Supreme Court Quashes Criminal Proceedings Against Narayana Health, Supreme Court rules billing discrepancies and service grievances as civil issues, not criminal offences
In a significant ruling, the Supreme Court of India has quashed criminal proceedings against Narayana Health and its personnel, reiterating the principle that civil disputes and service-related grievances cannot be converted into criminal offences without proper foundational allegations. The judgment was delivered by a bench comprising Justices Pamidighantam Sri Narasimha and Alok Aradhe, setting aside the High Court's previous decision, which had remanded the matter to the Magistrate for reconsideration.
The case originated from a complaint filed by Kollol Kumar Sen concerning the medical treatment of his mother at Narayana Multispecialty Hospital, Kolkata. The allegations centered around discrepancies in the billing for medical services and the alleged improper conduct of hospital personnel when Sen sought clarification. Despite the hospital's offer to refund an erroneously charged amount, Sen pursued criminal charges under various sections of the Indian Penal Code (IPC) and the West Bengal Clinical Establishments Act, 2017.
The Supreme Court examined whether the allegations constituted criminal offences under Sections 406, 420, and 120B of the IPC, which pertain to criminal breach of trust, cheating, and criminal conspiracy, respectively. The Court found no evidence of entrustment of property or dishonest intention, essential elements for these offences. Furthermore, the Court noted that the allegations were more akin to civil disputes or service grievances, which should be addressed through statutory remedies provided under the West Bengal Clinical Establishments Act.
Justice Narasimha, delivering the judgment, emphasized that the inherent jurisdiction of the High Court under Section 482 of the Criminal Procedure Code allows for quashing criminal proceedings where allegations do not disclose a criminal offence. He cited precedent, stating that civil disputes, billing discrepancies, and service-related grievances should be resolved through civil or statutory channels, rather than criminal prosecution.
The Court also criticized the High Court's observation that the actions of certain hospital employees constituted an offence under Section 504 of the IPC, intentional insult with intent to provoke breach of peace. Justice Narasimha clarified that general averments in a complaint cannot be elevated to criminal offences without substantive evidence.
This judgment underscores the judiciary's stance on distinguishing between civil and criminal matters, reinforcing the necessity of clear foundational allegations to pursue criminal charges. The ruling also highlights the availability of statutory remedies for service grievances under the West Bengal Clinical Establishments Act, emphasizing the role of adjudicatory mechanisms for addressing patient care, billing irregularities, and service deficiencies.
Bottom Line:
Allegations in a criminal complaint must disclose the commission of a criminal offence and meet the essential ingredients of the offence invoked. Disputes of a civil nature or service-related grievances cannot be converted into criminal offences without proper foundational allegations.
Statutory provision(s): Section 482 CrPC, Sections 405, 420, 120B, 504 IPC, Sections 29, 34 West Bengal Clinical Establishments Act, 2017.
Narayana Health v. State of West Bengal, (SC) : Law Finder Doc id # 2897061
