Introduction
In the case titled Indian Medical Association Punjab and Others v. State of Punjab and Others, the Punjab & Haryana High Court addressed a significant issue concerning the non-payment of dues under the Ayushman Bharat Scheme. The petitioners, represented by Senior Advocate Mr D.S. Patwalia, along with Mr A.S. Chadha and MMsNiharika Mittal, contended that despite the acknowledgement of liabilities exceeding ₹500 crores by the State Government, only approximately ₹26 crores had been disbursed to hospitals. The respondents included the State of Punjab, represented by Advocate General Mr. Gurvinder Singh, and other parties such as the Union of India and the National Health Authority, represented by their respective counsel. The case revolved around the alleged misallocation or misutilization of funds by the Punjab Government, as the High Court sought transparency regarding expenses incurred on advertisements, renovations of officials’ residences, and litigation costs while hospital dues remained unpaid.
Arguments of Both Sides:
The petitioners argued that hospitals across Punjab were suffering due to the State’s failure to release the pending dues under the Ayushman Bharat Scheme. They submitted that despite the Government of India having provided funds for the scheme, the Punjab Government had withheld payments, leaving hospitals in financial distress. They further pointed out that an earlier order of the Court had directed the State to disclose details of expenditures, including funds spent on advertising in print and electronic media, the renovation of ministerial residences, and legal expenses incurred in the Delhi High Court and Supreme Court between December 2021 and September 2024. However, the Punjab Government had failed to comply with these directions, raising concerns about potential fund misappropriation.
On the other hand, the Punjab Government, represented by Advocate General Mr. Gurvinder Singh, attempted to justify the delay in payments and non-compliance with the Court’s previous orders. The State submitted an affidavit explaining its position but failed to provide a satisfactory reason for withholding the funds despite receiving them from the Central Government. The Advocate General further sought additional time to obtain instructions from relevant authorities, arguing that the government required more time to address the concerns raised by the Court and finalize its compliance with the previous order.
Court’s Judgment:
Justice Kuldeep Tiwari, while hearing the matter, took a strong stance against the Punjab Government’s failure to comply with the Court’s earlier directions. He noted that the affidavit submitted by the State did not contain a satisfactory explanation as to why the funds allocated for hospital payments had not been disbursed. The judge observed that the reasons mentioned in the affidavit reflected a clear lack of intent on the part of the Punjab Government to comply with the Court’s orders.
During the proceedings, when the Advocate General was asked whether the State was ready and willing to make the necessary disclosures, he sought additional time to obtain instructions from higher authorities. The Court expressed its disappointment, emphasizing that the government had already been granted sufficient time and opportunities to comply. Justice Tiwari further noted that a previous division bench had, in September, specifically directed the State to provide details of expenditures to ascertain whether funds meant for hospital payments were being misused.
The Court also highlighted that the Principal Secretary, Finance, had previously been directed to submit a personal affidavit explaining the non-compliance. Despite this, the Court found that compliance had not been made, and instead, the State had merely provided reasons for its failure to act. Justice Tiwari reiterated that prima facie, the Principal Secretary had committed contempt by not adhering to the Court’s orders.
Taking a firm approach, the Court ordered that the State Government must clarify its position on compliance by the next hearing, scheduled for February 14, 2025. It directed the Advocate General to obtain clear instructions on whether the Punjab Government intended to comply with the previous orders and provide the required financial disclosures. Additionally, the Court instructed the petitioners to file an affidavit detailing the exact amount due from the State under the Ayushman Bharat Scheme, ensuring transparency regarding the unpaid dues.
The judgment underscored the importance of financial accountability, especially when public funds are involved. Justice Tiwari remarked that the prolonged delay in compliance raised concerns about the potential misutilization of public funds. He emphasized that the fundamental rights of hospitals and patients were being compromised due to the State’s inaction, thereby violating constitutional principles, particularly Article 21, which guarantees the right to life and health.
The Court further cited the Supreme Court’s ruling in Ashoo Surenderanath Tewari v. Deputy Superintendent of Police, EOW, CBI and Another (2020), where it was held that when an individual or entity has been exonerated in one forum on merits, criminal prosecution on the same facts cannot be sustained. Drawing from this principle, the Court observed that since the Punjab Government had already acknowledged its liability towards hospitals, its failure to act on that acknowledgement amounted to unjustified withholding of funds.
Justice Tiwari concluded that the State’s reluctance to comply with the Court’s directions was an abuse of the legal process. He stated that any further delay in compliance would not be tolerated, and if the Punjab Government failed to provide the necessary financial disclosures by the next hearing, further legal action, including contempt proceedings, could be initiated against responsible officials.