The Karnataka High Court has in two separate matters directed the Bruhat Bengaluru Mahanagara Palike to pay over Rs 10 crore to two medical establishments for services during the pandemic. The matters were heard by a bench of Justice S R Krishna Kumar, with the final order being delivered on June 2 and made publicly available this week.
Vijayalakshmi Diagnostics Private Limited approached the court for the recovery of Rs 5.8-crore dues from the BBMP, to which the company supplied RT-PCR testing services in 2020-2022. The court observed that the facts were similar to another case, already decided, involving BGS Global Institute of Medical Science, where dues of Rs 4.5 crore were payable for providing 24 x 7 RT-PCR services.
The BBMP argued that the Covid inquiry commission–set up to examine irregularities in the pandemic management–had rejected the company’s request to pay the bills.
BGS Global Institute, however, contended that their services and the payment were not part of the subject matter of the inquiry, led by retired judge Michael Cunha.
The court observed, “It is an undisputed fact that the claim of the petitioner…is towards non-payment of dues in relation to RTPCR tests conducted by the petitioner, which are clearly not the subject matter of the enquiry before the Covid Enquiry Commission. Under these circumstances, I am of the view that no reliance can be placed upon the said order dated 27.10.2023 passed by the Covid Enquiry Commission by the BBMP in order to avoid its undisputed liability to pay the pending dues in favour of the petitioner, who would be entitled to recover the same from respondent No.2-BBMP.”
The court said the mere pendency of the inquiry could not be a basis to withhold undisputed dues and directed the payments to be made along with interest calculated at 6 per cent per annum.