Writ Petition No. 16979 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 16979 OF 2024 (GM-RES) BETWEEN: BGS GLOBAL INSTITUTE OF MEDICAL SCIENCES HAVING ITS OFFICE AT NO.67, BGS HEALTH AND EDUCATION CITY, UTTARAHALLI ROAD, KENGERI BANGALORE – 560 060. REP. BY ITS AUTHORIZED SIGNATORY AND PRINCIPAL MR. DR RAMAKRISHNA GOWDA, S/O CHIKKE HULIGE GOWDA, AGED ABOUT 47 YEARS (BY SRI. SHREERAM T. NAYAK, ADVOCATE) …PETITIONER AND: 1. STATE OF KARNATAKA REP. BY VIDHANA SOUDHA, BANGALORE – 560 001. REP. BY ITS SECRETARY, DEAPRTMENT OF HEALTH AND FAMILY WELFARE 2. THE COMMISSIONER Digitally signed by CHANDANA B M Location: High Court of Karnataka BRUHAT BANGALORE MAHANAGARA PALIKE, CORPORATION BUILDINGS, HUDSON CIRLCE, BANGALORE – 560 001. …RESPONDENTS
Legal Reasoning
(BY SRI. THEJESH P., HCGP FOR R1; SRI. B.L. SANJEEV & B.S. SRINIVAS, ADVOCATES FOR R2) - 2 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF THE INDIA PRAYING RESPONDENTS TO SETTLE THE UNPAID BILLS FOR THE PURPOSE OF COVID RT PCR DURING THE PERIOD 2020-2022 WHICH WAS CONDUCTED ON THE INSTRUCTIONS OF THE RESPONDENTS AND ICMR WITHIN A SPAN OF 3 MONTHS OR WITHIN SUCH TIME AS MAY BE DEEMED FIT AND REASONABLE BY THIS HONBLE COURT AND ETC. TO DIRECT THIS PETITION IS BEING HEARD AND RESERVED ON 31.01.2025 COMING ON FOR PRONOUNCEMENT OF ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:- CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CAV ORDER In this petition, petitioner seeks for the following reliefs: “(a) Issue a Writ of Mandamus or such other appropriate Writs directing the Respondents to settle the unpaid bills for the purpose of COVID RT PCR during the period 2020-2022, which was conducted on the instructions of the Respondents and ICMR within a span of 3 months or within such time as may be deemed fit and reasonable by this Hon’ble Court; and (b) Consequently, direct the Respondents to pay the balance invoice amount of Rs.4,81,60,741 (Rupees Four Crores Eighty One Lakhs Sixty Thousand Seven Hundred and Forty one only) to the petitioner as represented by the Petitioner at Annexure-A dated 18.12.2023. (c) Grant such other reliefs as this Hon’ble Court deems fit in the facts and circumstances of this case.” - 3 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR 2. Petitioner is an Institution affiliated to the Rajiv Gandhi University of Medical Sciences and has been recognised by the Medical Council of India and is providing medical education and medical services to the Society. It is contended that during the outburst of Covid-19 pandemic exigency, the ICMR directed the petitioner to offer services for running tests from July, 2020 onwards, which has been complied with by the petitioner, who has been conducting the said tests as per the guidelines provided by the ICMR as can be seen from several circulars, internal orders etc., produced as Annexure-B series to the writ petition dated 17.03.2021, 06.07.2021, 30.12.2021, 01.01.2022 and 01.01.2022 issued by respondent No.1-State and respondent No.2-BBMP. It is further contended that pursuant to providing such services, the petitioner had raised invoices periodically and submitted the same to respondent No.2-BBMP vide Annexure-C series to the writ petition. 2.1. Petitioner contends that it has provided services for RTPCR testing on a 24x7 basis by procuring kits, chemicals, lab consumables and other running costs by providing doctors, nurses etc., during the Covid-19 pandemic exigency. It is contended that - 4 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR respondent No.2 has failed to make payment and discharge the dues payable to the petitioner, who submitted a representation dated 16.12.2023, despite which respondent No.2 did not make any payment in favour of the petitioner. It is contended that though the State Government constituted an Enquiry Commission appointing Hon’ble Justice John Michael Cunha, respondent No.2 has not released the payment in favour of the petitioner though the unpaid dues payable to the petitioner was not the subject matter of the said enquiry. It is further contended that the petitioner submitted the bill dated 17.10.2022 in a sum of Rs.4,81,60,741/- payable by respondent No.2 to the petitioner, who did not make such payment and as such, petitioner is before this Court by way of the present petition. 3. Respondent No.2 has filed its Statement of Objections admitting that the services of the petitioner as well as many other laboratories were taken by the BBMP pursuant to the directions and guidelines issued by the State Government and ICMR. Respondent No.2 has also admitted that amounts are due to the petitioners in respect of services provided by it during the Covid-19 pandemic. It is admitted that respondent No.2 is due to pay a sum - 5 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR of Rs.4,53,50,711/- in favour of the petitioner towards unpaid bills. It is however contended that the request of respondent No.2 made to the Covid Enquiry Commission to release and make payment of the pending bills was rejected by the Commission vide Annexure- R2 dated 27.10.2023 and as such, respondent No.2 is not in a position to make any payment in favour of the petitioner and the
Decision
present petition is liable to be disposed of accordingly. 4. I have given my anxious consideration to the rival submissions and perused the material on record. 5. The material on record discloses that it is an undisputed fact as categorically admitted by respondent No.2 – BBMP in its Statement of Objections that the petitioner provided services during Covid-19 pandemic in terms of ICMR and State Government directions and guidelines. Respondent No.2 also admits in its Statement of Objections, in particular, at paragraph No.9 that it is due in a sum of Rs.4,53,50,711/- to the petitioner towards the services provided by the petitioner; the only contention urged by respondent No.2 is that the request made by BBMP to release and make payment in favour of petitioner and other persons, who provided services during Covid-19 pandemic was rejected by the - 6 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR Covid Enquiry Commission; in this context, the said order dated 27.10.2023 passed by the Covid Enquiry Commission is as under: “A Request letter/ application dated 27.10.2023 is received from the Chief Health Officer, BBMP seeking a direction to permit the release of sum of Rs.44,21,86,533.00 to the various private laboratories towards the dues in respect of RTPCR Tests and Rs.2,20,55,677.00 to the concerns which are stated to have lent service of Hearse Vans during Covid-19 pandemic. Considered the request. Perused the application and the available records. Firstly, the Commission is seized with the enquiry relating to the procurement and disbursement of the government grant for covid-19 purposes. The scope of the enquiry pertains to the period between March-2020 and December-2022. No permission therefore can be accorded to release the funds at this point of time during the pendency of the enquiry. Secondly, the original files relating to the transactions carried on in the office of Chief Health Officer, BBMP having been secured, any order or direction to the Chief Health Officer, BBMP, to make payments in respect of the very transactions which are under enquiry, is likely to prejudice the enquiry. Thirdly, the statement of the I/c Chief Health Officer, recorded on 06.10.2023 and the abstract of the expenditure - 7 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR details submitted to the Commission do not disclose any such dues payable towards the RTPCR tests or Hearse Van services. Fourthly, the copies of the orders attached to the request letter/application, which are stand to be the orders passed by the Government of Karnataka dated 25.09.2023 and 13.09.2023, do not relate to the subject enquiry or the alleged dues as stated in the request letter/ application. For all the above reasons, the application/request letter is rejected. The office is directed to communicate the order to the Chief Health Officer, BBMP accordingly. 6. A perusal of the aforesaid order will indicate that the Commission has noticed that the request letters, application and the copies of the orders dated 25.09.2023 and 13.09.2023 passed by the State Government do not relate to the subject enquiry or the alleged dues as stated in the request letter/application submitted by the BBMP to the Commission. The Commission also comes to the conclusion that the statement of the I/c Chief Health Officer dated 06.10.2023 and the abstract of the expenditure details submitted to the Commission do not disclose any such dues towards RTPCR tests or hearse van services; in the instant case, it is an undisputed fact that the claim of the petitioner, which has been admitted by - 8 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR respondent No.2 is towards non-payment of dues in relation to RTPCR tests conducted by the petitioner, which are clearly not the subject matter of the enquiry before the Covid Enquiry Commission. Under these circumstances, I am of the view that no reliance can be placed upon the said order dated 27.10.2023 passed by the Covid Enquiry Commission by the BBMP in order to avoid its undisputed liability to pay the pending dues in favour of the petitioner, who would be entitled to recover the same from respondent No.2-BBMP. 7. It is also pertinent to note that mere pendency of enquiry by the Covid Enquiry Commission cannot be made the basis by respondent No.2 to pay the undisputed dues in favour of the petitioner; in this context, it is relevant to state that in the absence of any prohibitory/preventive order or direction passed by the Commission, which restrains respondent No.2 from making payment in favour of the petitioner, it cannot be said that mere pendency of the enquiry simpliciter can be used as a shield by respondent No.2 to justify its non-payment of the admitted dues to the petitioner; it is therefore clear that in the light of the undisputed / admitted fact that the respondent No.2 had not paid the legitimate - 9 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR dues payable to the petitioner, in the absence of any material to show any kind of nexus or connection whatsoever between the liability of respondent no.2 and the Covid Enquiry commission, it cannot be said that the respondent No.2 was not liable to pay / clear the legitimate dues payable to the petitioner. Under these circumstances also, I am of the view that respondent No.2 was clearly not justified in withholding the admitted dues towards unpaid bills payable in favour of the petitioner and as such, the said contention urged by respondent No.2 cannot be accepted. 8. In view of the aforesaid facts and circumstances, I am of the considered opinion that the present petition deserves to be allowed by directing respondent No.2 to pay the pending dues in favour of the petitioner together with interest at 6% per annum from the date of the petitioner’s bill dated 17.10.2022 till date of payment, by issuing appropriate directions in this regard. 9. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) Respondent No.2 is directed to pay a sum of Rs. 4,53,50,711/- together with interest at 6% per annum from - 10 - NC: 2025:KHC:18597 WP No. 16979 of 2024 HC-KAR 17.10.2022 till date of payment, in favour of the petitioner, within a period of six weeks from the date of receipt of a copy of this order. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 0