KRSNAA DIAGNOSTICS PVT. LTD. Vs. STATE OF J&K

JUDGEMENT

(1.) Through the medium of this petition, the petitioner is seeking quashment of the Order No.GMC/PS/2163 dated 3 08.2016 passed by the Principal and Dean, Government Medical College Hospital, Bakshi Nagar, Jammu, whereby the Public Private Partnership Mode agreement has been declared as null and void and the diagnostic centre of petitioner has been sealed. The petitioner is also seeking a direction to the respondents to de-seal its Diagnostics Centre and allow it to work for the remaining period of public-private partnership.

(2.) The facts in brief, as projected in the writ petition, are that based on Cabinet decision No.80/5/10 dated 29.03.2010 and 238/22/2010 dated 27.10.2010, Government of J&K invited Expression of Interest (EOI) for establishment of Diagnostics Centre in Government Medical College, Jammu and Super Specialty Hospital, Jammu, under Public Private Partnership Mode; petitioner placed the bid and the Government of J&K approached the petitioner through Letter of Intent. Accordingly, agreement for partnership between petitioner and the Government for establishment of Diagnostic Centre at GMC, Jammu was executed on 002014 for a period of ten years. It is averred that thereafter the petitioner established the Diagnostic Centre by investing crores of rupees by securing loan from the banks and other financial institutions. It is further averred that thereafter all of a sudden respondent No.2 issued the Order No.GMC/PS/2163 dated 31.08.2016, impugned herein, whereby the Public Private Partnership Mode agreement has been declared as null and void and the diagnostic centre of petitioner has been sealed along with all the machinery installed by the petitioner. It is further averred that before issuing the impugned order neither any opportunity of being heard was made available nor any show cause notice was served upon the petitioner. Hence, the present petition.

(3.) Objections have been filed on behalf of respondents contending therein that the Government after following due procedure and examining the record and other material, found it necessary and in public interest to terminate the contract of petitioner, as the same had been illegally allotted by the then Principal, Government Medical College, Jammu. It is asserted that the then Principal was not authorized to allot the contract as neither the same had been signed on behalf of Governor of the State nor approval was taken from Secretary to Government, Health & Medical Education Department in terms of Clause 2 of EOI, and vigilance inquiry is also going on to enquire into this aspect. Further, it is insisted that before filing the present petition, the petitioner-Company ought to have exhausted the remedy of seeking appointment of an arbitrator in terms of arbitration clause in Paragraph 7.2 of agreement dated 02.01.2014. It is also insisted that the petitioner had failed to provide free and subsidized services to the poor patient as agreed upon by him, as number of oral complaints were being received by the respondents regarding charging exorbitant rates by the petitioner. Lastly, it is asserted that allotment to the petitioner was neither fair nor transparent, hence was not in public interest.