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2022 Supreme(Jhk) 185

IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s. Dr. S. Sharan’s Testing Center, Ranchi – Appellant
Versus
The State of Jharkhand, through its Additional Chief Secretary – Respondent
W.P. (C) No.261, 262 of 2022
Decided on : 28-03-2022

Advocates:
Advocate Appeared:
For the Appellant :Mr. Sumeet Gadodia, Mr. Rajendra Narayan, Advocate
For the Respondent: Mr. Jagdeesh, Mr. Sreenu Garapati, Mr. Prashant Vidyarthi

The main legal point established is the requirement for negotiation with private laboratories and consideration of overhead expenses in rate fixation, in line with ICMR guidelines and principles of fairness and natural justice.

Headnote:

RT-PCR Test - Rate Fixation - Disaster Management Act, 2005, ICMR Guidelines - Section 10(2) - Disaster Management Act, 2005, ICMR Guidelines - [Section 10(2) of the Disaster Management Act, 2005, ICMR Guidelines]

Fact of the Case:

The petitioners filed writ petitions to quash the order re-fixing the rate of RT-PCR test for Covid-19 and home visit to collect samples by the Additional Chief Secretary, Department of Health, Medical Education & Family Welfare, Government of Jharkhand. They argued that the rate fixed was contrary to ICMR guidelines and economically unviable for private laboratories.

Finding of the Court:

The court found that the rate fixation was done without negotiation with private laboratories, ignoring overhead expenses. It held that the ICMR guidelines advised negotiation with private labs before fixing the price for sample testing of Covid-19 through RT-PCR method to arrive at a feasible price.

Issues: The issues involved negotiation with private laboratories, economic viability, and adherence to ICMR guidelines in fixing the rate of RT-PCR test for Covid-19.

Ratio Decidendi: The court emphasized the importance of negotiation with private laboratories and consideration of overhead expenses in rate fixation, citing the ICMR guidelines. It also highlighted the principles of fairness and natural justice in administrative decision-making.

Final Decision: The court quashed the order re-fixing the rate and directed the respondent to negotiate with private laboratories to arrive at a mutually agreeable rate for RT-PCR test and home sample collection, maintaining the previous rates until a new rate is fixed through negotiation.

JUDGMENT :

1. With the consent of the parties, both these writ petitions are taken up together and are being disposed of by this common order.

2. The present writ petitions have been filed for quashing the order as contained in memo no.42 (HSN) dated 20.01.2022 passed by the Additional Chief Secretary, Department of Health, Medical Education & Family Welfare, whereby rate of RT-PCR test for Covid-19 chargeable by private laboratories in the State of Jharkhand as well as the rate for home visit to collect samples for RT-PCR test have been re-fixed.

Further prayer has been made for declaring that the said respondent has no authority or jurisdiction to fix the rate of RT-PCR test with respect to private laboratories unless and until the respondent-State of Jharkhand is ready to subsidize the difference between the rates fixed by it and the rate prescribed by the Indian Council for Medical Research.

3. The learned counsel for the petitioners submits that with the outbreak of novel Coronavirus (COVID-19) across the country, the respondent-ICMR laid down certain guidelines for conducting RT-PCR tests in private laboratories and the said guidelines were notified by the Ministry of health & Family Welfare, Government of India vide its order dated 21st March, 2020 in exercise of powers conferred under Clause (i) and (l) of Section 10(2) of the Disaster Management Act, 2005. In view of the said guidelines laboratory test was permitted to be conducted by such laboratory, which has acquired certificate of accreditation issued by the National Accreditation Board for Testing and Calibration Laboratories (for short “NABL”). It was provided in the said guidelines that the maximum cost for testing of sample by way of RT-PCR method should not exceed Rs.4,500/-. The petitioner- M/s. Dr. S. Sharan’s Testing Centre, Ranchi was issued Certificate of NABL on 10.08.2020 whereas the petitioner- MicroPraxis Labs, Ranchi was issued the said certificate on 3rd July, 2020. They have also been recognized by ICMR as the proved laboratories for carrying out RT-PCR test in the State of Jharkhand. Pursuant thereto, even the respondent-State of Jharkhand through the Jharkhand Rural Health Mission Society vide its letter no.1517(MD) dated 18.08.2020 and letter no.IDSP/2020/154-182 dated 6th July, 2020 issued to the petitioners, respectively, granted approval/clearance to them for collection and testing of Covid-19 samples at their laboratories through RT-PCR mode. The respondent-ICMR vide its communication dated 25th May, 2020 indicated, inter alia, that upper ceiling of Rs.4,500/- prescribed by it earlier for diagnosis or each Covid-19 sample may not be applicable in the prevailing circumstances in view of reduction in prices of testing commodities and, accordingly, advised all the State Governments/Union Territories Administrations to negotiate with private laboratories and to fix mutually agreeable prices for sample testing being sent by the government and also for private individuals desirous of testing by these labs. It is further submitted that vide order dated 14.12.2020, the Additional Chief Secretary, Department of Health, Medical Education & Family Welfare, Government of Jharkhand, Ranchi however unilaterally determined an amount of Rs.400/- towards each RT-PCR sample testing and an amount of Rs.200/- towards home visit for each sample collection but the petitioners and other private laboratories did not challenge the said unilateral exercise of the said respondent, as the rates determined by it were still workable and economically feasible. However, the Additional Chief Secretary, Department of Health, Medical Education & Family Welfare, Government of Jharkhand vide impugned order dated 20.01.2022 has again re-fixed/revised the rate of RT-PCR test @ Rs.300/- per sample and for Home Visit collection @ Rs.100/- per sample. It is also submitted that the aforesaid order of re-fixation of rate for testing of samples through RT-PCR method and rate of each home

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