Apologies for the late contribution but this reminded me of a conundrum which was once raised with me.
As pointed out, for the applicant's PD the processing is for the purpose of carrying out your legal obligation.
But what about someone else's PD which cannot be separated where a s7(4) determination is decided in favour of disclosure as being reasonable in all the circumstances?
In effect the same condition applies. But what if (unlikely but not impossible to satisfy 7(4)) the other person's PD is sensitive? The equivalent schedule 3 condition does not help as that is limited to employment rights. The answer I came up with was Schedule 3 6(c) - necessary for exercising legal rights - since if s7(4) is decided in favour s7(1) gives a legal right of access.
In both cases, but especially the latter, I leave the astute reader to work out the implications of fair processing for the other person's data which requires a careful reading of s35(2) s27(3) and (4) and the question of " the extent to which the [non-disclosure provisions] are inconsistent with the disclosure in question".
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