VidhiSangh

Supreme Court of India · 09/07/2018

UNION OF INDIA versus MOOLCHAND KHAIRATI RAM TRUST

[2018] 7 S.C.R. 939 · 2018 INSC 593

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court upheld Delhi’s requirement that the respondent hospitals receiving government land on charitable or concessional terms provide completely free treatment to twenty-five per cent OPD patients and ten per cent IPD patients. The requirement enforced existing grant, policy and public-law obligations rather than a new restriction on professional freedom. High Court judgments invalidating it were set aside, with strict compliance and reporting directed.

Issues

  1. Whether the free-treatment obligation could be enforced despite absence of an express percentage clause in certain leases.
  2. Whether the direction infringed professional freedom or required fresh legislation, and whether Social Jurists applied to similarly situated hospitals.

Provisions considered

Held

Result

Appeals allowed; High Court judgments quashed. Free-treatment requirements upheld. Strict compliance, lease cancellation for violation and a Delhi-government compliance report within one year directed. Parties bear their own costs.

Judgment PDF: Supreme Court of India, [2018] 7 S.C.R. 939.