UNION OF INDIA Vs. MOOL CHAND KHAIRATI RAM TRUST
LAWS(SC)-2018-7-48
SUPREME COURT OF INDIA
Decided on July 09,2018

UNION OF INDIA Appellant
VERSUS
MOOL CHAND KHAIRATI RAM TRUST Respondents

JUDGEMENT

Arun Mishra, J. - (1.) The question involved in the appeals is with respect to the validity of Circular issued by the Government of NCT of Delhi (GNCTD) on 2.2.2012 whereby it intimated the hospitals to implement the judgment of Delhi High Court with regard to free treatment to the weaker sections of the society in terms of the judgment dated 22.3.2007 in the case of Social Jurists v. Government of NCT of Delhi & Ors. Thereafter, the Land & Development Officer (in short, 'L&DO') passed an order dated 2.2.2012 wherein it was stated that the Government of India had taken a policy decision that all the hospitals which have been provided land by L&DO have to strictly follow the policy of providing free treatment as provided in it. That the said conditions were applicable to Moolchand Hospital and St. Stephens Hospital as they were allotted land by L&DO. Communication on similar lines was issued by Government of NCT of Delhi to Sitaram Bhartia and the Foundation of Cancer Research imposing condition of providing free treatment to 10% indoor patients and 25% to outdoor patients of poor strata of the society. The decision was taken in the light of the decision of Delhi High Court in Social Jurists case which was referred by this Court in Special Leave Petition [Civil] No.18599 of 2007 vide order dated 1.9.2011 in which this Court observed that 25% OPD and 10% IPD have to be given treatment free of cost. Said patients should not be charged with anything. However, the concerned hospital could make the arrangements of the cost either by meeting the treatment/medicines cost from its funds or resources or by way of sponsorships or endowments or donations. As the respondents-hospitals were not a party, they have questioned imposition of said conditions in the impugned order by filing writ applications. The High Court has quashed the imposition of conditions hence, the appeals have been preferred.
(2.) The factual matrix reflects that the Government of India in the year 1949 took a decision to provide all possible help to the hospitals by allotting land to the hospitals and schools at highly concessional rates so as to involve them in achieving the larger social objective of providing health and education to the people. Pursuant to the decision taken in the meeting dated 10.6.1949 under the Chairmanship of the Secretary (Finance) it was decided that the land would be allotted to the hospitals and schools at the rate of Rs.2000/- to Rs.5000/- per acre. The hospitals and schools were treated as charitable institutions. While the first safeguard relating to institutions being secular and non-communal in character, free help by allotment of land to schools and hospitals was unanimously accepted. It was also agreed that non-profit making bodies be included under the term "charitable institution" with the aforesaid institutions. The test should be that the institute should be run for the good of the public without any profit motive. The relevant portion of policy decision dated 10.6.1949 is extracted hereunder: "1) It should be clearly laid down that the land will be made available only for institutions of secular and non-communal character, schools and hospitals should be freely helped by allotment of land but applications from other types of charitable institutions should be considered individually on merits. It would be risky to lay down a general rule as regards the latter. 2) Recognition by an appropriate authority to the Government should be a condition precedent the allotment of land to schools, hospitals etc. 2) The first safeguard was unanimously accepted. It was understood that an institution of secular and non-communal character was one which did not discriminate against any class of people on any ground while making an admission. It was also agreed that institutions like Arts and Crafts Society and other non-profit making bodies should be included under the term "Charitable Institution". The test should be that the institution should be run for the good of the public without any profit motive."
(3.) It was also deliberated upon on 10.6.1949 that what should be premium and ground rent chargeable to a charitable institution. As per the policy laid down by the Government of India in the letter of the Department of Education, Land, dated 25.7.1943, the premium charged was too high, to be easily payable by any charitable institution much less by any displaced institution from Pakistan. According to that formula, any charitable institution will have to pay a premium at the rate of 25,000 to 35,000 per acre, plus ground rent @ 15% on the premium per annum, that would be obviously too high. Hence, it was agreed that the premium chargeable on land allocated to charitable institutions in Delhi should vary from Rs.2000/- to Rs.5000/- per acre. Facts relating to Mool Chand Khairati Ram Trust :;


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