How should the term 'substantial' be interpreted in substantial financing?
The term ‘substantial’ has not been defined in the Act. The Act does not talk of absolute or majority control, but only of substantial stake. As per the Oxford Advanced Learner’s Dictionary the term ‘substantial’ means “large in amount or value; considerable”. What amounts to “substantial” financing cannot be straight-jacketed into rigid formulae, of universal application and each case would have to be examined on its own facts. It only means that it should not be trivial. Whether the percentage of funding is “majority” financing or not, or that the body is an impermanent one, are not material. Equally, that the institution or organization is not controlled, and is autonomous is irrelevant. The tem “substantial” is akin to “material” or “important” or “of considerable value”. In other words, the extent of funding by the appropriate Government should be such that in its absence, the functioning of the entity is rendered difficult. The definition of ‘Substantial financing’ as per other Acts may be relevant, depending upon the circumstances of the case.