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2011 (11) TMI 838 - HC - Indian Laws

Issues Involved:
1. Provision of free medicines to 20% of patients.
2. Granting No Objection Certificate (NOC) for creating a mortgage in favor of Axis Bank.

Issue-wise Analysis:

1. Provision of Free Medicines to 20% of Patients:

The petitioners and the respondents entered into an agreement for constructing a multi-super specialty hospital on Corporation land. The Corporation contends that the petitioners must reserve 20% of beds for specific categories of patients and provide free medicines, as per the agreement. The petitioners argue they are providing free surgical facilities, beds, OPD, and diagnostic services but assert that free medicines are not required under the agreement. The court acknowledges that the hospital is operational and has admitted patients, thus recognizing the need to consider whether the petitioners must bear the cost of all medicines for 20% of patients or if providing other free medical services suffices. The matter is set for further hearing, with the court directing the completion of pleadings by 5th December 2011 and scheduling a hearing for 12th December 2011.

2. Granting NOC for Creating Mortgage in Favor of Axis Bank:

The petitioners seek an NOC from the Corporation to secure additional financial assistance from Axis Bank by mortgaging the hospital property. The Corporation has not responded to the petitioners' application for an NOC, prompting the petitioners to seek relief from the court. The petitioners argue that the contract allows for mortgaging the property and that the Corporation's refusal to grant an NOC is arbitrary. The Corporation opposes the request, citing the Mumbai Municipal Corporation Act, 1888, and arguing that the land cannot be mortgaged. The court notes that the petitioners have previously mortgaged the property with Allahabad Bank with the Corporation's consent and finds the Corporation's current refusal unreasonable. The court directs the Corporation to grant the NOC within two weeks, without prejudice to the Corporation's rights and contentions, to enable the petitioners to obtain financial assistance from Axis Bank.

Interim Relief:

The court grants interim relief to the petitioners, directing the Corporation to issue the NOC within two weeks and appoint an Officer on Special Duty to monitor compliance with the provision of free treatment to 20% of patients. The court also instructs the petitioners to maintain records of patients receiving free treatment and medicines, allowing the Corporation to verify compliance. The interim order is issued without prejudice to the final determination of the case, considering the hospital's operational status and the need to avoid disrupting its services.

Conclusion:

The court's interim order addresses the immediate need for financial assistance by directing the Corporation to grant an NOC while ensuring compliance with the agreement's terms regarding free treatment for 20% of patients. The final hearing will further examine the obligations related to providing free medicines and the validity of the mortgage agreement.

 

 

 

 

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