No qualification relaxation for Start-ups and MSMEs in healthcare: Delhi HC

New Delhi, July 13 (KNN) The Delhi High Court on Tuesday held that relaxation concerning qualification cannot be granted to Start-ups and MSMEs in healthcare field as the safety of patients is of paramount importance.

The court observed that relaxations granted under the government policies to start-ups and MSMEs concerning their experience and other qualifications cannot be allowed in healthcare sector as the safety of patients is utmost.

A registered start-up had filed the petition challenging the tender conditions imposed by a super-specialty hospital under the Delhi government for the procurement of stents, grafts, and valves for the Cardiology Department

The petitioner claimed that while all other hospitals issued tenders for procurement which granted relaxations for start-ups and MSMEs with regard to turnover, past performance, and bid security, no such relaxation was given in the present case.

The same was against the Centre's start-up policy while also violating Articles 14 and 19(1)(g) of the Constitution of India, said the petitioner.

A bench headed by Chief Justice Satish Chandra Sharma dealing with the issue raised in the petition said that the Centre as well as the Delhi government through their respective policies promote start-ups.

“However the executive instruction under the Centre's circular did not make it mandatory for any establishment to relax the condition in respect of turnover and prior experience while dealing with them,” said the bench.

"The Central Government in order to promote Start-ups and MSME entities floated Start-up India Initiative in the year 2016, and various executive instructions were issued from time to time granting relaxations to the Start-up Entities and MSMEs with regard to past performance, bid security and turnover in order to ensure that new talent is promoted in the new competition," said the bench also comprising Justice Subramonium Prasad.

"The executive instruction does not make it mandatory for any establishment to relax the condition in respect of turnover and prior experience/EMD as the word "may" has been used in the policy Circular dated 10.03.2016. It is true that the Government of India as well as the GNCTD under its NCT of Delhi, 2019 Policy promotes Startups. However, in certain fields past experience and other qualifications cannot be relaxed especially in the field of health care," the court said.

The court noted that the hospital concerned was facing an abnormally high rate of deaths in respect of heart patients and it was in that drop-back that criteria for start-ups and MSMEs were not relaxed and the supply of quality products and quality implants from experienced persons was sought.

"The safety of the patients is of paramount importance, and, therefore, the respondent Hospital has rightly not at all granted any relaxation to the Start-ups and MSMEs in the peculiar facts and circumstances of the case. The writ petition is, accordingly, dismissed," the court said.  (KNN Bureau)