Authority Must Dispose Of Applications To Renew Registration Of Clinical Labs Within 1 Month, Failing Which Labs Can't Be Held Liable: Karnataka HC

The Karnataka High Court has set a deadline of one month for the competent authority to dispose of the application filed seeking renewal of a clinical laboratory under the Karnataka Private Medical Establishments Act, 2007 failing which registration of crime for the offence of non-registration cannot become an offence, against those clinics.

A single judge bench of Justice M Nagaprasanna held thus while allowing a petition filed by B Gopala Krishna & Another and quashed the offence registered against them under 23, 23(1), 23(2), 20(1), 20(2), 20(3) of the Pre-natal Diagnostic Techniques (Prohibition of Sex Selection) Act.

The bench said “It becomes necessary for the Competent Authorities to dispose of the application filed seeking renewal of registration within a reasonable time. Reasonable time, in the opinion of the Court, would be one month from the date of receipt of application failing which, non renewal of registration of any clinic cannot become an offence against those clinics if the clinics/laboratories have submitted their application within time with all necessary documents.”

Further, the court warned that “In the event the officers would not dispose of the application within one month, they shall incur the wrath of facing disciplinary proceedings for dereliction of duty, as callousness of those officers will lead to unnecessary registration of criminal cases against the laboratories.”

Krishna owns a clinical laboratory and was in operation from 30-10-2017 through 29-10-2022. On 26-09-2022, he paid renewal fee as is necessary under the Act for renewal of certificate of registration. For two years no action is taken on the application.

On 22-02-2024 the District Health and Family Welfare Officer and his team members conducted an inspection and search in the clinic and seized one ultrasound machine. Another team came on 27-02-2024 and conducted a search in the diagnostic centre of the laboratory. Following which a case came to be registered and the Magistrate court later issued summons on taking cognizance.

The petitioner argued that the petitioners had not committed any offence under the Act. The prosecution opposed the plea saying the lab was operating with a valid licence.

On going through the records the court noted the petitioners have long before expiry of registration submitted an application seeking renewal along with the requisite fee. The Competent Authority sleeps over the file for two years. For the folly of the Competent Authority who had displayed a lackadaisical attitude or sheer callousness, the petitioners are made to suffer.

Thus it held “Therefore, the observation that the clinic is being run without a registration cannot be laid against the petitioners, as it is dereliction of duty on the part of the Competent Authority to have kept the file for over two years.”

Further junking the allegation of sex determination being conducted, it said, “The allegation is, no records of scanning are found in the machine nor in the existing media. The only allegation projected is non-maintenance of form. Form-F deals with maintenance of records in the case of pre-natal diagnostic tests. If the pre-natal diagnostic test is done, Form-F would be maintained. The submission is that nothing of that sort has happened in the scanning centre.”

Noting that no show cause notice had been issued to the petitioners before initiating prosecution, the court allowed the petition, quashed the case and directed the authority to consider and dispose of the application of the petitioners for renewal of licence.

Appearance: Advocate Tejasvi K V for Petitioners.

Additional SPP B N Jagadeesha for Respondents.

Citation No: 2024 LiveLaw (Kar) 447

Case Title: B Gopal Krishna & ANR AND District Commissioner, District Appropriate Authority & Others

Case No: CRIMINAL PETITION No.6934 OF 2024

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