Charitable hospitals are ‘industry’ under ID Act: Delhi High Court

Charitable hospitals are 'industry' under ID Act: Delhi High Court

Delhi High Court in Vallabhbhai Patel Chest Institute vs. Nishikesh Tyagi & Another [W.P.(C) 7161/2003], while adjudicating a dispute of an employee working in a hospital controlled by the Ministry of Health and Family Welfare, reiterated the Supreme Court ruling given in Bangalore Water Supply & Sewerage Board vs. A. Rajappa, (1978) 2 SCC 213, wherein it was held that the hospitals are deemed to be considered as an industry and the services rendered by the employees of the said industry were needed to be looked upon while dealing with the interpretation of the term industry. The Court further observed that even though the hospitals are considered to be non-profit institutions, the very fact that they render services makes them part of an industry as defined under section 2(j) of the IDA.

Also read: Excess payment cannot be recovered from the retirement benefits: Orissa High Court

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