Bhasin & Co wins ruling that hospitals not criminally liable for doctors' negligence

hospital_by_boliston
hospital_by_boliston
Bhasin & Co won a favourable verdict for its longstanding clients Apollo Hospitals that absolved the hospital company of any criminal liability for the individual negligent act of its doctor because mens rea or guilty intention cannot be ascribed to a company which is only a juristic person.

The firm had instructed senior advocate S S Gandhi in the matter which was brought before the Delhi High Court to challenge the 2007 order of a metropolitan magistrate issuing directions for registration of FIR (first information report) against Indraprastha Medical Corporation Hospital.

Bhasin & Co, senior associate Ranjan Jha had assisted Gandhi in securing the judgement against the Government of Delhi.

While dismissing the complaint filed against the hospital company it was held in the judgement that the offence of medical criminal negligence cannot be fastened on the company since the company can neither treat nor operate a patient on its own.

However, the court also took the view that the hospital must account for an administrative negligence or a negligence arising out of lack of basic infrastructure.

Bhasin & Co said in a statement: “The judgment is significant as the Delhi High Court has affirmed the settled law of corporate personality holding that company is only a juristic person i.e. a creature of law bound by its memorandum and articles of association and not a natural person, and therefore, does not have a mind or is capable to form any mens rea or guilty intention as required in criminal acts.”

“Thus, a company cannot be indictable for offences, like murder, hurt, cheating, bigamy, perjury, etc, which can only be committed by a human individual or for offences punishable with imprisonment of corporal punishment.”

Click here to download the judgment.

Photo by boliston

Comments

Anonymous guest 12 Aug 2010, 23:54
+0 -0
My condolences to the deceased patient's family. I am shocked at the judgement. Greedy corporate interests have yet again won against the common man. Hospitals charges lakhs for surgeries and must be held criminally liable. If there are lacunae with respect to coroprate criminal liability then we need new legislation in India. We also need a new law minsiter!

It is also interesting to note that Mr Lalit Bhasin had said on LI: "The legal profession in so-called advanced countries is a product of Industrial Revolution whereas in India it is a product of Independence Revolution." Please explain to me how Bhasin & Co represented the financially deprived underdog in this case. This case proves that Indian law firms are no different from foreign law firms. Neither are Gandhian organisations.
Anonymous guest 13 Aug 2010, 00:40
+0 -0
While these incidents are tragic, and cause no small amount of strife for the family of the deceased, a court of law must still view the case through the prism of law, and decide on the basis of what seems morally just, or automatically rule against the economically powerful. The question before the court was not whether or who should compensate the victim's family, but whether mens rea can be ascribed to a corporate entity. The Court rightly concluded that it cannot be (in these circumstances).
Anonymous guest 13 Aug 2010, 01:16
+0 -0
With due respect to the bereaved family, there is nothing path breaking about the judgment to make it newsworthy. The firm itself has stated that settled law has been reaffirmed. Just a cheap publicity stunt by the law firm. What next? Is the firm going to cackle loudly, blow its trumpet, or thump its chest every time it succeeds in the traffic court?
Anonymous guest 13 Aug 2010, 01:40
+0 -0
To my knowledge this is not the law in two advanced Western jurisdictions (both common law). If you dont make hospital liable for criminal negligence of doctor then chances of the hospital being held liable for civil damages (I know this law is not properly implemented in India) is remote.

Frankly, a patient should not care about the doctor having been jailed or not, he/ she should be worried about monetary compensation and hospitals are considered as the source of such compensation. Simple economic logic - hospitals profit from treatment of patiensts so should be liable to pay civil damages if something goes wrong.
Anonymous guest 13 Aug 2010, 01:50
+0 -0
Because the laws he argues in Indian courts are of 1800s that is why he calls himself belonging to a profession which is a product of Indian independence revolution.
Anonymous guest 13 Aug 2010, 02:04
+0 -0
I agree with #4. Corporates have more money and larger insurance cover and so for a victim it makes sense to target them rather than the employees/consultants of such corporates. Legally, I'm afraid the decision is right (obviously – it is the High Court after all!) though there might have been scope to angle for strict liability and avoid the mens rea argument. Given that we do not know all the facts or the pleadings filed, it is difficult to judge. However, at a policy level, I don't see why the legislature can't recognize corporate manslaughter – it is a crime in several jurisdictions (including UK and Hong Kong). Penalties usually include unlimited fines, remedial orders and publicity orders. After all, if a dog bite can be potentially strict liability, I don't see why a corporate turning a blind eye to malpractices of its employees (again, admittedly a generic statement seeing as how I do not know the facts of the case) shouldn't be liable.

As an aside: What about the impact of this case on the Bhopal Gas case and the like?
Anonymous guest 13 Aug 2010, 02:09
+0 -0
Bhasin & Co said in a statement: "The judgment is significant as the Delhi High Court has affirmed the SETTLED LAW of corporate personality holding that company is only a juristic person i.e. a creature of law bound by its memorandum and articles of association and not a natural person, and therefore, does not have a mind or is capable to form any mens rea or guilty intention as required in criminal act". If this is the settled law, what's so pathbreaking that this has to be reported by LI. Matters like these are argued by hundreds of lawyers on a daily basis across the country. Please stop reporting irrelevant news. As #3 has pointed out - what next...traffic courts / got a traffic fine overturned? Kian, your over-enthusiasm in patronising Mr. Bhasin & his coterie is increasing by the day.
Want to change the name of LI to "LB - Mouthpiece of SILF?"
Anonymous guest 13 Aug 2010, 02:47
+0 -0
Please dont blame Kian and LI for being supportive of SILF Lobby. i think he has done a great job by reporting about them. Dont you all see, the more he reports the more they stand exposed before us!

Keep up the good work Kian... Indian legal sector today is a far more transparent place because of LI.
Anonymous guest 13 Aug 2010, 03:49
+0 -0
SILF, aren't you people supposed to be disciples of Gandhi who are opposing foreign law firms becuase they are money-hungry? Please give me one example of pro bono work done by a SILF member. I can give you several examples of reputed foreign firms doing pro bono work. e.g. Matrix Chambers (UK's #1 barrister's fim) has fought for refugees and the disabled. In the US, Wilmer Hale has a separate human rights division and has fought for the marginalised. Many people with human rights LLMs are hired by such firms.

Mr Bhasin, I think you owe us an answer.
Anonymous guest 13 Aug 2010, 03:53
+0 -0
As a follow up to my above post I request LI to conduct a survey detailing the pro bono work done by Indian law firms. Let us compare that with firms abroad...we shall then see who follows Gandhi more!
Anonymous guest 13 Aug 2010, 04:13
+0 -0
Couldn't agree more with #9... and it's not just pro bono work in Europe but also in other countries, including India, in which these foreign firms are taking a lead. On one hand is SILF's struthian attitude and on the other is endeavours such as Action Aid and Clifford Chance sponsored run on India's Independence Day (are all the Gandhians paying attention?) with proceeds being earmarked for the benefit of street children in Andhra Pradesh. And that is just one example - there are numerous other UK and US firms involved in similar ventures in India and elsewhere. What is the CSR profile of these self-proclaimed "Gandhi's children"?
Anonymous guest 13 Aug 2010, 04:32
+0 -0
#11 Thanks. Unusual to address here, but I take this opportunity to request all readers in London to participate in the freedom run organised in aid of street children in India. This is on 15 August and has already getting a lot of support. Please visit
http://www.freedom-run.co.uk/
Anonymous guest 13 Aug 2010, 16:13
+0 -0
not just law firms but indian corporates are generally selfish hoarders of wealth. bill gates and warren buffet have given so much money to charity. compare that with mittal, ambanis and mallya.
Anonymous guest 13 Aug 2010, 19:29
+0 -0
Why are you obsessed with Bhasin, LI? Is this paid content?
Anonymous guest 13 Aug 2010, 19:41
+0 -0
It seems there is slander campaign going on against SILF and Shri Lalit Bhasin. Those supporting foreign law firms are supporter of general dyer and know nothing of Indian culture and tradition.
Anonymous guest 13 Aug 2010, 20:15
+0 -0
I agree with # 15. Personal prejudices should not come in the way of the dissemination of information benefitting to the legal fraternity as a whole. It is very easy to cast doubt on integrity of someone like kian, however it is doubtful whether the said cynical doubters would themselves volunteer to make any effort aka Kian Ganz.I wonder why the worthy intellectuals didnot protest or fill the newspapers with comments/objections when the said news was reported so prominently in all the newspaper a couple of days back? Indeed a case of spare the message and shoot the messanger.
Anonymous guest 13 Aug 2010, 20:50
+0 -0
@15 - Please tell us about more about Indian culture and tradition... oh pretty please let us glean at the wealth of Gyan on Indian culture and tradition in your repository... or maybe we should head to some chambers of lawyers for that?
Anonymous guest 14 Aug 2010, 21:33
+0 -0
SILF is only hope against second colnisation of India by goras.
Anonymous guest 15 Aug 2010, 15:56
+0 -0
this 'settled law' has been unsettled in most civilised countries. this is not a defense in cases where fraud and negligence occurs. just pick up a book on enviroment jurisprudence. Although this is not my area of practice, i believe the courts took a different approach in M.C. Mehta v. Union of India ( Shriram Food and Fertilisers Ltd) case.

of couse as long as you do not allow proper defense to the victims- be it of this case or Bhopal or any nuclear dispute in the future. This is a right example of why you need 'conditional fees' and allow foreign experts to pratice.
Anonymous guest 16 Aug 2010, 17:26
+0 -0
@19 Conditional fees is absolutely unethical !! what are we, stock brokers / real estate agents???
Anonymous guest 16 Aug 2010, 18:42
+0 -0
@20 o really..and where does ethics go when lawyers go on strike or even rampage (like they did in madras high court some time back). most stock brokers are more ethical than lawyers. lawyering is a business and should be treated like that.

conditional fees will be beneficial both for the clients and lawyers.
Anonymous guest 16 Aug 2010, 18:50
+0 -0
@21 Why do I feel that you are less of a lawyer and more of a pimp??!!
Anonymous guest 16 Aug 2010, 19:13
+0 -0
@ 22 beacuse u have a dirty mind. u cannot argue with logic and hence go personal. in one sentence- u r a bad lawyer.

read up some books of ethics and jurisprudence. the reason why condditional fees is not allowed in india is beacuse lawyers are supposed to be officers of the court and all work done by them should be for the furtherence of justice. this is a logical argument against conditional fees expected from a person who has read the law.

by the way, the stigma of being a pimp is in what he deals in. defined your way, every any person who represents another person is a pimp. defined ur way all investment banks are pimps. wondering how will u classify lawyers who work for them??
Anonymous guest 16 Aug 2010, 19:55
+0 -0
most lawyers and firms in india are pimps. but i respect pimps more bcoz they dont pretend to be gandhians.
Anonymous guest 16 Aug 2010, 21:51
+0 -0
As a corporate lawyer, and talking purely economics (not from any ethical standpoint), I am against this conditional fees business. Very often, one ends up doing all the work, write memos, provide advice and opinions and clock in a huge amount of billable hours while the transaction may not close because of commercial or other reasons. In these conditions, would a conditional/success fee be justified from a law firm's perspective. In my view, we should get paid for the work done, which should not be contingent on the success of the transaction.
For litigating lawyers, however, I do not know whether it may appear to be unethical for contingent fees and be reduced to becoming ambulance chasers.
My personal views....and I am not a pimp (whichever way you interpret the word).