UNION OF INDIA versus MOOLCHAND KHAIRATI RAM TRUST

Citation: [2018] 7 S.C.R. 939 · Decided: 09-07-2018 · Supreme Court of India · Bench: ARUN MISHRA · Disposal: Appeal(s) allowed

Cited by 3 judgment(s) · cites 8 · see the full citation network in Lexace

Judgment (excerpt)

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UNION OF INDIA
v.
MOOLCHAND KHAIRATI RAM TRUST
(Civil Appeal No. 3155 of 2017)
JULY 09, 2018
[ARUN MISHRA AND UDAY UMESH LALIT, JJ.]
Social Justice:
Direction to Private Charitable Hospitals to follow the policy
of providing free treatment to persons belonging to economically
weaker sections – Validity of – Government of NCT of Delhi by its
circular dated 2.2.2012 intimated respondent-hospitals to implement
judgment of Delhi High Court with regard to free treatment to weaker
sections of society, passed in Social Jurists case – Order of Land &
Development Officer (L&DO) asking the hospitals who had been
allotted land by L&DO to strictly follow policy of providing free
treatment to economically weaker sections – Respondent-hospitals,
since were not party in the Social Jurists case, challenged the
conditions imposed by the Government of NCT of Delhi and L&DO
– High Court quashed the orders passed by Govt. of NCT of Delhi
and L&DO – On appeal, held: Land was obtained by the respondent-
hospitals for charitable purpose at concessional rates – When the
Government land is allotted, the hospitals owe a duty to act in public
interest – It is obligation of State as a welfare state to ensure basic
necessities food, nutrition, medical assistance etc. – Right to life u/
Art. 21 includes right to health and thus also includes right of
patients to be treated with dignity – u/Art. 47 State has to make
constant endeavour to improve public health –  It is also one of the
fundamental duties enshrined u/Art. 51A(h) to develop scientific
temper, humanism and the spirit of inquiry and reform – The State
also has to constantly make an endeavour for realization of human
rights agenda – Right to health is provided in Art. 25 of Universal
Declaration of Human Rights of 10.12.1948 – Policy decision dated
10.6.1949 as well as s. 2 of Charitable Endowments Act, 1890 makes
it clear that running of hospitals is regarded as charitable activity
– When the Government Land is obtained for charitable purpose,
the Government is within its power to impose obligation of free
[2018] 7 S.C.R. 939
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SUPREME COURT REPORTS
[2018] 7 S.C.R.
treatment to economically weaker sections – On refusal to comply
or on violation of the obligation, it is open to the lessor to terminate
the lease – Imposition of condition of free treatment to economically
weaker section does not tantamount to a restriction imposed within
purview of Art. 19(6) on the right enshrined u/Art. 19(1)(g) –
Judgment in social jurists case is a binding precedent – The hospitals
in question and other similarly situated hospitals are directed to
scrupulously observe the conditions framed in order dated 2.2.2012
and in case of violation, the lease shall be cancelled – Constitution
of India – Arts 19(1)(g), 19(6), 47 and 51A(h) – Charitable
Endowments Act, 1890 – s.2 – Universal Declaration of Human
Rights – Art. 25 – Hospitals.
Hospitals:
Conduct of hospitals – Indulging in inhumane act for the sake
of commercial exploitation such as keeping the dead body as security
for clearance of bills – Held: Such conduct of the hospitals is per
se illegal and criminal and tantamount to Criminal breach of trust
reposed in the medical profession – In future whenever such act is
reported to police, it is supposed to register a case against
management of the hospital and the doctors involved in such act.
Constitution of India:
Art. 162 – Executive orders – In absence of legislation –
Validity of – Held: There can be executive orders in absence of
legislation in the field – It is open to the State to issue executive
orders even if there is no legislation in support thereof, provided
the State could legislate on the subject in respect of which action is
taken.
Doctrines/Principles:
Cy-pres doctrine – Applicability of.
Words and Phrases:
‘Charitable’, ‘Charitable purpose’, ‘Charitable Corporation’
and ‘Charitable trust’ – Meaning of.
Allowing the appeals, the Court
HELD: 1.1 Charitable is the public purpose for the benefit
of the needy people, who cannot pay for benefits received. The
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Internal Revenue Code may define it separately for its purposes
what is charitable so as to claim the benefit under the Act.  The
charitable trust is a trust which is for the benefit of general public.
Charitable is a kind and generous in giving money or other help
to those in need. If there is no statutory definition of charitable
purposes, to be a charitable purpose, it must 

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