Status quo on Escorts

HC restrains DDA from taking possession of hospital

The Delhi High Court on Friday restrained the Delhi Development Authority (DDA) from taking physical possession of Escorts Heart Institute and Research Centre (EHIRC).

The DDA had cancelled EHIRC's lease deed for allegedly violating the clause regarding giving free treatment to 25 per cent of the patients. November 21 is the next date of the hearing.

Acting on an arbitration petition filed by EHIRC, Justice Anil Kumar directed the DDA to maintain ''status quo'' and asked it not to take possession of the hospital, which was built by the Escorts Group of Companies about 20 years back.

"The respondent is directed not to recover physical possession of the premises from the petitioner pursuant to letter dated 6.10.2005 of respondent forfeiting lease of petitioner till the next date of hearing," the court said.

The DDA has been directed to file a reply by October 21. Abhishek Manu Singhvi, EHIRC's advocate, said it was illegal on the DDA's part to issue a notice to the hospital after filing the reply a year back.

Singhvi said EHIRC had signed three lease agreements with DDA for 6.9 acres of land, and the agreement for treating poor patients was applicable only on 0.7 acre. However, the court refused to hear the the writ petition filed by EHIRC because the application did not accompany the original documents.

Justice Kumar said, ''There is prima facie evidence that some alleged violation has been perpetuated in the deal.''

The court had issued notices to Rajan Nanda, Registrars of Societies at Delhi and Chandigarh and Escorts Heart Institute and Research Centre (EHIRC), Ritu Nanda and EHIRC director G B Mathur to file their replies.

Singhvi also cited the Supreme Court judgement in the case of Express Newspapers Pvt Ltd and others vs Union of India, where it was held that the possession cannot be recovered without due process of law.

Rajan Nanda's estranged brother Anil Nanda had earlier alleged that the hospital was being sold violating all rules and regulations, something that could not be done because it was established as a charitable institute.

''Late H P Nanda, the founder of Escorts Group of Companies, had conceived the idea of setting up a charitable institute of world fame, to help the weaker sections of society and to create a medical infrastructure for the citizens of India,'' said the petition filed by counsel P K Bansal for Anil Nanda.