SATYAM DIAGNOSTICS CENTRE Vs. STATE OF RAJASTHAN AND ORS.
LAWS(RAJ)-2015-6-24
HIGH COURT OF RAJASTHAN
Decided on June 29,2015

Satyam Diagnostics Centre Appellant
VERSUS
State of Rajasthan And Ors. Respondents

JUDGEMENT

Arun Bhansali, J. - (1.) THIS writ petition has been filed by the petitioner firm under Article 226 of the Constitution of India seeking the following reliefs: - "a) Restrain the respondent from installing and operating the MRI machine at the MGH Hospital, Jodhpur; b) Hold that the respondents are not permitted to install and operate any other MRI machine till the subsistence of agreement dated 04.02.2009; c) Restrain the respondents from entering into and/or executing any agreement/contract with any other party for operating the MRI machine at MG. Hospital; d) Direct the respondents to execute MOU/agreement with the Petitioner for operating the MRI Machine at the MGH Hospital, Jodhpur as per the Agreement dated 4.2.2009; e) Call for the entire record in respect of the agreement dated 4.2.2009 and in respect of the tender in relation to the purchase of MRI machine at MG. Hospital; f) Any other appropriate writ, order or direction which may deems just and proper in the facts and circumstances of the case may kindly be issued in favour of the Petitioner; and g) Award the cost of this petition to the Petitioner against the respondents."
(2.) THE petition has been filed with the averments that the petitioner entered into a licence agreement dated 04.02.2009 ('the agreement'), after undergoing due process of tender with the respondents and in terms of the agreement a Magnetic Resonance Imaging ('MRI') machine was installed at Mathuradas Mathur Hospital, Jodhpur ('MDM Hospital') and the same commenced operations from January, 2011; the petitioner invested a sum of Rs. 6 crores; terms of the agreement are being followed by the petitioner; the agreement is valid for a period of ten years from the date of commencement of business of MRI investigations and has a provision for extension of the licence upto five years after the completion of ten years with the mutual agreement of both the parties; it is claimed that the MRI machine is being run by the petitioner for 24 hours a day, 365 days a year without any break since January, 2011 at affordable and subsidized rates; the petitioner is having a capacity of conducting about 80 to 100 MRI scans every day and is rendering services to approximately 40 to 50 patients per day; under the agreement, quarterly review of the performance of the petitioner -licencee is envisaged, however, no complaint in the working has been observed/pointed out to the petitioner firm. It is then claimed and which is essentially the dispute raised in the present writ petition that the agreement exclusively and explicitly restrict installation of any other MRI machine in any of the associated group of hospitals of Dr. S.N. Medical College, Jodhpur during the currency of the agreement, reference has been made to Clauses 21, 22 and 23 of the agreement in this regard; to the surprise/shock of the petitioner, it came to its knowledge that a new MRI machine is being installed at Mahatma Gandhi Hospital, Jodhpur ('MG Hospital') and diagnostic services would be rendered and from the newspaper report, it was fortified that a machine has already been purchased from Philips Electronics India Limited and is ready to be installed and commence its work; the installation of new MRI machine at MGH is alleged to be illegal, unjustified and against the unequivocal terms and conditions of the agreement and that the same amounts to material breach of contract.
(3.) IT is averred that on coming to know of the intentions of the respondents, a notice for demand of justice dated 25.03.2015 was sent to the respondents, wherein, the respondents were called upon not to breach the agreement by setting up the MRI machine and, in the alternative, if setting up has become indispensable, the same may be done through the petitioner; it is, inter alia, claimed that no response to the notice has been given and, even if, the workload has increased, the petitioner is only entitled to set up and install another MRI machine in the same premises; it is claimed that 60% of the petitioner's revenue is generated from the cases referred through the hospitals associated with Dr. S.N. Medical College, Jodhpur and in case the MRI machine is permitted to be set up ignoring the terms of the contract, the same would result in major setback and complete break down of petitioner's business; reference has been made to a offer made to Soni Hospital Private Limited, Jaipur by SMS Hospital, Jaipur for setting up of another machine, which company was already operating a machine under agreement; it is with these averments that the prayers as indicated hereinbefore have been sought by the petitioner.;


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