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Union of India v. N.K. Srivasta

Civil Appeal · 2020 INSC 462Decided 23 Jul 2020
Civil Appeal No. 2823 of 2020
Dr. Justice D.Y. Chandrachud · Justice Indu Malhotra · Justice K.M. Joseph

Background

A premature baby, delivered at Sarvodaya Hospital and then referred to government-run Safdarjung Hospital for emergency neonatal care, died a few weeks after birth. The parents filed a consumer complaint alleging negligence by both hospitals; it was initially dismissed, then partly succeeded against Sarvodaya Hospital before the State Commission (which also found Safdarjung negligent on the facts, even while holding Safdarjung could not be sued since it gave free treatment), and finally the National Consumer Disputes Redressal Commission (NCDRC) exonerated Sarvodaya but held Safdarjung Hospital liable to pay Rs. 2 lakh compensation. The Union of India and Safdarjung Hospital appealed, primarily on the ground that a hospital providing free treatment is outside the consumer fora's jurisdiction.

Decision Breakdown

The Supreme Court noted that under its earlier ruling in Indian Medical Association v. V.P. Shantha, only a hospital providing free treatment across the board to all patients falls outside the Consumer Protection Act's reach, but Safdarjung Hospital had never placed evidence before the lower fora to show it met that test, relying only on one doctor's bare assertion that this particular patient was treated free. Since no proper factual foundation had been laid at any stage, including before the Supreme Court itself, the Court declined to give a conclusive ruling on the jurisdiction question in general, and chose not to overturn the modest Rs. 2 lakh award given the small amount involved. The appeal was dismissed, but the Court expressly clarified that its decision should not be treated as a precedent on whether government hospitals like Safdarjung fall under consumer-protection jurisdiction, leaving that question open for a future case with a proper evidentiary record.

Lesson Learnt

A hospital (or any institution) claiming it is exempt from consumer protection law because its services are free must actually prove that with evidence: a bare, unsupported claim will not succeed, and courts may decide a case on its narrow facts without settling the larger legal question for everyone else.

Official source (sci.gov.in)View Judgment (PDF)

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