Q: Describe the citation of Indian Medical Association vs V.P. Shantha & Ors on 13 November, 1995 ?

Ans: The Supreme Court has held in Indian Medical Association v V.P. Shantha (AIR 1996 SC 550) that the doctors and hospitals rendering service on payment basis to all persons, as well as those providing free medical service to some poor patients but rendering bulk of medical service to patients on payment basis would fall within the purview of the Act. However, doctors and hospitals rendering service without any charge except nominal registration charges would fall outside the purview of the said Act, and consequently, users of such service would not fall within the definition of 'consumer.'

An important aspect of the above decision is that poor patients receiving free medical service from doctors and hospitals rendering bulk services on payment basis would yet be 'beneficiaries of service which is hired and availed of by the "paying class." We are therefore of the opinion that service rendered by the doctors and hospitals falling in category irrespective of the fact that part of service is rendered free of charge, would nevertheless fall within the ambit of the expression "service" as defined in Sec. 2(1)(o) of the said Act. Explaining the rationale of bringing poor and needy persons receiving free medical service within the category of consumers, the Supreme Court declared that to hold otherwise would mean that the protection of the Act would be available to only those who can afford to pay and such protection would be denied to those who cannot so afford, though they are people who need the protection more. It is difficult to conceive that the Legislature intended to achieve such a result." Therefore, the Supreme Court concluded that "persons who are rendered free service are the 'beneficiaries' and as such come within the definition of 'consumer' under Sec. 2(1)(d) of the Act."