Research › Search › Judgment

Kerala High Court · body

2025 DIGILAW 1837 (KER)

K. S. Muhammed Babu, S/o Krishnan Nair v. State of Kerala

2025-07-04

N.NAGARESH

body2025
JUDGMENT : The petitioner, who is a Member of the 3 rd respondent-Thiruvananthapuram Medical College Hospital Development Society, seeks to compel the 1 st respondent- Government not to allow the 2 nd respondent-Kerala Health Research and Welfare Society to start the functioning of the CT Scan Unit at Thiruvananthapuram Medical College. 2. The petitioner states that the 3 rd respondent- Hospital Development Society is conducting four CT Scan Units, MRI Scan Unit and a Cath Lab in the premises of the Medical College for long years. No amount is charged for CT Scan from persons Below Poverty Line, unknown persons brought by police and persons belonging to Scheduled Tribe. While so, the 2 nd respondent-Society set up a Cath Lab in the Medical College as per Ext.P1 Government Order dated 25.02.2011 with a specific stipulation that 10% of the revenue from the Cath Lab shall be paid to the Hospital Development Society. 3. The petitioner states that as per audit report for the period from 1/2011 to 12/2013, the revenue collected by the 2 nd respondent was Rs.7,52,49,946/-. The net profit of the 2 nd respondent was Rs.2,29,13,443/-. As per the agreement, Rs.22,91,344/- need to be transferred to the Hospital Development Society. However, only Rs.10 lakhs was given to the Society and Rs.12,91,344/- remains unpaid. According to the petitioner, the 2 nd respondent has collected a total revenue of Rs.15.08 Crores during the period from 2011–2012 to 2016–2017. Though the Secretary of the Hospital Development Society submitted Ext.P4 petition to the 1 st respondent requesting to take appropriate steps to release the amount from the 2 nd respondent, no amount is transferred to the Hospital Development Society. 4. Now, the 1 st respondent has issued Ext.P5 order dated 17.05.2024 sanctioning a new CT Scan Unit to be run by the 2 nd respondent-Society which will be established very close to the existing CT Scan Units being run by the Hospital Development Society. If the CT Scan Unit is allowed to be operated by the 2 nd respondent, that will adversely affect the functioning of the CT Scan Units run by the Hospital Development Society. Therefore, Ext.P5 order is highly illegal and arbitrary and is liable to be set aside, contends the petitioner. 5. The 2 nd respondent resisted the writ petition. If the CT Scan Unit is allowed to be operated by the 2 nd respondent, that will adversely affect the functioning of the CT Scan Units run by the Hospital Development Society. Therefore, Ext.P5 order is highly illegal and arbitrary and is liable to be set aside, contends the petitioner. 5. The 2 nd respondent resisted the writ petition. The 2 nd respondent stated that the 2 nd respondent-Society is constituted by the Government of Kerala as a fully owned Society under the Government. The Society was formed in order to set up ancillary facilities in the premises of Government Healthcare Centres. The 2 nd respondent is now setting up laboratories and testing facilities and is taking up construction activities in the public health sector. 6. There are four CT Scan machines, including one installed by the 2 nd respondent and one MRI Scan machine in Thiruvananthapuram Medical College. A CT Scan machine installed in the year 2009 has broken down and is beyond repair. The need for a new CT Scan machine was discussed between the Medical College Authorities and the officers of the 2 nd respondent-Society. The Superintendent of Medical College requested the 2 nd respondent to initiate the process of decommission the defunct CT Scan machine installed in the premises and install a new CT Scan machine in its place. 7. In the meeting of the 2 nd respondent-Society held on 10.01.2024 attended by the Minister for Health as Chairperson, noted the request of the Medical College authorities and approved the proposal to install and operate the CT Scan machine in the Medical College. The 2 nd respondent thereafter procured a CT Scan unit spending about Rs.4.5 Crores and got it installed in the Medical College premises. Approval was obtained from statutory authorities. When the machine was to be made operational for public use, the petitioner has filed the writ petition and the petitioner obtained an ex-parte interim stay order on 09.05.2025. In view of the interim order of this Court, the 2 nd respondent is prevented from operating the CT Scan machine to the detriment of the patients in the Medical College. 8. As regards the 10% revenue/profit claimed by the petitioner, the 2 nd respondent submitted that in the year 1998, a Cath Lab was installed by the 2 nd respondent from its own funds in the year 2011. 8. As regards the 10% revenue/profit claimed by the petitioner, the 2 nd respondent submitted that in the year 1998, a Cath Lab was installed by the 2 nd respondent from its own funds in the year 2011. The Government of India sanctioned a new Cath Lab to the Medical College under the Pradhan Mantri Swasthya Suraksha Yojana Project. The 1 st respondent issued Ext.P1 order dated 25.02.2021, entrusting the running of the new Cath Lab to the 2 nd respondent. Since the Cath Lab was not procured by the 2 nd respondent, the 1 st respondent imposed a condition that 10% of the revenue shall be transferred to the Hospital Development Society. The said Ext.P1 order cannot be extended to the CT Scan unit being installed by the 2 nd respondent. The writ petition is without any merit and is liable to be dismissed, urged the counsel for the 2 nd respondent. 9. The Senior Government Pleader representing the Government of Kerala submitted that the petitioner is only a member of the Hospital Development Society. The Hospital Development Society has not come forward challenging Ext.P5. The petitioner, as a member of the Society, has no locus standi to file this writ petition. The writ petition is therefore in the nature of a Public Interest Litigation and is liable to be rejected for non-conformity with the rules. The order passed by the court has adversely affected the functioning of the Medical College Hospital and the patients visiting the Medical College Hospital for treatment. 10. I have heard the learned counsel for the petitioner, the learned Senior Government Pleader representing the 1 st respondent and the learned Standing Counsel appearing for the 2 nd respondent. 11. The 3 rd respondent-Hospital Development Society is functioning in the Thiruvananthapuram Medical College and is running CT Scan units, MRI Scan unit, Cath Lab, etc. The petitioner states that there should be a direction to the respondent to transfer 10% revenue generated by the installation of a new CT Scan machine by the 2 nd respondent, to the Hospital Development Society. The petitioner is relying on Ext.P1 Government Order dated 25.02.2011. 12. The petitioner states that there should be a direction to the respondent to transfer 10% revenue generated by the installation of a new CT Scan machine by the 2 nd respondent, to the Hospital Development Society. The petitioner is relying on Ext.P1 Government Order dated 25.02.2011. 12. By Ext.P1 order, the Government of Kerala in the year 2021 entrusted the management and running of a new Cath Lab in the Medical College Hospital to the 2 nd respondent-Society subject to the condition that 10% of the revenue shall be transferred to the Hospital Development Society and that an agreement shall be executed between the Principal, Medical College Hospital and the Managing Director of the 2 nd respondent-Society. 13. It is evident from the pleadings that Ext.P1 order was issued entrusting running of the new Cath Lab to the 2 nd respondent as the Cath Lab was established under PMSSY Scheme of the Central Government and it is the Central Government which met the cost of establishing the Cath Lab. The Hospital Development Society being an institution which is discharging similar functions, the Government deemed it fit to transfer a share of the income from the Cath Lab which was established using funds of the Central Government, to the Hospital Development Society. Ext.P1 cannot be treated as an order entitling the 3 rd respondent-Hospital Development Society to have a 10% profit share whenever the 2 nd respondent-Society establishes a service activity within the Medical College premises. 14. It is on the request of the Medical College authorities and that too in a meeting attended by the Minister for Family Welfare, Principal Secretary to the Health Department, Managing Director of the 2 nd respondent- Society, Director of Health Department, Director of Medical Education Department, Under Secretary to the Finance Department, Secretary to the Law Department, etc. that a decision was taken to start a new CT Scan facility in the Medical College by the 2 nd respondent. 15. The petitioner cannot as of right claim that the Hospital Development Society is entitled to a 10% share of profit from the CT Scan unit being installed by the 2 nd respondent-Society. 16. The petitioner has a further prayer to direct the 2 nd respondent not to start the new CT Scan unit without paying the amount due from the revenue collected from the Cath Lab. 16. The petitioner has a further prayer to direct the 2 nd respondent not to start the new CT Scan unit without paying the amount due from the revenue collected from the Cath Lab. If there is any claim for the Hospital Development Society to receive money from the respondents 1 or 2, it is for the Hospital Development Society to come forward with a claim. The petitioner being only a member of the Hospital Development Society cannot maintain a writ petition at the instance of the Society without having due authorisation. The writ petition is therefore without any merit and it is liable to be dismissed. The writ petition is dismissed accordingly.