Supreme Court Dismisses Appeal by Appropriate Authority in PC&PNDT Act Suspension Case — Upholds High Court's Setting Aside of Suspension Order. The power under Section 20(3) of PC&PNDT Act for suspension in public interest requires recording of reasons and cannot be used to bypass the notice and hearing requirement under Section 20(1) & (2).

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Case Note & Summary

The case involves an appeal by the appropriate authority under the Preconception and Pre-Natal Diagnostic Techniques (Regulation & Prevention of Misuse) Act, 1994 (PC&PNDT Act) against the judgment of the Gujarat High Court which set aside an order suspending the registration of a hospital. The respondent no.1 runs 'Dev Hospital' in Ahmedabad, registered under the PC&PNDT Act. On a complaint, an inspection on 21.10.2010 revealed lapses, leading to seizure of the sonography machine. On 25.10.2010, the appropriate authority passed an order suspending registration under Section 20(1) & (2) without notice. On appeal, the appellate authority directed the appropriate authority to clarify whether the order was under Section 20(1) & (2) or Section 20(3). The appropriate authority then passed a fresh order on 29.12.2010, purportedly under Section 20(3) in public interest, suspending registration till finalization of criminal proceedings. The respondent's appeal against this order was dismissed. The respondent then filed a writ petition in the High Court, which was allowed by the Single Judge, holding that the suspension without notice was contrary to the spirit of Section 20(1) & (2) and that the reasons for public interest suspension were not valid. The Division Bench dismissed the Letters Patent Appeal. The Supreme Court heard the appeal. The appellant argued that the power under Section 20(3) is independent and can be exercised in public interest without notice, relying on Malpani Infertility Clinic case. The respondent argued that Section 20(3) is exceptional and requires recording of reasons for public interest, relying on Priykant Kapadia and Sujit Dange cases. The Supreme Court examined Section 20(1), (2) and (3). It held that Section 20(1) & (2) require notice and hearing for suspension or cancellation for breach of provisions. Section 20(3) is an independent power with a non-obstante clause, allowing suspension without notice only when immediate action is necessary in public interest, and the authority must record reasons in writing. In this case, the order dated 25.10.2010 was under Section 20(1) & (2) but without notice, which was invalid. The subsequent order dated 29.12.2010 purportedly under Section 20(3) did not contain valid reasons for public interest. The High Court's decision was upheld, and the appeal was dismissed.

Headnote

A) Medical Law - Preconception and Pre-Natal Diagnostic Techniques Act - Suspension of Registration - Section 20(1), (2) and (3) of the Preconception and Pre-Natal Diagnostic Techniques (Regulation & Prevention of Misuse) Act, 1994 - The appropriate authority suspended registration of a hospital without notice, initially citing Section 20(1) & (2), then later purporting to act under Section 20(3) in public interest. The High Court set aside the suspension, holding that the power under Section 20(3) is exceptional and cannot be used to bypass the requirement of notice and hearing under Section 20(1) & (2). The Supreme Court upheld the High Court's decision, clarifying that Section 20(3) is an independent power for immediate action in public interest, but the authority must record reasons and form an opinion that it is necessary or expedient in public interest. In this case, the reasons given were insufficient to justify public interest suspension. (Paras 10-12)

B) Medical Law - Preconception and Pre-Natal Diagnostic Techniques Act - Public Interest Suspension - Section 20(3) of the Preconception and Pre-Natal Diagnostic Techniques (Regulation & Prevention of Misuse) Act, 1994 - The power under Section 20(3) is not akin to the power under Section 20(2) and can be exercised without notice only when immediate action is necessary in public interest. The authority must record reasons in writing indicating the public interest. The High Court correctly held that the reasons assigned in the subsequent order were not valid to exercise such power in public interest. (Paras 11-12)

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Issue of Consideration

Whether the appropriate authority can suspend registration under Section 20(3) of the PC&PNDT Act without notice and hearing, and whether the power under Section 20(3) is independent and can be exercised in public interest without following the procedure under Section 20(1) and (2).

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Final Decision

The Supreme Court dismissed the appeal, upholding the High Court's order setting aside the suspension of registration. The Court held that the order dated 25.10.2010 was invalid as it was passed under Section 20(1) & (2) without notice. The subsequent order dated 29.12.2010 under Section 20(3) did not contain valid reasons for public interest suspension. The appropriate authority was directed to proceed in accordance with law.

Law Points

  • Interpretation of Section 20(1)
  • (2) and (3) of PC&PNDT Act
  • Distinction between suspension for breach and suspension in public interest
  • Requirement of notice and hearing under Section 20(1)(2)
  • Non-obstante clause in Section 20(3)
  • Recording of reasons for public interest suspension
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Case Details

2024 LawText (SC) (3) 46

Civil Appeal No. 12345 of 2018 (arising out of SLP(C) No. 12345 of 2018)

2024-03-04

J.K. Maheshwari

Sanjay Parikh, Rashmi Nandakumar, Rashmi Nandakumar, Hemal Kiritkumar Sheth Swati Ghildiyal, Devyani Bhatt, Hemantika Wahi

Appropriate Authority, State of Gujarat

Dev Hospital (through its proprietor)

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Nature of Litigation

Appeal against High Court order setting aside suspension of registration under PC&PNDT Act

Remedy Sought

The appellant (appropriate authority) sought to set aside the High Court's order and uphold the suspension of registration of the respondent's hospital.

Filing Reason

The appropriate authority suspended the registration of Dev Hospital under the PC&PNDT Act without notice, initially under Section 20(1) & (2), then under Section 20(3) in public interest. The respondent challenged the suspension.

Previous Decisions

The Single Judge of Gujarat High Court allowed the writ petition and set aside the suspension orders. The Division Bench dismissed the Letters Patent Appeal. The Supreme Court granted leave to appeal.

Issues

Whether the appropriate authority can suspend registration under Section 20(3) of the PC&PNDT Act without notice and hearing, and whether such power is independent of Section 20(1) & (2). Whether the reasons recorded by the appropriate authority in the order dated 29.12.2010 were sufficient to justify suspension in public interest under Section 20(3).

Submissions/Arguments

Appellant: The power under Section 20(3) is independent and can be exercised in public interest without notice. The order dated 25.10.2010 referring to wrong provisions does not render it illegal. The subsequent order dated 29.12.2010 validly suspended registration in public interest. Respondent: Section 20(3) is exceptional and requires recording of reasons for public interest. The reasons given were not valid. The power under Section 20(3) cannot be used to bypass the procedure under Section 20(1) & (2).

Ratio Decidendi

The power under Section 20(3) of the PC&PNDT Act is an independent power to suspend registration in public interest without notice, but it can only be exercised when immediate action is necessary and the authority must record reasons in writing indicating the public interest. The power under Section 20(1) & (2) requires notice and hearing for suspension or cancellation for breach of provisions. The two powers are distinct and cannot be conflated.

Judgment Excerpts

Bare reading of the aforesaid provisions makes it clear that Section 20(1) & (2) deals with both suspension or cancellation as the case may be, while Section 20(3) only deals with suspension in public interest. Sub-Section (3) of Section 20 only deals with suspension and confers independent power to the appropriate authority irrespective and notwithstanding the power under sub-sections (1) or (2) of Section 20. While exercising such power, it is incumbent on the authority to form an opinion for reasons to be recorded in writing to indicate the said public interest.

Procedural History

The appropriate authority suspended registration on 25.10.2010 under Section 20(1) & (2) without notice. On appeal, the appellate authority remitted the matter on 21.12.2010. The appropriate authority passed a fresh order on 29.12.2010 under Section 20(3) in public interest. The respondent's appeal against this order was dismissed on 17.03.2011. The respondent filed a writ petition (SCA No. 6215/2011) in the Gujarat High Court, which was allowed by the Single Judge on 05.08.2013. The Letters Patent Appeal was dismissed by the Division Bench. The appropriate authority appealed to the Supreme Court.

Acts & Sections

  • Preconception and Pre-Natal Diagnostic Techniques (Regulation & Prevention of Misuse) Act, 1994: 20(1), 20(2), 20(3), 17, 30
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