2008 (12) TMI 816 - HC - Indian Laws

Summary

Issues Involved:
1. Discontinuance of the joint administrators.
2. Discharge of Mr. A.A. Halbe as Joint Administrator.
3. Appointment of a new Joint Administrator in place of Mr. A.A. Halbe.
4. Maintainability of the application for the removal of Mr. A.A. Halbe.
5. Conduct of Mr. A.A. Halbe as Joint Administrator.

Issue-Wise Detailed Analysis:

1. Discontinuance of the Joint Administrators:
The relief sought by the appellants included the discontinuance of the joint administrators. However, during the hearing, the Senior Counsel for the applicants did not press for this relief. The Court indicated that it was not inclined to vacate the direction regarding the regime of the Administrators, as the circumstances that led to their appointment continued to exist.

2. Discharge of Mr. A.A. Halbe as Joint Administrator:
The principal ground for seeking the removal of Mr. A.A. Halbe was his alleged collusion with the Plaintiff and failure to discharge his duties impartially. The Court found that Mr. Halbe had unilaterally submitted reports to diverse authorities and to the Court on matters outside his domain, thereby overreaching his authority. The Court concluded that Mr. Halbe had failed to discharge his duties with impartiality and objectivity, leading to his removal as Joint Administrator.

3. Appointment of a New Joint Administrator in Place of Mr. A.A. Halbe:
The Court appointed Hon'ble Mr. Justice S.P. Kurdukar, Former Judge of the Supreme Court of India, as the new Joint Administrator in place of Mr. A.A. Halbe. This appointment was made on the same terms and conditions as the previous appointment.

4. Maintainability of the Application for the Removal of Mr. A.A. Halbe:
The Court addressed whether the application for the removal of Mr. A.A. Halbe was maintainable, given the interim order dated 15th February 2008 and the Supreme Court's order dated 14th July 2008. The Supreme Court had clarified that parties could bring their grievances to the notice of the High Court and seek appropriate orders. The High Court interpreted this to mean that the application for the removal of Mr. Halbe was indeed maintainable.

5. Conduct of Mr. A.A. Halbe as Joint Administrator:
The Court scrutinized Mr. Halbe's conduct and found several instances where he had acted beyond his authority. Mr. Halbe had submitted reports unilaterally, timed to coincide with hearings, and had made allegations without proper investigation. Additionally, there was a serious allegation that Mr. Halbe had disclosed a report to one of the litigating parties before it was officially submitted to the Court. The Court found Mr. Halbe's explanations to be manifestly incorrect and concluded that he had failed to maintain the expected standards of impartiality and integrity.

Conclusion:
The Court ordered the removal of Mr. A.A. Halbe as Joint Administrator and appointed Hon'ble Mr. Justice S.P. Kurdukar in his place. The application for the removal of Mr. Halbe was found to be maintainable, and his conduct was deemed to have compromised the impartiality and objectivity required for the role. The regime of the Joint Administrators was not disturbed, ensuring the continued management of the Hospital amidst ongoing disputes among the Trustees.