiduciary Relationship]]))
  
 ==== RTI Act and Fiduciary Relationship ==== ==== RTI Act and Fiduciary Relationship ====
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 ~~socialite~~ ~~socialite~~
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 +<WRAP center round help 95%>
 +**New to RTI? File your first application in ten minutes.** See [[:file-rti-online-india|How to File RTI Online in India — 2026 Step-by-Step Guide]] with a ready-to-use English and Hindi template, the Rs 10 online fee flow, and the appeal path.
 +</WRAP>
 +
 +===== Related =====
 +
 +  * [[explanations:investigation-under-rti|Investigation/Inquiry reports under RTI]].
 +  * [[explanations:vicarious-liability|Vicarious Liability]].
 +  * [[explanations:composite-petition|Composite Petition under RTI Act]].
 +  * [[explanations:privacy-public-servants|Privacy Rights of Public Servants]].
 +  * [[explanations:substantially-financed|Substantially Financed]].
 +
 +{{tag>rti explanations}}
 +
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