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Supreme Court of India

STATE OF ORISSA AND ANR.versusRADHEYSHYAM MEHER AND ORS.

Citation
1994 INSC 610
Decided
14 December 1994
Disposal
Appeal(s) allowed

Holding

The State's power to open a medical store within hospital premises in the public interest cannot be curtailed merely because it adversely affects the commercial interests of private traders.

Summary

The State of Orissa decided to open 24‑hour medical stores within hospital campuses to ensure patients could obtain medicines at any time. The Superintendent of the Sub‑Divisional Hospital, Patnagarh, advertised for applications, prompting nearby private medical store owners to file a writ petition challenging the advertisement on the ground that it would harm their business. The Orissa High Court stayed the advertisement, conditioning any settlement on the private shopkeepers undertaking to keep their own stores open 24 hours. On appeal, the Supreme Court held that the State's policy serves a clear public‑interest purpose—providing essential medicines to patients— and that this outweighs the individual commercial interests of the traders. The Court found no arbitrariness or violation of law in the State's decision and set aside the High Court's order, dismissing the petition. Consequently, the State may proceed with opening the medical store within the hospital premises.

Issues considered

  • Whether the State's decision to open a 24‑hour medical store within a hospital campus can be interfered with on the ground of private traders' loss of business.
  • Whether the High Court's direction conditioning the settlement on an undertaking from existing shopkeepers was justified under constitutional and administrative law principles.

Subjects

public interestadministrative discretionright to tradeArticle 19(1)(g)hospital premisesmedical storejudicial reviewstate policy

Judgment

                     STATE OF ORISSA AND ANR.                           A
                                     V.

                 RADHEYSHYAM MERER AND ORS.

                          DECEMBER 14, 1994

              [S.C AGRAWAL AND FAIZAN UDDIN, JJ.]                       B
    Constitution ofIndia, 1950: Article 19(I)(g).

      State-Decision to open 24 hours medical store within Hospital
premises-Challenge by persons having medical store in front of
Hospital-Direction by High Court not to settle opening of medical store C
within Hospital premises subject to undertaking by Medical Store owners
that they will open shop for twenty four hours-Direction held not
justified-Held State's decision is in public interest-Exercise of power by
State to advance larger public good cannot be abridged on the ground that
it affects individual interest ofcertain traders.
                                                                        D
    With a view to helping the patients in getting medicines day and
night without any difficulty, the appellant-State decided to open 24
hours medical store within the campus of the hospitals. Pursuant to the
said policy decision the Superintendent - CMDO, Bolangir invited
applications from the intending shop owners for opening 24 hours
medical store inside Sub-Divisional Hospital, Patnagarh. The E
respondents, having their medical stores in front of the hospital, filed a
writ petition in the Orissa High Court challenging the advertisement on
the ground that it would affect their business interest The High Court
directed the State not to settle the opening of the proposed medical
store subject to the respondents giving an undertaking that each one of F
them shall keep the shop open day and night and shall make the
medicines available to patients. The State preferred an appeal in this
Court contending that the High Court erred in interfering with the
State's decision which was taken in public interest.

     Allowing the appeal and setting aside the order of the High Court, G
this Court

    HELD: 1. The intention of the appellants to open a medical store
within the hospital campus is to salvage the difficulties of the patients
admitted in the hospital and this object of the appellants has direct
nexus with the Public Interest particularly that of the patients and, H
                                    591
    592                    SUPREME COURT REPORTS              [1994) SUPP. 6 S.C.R .

A   therefore, the High Court should not have interfered with the decision
    of the State Government to settle the holding of a medical store in the
    Hospital premises. (595 A]

         2. It can hardly be disputed that the consideration of availability of
    the medicines to the patients should be the uppermost consideration as
B   compared to the right of a person to derive income and make profits
    for his sustenance by running a medical store for the reason that the
    medical stores are primarily meant for the patients and not the patients
    for the medical stores or those who run the same. Therefore, the
    submission of the respondents that if a medical store is opened within
    the campus of the hospital, the same will jeopardise their interest
C   adversely affecting their business and that they will not be able to sus-
    tain themselves, could not be a valid ground to disallow the appellants
    to open a shop within the hospital campus. (594 E to F]

         CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9277 of
    .1994.
D
        From the Judgment and Order dated 27.9.93 of the Orissa High Court
    in O.J.C. No. 5435of1993.

          A.K. Panda for the Appellants.

E         B. Parthasarthy for the Respondents.

          The Judgment of the Court was delivered by

          FAIZAN UDDIN, J. 1. Leave granted. ·

         2. The short question that arises for· our consideration in this appeal is
F   whether the impugned order of the High Court of Orissa dated 27.9.93
    passed in O.J.C. No. 5435/93 directing the appellants not to take any
    decision on the advertisement dated 27.7.93 issued by the Superintendent
    C.D.M.O., Bolangir to settle the shop with any one to hold a medical store
    inside the hospital premises, Patnagarh could be sustained in the absence of
G   any material to show that the said decision of the Government is arbitrary
    or opposed to any rule or regulations in that behalf.

         3. The brief facts leading to this appeal under Article 136 of the
    Constitution are that the State Government of Orissa with a view to
    streamline the existing procedure for opening of 24 hours medical stores in
H   the college, Hospitals, etc. and in supersession of previous instructions took
             STATE OF ORISSA v. R. MEHER [FAIZAN UDDIN, J.)              593

a decision that 24 hours medical stores shall be opened in the campus of the A
 hospitals which shall remain open for all the 24 hours with a view to make
the medicines available to the patients at competitive price. Consequently, a
 memo dated 13.5.93 was issued to all the D.M.E.T./D.H.S./D.C and all
 Superintendents of Medical Colleges of the State of Orissa as well as to all
C.D.M.O's and C.M.O's in the capital hospital, Bhubaneshwar to assess the
need for having 24 hours medical stores in the campus of the re5pective B
hospitals and if the need is found to be imperative they shall make an order
to that effect and issue advertisement inviting applications from eligible
persons. According to the instruction, the said applications have to be sent
to the authorities mentioned in the aforesaid memo who in tum have to
forward the same to the Government alongwith their views/comments for a
final decision at the Government level. It was in pursuance of this memo C
that the Superintendent/C.D.M.O., Bolangir issued an advertisement
inviting applications from the intending shop owners to open. a medical
store inside the premises of the Sub-Divisional Hospital, Patnagarh which
shall be kept open day and night for the purposes of helping the patients in
getting medicines without any difficulty. The respondents No. 1 to 7 who
are having their medical stores across the road in front of the main gate No. D
2 of the hospital filed the writ Petition in the High Court of Orissa
challenging the said advertisement issued by the Superintendent/C.D.M.O.
on the ground that if a medical store is opened inside the premises of the
Sub-Divisional Hospital which is a small hospital having a provision for
only 30 beds, there will hardly be any business to sustain them. The
respondents also came forward with an offer that the petitioners No. 1, 4 tO" E
7 (who are respondents No. 1, 4 to 7 herein) whose medical stores are near
the gate of the hospital shall keep their medical stores open day and night
and that they are willing to give an undertaking to that effect to the
Superintendent/COMO, Bolangir. The said petition was contested by
stating that the said advertisement was issued in view of the Government
Policy to open the medical shop within the campus of the hospital in Public
                                                                               F-.
interest and specially to make the medicines available to the patients even at
odd hours.

     4. It appears that during the course of arguments in the petition before
the High Court the Superintendent/COMO, Bolangir was personally present G
in the Court who in response to certain questions put by the learned Judges
stated that the whole purpose of the advertisement is to make available
medicines to the patients day and night. However, the High Court allowed
the petition of the respondents and directed that no decision shall be taken
on the advertisement to settle the shop with anyone to hold a medical store
inside the premises of the Sub-Divisional Hospital, Patnagarh if the q
     594                  SUPREME COURT REPORTS              [1994] SUPP. 6 S.C.R

A   petitioners (Respondents No. 1, 4 to 7 herein) give an undertaking to the
    C.D.M.O., Bolangir within 10 days stating that each one of them shall keep
  . his shop open day and night and shall make the medicines available to the
    patients. The High Court further directed that in the event of any violation
    of this condition and ifthe C.D.M.O. comes to know that the ailing patients
    of the Sub-Divisional Hospital, Patnagarh are not getting medicines because
B of the closure of the shops it would be open to him to re-advertise the
    settlement of medical store. The appellants being aggrieved by the said
    order have preferred this appeal.

         5: Learned counsel appearing for the appellants vehemently urged
     before us that the said advertisement inviting applications for settling the
c    shop to have a medical store inside the hospital premises was issu~d in
     pursuance of the Government policy and with the sole object to make the
     medicines available to the patients even at odd hours and, therefore, the
     High Court should not have interfered with the administrative decision of
     the Government taken in the public interest. We find considerable force and
     much substance in these submissions.
D
         6. In the aforesaid background the question arises whether, in the
    absence of any rule or regulation to the contrary, can the power of the State
    be abridged on the basis of an individual interest of certain trader, even to
    the extent of restricting the State's capacity to advance larger public good.
    It can hardly be disputed that the consideration of availability of the
E medicines to the patients should be the uppermost consideration as
    compared to the right of a person to derive income and make profits for his
    sustenance by running a medical store for the reason that the medical stores
    are primarily meant for the patients and not the patients for the medical
    stores or those who run the same. The submission of the respondents that if
    a medical store is opened within the campus of the hospital, the same will .
F
   jeopardise their interest adversely affecting their business and that they will
    not be able to sustain themselves could not be a valid ground to disallow
  . the appellants to open a shop within the hospital campus. Undoubtedly, the
    opening of a medical store within the hospital 'campus will provide a great
    facility to the patients who may not be having any attendant of their own in
G   the hospital for their assistance at odd hours in the event of an emergency to
    go out to purchase the medicines. There may be patients . having an
    attendant who may not find it convenient or safe to go out of the campus to
    purchase the medicines in the night hours. In these facts and circum~tances
    the paramount consideration should be the convenience of the patients and
    protection of their interest and not the hardship that may be caused to the
H   medical   store keepers who may be having their shops outside the hospital
             STATE OF ORISSA v. R. MEHER [FAIZAN UDDIN, J.]               595

campus. Thus the intention of the appellants to open a medical store within      A
the hospital campus is to salvage the difficulties of the patients admitted in
the hospital and this object of the appellants has direct nexus with the
Public Interest particularly that of the patients and, therefore, the High
Court should not have interfered with the decision of the State Government
to settle the holding of a medical store in the Hospital premises. However,
if the respondents so choose, they may keep their medical stores also open       B
day and night. Consequently the impugned order could not be sustained.

     7. In the result the appeal succeeds and is hereby allowed. The
impugned order of the High Court dated 27.9.93 is set aside and the writ
petition filed by the respondents is dismissed. We, however, make no order
as to costs.                                                                     C
T.N.A.                                                      Appeal allowed.


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