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2015 (4) TMI 343

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....'Opposite Party No. 1'/'DGHS'); Managing Director, Ex-Servicemen Contributory Health Scheme (hereinafter referred to as the 'Opposite Party No. 2'/'ECHS'); Secretary General, Quality Council of India (hereinafter referred to as the 'Opposite Party No. 3'); and 239 National Accreditation Board for Hospitals and Healthcare Providers (NABH) Accredited Hospitals and Small Healthcare Hospitals (hereinafter referred to as the 'Opposite Party No. 4') [collectively hereinafter referred to as the 'Opposite Parties'] alleging inter alia contravention of provisions of Section 3 of the Act. 2. As per the information, DGHS vide its office memorandum No. S.11011/23/2009-CGHS D.II/Hospital Cell (Par....

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....or a selected few and indulging in unfair trade practice have contravened the provisions of Sections 3 and 4 of the Act. 6. The Commission carefully perused the information and all the material available on record and heard the arguments put forth by the advocate appeared for the Informant. 7. The essence of the present matter is that DGHS has prescribed different rates of reimbursement to the private hospitals based on their accreditation with NABH which is, according to the Informant, is unfair and the same has been done in collusion with the other Opposite Parties to give benefit to a selected few hospitals. Thus, the Informant alleged violation of Section 3 and Section 4 of the Act by the Opposite Parties. 8. For applicability of the....

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....ies performed by the above said entities cannot be covered under the definition of enterprises in terms of Section 2(h) of the Act as they are not engaged in any commercial or economic activities and as such provisions of Section 4 of the Act are not attracted against them. Therefore no, prima facie, case is made out under the provisions of Section 4 of the Act in the matter. 10. Moreover, the alleged conduct of the Opposite Parties does not give rise to any competition concern. The different rates prescribed by DGHS for NABH accredited hospitals cannot be considered as anti-competitive in any manner, rather it would act as an incentive to non-accredited hospitals to secure such accreditation and provide quality health care services, which....