Free treatment threshold under hospital notification: ambiguity over annual or overall computation justified waiver of pre-deposit and stay.

Notification No. 64/88 required hospitals to provide free treatment to at least 40% of outdoor patients, and the dispute turned on how that threshold was to be measured. The demand had been confirmed because the appellants averaged only 39% free treatment over the relevant years, but some years crossed the 40% mark and the notification did not clearly state whether compliance had to be assessed annually or on an overall basis. Given the close proximity to the prescribed limit and the ambiguity in computation, interim protection was considered justified. Waiver of pre-deposit was granted and recovery was stayed.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in the light of Notification No. 64/88 dated 01-03-1988 governing free treatment of patients.

Analysis: The notification required that at least 40% of outdoor patients receive free treatment. The demand had been confirmed on the basis that the appellants averaged only 39% free treatment during the relevant years. The Court noted that in some years the appellants had crossed the 40% mark and that the notification did not clearly state whether the percentage was to be computed annually or on an overall basis. As the appellants were very close to the prescribed threshold, the Court considered this sufficient to grant interim relief.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed.

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