Whether armed forces hospitals come under cp act
Col Ashish Banerjee
(Querist) 24 April 2013
This query is : Resolved
Dear sir/ma'am,
I am a member of your org and a doctor by profession. I am also a LLB grad (Pune Univ) and presently looking after HR & mgt issues in Armed Forces hospitals. I would like to submit a query to the panel of experts. My queries are:
(a) whether services provided in Armed Forces hospitals are regarded as 'Service' under CP Act and the patients of these hospitals (members of Armed Forces odf India and their dependents) 'Consumers' ?
(b) Also are deficiencies and negligent treatment in Armed Forces Hospitals would be a subject matter of various fora of Consumer Court ?
It would be relevant to mention that services provided are within 'Contract of service' and by and large free of cost. Thus ordinarily it should be out of purview of CP Act. But nominal hospital stoppages are charged and treatment to non-entitled patient are also done (on emergent basis and with permission from competent auth). Recently (in 2005-06) Hon'ble SC in Laxman Thamappa Kotgirir Vs G M Central Railways has regarded employees of Indian Railways getting treatment in Railway Hospitals as consumers and reverted back the matter to National Commission to decide.
It is requested that if I may be advised about my a/m queries.
Best regards,
Col Ashish Banerjee
Sudhir Kumar, Advocate
(Expert) 24 April 2013
since this is free treatment it is not deficiency of service.
individual professional negligence can be seen by IMA.
medicines supplied by them will come under CP Act because govt pays for the same to supplier on behalf of patients.
Guest
(Expert) 24 April 2013
Dear Col. Ashish,
The terms "by and large free of cost", and "nominal hospital stoppages are charged," as used by you brings your hospitals's case under the ambit of the CP Act. However, all that depends what term your hospital uses for charging for hospital stoppages.
It may probably be of an interest for you to know who is consumer for the purpose of the Act, as per definition provided by the CP Act. The same is as follows:
“consumer” means any person who,–
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and part by promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person.
Raj Kumar Makkad
(Expert) 24 April 2013
The Army hospitals are meant for the treatment of the armed personnel either serving or retired and their dependents as part of service contract which also means that this facility is a deferred part of the service benefits which can be computed in terms of money. It also means that the indirect contribution of money is taken from those armed personnel. It a person provides cash or reward for a particular service, he is a consumer as per definition of CP Act.
Once a person becomes consumer, the entire provisions apply accordingly.
Col Ashish Banerjee
(Querist) 25 April 2013
Dear Mr Makkad,
Thank you sir for your considered opinion. Sir, your contentions and opinion are undisputed and well taken. However, if I may bother you just bit more with your kind permission. May I submit that, in the landmark judgment of V P Shantha Vs MCI, the Hon'ble SC had laid down guidelines for the purpose of scope of CP Act. Now, as the services provided in Armed Forces hospitals are free of cost and rendered as a part of 'contract of service' (and therefore are supposed to be out of the ambit of the CP Act as per the ibid judgment), mere charging of hospital stoppages for dependents of soldiers, provision for treatment of non-entitled gp in Army Hospitals on payment of full charges and dealing with ECHS patients (which is a contributory health scheme for retired personnel)be the guiding factor to call services provided by the armed forces hospitals as 'service' under the CP act and the clients as consumers?
Guest
(Expert) 25 April 2013
Dear Col Ashish,
CONTRIBUTORY health scheme for retired personnel, itself brings the services of the hospital under the CP Act (may be partly paid).
