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Section 41 AA of Bombay Public Trust Act 1950. 

Category: Charity / Trust laws


Manoj Wadekar and Associate, Law Firm, Pune

Section 4IAA inserted by Mah. 8 of 1985

Section 41AA:

Power of charity commissioner and state government to issue directions in respect of hospitals, etc to earmark certain beds etc. for poorer patients to be treated free of charge or at concessional rates.

In the case of Sanjiv Gajanan Punalekar v/s State of Maharashtra & Others, Writ Petition (PIL) No. 3132/2004, decided on 17 August 2006.

The Hon’ble Bombay High Court constituted an expert committee on Oct 14, 2005 to give recommendations on all aspects keeping in view the provisions of section 41 AA of the Act. Under Section 41AA of the Bombay Public Trust Act, 1950, the scheme for treatment to indigent patients and weaker section patients was approved by the Hon. Bombay High Court on 14th of October 2005. The scheme came into effect from the 1st of September 2006.

The salient features of the scheme are:

1. All trust hospitals shall be under legal obligation to reserve and earmark 10% of the total number of operational beds for indigent patients and provide medical treatment to the indigent patients free of cost and reserve and earmark 10% of the total number of operational beds at concessional rate to the weaker section patients.” (Indigent person and weaker section person means whose total annual income does not exceed Rs. 25,000/- and Rs.50,000 respectively.” The income limit was increased to Rs. 50,000 and Rs. 1 lakh in September 2012.

2. The trust hospital should have an annual turnover above Rs. 5 lakh.

3. 2% of gross billing of all patients other than patients treated under this scheme should be assigned to a separate fund called the Indigent Patients Fund (IPF) etc.

This scheme was come into existence by the Judgment of Bombay High Court bearing Writ Petition No. 3132/2004. Thereafter the same has been challenged in the case of Shri. Seva Medical Foundation v. Sanjiv Gajanan Punalekar and others reported in 2014 (2) Mh.L.J. 820 by way of filing Review Petition. The petitioner was seeking modification of the scheme approved by the Hon’ble High Court in the year 2005 under section 41AA of the Bombay Public Trust Act, 1950. However the Hon’ble court was of the opinion that the Scheme formulated by the Hon’ble Court does not call for any interference. Subsequently in the case of Jeevan Vikas Kendra V. The Government of Maharashtra Writ Petition No. 9751/2014. In this case the Hon’ble High Court has held that:

“the Charitable Hospitals which face individual difficulties in meeting objectives/obligations under this Scheme shall be at liberty to apply to the Charity Commissioner with all supporting documents who may consider suitable modifications, if a case for relief is made out’’.

The scheme has been formulated by the Hon’ble High Court is for treatment to indigent patients and weaker section patients, who will get the concession in treatment in charitable hospitals.

There have been various positive and negative arguments with respect of the introduction of the Scheme. No doubt the Scheme has been helping numerous indigent patients to get free treatment and the office of Charity Commissioner is played a very key role on the same, however there are complaints about producing false rations cards/ documents by persons who actually do not come within the category of Indigent patient.

Also there is a feeling in the mind of the hospital management that the many time step motherly treatment has been given to them while dealing with the complaints received against them. It is necessary to consider the problems of both the sides so as to make the Scheme relay effective.