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The Supreme Court bench comprising of Justice D Y Chandrachud, Justice Indu Malhotra, Justice KM Joseph said that if a hospital provides medical service for free to all the patients then it stands out of Consumer Protection Act purview but if the hospital provides a certain category of people free services and for the same services charge in bulk from other then it is in the purview of Consumer Protection Act.
Against Sarvodaya Hospital and Safdarjung Hospital complaint is lodged for medical negligence. Complaints registered against both the hospitals were dismissed by the district forum. Complaint against Safdarjung hospital was registered on the ground that the treatment had been afforded free of cost to the patients and for Sarvodaya hospital reason is, the hospital is guilty of medical negligence.
The State Commission ordered Sarvodaya hospital to pay Rs. 2,00,000 as compensation. The National Consumer Dispute Redressal Commission (NCDRC) directed Safdarjung hospital to pay Rs. 2,00,000 as compensation on finding the hospital guilty for medical negligence.
Referring to Section 2(1)(o) of the Consumer Protection Act and Judgement in Indian medical Association the court said "Interpreting the above provision, a three-judge bench of this court held that it is only where a hospital provides medical services free of charge across the board to all patients that it would stand outside the purview of the Act. The court held that a hospital that renders free services to a certain category of patients while providing services that are charged bulk of others would not lie outside the new purview of the jurisdiction of the consumer fora."
While dismissing the petition court left 2 issues open that, can the NCDRC exercise the power which had been conferred on an appellate court under order XLI Rile 33 of the Code of Civil Procedure 1908 and it would be decided in an appropriate case that safdarjung hospital would be governed by the provisions of the Act or particularly Section(2) (o) pf the Act.
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